To convert an analog signal to digital signal, three steps have to be

followed.
1.Sampling
2.Quantizing
3.Encoding
Sampling converts a continuous time signal to Discrete time signal.
However,after sampling, the signal amplitudes will be still continuous.
Hence to convert continuous amplitude signal to discrete amplitude
signal, Quantization has to be performed wherein the signal amplitudes
are rounded off to a nearest value to obtain discrete amplitudes.
Of course, after encoding the discrete amplitudes, a complete digital
signal is obtained.
Refer to "Principles of communications" by Taub and Schilling for
excellent illustrations.