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Large or medium scale machine manufacturing companies are generally in possession of a mass of NC machine tools. The cutting tools are mostly dispersed over workshops and branch factories, where self-government is carried out. Because of the comparatively independent management, resources are difficult to share and the level of resources utilization is low. It is necessary to study digitized configuration and automated management of cutting tools, thereby effective and unified management can be realized. Concept of virtual tool, logical tool and physical tool are presented in this paper, and digitized configuration model of cutting tools based on technics is defined. The selection process of tools can be divided into confirmation of virtual tools and matching of logical tools. Tools' automated selection is actualized in the process, the tool information in automated tool warehouse are well considered as well, which can optimize the selection of tools and confirm physical tools. Finally, content of specialized management of tools is stated. Application of the research findings to Zhengzhou textile machinery Inc. is introduced, and the next research direction is pointed out.