Dear Singh,
There is no any specific software to convert traditional library to digital library or virtual library.
there is long process to convert the above process.
you can also create you digital library, on greenstone or DSpace.
BTW is is to too long process............ you have to cover many areas.
Sir converting a school library to digital is very big process for that we need the full management support.
One of my suggestion is school children should have the habit of reading books so better try to do automation for the library plus try to have Dspace with the digital resource which you have in library that will help the students a lot.
Dear Ajeesh.
As you asking the "the big process" that is:
Firstly you have to fight with your Management;
You have to have electronic materials to uploading in digital library;
If not you have to convert print materials into electronic;
For converting in electronic, you have to have Scanner of good quality;
After that you have to have OCR converter software;
Now you have to choose software for creating the digital library;
For that you have to study different s/w for same;
After choosing s/w you have to do some customization according to your need;
Now you have to require IT skilled staff;
Finally You have to make policy for using the your digital library.
If you need more explanation please feel free to write me anytime at pvzlib@gmail.com