The precise locations of the poles and zeros depend on both the desired characteristics of the closed loop response and the characteristics of the system being controlled. However, the pole and zero of the lag compensator should be close together so as not to cause the poles to shift right, which could cause instability or slow convergence. Since their purpose is to affect the low frequency behavior, they should be near the origin.
Both analog and digital control systems use lead-lag compensators. The technology used for the implementation is different in each case, but the underlying principles are the same. The transfer function is rearranged so that the output is expressed in terms of sums of terms involving the input, and integrals of the input and output. The reason for expressing the transfer function as an integral equation is that differentiating signals amplify the noise on the signal, since even very small amplitude noise has a high derivative if its frequency is high, while integrating a signal averages out the noise. This makes implementations in terms of integrators the most numerically stable.