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Source - Wikipedia

The central "secret" of the series is that Jem is in fact the alter ego of Jerrica Benton, owner/manager of Starlight Music, who adopts this persona with the help of Synergy, a holographic computer designed to be the ultimate visual entertainment synthesizer (built by her father, Emmett Benton, who left it to her on his death), to acquire more money to not only support Jerrica's own company, Starlight Music, but to also support the Starlight Foundation for Girls, a foster program founded by Jacque Benton, the mother of Jerrica and Kimber Benton.

The other Holograms are Kimber Benton, Jerrica's younger sister, keyboardist and main songwriter for the band; Aja Leith, guitarist; and Shana Elmsford, who plays the synth drums. Aja and Shana are also childhood friends and adopted foster sisters of Jerrica and Kimber. Shana briefly left the group to pursue a career in fashion, in a two-part episode called "The Talent Search," where a new character, Carmen "Raya" Alonso, is introduced as her replacement. When Shana returns, Raya Alonso remains the Holograms' drummer while Shana takes up the guitar again. Only the Holograms are aware of Jem's secret identity, although Jerrica revealed it to the United States President in a season 2 episode, "The Presidential Dilemma," and an old Tibetan woman in the episode "Journey to Shangri-La,". Episodes of the series frequently revolve around Jerrica's efforts to keep her two identities separate. Jerrica's other main concern is Starlight House, a home for foster girls run by the Holograms. The Holograms' main purpose is to fund the Starlight Foundation and support the Starlight Girls. Jerrica's childhood home, where the foster girls were previously housed, was accidentally burned down by Zipper, one of Eric Raymond's not-too-bright henchmen. Jem and the Holograms later won possession of the Starlight Mansion when they competed in the Battle of the Bands as well as a movie contract which were offered spontaniously by movie producer Howard Sands (based on real-world director John Waters)

The Holograms have 2 rival bands, one of which are called the Misfits: petulant rich girl Pizzazz (Phyllis Gabor) and her cohorts: no-nonsense Roxy (Roxanne Pelligrini) and kind-hearted, sensitive keytar player Stormer (Mary Phillips), who are later joined by the manipulative British saxophone player, Jetta (Sheila Burns). Most episodes of the series involve a plot by the Misfits to upstage Jem and the Holograms' latest glamorous escapade. This rivalry is encouraged and manipulated by their manager, the ruthless Eric Raymond (the once half-owner of Starlight Music, who constantly plots to be its owner again in the series). In the middle of the third season, the second band, the Stingers (Riot [Rory Llewellin, lead singer and egotistical], Rapture [Phoebe Ashe, female guitarist and professional con-artist], and Minx [Ingrid Krueger, on keyboard and a man-manipulator]), appear and shake things up for both groups (even though they are later under contract with Eric Raymond and the Misfits). In the final episode of the series, all three groups seemed to have declared a truce when Ba Nee, one of the most troubled foster girls in Starlight House, was claimed by her long-lost father found by Jem and the Holograms.