The working paper analyzes the specific conditions and challenges of digital transformation in public sector organizations. Unlike private companies, public sector organisations, such as government agencies, municipalities, or research institutions, operate according to different logics and are shaped by distinct legal, organisational, and cultural conditions that must be taken into account in digital transformation processes.
Based on a systematic literature review, the study synthesises the national state of research on digital transformation in public sector organisations. It focuses on conceptual models, structural adjustments, informal dimensions, as well as drivers and barriers of transformation. It also examines emerging roles such as digital officers, the role of digital strategies, and the implications for governance and decision-making processes. Against this backdrop, the paper identifies key empirical research gaps and avenues for further research.
Key findings in brief
Considering specific conditions rather than transferring concepts from private sector
The study shows that digital transformation in public sector organisations is shaped by specific structural conditions. These include a focus on the public good, legal requirements, political steering, bureaucratic structures, and strong path dependencies. These factors can slow down or constrain transformation processes. At the same time, tensions arise, for example, between innovation and legal certainty, or between digitalisation and data security. Against this background, key concepts from private-sector digital transformation, such as agility or “digital mindset”, cannot be directly transferred to public sector organisations. However, such transfers are often made without adequately considering or systematically assessing these specific conditions.
Digital Transformation as Organisational Change
The study conceptualises digital transformation not merely as the introduction of new technologies or digital services, but as a holistic process of organisational change. This includes shifts in decision-making processes, governance structures, workflows, and responsibilities. As a result, the focus extends beyond traditional e-government initiatives to broader organisational questions: How do organizations change internally? What new roles emerge? And how do digital technologies affect hierarchy, coordination, and collaboration?
Strategies, roles and governance
The study shows that digital transformation in public sector organisations is structurally anchored at multiple levels: through digital strategies, dedicated organisational units (e.g., digital units), and new roles and functions such as Chief Digital Officers or digital scouts. However, these approaches are often inconsistently defined, insufficiently aligned, or lack clear decision-making authority. Moreover, although numerous strategies and guiding frameworks exist, their effectiveness, operationalisation, and implementation have rarely been empirically examined.
Measurement, best practices and flagship projects
Numerous existing indicators and benchmarking studies primarily capture outward-facing digital services, such as online services for citizens. In contrast, the internal dimensions of digitalisation, the impact of specific measures, and changes in work processes and practices remain largely invisible. Although flagship projects and best practices play an important role in practice, they are rarely systematically documented, scientifically evaluated, or assessed in terms of their transferability. As a result, there is a lack of a robust evidence base to consolidate experiences and enable learning across organisations.
Organisational culture and informal factors
Another key area of analysis concerns informal factors such as organisational culture, organizational identity, openness to change, and the so-called “digital mindset”. In public sector organizations, new ways of working often encounter established routines, legal safeguarding logics, hierarchical structures, and risk aversion. Although these factors are widely considered relevant to digital transformation, they have so far been examined empirically only to a limited extent. As a result, their actual effects often remain unclear.
Research gaps and further research needs
The working paper identifies significant research gaps. There is a lack of theoretical and conceptual models that explain digital transformation as a comprehensive organisational change process in public sector organizations. In addition, there is a shortage of comparable data on the internal dimension of digitalisation, empirical evaluations of digital strategies and measures, and systematic analyses of the long-term effects of digital transformation on governance, work, decision-making processes, and organisational culture. Moreover, the existing body of research remains highly fragmented, with limited integration across different perspectives.
Overall, the study shows that digital transformation in public sector organisations is not merely a technical modernization effort. It fundamentally affects how these organisations operate and function. Consequently, it requires interdisciplinary, organisation-centred approaches that adequately account for their legal, structural, cultural, and political conditions.
