This chapter explores the modernization of the public sector through the lens of digital transformation. The authors trace the historical evolution of public administration, focusing on the decline of Weberian bureaucracy and the emergence of New Public Management (NPM) and post-NPM paradigms. Digital transformation is conceptualized as a process driven by both technological and institutional logics, rejecting technological determinism. Using James Thompson’s theory, the chapter frames public sector digitalization as a political process involving a tension between a technological and an institutional logic. The authors argue that modernization requires not only new technologies but organizational adaptation to uncertainty, complexity, and growing public expectations. The chapter critically engages with “Digital Era Governance” (DEG), emphasizing the challenge of aligning institutional structures with digital innovation. Ultimately, it lays the foundation for understanding digital transformation as a policymaking process shaped by actors’ interests, capacities, and strategic decisions in managing organizational change.