DIGITAL TRANSFORMATION AS A TOOL FOR PUBLIC SECTOR MODERNIZATION

DOI: 10.31673/2786-7412.2025.029265

Abstract

The article considers digital transformation as a systemic tool for
modernizing the public sector in the context of the emergence of a new form of
government – netocracy. Particular attention is paid to the shift in the management
paradigm from the traditional hierarchical model to a network-oriented, knowledgecentric public administration based on digital competence, access to information flows
and strategic platform management. The focus of the study is the phenomenon of
netocracy as a new type of power transformation, in which legitimacy moves from
official mandates to digital reputation and influence in the information space.
The relationship between digital technologies, public services, algorithmic
management and new sources of legitimation is analyzed. It is emphasized that digital
transformation is not limited to the technical improvement of public services, but is a
deep systemic change in management logic that integrates elements of openness, anticorruption, social inclusion and adaptability.
The Ukrainian case study – the «Diya» platform and the activities of the Ministry
of Digital Transformation of Ukraine as examples of the implementation of digital
governance built on netocracy principles – is examined. The potential of digitalization
for ensuring sustainable development, improving the quality of governance and
implementing citizensʼ digital rights is revealed.
The challenges of the digital age are separately analyzed: issues of
cybersecurity, digital sovereignty, risks of algorithmic discrimination, accessibility of
digital services for vulnerable groups of the population. It is substantiated that digital
transformation in the context of the emergence of netocracy is not only a tool for
innovation, but also a mechanism for updating the model of public administration and
forming a new social contract between the state, citizens and digital elites in the context
of global changes and military challenges.

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