Digital transformation in the public sector is no longer limited to technological upgrades or online service delivery; it represents a profound paradigm shift in how governance, innovation, and public value are understood. This study explores digital transformation as a conceptual reorientation in public administration theory, moving beyond the traditional bureaucratic and managerial logics that have historically shaped public institutions. Using the Digital Era Governance (DEG) framework proposed by Patrick Dunleavy and colleagues, the paper examines how digitalization reshapes the principles of efficiency, accountability, transparency, and citizen engagement within governance systems. Adopting a qualitative research approach based on secondary data, the study draws upon academic literature, theoretical writings, and policy documents to interpret how digital transformation redefines administrative processes and innovation practices. It investigates how governments transition from rigid hierarchies to more networked, agile, and data-driven models of governance. The paper highlights that digital transformation is not merely a tool for service improvement but a catalyst for conceptual innovation, altering how public institutions learn, adapt, and interact with citizens. By framing digital transformation through the DEG lens, the research underscores a theoretical evolution in public administration—one that shifts from control and compliance toward collaboration, co-creation, and public value generation. Ultimately, this study argues that digital transformation represents both a structural and theoretical transformation, redefining governance as an open, adaptive, and citizen-centered process in the digital age.