Aim. The presented study aims to develop an approach to selecting a process in the organization’s activities or a section of a separate process, the digital transformation of which will produce the greatest effect.Tasks. The authors determine a general approach to choosing where to apply digital technologies in an organization or in the transformed process to the greatest effect; develop criteria for choosing where to apply a transformational solution during digital transformation; create a conceptual framework for process analysis during digital transformation; ensure the reproducibility and efficiency of digital transformation regardless of the level of competence of the responsible manager.Methods. The methodological basis of this article includes studies on digital transformation, theoretical and practical materials regarding the application of transformational solutions during its implementation, and practical cases of digital transformation. The applied methods make it possible to identify patterns and form a conceptual understanding of the approach to analyzing the efficient use of digital technologies. When searching for a conceptual solution to the problem of finding a place to apply digital technologies, the authors use their developments in the field of digital transformation.Results. The DIGITAL analysis method developed by the authors contains a conceptual understanding of criteria for choosing where to apply a transformational solution during digital transformation within the specific transformed process, making it possible to digitally transform any process or organization as a whole until they reach the level of digital maturity corresponding to an autonomous technical system. The developed method of DIGITAL analysis increases the efficiency of digital transformation and does not require significant experience in its implementation. The novelty of DIGITAL analysis is that it makes it possible to turn digital transformation into a formalized process instead of the usual application of well-known digital transformation cases.Conclusions. The DIGITAL analysis method not only increases the efficiency of digital transformation, but also provides an opportunity to effectively choose where to apply a transformational solution. The developed method of DIGITAL analysis can be used independently or as a component of a comprehensive methodology for conducting digital transformation. The use of DIGITAL analysis is not tied to a particular industry or process under consideration.

Despite the widespread use of digital technologies, the economic nature and essence of digital transformation remain understudied. The article examines the aspects of the principal–agent problem amid digital transformation, which implies replacing a person or analogue machines with digital technologies. Transformation is needed to gain additional economic advantages or improve the flexibility of the organization’s activities within the concept of Industry 4.0. The research demonstrates that the underlying economic reason for digital transformation is to solve the problem of information asymmetry and overcome the principal–agent conflict through the use of digital technologies. The concept of digital transformation and the principles of the principal–agent theory constitute the methodological basis of the study. Among the research methods were generalization, the inductive method of knowledge formation, and the assessment of the conclusions’ completeness with the involvement of theorists and practitioners in the field under consideration. The study allowed broadening the understanding of the principal–agent theory: establishing the roles of a human agent and a machine agent, as well as highlighting the essential economic aspects of digital transformation. The results obtained can be used to create digital transformation methodologies and research on the organization of labour in this field.