The subject of the research is the transformation of the state institution under the influence of the digital revolution. The choice of topic is determined by the transition of the state institution from bureaucratic to service and from service to digital. This transition entails significant changes in the methods of regulating public relations, the forms of state participation in the life of citizens, as well as the architecture of interaction between state, business and society in the new environment. The aim of the research is to create and justify a model of digital public administration, in which the necessary access to personal information of the digitized state will not be used against citizens. Therefore, the digitalization of public administration should be a tool to improve the efficiency of public services. The research methods are: institutional and comparative legal analysis, as well as methodology of value chain management by M. Porter. The results of the research show that (1) the created value chain of public administration includes main and auxiliary activities in the system of public administration in the digital state, (2) changes in the governance due to the increasing role of the digital state have been proved based on the doctrinal components of the new public administration of C. Hood, and (3) substantiated the reasons for the evolution of public administration through the prism of management structures: from linear-functional to project-functional structure and, as a result, to state digital platforms. Based on the declarations of the UN General Assembly, the conclusion is made that it is necessary to strengthen the control of the judiciary over the executive to avoid the establishment of digital totalitarianism. These findings reinforce the methodological significance of the evolution of public administration, as well as the practical value in reforming the system of governance under the influence of the digital revolution.