A networked economy is an environment in which any company or individual in any economic system can contact with minimal cost with any other company or individual about teamwork, trade, exchange of ideas, or just for fun. The networked economy sets the vector along which socio-economic systems of micro, meso, macro levels will develop in the long term, which necessitates research and comprehensive analysis of digital transformation processes. The authors analyzed the essence of the network economy and its impact on the sphere of management, analyzed the current state of the Ukrainian system of public administration in the network economy's conditions and identified the main problematic tasks. Based on the analysis, the authors identified goals for the main areas of public administration and proposed a scheme for the organizational transformation of the public administration system in a networked economy. The authors also proposed a system of indices to assess the state of transformation of the public administration system in a networked economy and identify development trends.