Digital Transformation in Higher Education: Challenges and Transformation Directions

Research purpose. The purpose of this paper is to analyse the challenges and transformation directions of digital transformation in higher education institutions (HEIs), with a direct focus on management processes. The paper study applies a systems-based managerial perspective to identify and systematise the main and supplementary processes directly affected by digital transformation, and to evaluate their implications for governance, institutional competitiveness, and academic performance. Design / Methodology / Approach. The study is based on secondary sources, including legislation and policy documents, and publicly available studies. A qualitative case study and thematic content analysis were applied to examine strategic and operational documents of nine Lithuanian HEIs. Document selection followed the defined inclusion criteria of relevance, validity, and institutional scope. Coding was performed using both deductive and inductive categorisation. The study adopts a systems approach to the digitalisation of higher education, focusing on aspects such as the transformation of higher education, process transformation, and the governance of digitalisation of higher education processes. Findings. Digitalisation is transforming the main functions of HEIs, reshaping traditional activities into new formats. At the same time, findings reveal that digitalisation is unevenly implemented across different institutional processes. Core academic functions such as study organisation, assessment, and research are more advanced, while supplementary areas like student support, administrative modernisation, and digital communication remain underdeveloped. The study identifies challenges in managing digital transformation and highlights areas where effective governance solutions are lacking to ensure a smooth and sustainable transition. Key governance challenges identified include the lack of strategic alignment, limited system capacity, and insufficient digital competencies among staff. Originality / Value / Practical implications. This research contributes to the understanding of digital transformation in higher education by offering insights into the challenges and opportunities associated with digital transformation. It provides a systems-oriented contribution by combining managerial decisions with technological change, emphasising governance, leadership, and organisational culture. Practical recommendations are offered for HEIs, particularly for institutions with limited resources, on how to prioritise actions, enhance digital capabilities, and implement digital strategies.