This study aims to explain the resources, capabilities and management choices necessary to respond to the new environment for the case of public university institutions. There is little research about responsiveness to the digital transformation in public universities. The methodology is based on literature review and a case study. A Public Agency Strategic Analysis is used to identify relevant issues to conduct the case study. Results show that the organizational processes, talent management and education service models have not been transformed as a result of emergent technologies. The work provides a comprehensive analysis of the capabilities, barriers and the role of the bargaining power of multiple forces affecting the digital transformation of a public sector organization. The article provides specific and actionable recommendations on relevant challenges when public university institutions conduct a digital transformation process.