The digital transformation of society is ubiquitous, and even well-established educational institutions are affected. Universities need to adapt to the ongoing digital transformation, both to stay relevant but also to prosper. Yet, many public sector universities face obstacles when aiming to transform their business into a digital one, and this calls for research into the strategic organizational elements and related factors that hinder or aid the process. Drawing from an in-depth case study, it analyses data collected via a survey and multiple interviews to explore the organizational challenges a university faces when starting to adapt to digital transformation. The study shows that an organization's collective understanding of its business logics is a prerequisite to advancing digital transformation. The study of a university also shows that the digital transformation focus is skewed towards increasing efficiency rather than the innovation of new practices.