Organizations' strategic change projects and programs involving the implementation of IT services have interested project scholars. Yet, we still know little of how public sector universities, for example, adapt to the ongoing digital transformation and the challenges they face when aiming to transform their operations into a digital one. To address this issue, we conduct in-depth fieldwork to examine the activities that make up the establishment of the Digital University. Focusing on a leading technological university in Sweden that is undergoing digital transformation, the purpose of the case study was exploratory, i.e., to gain experience and an understanding – to raise issues for further research on the organizational challenges a university faces when undergoing digital transformation. To this end, the focus of the study was to delve into how digitalization efforts were managed and organized and if and when a more strategic approach was adopted. Our findings highlight that the university's need to quickly adapt and remain relevant based on new technical opportunities, as well as appoint competent staff, was the driving force behind the implementation of IT services. Based on our findings, we can conclude that some extensive challenges arise due to the actual change process and several organizational challenges because the digital transformation is skewed towards increasing efficiency rather than the adoption of more strategic innovation practices.