This thesis aims to answer the question of how digital technologies create new value pathways within a complex public sector organization. As the public sector faces new and varying challenges, we find it important to highlight how value is generated within a digitalizing organization faced with legal regulations, inertia, and a bureaucratic top-down management model. Also, how different recipients of the value generated with wildly different needs are affected. Performing a case study and conducting semi-structured interviews coupled with rigorous analysis of documents to answer the research question. We apply a digital transformation framework of Holmström (2021) as a lens for understanding how a unit within a larger organization generates novel value pathways. We found that the combinatory and boundary dissolving effect of change guided through a clear digital strategy within several dimensions of the framework is what generates the possibility for new value pathways. However, there is still a need for more longitudinal and reductionistic studies on the smaller details of the phenomena to define the most contributing variables of value creation by using digital technologies.