Since the digital technologies are rapidly developing, the significance and the need for digital transformation has been widely recognized. The term digital transformation implies all the changes made with the help of digital technology. Various possibilities accessible via Internet improve the citizens’ lives. The daily use of digital technologies enables citizens to communicate in a quicker and easier manner and to be more socially engaged, which forms a digital society. Young people are adjusting to the benefits of new technologies faster and the digital transformation of education ensures faster access to information. What is more, the digital transformation guarantees that the process how to use digital technologies is a correct one and safe. Digital society has greater expectations from the surrounding environment resulting in an increase of urban population. The cities need to respond to these needs by developing smart public service solutions that provide citizens with a higher quality of life. This ultimately leads to the development of “smart” cities. The omnipresent digital environment is a suitable working and living environment for digital nomads. The importance of digital transformation has been recognized in Croatia, so the e-Citizen system has been established for the purpose of simplifying the communication between the citizens and the public administration, making various e-services more accessible. Due to the recently developed living and working conditions caused by COVID-19 pandemic, it is important now more than ever to have as many as possible of the services and pieces of information available online. This paper encloses and clarifies the concepts and processes related to digital transformation linking the terms such as digital society, digital environment and smart cities. In this regard the e-Citizens system offers solutions to previously mentioned challenges through numerous e-services presented by statistical indicators, service types and user growth. The paper concludes that although the introduction of public e-services has achieved a significant step towards quality and the higher level of efficiency, it is necessary to make further investments to reach the full potential of digital transformation.