This work was elaborated with the aim of clarifying the role of digitalization in creating effective management, i.e. how much the computerization and digitalization of the management system can contribute to meeting the fundamental principles of good governance. In the first place, modern public administration is based on the principles of a functional state which is not an instrument of compulsion for citizens, but rather a service designed to meet their needs. Efficient and prosperous public administration is the basis for the development, investment attraction, participation within the European administrative and economic space and customer satisfaction. Public character, responsibility, openness, zero tolerance towards corruption, user orientation are the basic principles of the work of the public administration. In order for public administration to fulfill the basic objective and become cheap, fast and efficient citizen service, one should be able to make full use of information and communication technology. The results of the comparative method applied in case of two countries, Denmark and Croatia, in the area of digitalization of the administration can serve as an administration efficiency development model in Croatia and encourage further procedures based on the Danish management model. Denmark is the leader when it comes to digitalization of the administration, not only in Europe, but also worldwide, and some elements are certainly applicable in other countries, as well as in Croatia.