In recent years, digitalization has become one of the priority directions for Ukraine. The Ministry of Digital Transformation aims to make the country one of the leading nations in the field of technology and development since we already have some developments (such as digital identifiers without internal restrictions) that are not yet available anywhere else. Ukraine is advancing with the concept of building a digital state and is becoming a leader in providing services for citizens and businesses. The purpose of this article is to define the concept of digitalization. Today, it is established that the Ukrainian economy has both practical and theoretical-legal foundations to strengthen its position among the countries of the world. However, digitalization in Ukraine remains an innovative process. Therefore, a study of the state's policy on the implementation of a digitized economy was conducted. The main directions in which digitalization is developing were identified, and their level of development was analyzed. Additionally, the article lists several projects and programs that started operating during the implementation of the «Europe 2020» Strategy adopted in 2016. Several new digital technologies that could contribute to the formation of business models were highlighted. The article describes Ukraine's participation in European programs, the areas of activity funded by these programs, and their results. During the scientific research aimed at achieving its objectives, a comprehensive methodological approach was employed. This approach encompassed a systemic methodology, innovative and functional methods, as well as methodological tools for conducting comprehensive, bibliographic, and comparative analysis. The justified significance of the topic lies in the context of war, specifically how the state manages to maintain cybersecurity at an adequate level and restrain inflation through the Ukrainian digital market. The development of a digital state in Ukraine involves the advancement of military and defense technologies, revolutionary simplification of public services, the establishment of satellite internet stations, digital transformation of key sectors of the economy, and the integration of digital topics into educational programs. The article presents a list of measures that could potentially ensure the competitiveness of IT sector employees. This article proposes a structured and logical sequence for the development and implementation of a digitization strategy, describing the content of individual stages of the process. Conclusions were drawn based on the conducted research.