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The digital transformation of public administrations involves not only the incorporation of technologies but also the modification of processes, organizational capabilities, and ways of delivering services. In this context, the present study aimed to analyze the perceived progress and obstacles in the implementation of administrative innovation and digital transformation strategies in the Municipality of Panama. A quantitative, descriptive, non-experimental, cross-sectional study was carried out. Forty-eight public servants from various municipal administrative units participated, selected through purposive non-probability sampling. For information gathering, a structured questionnaire with a five-point Likert scale was used, consisting of closed questions and one open-ended question. Quantitative data were processed using relative frequencies and percentages, while the open-ended responses were organized thematically. The results showed a favorable rating of 91.7% for perceived efficiency, 87.5% for top management support, 83.3% for the integration of digital platforms, and 75.0% for the simplification of bureaucratic processes. Training had the lowest favorable rating at 58.3%, and it had the highest proportion of neutral and unfavorable responses. The open-ended responses identified obstacles such as the persistence of manual processes, connectivity limitations, and differences in the use of digital tools. It was concluded that participants see progress in technological, managerial, and efficiency areas, while training and the integration of technology and processes are areas that could be strengthened. The results reflect the perceptions of the participating group and do not allow for establishing causal relationships or statistical generalizations.