Document Type



This work examines a challenge faced by governments in implementing private sector delivery solutions. More specifically, an inherent problem when attempting to shift government services provided at traditional point-of-sale facilities to alternative delivery channels, such as kiosks or through the internet, is studied. It is shown that while technical solutions, such as internet applications, can be readily developed to achieve a desired business objective, the non-technical operational aspects such as payment structure, customer expectations and acceptance, and marketing have a larger role in determining success.

The experiences of the California Department of Motor Vehicles are used as an example in this paper. The department’s funding and cost recovery challenges in implementing internet based solutions are discussed. Actual measurement output data from the department are presented.