Transformational initiatives concerning electronic forms of governance occur increasingly often in our time. However most of them are characterised by lack of deeper understanding of the dynamics and possibilities of organizational and technological change in governmental settings. This paper endeavours an investigation of the undercurrent processes of organizational and technological change in the field of electronic governance. We base our research on the interpretive analysis of research data that were gathered through participant observation of two European research and development e-Government projects. In addition some more general implications are offered, based on our case studies, concerning the transformation of business processes, the changes in analysis, design and implementation of IS for e-Government, and electronic governance strategies. We believe that these implications can prove useful in both analyses and implementations of electronic governance.