Issues in Implementing E- Commerce

The human services delivery system

One significant issue is the organisation of the Victorian human services sector. Many of challenges facing the implementation of the initiatives described above stem from the complexity and diversity, not to say fragmentation, of the existing structure of organisational relationships. A characteristic of the Victorian human services delivery system is the centrality of the large government organisation which works with a multitude of other autonomous organisations to deliver services to consumers.

Complexity of stakeholders

One important factor in shaping the Department’s operations is the complex range of stakeholders in the health and human services delivery areas. The three major stakeholder groups include

  • The recipients of government benefits (the ‘consumers’)
  • The agencies which provide services directly to the consumers
  • The government sector which establishes policies for allocating benefits to consumers and funds the provision of services.

Infrastructure requirements and costs

The Department and providers alike confront issues surrounding the development of infrastructure for any system that might be implemented. The dispersed nature of service delivery and the large number of service staff requires a substantial investment in whatever devices are used to support the system of delivery. While it is possible to use the telephone for data input, this is relatively cumbersome and inflexible, difficult for many to use and limited in its ability to record complex information.

Governmental and political complexity

The provider field is not the only one characterised by only diverse stakeholders and complex arrangements. The Government sector itself is divided along many lines. State governments receive funding from the national (Commonwealth) government. Both levels have policy frameworks which are not always completely coordinated. The area of Commonwealth-State relations is a complex one in all areas of government activity.

Multiple relationships among providers

The Department purchases services on behalf of consumers from many provider organisations but the agency from which services are purchased is not necessarily the agency which provides the services. This process of ‘brokering’ may occur in two ways. An agency may sub-contract some or all of the services the Department has purchased to other agencies. In fact, some agencies act solely as brokers rather than providers. Alternatively, the agency may place a consumer in a range of programs offered by other agencies and reciprocal or ‘cross brokering’ arrangements are not uncommon.

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