**2. Value of electronic services**

Electronic services are in this context referred to as e-Services, which relates to services that public organizations provide. The term e-Services is further defined as interactive, contentcentred services are accessed through the internet (Rust & Kannan, 2002; Rust & Kannan, 2003). Most e-Services are related to information: the internet is a way to access information independently of time and location. However, there is an increasing demand on interactive and transaction-enabled services through the internet (Ancarani, 2005). Clearly, e-Services need to be integrated into processes and systems of the organization that provides them, especially if the services are transaction-related (de Ruyter et al., 2001).

Travel industry is a good example of an industry, which uses information technology extensively. The customer or the traveller has the possibility to make reservations, get to know hotels, car-rental services and more in the travel destination. The internet gives the traveller services which earlier were possible only through the travel agency. This gives the traveller better control on the travelling experience. The result is a change in the infrastructure of travel industry; today customers are increasingly making reservations by themselves. From the service providers perspective it is critical to have visibility in the internet; the service should be listed when the traveller is planning trip and uses search engines like Google in this. The issue here is that traveller needs to do the planning; technology just shows different options (routes, hotels, fares etc.) to choose from. It is likely that in the future this is not enough, more advanced services will be developed which help in travel planning and adjust to changes in schedules, for example (de Ruyter et al., 2001).

With e-business small- and medium sized companies can compete globally. The most significant benefits of e-business are connected to transactions and communication (Dutta & Roy, 2003). Internet lowers transaction-related costs for both buyers and sellers. Companies can change prices on-line when raw-material costs change, for example. At the same time buyers have access to up-to-date prices directly from their terminals - most online shoppers use comparison-shopping engines (Mulpuru, 2007). Internet allows restructuring of processes which results better profitability - these are important issues for all companies, and are motivators for development in the public sector as well. Even though goals, ethics and values are slightly different business-like performance measurement has been evolving in public sector organizations as well (Van Der Wal et al. 2006; Parhizgari & Gilbert, 2004).
