For decades, system modernization in the motor vehicle and driver services world followed a familiar pattern. Agencies would operate aging, often mainframe-based systems for as long as possible, then launch big multi-year projects to replace them. When the new systems finally went live, the goal was stability until the next inevitable overhaul down the road.

Today, that mindset is changing.

Across jurisdictions, and increasingly within AAMVA’s guidance to its members, modernization is no longer framed as a single, finite project. Instead, it is being viewed as an ongoing journey—one that requires sustained investment, disciplined governance and a cultural shift toward continuous improvement combined with a clear focus on enhancing the customer experience.

Reframing modernization

AAMVA has long played a critical role in system modernization, particularly in ensuring that jurisdictions’ systems continue to interoperate with national programs and services. As agencies modernize, their systems still need to exchange data reliably for driver records, vehicle information, law enforcement access and emerging digital credentials such as mobile driver licenses (mDLs).

However, modernization discussions historically focused on replacing internal systems and meeting jurisdiction-level requirements. Interoperability and long-term integration were sometimes secondary considerations.

Recognizing this gap, AAMVA published system modernization best practices in 2017, grounded in agile development principles and informed by jurisdictions that had experienced both success and failure in their modernization efforts. While the technology landscape has evolved, the core message remains relevant: Modernization must be planned for sustainability, not just delivery.

‘A System Transformation’

The Wisconsin Division of Motor Vehicles is on the verge of major modernization, replacing legacy technology that Administrator Tommy Winkler Jr. likens to “Windows in the early ’90s.” The state plans to modernize both driver services and vehicle services beginning in 2026.

But the most important shift isn’t the technology itself—it’s how Wisconsin is thinking about what comes next.

Wisconsin currently receives nearly $9.6 million annually in ongoing IT modernization funding from its transportation fund—an investment Winkler notes is essential for sustaining enhancement beyond go-live.

“We’re labeling this a system transformation,” Winkler says. “It opens opportunities to further enhance the ability for customers to serve themselves, and it positions us for ongoing improvement rather than another overhaul 10 or 15 years from now.”

That philosophical shift has tangible implications. Rather than treating modernization as a temporary disruption, Wisconsin is planning for permanent change. That includes:

• Ongoing funding, not just one-time appropriations
• Dedicated staff, not borrowed resources
• Clear limits on discretionary IT projects during core modernization phases

Wisconsin currently receives nearly $9.6 million annually in ongoing IT modernization funding from its transportation fund—an investment Winkler notes is essential for sustaining enhancement beyond go-live. Wisconsin is also exploring transaction-based technology fees as a long-term funding mechanism, following the lead of jurisdictions like Minnesota.

Building for Continuous Delivery

While Wisconsin’s approach centers on a large-scale vendor implementation, Idaho highlights what continuous modernization can look like when built in-house.

The Idaho Transportation Department’s Division of Motor Vehicles has spent years transitioning from mainframe systems to a cloud-based Microsoft customer relationship management system. The DMV initially tried to work with vendors, but after several failed launches, it took matters into its own hands.

“I am a huge fan of [modernizing] ourselves, because we have control over our own destiny. We have control over our prioritization of features and functions that we want to do,” says Lisa McClellan, motor vehicle administrator at ITD. “What has been amazing to me is what the cloud solutions offer. We can move so much more quickly with cloud and AI functionality than we were able to do the old way.”

Before Idaho’s modernization succeeded, the DMV underwent an organizational restructure. Siloed business units were reorganized around shared customer records and cross-functional collaboration. Leadership roles were redefined. Long-standing processes were challenged.

Idaho operates with a dedicated DMV development team that uses an agile methodology and deploys updates monthly rather than in significant, infrequent releases. This allows the agency to respond quickly to operational needs and policy changes and enables the DMV to adopt new technologies incrementally to test and analyze performance. For example, AI-enabled document processing is already producing measurable efficiency gains, freeing the staff’s time for customer interactions.

The result is not only improved customer service but also increased organizational resilience.

New Workforce Strategies

One of the most overlooked aspects of continuous modernization is staffing. “You can’t just think about money,” Winkler says. “There’s people’s time, people’s expertise.”

Wisconsin identified its core subject matter experts more than a year before implementation and began backfilling their roles so those experts could dedicate themselves full-time to the modernization effort. “If you pull people back and forth,” Winkler says, “it compromises your ability to do the project effectively and on time.”

“The era of stable, low-cost systems is over. Modern platforms cost more, but they also deliver more.”
Lisa McClellan, motor vehicle administrator, Idaho Transportation Department

Before Idaho’s modernization succeeded, the DMV underwent an organizational restructure. Siloed business units were reorganized around shared customer records and cross-functional collaboration. Leadership roles were redefined. Long-standing processes were challenged.

“That was the hardest part,” McClellan says. “But without changing the organization, the system would not have worked.”

Funding the Future

A recurring theme across jurisdictions is the reality of ongoing costs. Continuous modernization requires investment in software licenses, cloud infrastructure, cybersecurity, analytics and workforce development. “The era of stable, low-cost systems is over,” McClellan says. “Modern platforms cost more, but they also deliver more.”

Prashant Mittal, chief information officer at the California Department of Motor Vehicles, agrees. In recent years, the California DMV worked with a tight budget while drastically reducing customer wait times, expanding the number of services that can be completed online, improving the e-learning and online experience and increasing efficiency throughout the DMV. Mittal says this is due to implementing sensible, customer-first policies and adopting an attitude of “doing more with less.”

“We have done a great job of optimizing how we do things with fewer people, more accuracy and in less time, so any savings there can be directed toward various modernization efforts,” he says. “With this momentum and support, we are looking to continue the modernization journey and position the California DMV to serve the public now and in the future.”

No End Dates

The emerging consensus across AAMVA and its members is clear: Modernization is no longer about replacing systems. It’s about building platforms that can continuously adapt, evolve and improve.

For jurisdictions willing to embrace this shift, modernization becomes less of a disruption and more of a discipline—one that positions DMVs not as relics of the past, but as responsive, data-driven service organizations ready for whatever comes next.  

Group Effort

Technology is often the most visible component of modernization. However, lasting system transformation depends on organizational mindset and sustained leadership engagement.

For Prashant Mittal, chief information officer at the California Department of Motor Vehicles, modernization is less about specific tools and more about how teams approach their work. “If a customer has to tell me there’s a problem, I’m already late,” Mittal says, describing a shift from reactive troubleshooting toward identifying issues earlier and improving operational efficiency across the organization. “We have gained significant improvements over the last few years and improved customer satisfaction, just by shifting our mindset and approach toward looking at problems and how we solve them.”

That mindset is reflected in leadership practices. California DMV executives describe themselves as “working leaders,” meaning they remain directly involved in operations, system design and incident response. Staff are encouraged to collaborate across functions, with IT leaders gaining familiarity with frontline operations and business leaders participating in technology-related decisions. This approach is intended to reduce organizational silos and help align system enhancements with day-to-day service needs.

“When we roll out a new product, in many cases, even our director will try that product himself to see if it works and makes sense for customers,” Mittal says. “From the top to the bottom, there’s a strong focus on customer experience.”