Business Opportunities for Touch Screen Information Kiosk - DOC

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					                           2001 NASIRE Award Entry
                      Virginia Department of Motor Vehicles

Title of Nomination: Virginia DMV extraTeller
Project/System Manager: Cheryl F. Clark
Title: Chief Information Officer
Agency: Virginia Department of Motor Vehicles
Department: Commonwealth of Virginia
Address: 2300 West Broad Street
City: Richmond
State: VA
Zip: 23220
Phone: 804-367-6622
Fax: 804-367-6631
Email: dmvcfc@dmv.state.va.us
CATEGORY: Innovative_Use_of_Technology
Person Nominating (if different):
Title:
Address:
City:
State: VA
Zip:
Phone:
Fax:
Email:
Category:       Innovative Use of Technology
Entry:          Virginia DMV extraTeller




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Executive Summary

ExtraTeller is the Department of Motor Vehicles (DMV) latest innovative service
method. These self-service kiosks, similar to bank automated teller machines (ATM),
allow customers to conduct business with DMV without face-to-face contact, outside of
the service outlet. This service is quick and convenient, available not only during
business hours but at any hour, any day.

Using the agency’s award-winning web site technology, self-service kiosks allow
customers to conduct online, real-time transactions. As of May 14, the interactive, easy-
to-use touch screen kiosks are operational at 16 DMV customer service centers. The
agency will install extraTeller at 35 customer service centers by June and will have all 73
customer service centers live by the end of the year. Currently, eligible customers can
renew driver’s licenses and vehicle registrations and request a personal identification
number (PIN) at extraTeller. The agency plans to offer as many web-based transactions
as possible at these kiosks.

Plus, DMV is partnering with Fairfax County, Virginia to integrate the extraTeller
application into the county’s existing kiosks as well. This system will provide Northern
Virginia customers an innovative method of conducting DMV transactions not only at
DMV customer service centers, but also at 17 convenient Fairfax County locations.

Customers can key in information or scan a barcode on the renewal notice to start a
transaction. Customers pay for the transaction by using a major credit card. Receipts for
transactions are printed and can be used as temporary authorization while DMV mails the
official documents. The requested product is in the mail to the customer within three
business days.

ExtraTeller provides digital opportunities for all Virginians. Even customers without
Internet access at home can realize the power and convenience of the web to get efficient
government services.




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Description of the project, including length of time in operation

Just as the name suggests, extraTeller is an additional service outlet provided by the
Virginia Department of Motor Vehicles. Customers who visit a customer service center
may conduct their own transactions without entering the building. Free-standing or
through-the-wall kiosks are accessible 24 hours a day, 7 days a week and provide web-
based DMV transactions to eligible customers.

Development for extraTeller began in July 1999 and implementation began in March 2001. For this
initiative, the agency utilized existing web transaction screens and processing enhanced for touch-screen
technology. This approach eliminated the need to build the application from scratch. As a result, eligible
customers may renew driver’s licenses and vehicle registrations and request a personal identification
number (PIN) at extraTeller.

Touch-screen technology makes extraTeller easy to use. Customers can key in
information or scan the renewal notice barcode to begin a transaction. DMV charges no
additional fee for using extraTeller. Customers may use major credit cards to pay renewal
fees. Receipts for transactions are printed and used as temporary authorization while
DMV mails the official documents within three business days.

As of May 14, extraTeller service is available at 16 DMV customer service centers. The
agency will install 35 kiosks by June and will implement this service at all 73 customer
service centers by the end of this year.

To provide additional locations for extraTeller services, DMV is partnering with Fairfax County, Virginia.
The county currently operates a kiosk program called CRIS (Community Resident Information Services).
CRIS was designed to incorporate business transaction functionality as a key component. The goal was for
a county resident to be able to walk away from the kiosk with something tangible to show: a job
application, a renewed vehicle registration, their taxes paid, a traffic ticket paid and more. Virginia DMV
transactions will be implemented on 17 of the Fairfax kiosks at county libraries, government centers and a
transit station. Through this partnership, DMV realized a cost avoidance of approximately $500,000.

ExtraTeller takes advantage of DMV’s investment in the current web site. The web application has been
enhanced to integrate with OMG touch-screen software products. Multimedia files, attract loops and
OASAgent reside on each local kiosk machine. OASManager resides centrally and handles state of health
monitoring, statistical collection and reporting requirements. The operating system includes Microsoft NT
4.0 Server/Workstation SP3+/Internet Explorer 5.0.

The hardware used for Local Kiosk Processor:
        733MHz Pentium III processor
        128MB DIMM PC133 SDRAM Memory (max. 512MB)
         Dual 8.3GB Hard Drives configured as a RAID 1 mirror set
        Integrated 16-bit Crystal audio
        CD-ROM drive
        ISA slots
        Parallel port
        PCI slots
        2-USB Ports
        2-Serial Ports
        2 - ISA slots (optional)
        Sigma Designs Netstream 2000 MPEG decoder card



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     3Com Fast Ethernet 10/100BT network interface card
     Built-in high-resolution VGA (16 million colors at 800x600 resolution) 120v, 60Hz
    And for local kiosk peripherals:
     Microtouch ToughTouch LCD chassis-mount touch screen monitor (capacitive technology, 15”
        viewable screen)
     Digi ClassicBoard 8 port serial card with DB9 male connector box
     American Magnetics 171a credit card reader
     Telpar SP-5000 3” thermal receipt printer
     Symbol Technologies LS 6800-series barcode scanner (2D, PDF417 and linear, Code 128
        capable)
     TrippLite OmniSmart 450 VA UPS
The kiosks can be expanded to include a MICR reader for e-check payments.

Significance to the improvement of the operation of government

DMV’s vision is to provide the ultimate in customer service. In a 1998 customer survey conducted by the
University of Virginia Center for Survey Research, the agency asked customers how likely they were “to
use a computer terminal similar to an ATM for a bank to renew vehicle license decals even when the DMV
office is closed.” More than 50 percent of the respondents said they would definitely and 23.5 percent said
they might use this service. In subsequent surveys, DMV noted significant consumer interest in self-
service kiosks as a potential outlet not only for DMV services, but also for other Virginia government
services including tax payments, hunting licenses and state park passes.

Embracing the Commonwealth’s vision to provide digital opportunities to all Virginians, the agency
initiated the extraTeller project to create a mechanism for statewide information dissemination and a central
portal for government services,.

Benefits realized by service recipients, taxpayers, agency or state

ExtraTeller provides quick and convenient service for all Virginians; Even customers without Internet
access can realize the power and convenience of the web to get efficient government services. By offering
time-saving services, the agency reaps a tremendous benefit in customer satisfaction. In a recent survey
conducted by the University of Virginia Center for Survey Research, 95.6 percent of the people queried
said they were satisfied or somewhat satisfied with the level of service by DMV. In fact, 94.4 percent
noted improvements in service over the years. Using the agency’s award winning web-based technology,
DMV provides customers with proven, quality services. Based on the agency’s web survey, 99 percent of
customers renewing driver’s licenses by Internet rate this service as excellent or good. More importantly,
100 percent of these customers indicated they would recommend use of this alternative renewal option to a
friend or family member and 99 percent indicated they would use this service option again in the future.

For the agency, most alternative service transactions are cheaper to process than walk-in transactions. The
cost of processing an e-transaction is approximately $2.00. Processing face-to-face transaction costs
approximately $5.00.

The DMV partnership with Fairfax County provides added value to the Fairfax CRIS kiosks by adding new
real-time services for the citizens of Northern Virginia. It allows DMV to take advantage of the existing
kiosks in Northern Virginia and provide the same services as the DMV extraTeller kiosks at a lower cost.

With Virginia’s population increasing, alternative services help save money by eliminating the need to
build new DMV offices.

Return on investment, short-term/long-term payback, measureable operational benefit

Total costs to the agency for the extraTeller project include equipment and software
acquisition, as well as annual recurring costs for hardware and software maintenance.


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Fixed, or one-time, costs total $2,604,622, while recurring costs are expected to average
about $220,000 annually. (see chart below)

In evaluating the fiscal impact of this project and the long term financial feasibility of
offering this optional service method, the agency took into consideration (a) the overall
costs, (b) the useful life of this equipment, and (c) the cost differential between agency
services that are delivered in person at customer service centers and those that are
processed centrally at headquarters or electronically. The extraTeller equipment would
fall in the latter category.

We used five years as the useful life of the equipment and accordingly, the breakeven
time frame for our financial analysis. Incorporating a $3.00 cost differential for centrally
processed transactions, we were able to use breakeven analysis to determine the
transaction volumes necessary to justify the outlay of funds for the extraTeller
equipment.
The results of this analysis showed that, for all 73 extraTeller machines, a total of approximately 250,000
transactions annually would be required to ensure full cost recovery over a five-year period. Broken down
by each unit, this would amount to less than ten transactions per day.

Cost Analysis
                                              Number           Unit Cost          Total Cost
Fixed Costs (a)
 o Initial units                                     36            $42,239        $1,520,579
 o Additional Units                                  38            $28,527        $1,084,043

    Total Fixed Costs                                74            $35,198        $2,604,622

Recurring (Annual Costs) (b)
 o Initial Units                                     36             $2,941            $105,885
 o Additional Units                                  38             $3,058            $116,204

    Total Recurring Costs                                    74              $3,001         $222,089

Assumptions:

o Useful Life of Units   5 Years
o Cost Differential between
   electronic and face-
   to-face service          $3.00 per transaction
options

                                            Five Year       Transactions        Transactions     Transactions
                               Units       Breakeven           Per CSC         Per CSC/Year      Per CSC/Day
                                                 Total

Breakeven Cost Analysis:
 o Initial Units                  36          683,335               18,982               3,796           10
 o Additional Units               38          555,021               14,606               2,921            8

Total Annual Transactions Required for
Recovery of Costs of ET over Five Yrs:                   247,671



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Notes:
(a) Includes hardware acquisition, applications software, delivery & installation and Training costs
(b) Includes hardware and software maintenance costs




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