1. TENNESSEE REPORT 2012
INSIDE
NIC Turns 20...................... 2
The New Norm................... 5
The Benefits
of Partnership.................... 6
Blazing Awards and
New Trails Recognition for ASSETS
2012
I
was an exciting year for expanding t’s exciting to see our agency partners praised in the media and to see projects
eGovernment within Tennessee. The receive national awards recognition. No project generated more buzz this year
state was one of only eight states receiving an A than the Department of Safety & Homeland Security’s ASSETS (automatic self-
grade in the biannual Digital States Survey, which service electronic terminals) project. In an effort to ease wait times, the department
examines state governments in their use of digital installed 72 iPad kiosks in 26 driver service centers to allow visitors to complete
technologies to better serve their constituents. license renewals, order duplicates, pay reinstatement fees, and change their address,
NIC partnered with several state agencies to without waiting on an examiner.
roll out many exciting new services, including “Reducing the wait time at driver service centers is one of our top priorities. The
TDOT’s new SmartWay mobile applications for self-service iPad stations are helping to reduce the number of customers waiting for
iOS and Android, Handgun Permit System with service from examiners and reducing the overall wait time for all customers,” said
the Department of Safety & Homeland Security, Commissioner Bill Gibbons.
and Notify, a Web-based notification tool spon- Visitors to service centers were waiting an average of 34 minutes for face-to-face trans-
sored by the governor’s office. actions when 45-50 percent were seeking renewals or replacement, most of which could
Usage of key applications within the state’s be handled electronically. Service centers have offered PC-based self-service for several
ePortal (TN.gov) also increased during 2012. The years but usage was low. The PCs were commonly tucked in a corner and the aging
number of people renewing their driver license computers were frequently turned off waiting for service. Rather than replacing the PCs,
online grew by 12 percent and the number of the department recognized an opportunity to revamp the entire self-service option.
businesses filing their Sales & Use Taxes online Success with the new initiative required high visibility within the center, an
grew by 7 percent. More than $5B flowed inviting display, and a highly intuitive interface that is quick and easy to use by
through the ePortal in 2012! n | continued on page 2 |

2. Awards and
NIC Turns 20 Recognition for ASSETS
F
or the past 20 years, NIC has defined | continued from page 1 |
the eGovernment industry by citizens with minimal exposure to mobile tablets. After detailed analysis, a decision
building online services that deliver excep- was made to use iPads secured within freestanding kiosk pedestals. Use of an iPad
tional value to more than 3,000 federal, eliminated bulky monitors and keyboards and allows the stands to be prominently
state, and local government agencies. What positioned for maximum usage. The department was able to leverage code and Web
began as a modest enterprise led by a small services developed for the older PC-based applications, which limited development
team of entrepreneurs serving the state of time and allowed the team to focus on producing a native application and interface
Kansas has grown steadily each year. NIC specifically designed for an iPad.
now develops eServices and manages the
official websites for 28 states and employs
more than 700 people across the country.
Through transaction-based self-funded
and other flexible funding solutions,
NIC is able to offer and deliver Web-
based services at no cost to government.
Since the needs of our state partners
keep evolving, NIC continues to develop
innovative funding approaches to meet
the requirements of the governments
we serve. To help governments improve
efficiencies, reduce costs, and ultimately
enhance delivery of services, NIC creates
custom marketing initiatives to increase
business and citizen awareness and
drive adoption of both online and mobile
services. Each year, NIC’s client partners
ASSETS In Action
are recognized for offering the nation’s
best eGovernment solutions. In 2012 alone, The results have been astounding. Service centers have seen a 40+ percent
NIC partners received 105 total awards increase in visitors electing to complete their transaction electronically, equating
across 33 different award categories. to more than 43,000 additional self-service transactions. Face-to-face transactions
As the nation’s largest provider of take 11 minutes on average, and therefore, the Department of Safety & Homeland
specialized eGovernment services, NIC Security will avoid around 8,000 staff hours annually. Local and national media
has a unique perspective on what makes outlets have produced several stories highlighting the innovation in a venue not
online government successful and how known for pushing the envelope. National technology groups have also taken
today’s public officials are deploying notice as the project won a Digital Government Achievement Award presented
technology to meet business needs. NIC’s by the Center for Digital Government and was a finalist in the annual NASCIO
success is built on driving innovation and Recognition Awards. Finally, the ASSETS project helped Tennessee earn the
delivering results to its partners. As NIC top spot in the Transportation Category of the Center for Digital Government’s
continues to grow, emerging technologies Digital States Survey.
such as mobile, location-based services, Helping our agency partners earn the national recognition they deserve is
and augmented reality will play a bigger always a goal. However, NIC’s top priority for initiatives like the ASSETS project
role in the future. is simple: deliver a solution that helps our agency partner save time and money
while providing citizens better service. Accomplish this and everyone wins! n
2 | TENNESSEE REPORT 2012

3. A Cybersecurity Breach Could
Cost States a Lot More Than Credibility
E
veryone talks about cybercrime The investment to keep security card industry (PCI) compliance. Yet, even
and the need for heightened measures current and valuable data with most of the risk outsourced, partners
security measures for state safe is relatively small when compared still need to be aware that 100 percent of
enterprises. In fact, 81 percent of state to the potential costs of a major breach. the risk cannot be outsourced.
officials surveyed said cybersecurity is Consumer confidence can plummet, How secure are your applications and
the most important challenge they face. reputations can be damaged beyond data? Do you know which compliance
The question is, are states doing enough repair, legal action can drain resources issues are NIC’s responsibility and which
to protect their sensitive information and the negative effects can ripple far and are the state’s? We can put you in touch
when cybercriminals and hacktivists are wide, even entangling elected officials as with NIC’s Corporate Security Team for a
on the increase in numbers and sophis- high up as a governor in one state. presentation on compliance and security.
tication? Unfortunately, the wealth of NIC’s corporate and local security teams With states currently targeted by liter-
personally identifiable information (PII) continuously monitor online applications ally millions of security threats every
and sensitive business data make states and systems to detect vulnerabilities, and week, heightened vigilance is of imme-
attractive targets. adhere to the highest levels of payment diate and critical importance.
Utah Study Documents Huge Agency Savings
T he University of Utah’s Center for Public Policy & Administration
recently completed a detailed study analyzing the economics
of online services in Utah. The study reviewed how government is
Technology usage continues to accelerate and governments
at all levels are finding more reasons to provide services online.
In addition to cost savings, the potential benefits of eGovernment
following in the business sector’s footprints to leverage technology to services are extensive and include time savings, ease of use,
change how it interacts with its customers and improve its ability to increased data accuracy, and convenience of accessing services
serve. eUtah.org (now Utah.gov) was launched in 1999, and
since then the state has rolled out more than 1,000 online
services to meet the demand of both citizens and businesses.
While there are a number of potential benefits of online
services to consumers, businesses, and government, the
report provided a detailed analysis of the financial benefits
realized specifically through cost avoidance. The key
benefits predominantly appear in the costs avoided for
staff as well as numerous variable and fixed costs. The
study defined cost avoidance as the cumulative difference
between the cost of providing a service online and the cost
of providing the service in person, by phone, or by mail. The
study utilized data from a five-year period from FY 2007 to
FY 2011 and found the average cost per transaction for an
online service was $3.91. The average cost to provide the
same service offline was $17.11. Utilizing a cost differential of $13.20 from any location 24/7. The Utah study is further proof that the
per transaction, the study concluded that by moving key services main question surrounding your next eGovernment initiative isn’t
online, Utah avoided up to $45,911,391 in costs over a five-year period. why should we do this, it’s when can we get started. n
TENNESSEE REPORT 2012 | 3

4. Partners Since 2000
Key ePortal Agency Transactions
Alcoholic Beverage Commission 289,014 Department of Human Services 9,264,834
Administrative Office of the Courts 6,558,306 Department of Revenue 5,182,820
Department of Commerce & Insurance 288,437 Department of Safety & Homeland Security 23,857,408
Department of Correction 27,549,180 Tennessee Bureau of Investigation 2,573,335
Department of Health 473,702 Tennessee Treasury Department 39,326,202
TN.gov Applications
Alcohol Beverage Commission Licensing Vehicle Title and Registration
ARRA Submission Local Government Investment Pool
Agency Moving Violation Record Lookup Local Government Moving Violation Records
Batch Business Tax Filings Tennessee Maps
Business Tax for County Clerks County Maps
Business Registration Meth Offender Registry Database
Business Tax Filings Modular Building Unit Plan Submittal
Batch Moving Violation Record Requests Newsroom Blog
Driver License Address Change Notify
Commerce and Insurance Licensing Parks Reservations
Commerce and Insurance Payments Tennessee Photos
Case Management and Utilization Review Public Meeting Notice
Conflict of Interest Filing Postsecondary School Authorization Filings
Facility Licensing Inspection Professional Privilege Tax Filings
Resource Parent Verification Prevailing Wage Survey
Resource Parent Training Video Gallery Driver License Reinstatement
Driver License Driving Test Appointments Sales Tax Filings
Driver License Practice Tests Streamlined Sales Tax
Driver License Renewals Survey Generator
Driver License Duplicate Request Online Tax Payments
EAV Payment Submissions Child Support Enforcement
EDI Submissions TDOT SmartWay Mobile Applications
Educator Licensing & Renewals Campaign Finance Filing and Search
Personal Income Tax Filing Criminal Justice Portal
Events Registration Architects’ and Engineers’ Plans Submittal
Franchise and Excise Tax Filings Tennessee Bill Tracking
Felony Offender Lookup Online Payment Engine
Handgun Carry Permit Filing Watchable Wildlife Endowment Fund
Health Licensing Renewals Unclaimed Property Search
Lobbyist Registration Consumer Use Tax Filing
Lobbyist Search Underground Storage Tank Operator Training
Moving Violation Records Lookup Volunteer Services Application
Income E-File Vendor Filing Workforce Investment Act Information
4 | TENNESSEE REPORT 2012

5. The New Norm
NIC continues to see growth in government use of online
services, and appreciates government’s desire to create and
deploy solutions that meet end-user requirements in a rapid and effi-
cient manor. Simultaneously, there is a movement brought about by the
widespread use and proliferation of mobile devices known as consumer-
ization. The impact of consumerization within government is pushing a
change in the mobility needs and expectations of the public, and NIC is
not only helping our partners respond to this new norm, it’s helping our
partners take advantage of it.
NIC operates more than 30 official portals, and our employees
constantly challenge and push their peers to find new ways to deliver
value from technology. These efforts produce a breadth of solutions that
include but are not limited to mobile inspection, asset and workflow,
payment, and location-based applications.
Dept. of Children Services
Inspection Application
Dept. of Transportation SmartWay Mobile Application Dept. of Environment & Conservation
Inspection Application
New Funding Option In Tennessee
T
ennessee leaders approved a new funding mechanism in 2012 mobile application. Users pay a modest fee on top of existing statutory
that should open the door in 2013 for agencies to develop payments when they opt to use the online version, and these fees
high-value online services at no cost to the agency. Referred to as cover the cost of developing, managing, and marketing the service.
“Customer Options” in Tennessee, NIC pioneered the self-funding Customer Option funding provides a new alternative for agencies
model currently being used extensively in other NIC states. Here’s with tight budgets and allows for cost-saving services to be devel-
how it works: In addition to the traditional methods of delivering oped without tax appropriations. Studies show users are more than
a service in person, over the phone, or via mail, agencies provide willing to pay for convenience and real-time service, and Customer
constituents an option to conduct business through an online or Option funding delivers the win-win solution. n
TENNESSEE REPORT 2012 | 5

6. Maximizing Value
The Benefits Through Methodology
of Partnership
T
he software development process is a complex venture that often produces
O
ver the past year, NIC had our first applications with a checklist of features but fails to generate maximum value.
opportunity to work intimately with Many projects deliver applications that include functionality that took a
the Tennessee Highway Patrol (THP). Prior to long time to
2012, collaboration between NIC and the Dept. develop yet
of Safety & Homeland Security was almost was never used.
exclusively within the Driver Services Divi- Recognizing
sion. This new exposure and interaction with the common
an additional division allowed NIC to cultivate shortcomings
new and deeper relations and gain further of traditional
knowledge and appreciation for the needs of software
the department as a whole. This insight led to development
new innovations including the S-Endorsement methods,
Pupil Transport Training Application. NIC made the
This unique, creative solution combines decision to
both online and tablet technologies to displace utilize a more
a manual and error-laden paper process. agile software
The new system streamlines the collection development
of bus driver certification test data as well as process. Agile
access to driver certification status. As this development,
in-service training is critical to bus driver great for projects
certification, and ultimately child well-being, with evolving
accuracy and timeliness are all too impor- functional and technical needs, utilizes an iterative process of continuous planning
tant. Lt. Ray Robinson, a veteran of THP and and feedback to help team members focus on the rapid delivery of true business value.
product owner of this new solution, couldn’t Stepping into new territory, NIC used agile processes to deliver several applica-
agree more, suggesting, “The Pupil Transport tions, including the Pupil Transport Training Application for the Tennessee Highway
application is a top accomplishment of my Patrol (THP). The agency desired an application that would facilitate State Trooper
20-plus-year career with the department.” management of bus driver training and certification for 134 school districts across
Results and reactions like this excite and moti- Tennessee. Requirements and features were defined and prioritized by the agency
vate NIC and lead us to believe we’re adding in short development iterations throughout the project. This incremental approach
value and solidifying our role as a valued and allowed for flexibility in requirements and ensured the NIC team was only working on
trusted partner in the eyes of our clients. features that provided the most business value. The use of weekly standup meetings
No doubt, NIC seeks to cultivate a lasting and agency review of the application every two weeks fostered direct communication
relationship with Lt. Robinson’s team and among all team members, increased adaptability, and provided application visibility
build on this success. We also plan to use this not usually available until user acceptance testing. The results and experience were
as another stepping-stone to becoming an even very positive and the customer described the application as “awesome.”
better partner to the Department of Safety & NIC has delivered online services to Tennessee since 2000, and we appreciate the
Homeland Security. As an adviser and liaison difficulty and importance of producing applications that add real value to agencies
between divisions, we hope to work as a team to and end users. To remain a trusted partner for the next 12 years, we know we must
positively influence and bring forward leading- continually evaluate how we work and strive to incorporate new ideas that will take
edge eGovernment solutions yet to be imagined. our services to the next level. This continuous evolution will help our partners exceed
typical project results and position them for long-term success. n
6 | TENNESSEE REPORT 2012

7. Embracing and Preparing
E
xperts have been screaming that content formatted for a mobile device have Android, iPhone, iPad, and Windows Phone
technology is changing at an surpassed critical mass and are mainstream as applications. In addition to native mobile
unprecedented speed for the past more phones and tablets are sold than note- apps, we use HTML5 or “responsive design”
decade. While the message is old, the reality books and desktop PCs. Mobile Internet traffic to write one set of code that automatically
of the situation is that it’s true. The speed of is on pace to overtake desktop traffic in the detects what type of device is being used,
change and the adoption of new tools are near future (as soon as 2014 in Europe) and be it desktop, laptop, smartphone, or tablet.
accelerating and have been for years. Take the percentage of transactions completed on a Responsive design not only automatically
Apple products as an example. When iPods mobile device is growing rapidly. detects the device but scales the design and
were introduced they changed the media BYOD (bring your own device), consumer- formats content accordingly. This approach
industry and were sold at an unprecedented ization, MDM (mobile device management); not only provides convenience to those using
pace. Next came the iPhone, which sold expo- these are terms and concepts that were only the service, but is also efficient for government
nentially faster than the iPod and completely on the back pages of technology publications a partners as one set of code is written and main-
disrupted the cellphone and smartphone few years ago and now they’re on top priority tained. NIC suggests a “mobile-first” strategy
markets. Just when the experts thought they lists and being discussed in boardrooms every- and believes that today’s evolving technology
had seen it all, along came the iPad, which sold where. What do these concepts mean to you requires all online services to be developed
three times faster than the iPhone and became and your agency? Are they threats? Are they with a mobile consideration.
the fastest-adopted electronic device in history. opportunities? Many agencies are stuck in the Mobile applications and content are
NIC has been riding the wave of change and starting block and simply don’t know where empowering for end users whether they are
remaining on the forefront by reviewing, or how to get started. Agencies are commonly citizens, businesses, or employees. Mobile
testing, and developing for new technolo- paralyzed by fears of making mistakes and applications are context-rich apps that help
gies to ensure our partners have access to inadequate information. NIC has developed users make decisions, answer questions,
innovations than can help them operate more more official government mobile applications and act immediately in their moments of
efficiently and better serve their constituents. than anyone else in the United States, and we need no matter where they are. Making the
The proliferation of mobile devices such can help you map out a strategy to meet new appropriate choices for tackling mobile needs
as tablets, and the widespread use of smart- mobile expectations, take advantage of the requires a plan, and whether you’re just
phones, has changed how people interact latest technologies, and ensure you don’t open starting or trying to take your initiatives to
with each other and has created a new set your agency to new risks. the next level, NIC can provide insight and
of expectations for interaction with govern- NIC has launched more than 100 government resources to help you embrace and prepare
ment. Mobile computing and the demand for mobile applications and we’ve developed for mobility. n
Employee Highlight
Deb Kilpatrick
O ur employee highlight features Deb Kilpatrick, Director of Quality
Assurance and Customer Support. Deb’s title is probably the longest
in the company yet it still doesn’t reflect everything she does for the
email or phone call praising
Deb’s efforts and willingness to
go the extra mile.
office, our agencies, and the end users of TN.gov services. Deb’s rise and “Ms. Kilpatrick, thank you
her efforts reflect what NIC strives to offer as an employer and a partner. for your kind and conscien-
Deb began her career with NIC as a customer service representative tious reply. I appreciate your
in March of 2006. Her seemingly boundless energy and drive to helpful spirit and wish you
help those in need, combined with her ability to remain positive and all the very best, personally
Deb Kilpatrick pictured on right
patient, led to increasing responsibilities and ultimately a manage- and professionally.”
ment position. Hardly a week goes by in which we don’t receive an – Ruth Wassynger (Driver License Renewal Customer) n
TENNESSEE REPORT 2012 | 7

8. NIC, Tennessee Information Division
330 Commerce Street, Suite 100
Nashville, TN 37201
615-313-0300
© 2013 Trozzolo.com
The Tennessee Team
Nashville Oyster Urban Adventure Race – October 2012