ServiceArizona EZ Service Centers
Executive Summary
Arizona’s Motor Vehicle Division (MVD) developed a kiosk-type solution for its
customer service offices that has helped reduce waiting lines and produced cost savings,
while at the same time familiarizing customers with MVD’s e-government services.
Fifteen self-service workstations, called EZ Service Centers, were installed in MVD
offices to allow customers to complete transactions while avoiding a wait to see a
customer service representative. The project began in 2003 as a pilot in one MVD office.
After a successful trial period, 14 additional EZ Service Centers were placed in MVD
offices around Arizona in 2004, and 13 more are planned for 2005.
An EZ Service Center is e-government in its most uncomplicated form, particularly from
a customer-user standpoint. The center is comprised of a computer, DSL line, table, chair
and desk printer. An EZ Service Center computer is a specially programmed for Internet
access. The computer has access to 11 different MVD transactions through
ServiceArizona, MVD’s electronic service delivery system. The custom programming
interfaces the ServiceArizona system directly and seamlessly with MVD’s title and
registration and driver license systems. Once online, the customer merely follows the
online instructions to the desired transaction. A typical transaction can be completed in
two to five minutes. Any transaction that requires fulfillment, such as a vehicle
registration renewal that requires issuing a registration credential and license plate tab, is
specially tagged at the customer service counter to identify it as an EZ Service Center
transaction. The customer service representative then issues the credential and tab to the
customer to complete the transaction.
This project provides a variety of benefits to citizens and MVD: it reduces workload for
MVD customer service representatives, especially during peak volume times; it increases
customer satisfaction by reducing the time they spend in MVD offices; it is educating the
public on the availability of MVD transactions through the Internet, and it produced
significant cost avoidance and savings for the state.
Usage has increased steadily, with more than 9,000 EZ Service Center transactions now
being conducted each month.
The transactions currently provided on the self-service centers are Vehicle Registration
Renewal, Duplicate Driver License, Address Change, Voter Registration, 3-Day
Restricted Permit, 30-Day General Use Permit, Personalized/Special License Plate, Plate
Credit Inquiry, Plate Credit Refund, Duplicate Vehicle Registration and Driver License
Reinstatement.
ServiceArizona EZ Service Centers
Description of Project
The ServiceArizona self-service center project began in March 2003. The Arizona Motor
Vehicle Division (MVD) and its electronic service delivery partner, IBM, developed an
innovative solution using existing technology to help reduce the long lines in customer
service offices, also known as field offices. The “EZ Service Center” concept was
initially piloted in one of MVD’s field offices in Tucson, Arizona. The EZ Service
Center is less expensive and more functional than a traditional kiosk solution. An EZ
Service Center is a self-service center comprised of a custom desk, computer, printer,
dedicated line to the Internet, and custom programming to interface directly with MVD’s
title and registration and driver license systems. It utilizes MVD's ServiceArizona
infrastructure. ServiceArizona is MVD's e-government program that allows citizens and
businesses to perform motor vehicle and driver license transactions over the Internet.
MVD faced three major issues in its field offices that required an innovative solution.
The first was the increasing wait times for customers in the offices. Arizona's population
is increasing greatly each year, approximately 20% between 2000 and 2005. The second
issue was handling the distribution of workload during peak vehicle registration renewal
days. The majority of MVD transactions occur around the times when vehicle
registrations expire, some at mid-month and some at the end of the month. This causes
MVD uneven workloads and challenges with arranging adequate staffing levels. The
third was that the field offices only accept cash and checks. The use of credit cards as a
payment method was not an option for customers. The population growth, the uneven
workload distribution and the lack of alternative payment methods coupled with
restricted state budgets made it so MVD needed to find an inexpensive, creative approach
to reducing the pressure on the field office staffs.
MVD had tried a traditional kiosk solution with ServiceArizona a few years earlier, but found
it to be too expensive and limiting to provide all the transactions offered on ServiceArizona.
A traditional kiosk solution would need several different printer types built into the device to
handle transactions such as vehicle renewal, duplicate driver license (replacement of a lost or
damaged license), 3-day permits and others. The duplicate driver license transaction needs to
print a credential on special plastic while the vehicle renewal needs to print a renewal
document on a special form along with dispensing custom tabs or decals that are affixed to the
license plate. The customization needed for a kiosk that could do all of these functions, in
addition to the complexity and cost, made traditional kiosks an unattractive option.
The pilot project in 2003 for the EZ Service Center was very successful. In 2004, 14
additional MVD offices received self-service centers. For 2005, an additional 13 self-service
centers are planned for placement throughout the state, and MVD is considering adding
second units in a few of the high volume locations. On March 32, 2005, the self-service
center in one of the Tucson offices had 234 transactions, nearly one every two minutes. On
April 1, 2005, almost 1,000 transactions were performed by all 15 self-service centers
combined.
From the outset, MVD determined that for the project to be successful, the customer must be
able to pay for transactions easily with a credit card or bank check card and be able to leave
the office with the respective credentials in hand. Many of the credentials are printed locally
while others (duplicate drivers license and vehicle registration) mandated the use of specific
MVD printers, which posed a unique challenge in printing. Both credentials require the use
of internal MVD network printers. The object was to somehow link the independently
operating self-service center to those MVD printers.
In the simplest of terms, this was accomplished by creating identifiers for each of the EZ
Service Centers and their respective MVD office printers. A table mapping the identifiers to
each specific MVD printer node is maintained within ServiceArizona. Each duplicate driver
license or registration renewal transaction generated from a center can then be passed
immediately to the appropriate printer in the office from which the transaction originated.
Since duplicate driver license printing can take a few minutes and print jobs are held in
queue, a “tag” is provided to each print job originating from the center. This allows MVD
customer service representatives to quickly identify the source of the print job.
As a result, the EZ Service Center behaves as if it is attached to the MVD network when in
fact it is operating completely independently. The integration is seamless.
Once in place, the centers demonstrated a positive impact on offices by helping to reduce wait
times, increasing flexibility in payment options, creating greater customer satisfaction and
improving customer perception of MVD.
The transactions currently provided on the self-service centers are listed below:
Vehicle Registration Renewal *
Duplicate Driver License *
Address Change
Voter Registration
Restricted 3-Day Permit *
30 Day General Use Permit *
Personalized/Special License Plate
Plate Refund
Duplicate Vehicle Registration *
Driver License Reinstatement *
Plate Credit
While all transactions provide a confirmation, those indicated with an asterisk require
special credential printing.
The objectives of the EZ Service Centers were to:
 Develop a cost effective way to provide self-service transactions in many MVD offices,
not just the highest volume offices. The solution had to be reasonably priced so these centers
could be placed in the majority of offices and still make financial sense for IBM and MVD.
To date, the centers have been placed not only in major metropolitan offices in Phoenix and
Tucson, but also in mid-size cities and smaller communities around the state.
 Use the existing technology and applications within ServiceArizona to provide customers
with a user-friendly, self-directed way to expedite their transactions.
 Allow customers to perform self-service transactions and leave the office with the
credentials from that transaction (duplicate driver license, tabs, printed registration, etc.)
 Introduce customers at the MVD field offices to ServiceArizona and increase the
possibility they would use ServiceArizona at home the next time they need to interact with
MVD.
In the eyes of the customer, the Self-Service Centers are comprised of little more than a
computer desk, IBM desktop PC and laser printer. The user experience is limited to a
predefined site within ServiceArizona by using a secure browser. The browser blocks the
ability to visit sites outside of ServiceArizona.
Depending on the type of transaction, the credential will either be printed locally or will be
passed off to the appropriate type of MVD printer, registration or digital drivers license.
Within the office, the networking requirements have been kept to a minimum. Internet
connectivity is gained by passing through a firewall and router. Communication bandwidth
is at 56k or 128k through frame relay or business class DSL depending on service availability
at the office location.
Prior to launching a new center at any MVD location, the manager and staff at that location
are trained on all aspects of the available applications, how to integrate the center into their
daily operations, ways to direct customer traffic to the center and alleviate wait times, as well
as the operation and basic support procedures for the center.
The office greeter or information counter staff is of vital importance to the success of a
center. This is the first point of contact a customer has with MVD personnel. The greeter
determines what type of transaction the customer has and the preferred method of payment.
If the transaction is available on the center and the customer is interested, the greeter directs
the customer to the center instead of issuing a ticket for the MVD queue.
During high volume times at an office, a facilitator is a great asset. Facilitators will interview
customers waiting in line for the greeter to determine if they are eligible to use the center.
Facilitators also can help guide a customer through the transaction to further expedite the
process. EZ Service Center transactions are typically completed in 2 - 5 minutes.
For each transaction, a printed confirmation is generated on the center’s laser printer. Some of
the credentials – 3-day permit, 30-day permit and duplicate registration – are produced from
the center’s printer as well. Customers who request a duplicate driver license or registration
renewal will receive on-screen directions to the office pick-up window for their credential.
This is also displayed on their printed confirmation page when applicable.
Registration transactions require additional handling by an MVD customer service
representative to validate the transaction and to provide the customer with new tabs. This is
handled at the same pick-up window the customer visits to retrieve the registration credential.
Significance to the improvement of the operation of government.
The self-service centers impacted the problems described previously by:

Reducing customer wait time. The average wait time for a customer to see a
customer service representative is 25 minutes. There is virtually no customer wait
time for those customers who choose to use the self-service workstation.

Reducing customer service representative transaction time. An average
transaction takes a customer service representative eight minutes to complete. Of
the 11 transactions that can be done on a self-service workstation, nine do not
require any customer service representative assistance when completed at the
workstation. The two that do require assistance are vehicle renewal and duplicate
driver license due to the special credentials. The average customer service
representative time for these transactions is one minute. Vehicle renewals and
duplicate driver licenses make up 75% of the transactions performed on the selfservice centers. On average, a self-service center transaction saves the customer
service representative seven minutes and 15 seconds per transaction.

Increases payment options for customers. Vehicle registration renewals in
Arizona average $100 to $200 per vehicle. In some cases, this option reduces the
need for customers to carry a significant amount of cash. Credit cards allow
customers a third payment option at the MVD offices. Credit cards even allow
some customers to finance their vehicle renewals over time.

Reduces bad checks. The transactions that are performed on the self-service
centers are all paid with credit cards. Every payment is verified prior to the
completion of the transaction. This reduces the number of bad checks that MVD
receives in the offices.

Reduces costs of service delivery for MVD. An average transaction costs MVD
$12 to perform. The average cost for the self-service center is under $8 per
transaction.

Encourages customer to use ServiceArizona from home of office. The
introduction to customers to the self-service center makes them aware that many
MVD transactions may be performed without a visit to the office.
Benefits realized by service recipients, taxpayers, agency or state.

Savings in customer wait time. At the current pace in 2005, it is estimated the
total number of self-service center transactions will be 93,600. The average wait
time savings when using the self-service center is 25 minutes. 93,600 transactions
times 25 minutes = 2,340,000 minutes or 39,000 hours saved.

Reducing customer service representative transaction time. The self-service
workstation saves the customer service representative 7.25 minutes per
transaction. 93,600 transactions times 7.25 minutes = 678,600 minutes or 11,310
hours. This equates to approximately eight MVD employees.

Reduces bad checks. Approximately 2% of transactions result in bad checks. Of
93,600 transactions projected to be done on self-service centers this year, 80,000
will be fee transactions requiring a payment; the others are transactions with no
fee. 80,000 transactions times .02 = 1,600 transactions that will not result in bad
checks and related collection activities.

Reduces costs of service delivery for MVD. The average cost savings per
transaction done at a self-service center versus over the counter is approximately
$4. 93,600 transactions times $4 = $374,400 savings per year.
Return on investment, short-term/long-term payback (include summary calculations).
Projects must exhibit measurable operational benefit.
Since IBM furnishes the custom desk, computer, printer and dedicated line to the Internet, the
only one-time cost for MVD was the custom programming needed for this solution. IBM's
costs are recouped in a retention fee per transaction. This retention fee is included in the
MVD cost for doing a self-service center transaction. MVD's one-time programming cost was
to integrate the self-service workstation with the MVD legacy systems. This cost was
approximately $10,000.
The return on investment for MVD in the first year is $374,400 / $10,000 or 3,744%.
In dollars the return on investment is $374,400 - $10,000 or $364,400.
The investment was returned in less than 1 month ($10,000 / $374,400 = .027 years)
2005 extrapolated numbers = 39,000 * 12 / 5 = 93,600. This figure is conservative due to the
fact that 13 new EZ Service Centers will be added in the summer of 2005.