INSIDE

ALABAMA INTERACTIVE REPORT 2012

Team Member Profile ........ 2

Outdoor Alabama Mobile App Now Available on iTunes ........... 3

Alabama Interactive: Invested in Our Community .... 8

Alabama Interactive Awarded eGovernment Services Contract Once Again

n February of 2012, through a competi-

tive bidding process (Invitation to Bid

No. 12-X-2237169 for Alabama eGovernment

Services), the state entered into a contract

(T001) with Alabama Interactive (AI), a

subsidiary of NIC Inc. (NASDAQ: EGOV). The

agreement allows AI to provide, at no cost to

the state, all necessary hardware, software,

administration, payment processing, and

other services necessary for the success of

the Internet portal to state agencies, boards,

The Self-Funded Model

One of the more striking facets of AI is the method by which it is funded.

Since the inception of the contract, Alabama Interactive has operated in

an exclusively self-funded manner, meaning the portal’s revenues are

generated through portal fees paid by businesses and citizens for transactions

conducted online rather than by funds appropriated from the state. The remaining

revenues are attributable to state funds for projects that, while not transactional,

create improved efficiency for the state government. Due to this unique and

effective business model, AI is delivering its streamlined government services at

no cost to the state. We provide eGovernment applications that can be leveraged

across the entire state, allowing all agencies to participate online regardless of size,

funding, or resources.

Since the inception of the first eGovernment contract in 2002, AI has established

agreements with close to 60 agencies and has launched more than 200 eGovern-

ment applications. The self-funded model continues to prove to be the most effective

and efficient method of providing state-of-the-art, Web-based applications for state

agencies whose budgets continue to shrink year over year. We have helped large

departments like the Secretary of State’s Office move high-volume services such

as UCC filings and searches online, and we have assisted small agencies such as

the Alabama State Board of Registration for Foresters achieve important, internal

efficiencies by creating an online license renewal system. In 2012, AI processed more

than 654,000 transactions, which amounted to more than $127.6 million in statutory

payments through our proprietary payment engine for the State of Alabama. n

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Technology Enhancements in 2012echnology is at the forefront of all aspects of Alabama Interactive’s work.

Through NIC’s Central Data Center (CDC), Alabama Interactive has invested

in an infrastructure that provides maximum up-time for Alabama eGovernment

services. Dedicated servers host state Web applications, which interface with back-

end systems (including the state mainframe). A secure socket layer server (SSL) is

also utilized to encrypt private information, such as customer credit card transactions.

Through synergies gained by hosting with NIC’s state-of-the-art data center, Alabama

Interactive also enjoys excellent Internet bandwidth.

The CDC environment continues to be recognized as a world-class hosting facility

and some 2012 enhancements include upgrading the TPE and Customer Database

(CDB) back-end infrastructures, migrating all Web, application, job, and other servers

to different storage and fully migrating off all legacy servers. Alabama Interactive is

also in the process of completing upgrades to its server software to the latest versions

of Resin, Apache, and Struts.

Team Member Profile

rin Poole has been an important

part of Alabama Interactive for

more than seven years. She began as

a customer service representative and

transitioned to become

the office’s accounting

administrator. Recently,

she began expanding

her role to include

quality assurance for

all of AI’s new services. Her enthusiastic

personality, along with her industry expe-

rience and business acumen, has added

tremendous value to the portal.

Her willingness to go the extra mile

when assisting both customers and

agency partners is an important aspect of

her job. As the accountant in the office,

she helps our more than 2,500 subscribers

with a host of billing and account-related

questions. Additionally, Erin has helped

automate a number of internal processes,

including the disbursement of collected

funds to numerous state bank accounts.

This has made financial reconciliation

much easier for both AI and the state.

Erin’s favorite part of her role is finding

ways to make our partners’ processes more

efficient. She is committed to improving

herself and others, and her value to the

team will only continue to grow.

Alabama Interactive is dedicated to the

state of Alabama and provides reinvest-

ment in Alabama by hiring full-time

employees who are Alabama residents.

All of our employees work in our office

in downtown Montgomery just outside

the Capitol complex. Erin and the rest

of our devoted staff look forward to

continued growth in the years to come.

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Message From the General Manager

“The whole is more than the sum of its parts.” Aristotle’s message helps communicate

the essence of an enterprise eGovernment program – several great agency eGovern-

ment services makes for an even better Alabama eGovernment platform. In 2002,

the state of Alabama stepped out as one of the leaders in innovation and partnered with NIC to

build a best-in-class eGovernment portal. Nearly 60 agency partners and more than 200 online

applications later, Alabama Interactive (AI) is still growing and delivering value. These 200 “parts”

are certainly noteworthy in and of themselves, but the real value is the “whole” created by the

collective belief in efficient government. Many of the agency partners we work with today would

not be able to maintain their online presence without the economies of scale provided by the enter-

prise model. I constantly hear stories from citizens who are so grateful to have the opportunity to

renew a professional license or pay for a permit online, and it makes me feel good knowing no tax

payer dollars were appropriated in order to provide these online services.

For more than 20 years, NIC has operated predominately under the self-funded model, today

operating efficient eGovernment in 30 states. We continually reinvest in the local community

by creating local jobs, contributing to state tax revenues, and giving back through community

service projects. We don’t just fly in from a corporate office for important meetings, rather AI’s

employees live and work in the Montgomery area and we pride ourselves in walking alongside

our partners from project inception through successful launch.

On behalf of everyone at Alabama Interactive and NIC, I want to thank the state of Alabama

for being innovative and forward-thinking over a decade ago and allowing us to share in the

creation and growth of Alabama’s eGovernment program. I look forward to the years to come

and to the continued progress toward launching several new eGovernment services to support a

“whole” model for innovation, creativity, and efficiency.

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Barrett Gilbreath

ALABAMA INTERACTIVE REPORT 2012 | 3

Outdoor Alabama Mobile App Now Available on iTunesn the fourth quarter of 2012, Alabama Interactive launched

the first mobile application for the Alabama Department of

Conservation and Natural Resources (DCNR). The iPhone

application, Outdoor Alabama, offers a variety of useful tools

and information for on-the-go hunters, anglers, and outdoorsmen

throughout the state of Alabama and can be downloaded for free

by visiting the Apple iTunes store. Features of the application

include allowing residents and nonresidents to purchase hunting

and fishing licenses, report harvested game, and access hunting and

fishing regulations. In addition, the mobile application allows users

to look up types of fish in Alabama, view park and lake information,

and check feeding times and moon phases.

“The Outdoor Alabama app was

developed with hunters, anglers, and

other outdoor enthusiasts in mind,” said

N. Gunter Guy, Jr., ADCNR commis-

sioner. “This app gives them access to the

state’s best outdoor adventures via their

smartphone. We encourage everyone to

explore this app and share their outdoor

experiences with other users.”

A new version of this app will be available

upon the start of the 2013-2014 hunting and

fishing license season.

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AI Makes Wholesale Ordering Easier for Licensees, ABC Stores, and the ABC Board

labama Interactive launched a convenient, user-friendly

online liquor wholesale ordering system for the Alabama

Alcoholic Beverage Control (ABC) Board. This applica-

tion has effectively streamlined the now uniform ordering process

across 97 wholesale ABC liquor stores and has created a reporting

capability that never existed for licensees, ABC stores, and the

Board. With the new ordering system, licensees can search and

select items from a store’s inventory, placing an order in seconds

without the hassle of faxing or calling in liquor orders. They

receive notifications when their order is ready for pickup at their

designated state-run ABC store and can also view pending and

completed orders. Thanks to the system, ABC stores can better

manage their inventory through increased visibility and more

efficient communication, which ultimately decreases turnaround

time for wholesale order completion. From the statewide launch in

February 2012 to the end of year, licensees placed more than 13,500

orders for pickup in ABC stores for items worth a collective total

of more than $14.1 million.

“The Alabama Alcoholic Beverage Control Board is proud to

announce the availability of the online wholesale ordering system

on our website,” said H. Mac Gipson, the Board’s administrator. “Our

main goal in creating the online wholesale ordering system was to give

licensees an easy, efficient, and effective way to place orders with our

wholesale stores, and this system accomplishes that and more.”

The ABC wholesale ordering system has been provided to the

Board through no taxpayer dollars. Additional ABC online services

provided by Alabama Interactive include license renewals, industry

representative applications, and eCitations. n

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NIC – A Unique and Valuable PartnerMobile Innovation Meets Cybersecurity Expertise

t NIC, we help our government partners deliver valuable

information and services to businesses and citizens 24

hours a day, seven days a week. Today, 30 states enjoy the

efficiencies NIC brings to interacting with government.

Mobile-First StrategyAs the eGovernment industry leader, NIC is at the technology

forefront for providing electronic government services for all types

of devices. Today, NIC has developed more official government

mobile applications than any company in the world. Serving as

the research and development department for our partners, our

innovation brings government access to the latest technologies for

providing electronic services. We employ a ‘mobile first’ strategy,

and believe that today’s evolving technology requires that all online

services be developed with a mobile consideration.

In addition to native mobile apps, we also lead in mobile Web

expertise, using ‘responsive design’ technology to provide conve-

nience to citizens and efficiency to our government partners.

Secure Transactions The number of eGovernment services we provide grows

every day. In our 21-year history, we have developed more than

7,500 customized eGovernment solutions that enable citizens

and businesses to interact with government securely and effi-

ciently. In 2012, more than 200 million online transactions were

completed using eGovernment services developed by NIC, and

the company securely processed more than $22.5 billion on behalf

of its government partners. What’s key is all the transactions were

completed securely.

A cybersecurity breach could cost states a lot more than cred-

ibility. Cybersecurity has become of critical importance, with 82

percent of state officials stating that cybersecurity is the most

important challenge they face.

NIC’s standards-based eGovernment security program uses

a multilayered approach to ensure that sensitive information is

protected. The investment to keep security measures current and

valuable data safe is relatively small when compared to the poten-

tial costs of a major breach. Consumer confidence can plummet,

reputations can be damaged beyond repair, legal action can drain

resources, and the negative effects can ripple far and wide.

NIC’s corporate and portal security teams continuously

monitor online applications and systems to detect vulnerabili-

ties, and adhere to the highest levels of payment card industry

(PCI) compliance. Yet, even with most of the risk outsourced,

partners still need to be aware that 100 percent of the risk cannot

be outsourced. NIC’s Corporate Security Team, led by NIC’s

Chief Security Officer, Jayne Friedland Holland, helps educate

partners on the many layers and complexities involved with PCI

compliance and security issues. With states currently targeted

by literally millions of security threats every week, heightened

vigilance is of immediate and critical importance.

NIC’s mobile technology innovation, combined with our

strong cybersecurity expertise, makes NIC a truly unique and

valuable partner.

Mobile Inspections Planned for 2013 is eager to develop several mobile applications in 2013 for Apple iOS and

Android devices. We would like these to focus on state resources and be

available to both state employees and citizens. AI, through NIC, has an

application development account with Apple and has already launched several apps

to the app store.

One application in particular that AI plans to launch is a template for mobile

inspections for iOS devices. The portal is working alongside the Department of

Education’s Pupil Transportation Division whose state inspectors will be the first

to utilize the application for bus inspections using iPad Mini devices. Several other

state agencies have expressed interest in utilizing the mobile inspection app once

development is complete in the coming months. n

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ALABAMA INTERACTIVE REPORT 2012 | 5

Transaction Processing

The total number of transactions

processed by Alabama Interactive

through the Transaction Processing

Engine (TPE) increased yet again in 2012. AI

saw an increase of nearly 25 percent in 2012

over transaction amount totals for TPE in

2010. Since 2010, AI has increased the total

TPE transaction amount of statutory dollars

from $103 million to $127 million. CDB

transactions stayed steady in 2012 for a total

of 5.5 million transactions involving more

than $10.9 million. In total, AI collected

$138.5 million through TPE and CDB in 2012

for its partners. n

Yearly CDB Transactions (#)

Year # Transactions

2012 5,504,041

2011 5,490,350

2010 5,159,627

Yearly TPE Transactions (#)

Year # Transactions

2012 654,330

2011 578,314

2010 523,124

Yearly TPE Transactions (Statutory $ Processed)

Year Statutory $ Processed

2012 127,622,455.11

2011 110,267,537.84

2010 103,265,794.86

Alabama’s Official Website, Alabama.gov, Takes Top Honor in 2012 Best of the Web CompetitionAlabama Named Best State Government Website in the Country

he Center for Digital Government announced Alabama’s official state website,

http://www.alabama.gov, as the first-place winner in the 2012 Best of the Web

competition. For the first time in the state’s history, Alabama.gov was ranked as the

best state government website in the country. Since partnering with Alabama Inter-

active in 2002, Alabama’s official website has consistently earned top 10 positions in

the Best of the Web competition, taking third place in 2010.

In its 17th year, the annual competition honors governments whose websites

demonstrate innovation, functionality, and efficiency for users. Submissions from

U.S. cities, counties, and states were judged by executives from the Center for Digital

Government, along with a panel of past Best of the Web winners.

“Digital technology has fundamentally changed the way people interact with their

government … We’re excited about the opportunities governments are creating to

make new things possible and to do the old things faster and more efficiently,” said

Todd Sander, executive director of the Center for Digital Government.

Alabama Interactive completed the Alabama.gov site redesign based on citizen

feedback using no taxpayer dollars. Beneficial for all visitors, Alabama.gov now

features a responsive design that formats automatically to the device used to visit

the site, whether laptop, smartphone, or tablet device. As for information, the new

Alabama.gov allows visitors to more easily discover useful local, state, and federal

government information including a live chat option and the ability to sign up

for emergency alerts. The site also features an interactive social media portal that

provides links to RSS feeds, Twitter and Facebook pages, and more from elected

state officials and representatives.

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6 | ALABAMA INTERACTIVE REPORT 2012

Emphasis on Responsive Design

pplication enhancements for 2013 are

focused on moving toward responsive

Web design throughout the portal. AI began

with the Alabama.gov website, making it

responsive to allow for an optimal viewing

experience across a variety of electronic devices,

ranging from desktops to tablets to mobile

devices. AI is now working on responsive Web

design for all current and future applications to

allow for citizens to easily navigate through the

variety of online services maintained within the

eGovernment Services contract. n

AI Led Session on eCommerce in Montgomery

labama Interactive was asked to

present on the topic of eCommerce

for Auburn University at Montgomery’s

(AUM) Technology Fair held at its campus

in September. During the fair, AI’s director

of marketing and operations, Mary Beth

Walls, along with Julie Perry, the IT

manager for the Department of Conserva-

tion and Natural Resources, led the session

and answered questions from the attendees.

They also presented AI’s online hunting

and fishing license sales system for DCNR

as an example of an eCommerce applica-

tion for the government industry. Auburn

Montgomery’s Center for Advanced Tech-

nologies, in conjunction with the AUM

School of Business, hosted the fair, which

aimed at fostering a stronger relationship

among the IT community, IT providers,

AUM business students, and faculty. n

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Mobile Trend in Accessing Alabama.gov2012 vs. 2011

he most dramatic increase in traffic to the state’s official website, Alabama.gov,

came in the form of mobile devices. In a single year, there was a 350 percent

increase in people using their iPads to access the state’s services, combined

with an almost 160 percent increase in visits with an iPhone. It is clear mobile accessi-

bility is becoming more and more imperative, and the portal’s upgrade to a responsive

design – meaning the website will adjust to fit any screen from which it is viewed – could

not have come at a better time. The statistics also show users are finding the informa-

tion they need in less time on an iPhone, looking at the more than 8 percent decrease in

average visit duration.

In addition, the shapes of the graph show how many visits the site gets during

traditional business hours. Alabama.gov offers access to dozens of business services,

including Secretary of State filings, Department of Revenue tax payments, and profes-

sional license renewals. This online portal adds efficiency for thousands of citizens

and organizations and exemplifies Alabama’s commitment to being a business-

friendly state.

Mobile Device Info Visits Average Visit Duration

Apple iPhone

Jan – Dec 2012 47,899 00:01:08

Jan – Dec 2011 18,532 00:01:14

% Change 158.47% -8.65%

Apple iPad

Jan – Dec 2012 39,501 00:01:46

Jan – Dec 2011 8,766 00:01:47

% Change 350.62% -0.65%

Mobile Visits to Alabama.gov

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ALABAMA INTERACTIVE REPORT 2012 | 7

Agency SpotlightSecretary of State’s Office

and the Alabama Secretary of State’s office (SOS) have part-

nered since August of 2002 to provide citizens and businesses

with valuable online services. During this 10-year period, three

Secretaries have held office, and each was a part of the eGovernment

initiative to provide secure, easy-to-use digital solutions for Alabamians.

The first application launched for SOS was a payment processing solu-

tion allowing the office to accept credit card payments. Although this was

a relatively simple service, it has added tremendous efficiency to office

operations through reduction in the processing of paper checks. Customers

were able to pay with a simple swipe of a card, and the SOS staff could

spend their limited time performing higher-priority tasks.

Once this service was launched, AI and SOS then collaborated to

develop the agency’s highest-volume service to date: UCC filings and

searches. This application takes thousands of transactions a month, saving

both staff and customers countless hours in avoided paperwork, and

has processed more than $6 million since deployment. For this service,

customers have the option to become subscribers, which allows them

access to filing history, the ability to add or remove new users as necessary,

and automatic ACH debit on a monthly basis.

The next series of applications built for SOS centered on business

services. Launched within the past three to four years, these applica-

tions provide customers the convenience of electronically completing

the initial steps to form a business in Alabama. Customers can complete

forms digitally and make secure payments using a credit card or bank

account, then proceed with the remaining steps.

All of the previously mentioned applications were provided at zero

cost to the agency, and future services will likely be self-funded as well.

As a result, SOS and the citizens of Alabama all benefit – at minimal cost.

Alabama Interactive looks forward to continued success in its partnership

with SOS and its commitment to eGovernment.

Alabama Interactive New Services Launched in 2012

AI launched more than 20 new services during 2012. A

list of these services is provided below. In addition

to these new applications, Alabama Interactive also made

nearly 200 functional updates to existing services throughout

the year. A listing of most online services offered can be

found by visiting www.alabama.gov.

• Alabama Interactive, Email Customer Support

Ticketing System

• Alabama Interactive, Financial Transfer Notification

Application

• Alabama Interactive, Customer Service Portal Redesign

• Alcoholic Beverage Control Board, Online Liquor Order

Wholesale – State-wide Launch

• Board of Landscape Architects, Exam Application

• Board of Licensure for Professional Geologists,

License Renewal

• Criminal Justice Information Center, Scrap Metal

Vendor Registration

• Department of Conservation and Natural Resources,

Non-game Wildlife Conference Merchant Service

• Department of Conservation and Natural Resources,

Outdoor Alabama iPhone Application

• Department of Insurance, Blasting Certification

Merchant Service

• Department of Insurance, Blasting Contractor

Merchant Service

• Department of Revenue, Auto Dealer Merchant Service

• Department of Revenue, Buyer ID Card Merchant Service

• Department of Revenue, Dismantler Card

Merchant Service

• Onsite Wastewater Board, Inactive License Renewal

• Real Estate Commission, License Renewal

Merchant Service

• Secretary of State, Duplicate Domestic Name Certificate

• Secretary of State, Duplicate Foreign Name Registrations

• Secretary of State, Foreign Name Registrations

• Secretary of State, Renew Domestic Name Reservation

• Secretary of State, Renew Foreign Name Registration

• State of Alabama, Alabama.gov Redesign

• State Bar, Client Security Fund

AI Services for Secretary of State’s Office in 2012

AI

UCC Filings $1,479,217

Credit Card Processing $970,579

Name Reservations/ Registrations $779,776

Other Online Services $488,257

Business Document $155,890

© 2013 Trozzolo.com

3 South Jackson Street, Suite 200Montgomery, AL 36104

(866) 353-EGOV(3468)

Alabama Interactive: Invested in Our Community

The AI team as a whole expressed a strong interest in personal wellness as well as

activities that will help the local community. Thirteen members of the AI team

participated in the 2012 Ideal Weight Loss Challenge, and the same number plan to

participate in 2013. Several of the staff also participated in local races and half-marathons

benefiting local churches or charitable organizations such as St. Jude Children’s Research

Hospital and the American Cancer Society. In addition, nearly half of the portal gave blood at

the Red Cross location in Montgomery to take part in the NIC corporate initiative, while one

member of the team regularly donates blood every six weeks.

Members of the portal also volunteered during the 2012

Alabama Home and Garden Expo with the Habitat for

Humanity (HOH) Montgomery chapter. They assisted the

organization with marketing and promoting the local HOH

retail store, ReStore, where donations of new and gently

used building materials and household goods can be sold

to the public at low cost. The proceeds from ReStore are

used to achieve HOH’s mission to build homes, communi-

ties, and hope within the local community. Having our volunteers at this booth during the

expo helped the organization generate funding for the Montgomery chapter.

Toward the end of the year, in lieu of exchanging gifts between co-workers during the 2012

holiday season, AI chose instead to purchase toys for boys and girls in and around Montgomery.

By purchasing these items, our staff experienced the joy of giving to others who are less fortunate.

The team delivered the gifts to a local Toys for Tots drop-off donation center. The mission of the

U. S. Marine Corps Reserve Toys for Tots Program is to collect new, unwrapped toys during

October, November, and December each year, and distribute those toys as Christmas gifts to less

fortunate children in the community in which the campaign is conducted. n

commissions, political subdivisions,

local government agencies, and quasi-

government agencies within the state

of Alabama.

NIC first began its partnership with the

state of Alabama in early 2002 and has

been dedicated to utilizing its self-funded

model for eGovernment services ever

since. To date, Alabama Interactive has

partnered with more than 60 state agencies

and developed more than 200 interactive

government services, including the state’s

official website, www.alabama.gov, at no

upfront cost to Alabama’s citizens and

businesses. The renewed contract includes

a three-year term with two additional

one-year renewals at the option of the

state, running through February 2017. AI

is excited about the future opportuni-

ties to help Alabama remain one of

the nation’s best in providing efficient

services for its government partners

and their constituents. n

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