Case Study: State of Nebraska

Case Study

Centralized Alcohol Management Project (CAMP)

Serving the State of Nebraska’s 1.9 million citizens, the Nebraska Liquor Control Commission (NLCC) regulates and controls the State’s alcoholic beverage industry to promote public health, safety, and welfare—processing over 11,000 licenses per year with a staff of 17 persons.

In 2018, the Agency received funding approval for an IT project called CAMP (Centralized Alcohol Management Project) to replace NLCC’s outdated mainframe legacy system, C1, with a modern software system for alcoholic beverage control. To ensure the success of the CAMP Project, NLCC prioritized the procurement of a mature Out-of-the-Box Solution (OOTB) capable of meeting all of the Agency’s major business requirements. Of equal importance, system implementation would leverage a delivery methodology proven via successful implementations with comparable alcohol licensing state agencies. 

To accomplish their project goals, NLCC:

  • Performed a detailed assessment of their business needs and organizational readiness to increase the probability of implementation success.
  • Took structured steps to plan for, procure, and implement a software system incorporating current IT industry best practices.
  • Leveraged external procurement guidance to fill in the Agency’s knowledge and experience gaps.


In July of 2022, the CAMP RFP was awarded to Computronix, for subsequent implementation of the market leading COTS+ alcoholic beverage control software, POSSE ABC. The same system is utilized in nine other states and two provinces for alcohol industry regulation.

Alongside selecting their ‘Powered by POSSE’ software system, the NLCC fully articulated the CAMP vision for a single, centralized system and service portal, providing licensees with full-service digital licensing, from initial application through to final provision and payment. Equipped with user-friendly automation-assisted workflows and transparent data accessibility out-of-the-box, NLCC’s CAMP system would also include feature-rich modules for licensing, enforcement, licensee education and certification, brand registration, and regulatory reporting.

The project’s implementation timeline was set for 16 months with the initial kick-off occurring on January 10, 2023.  

“As Project Sponsor of the Nebraska CAMP Project, I am so thankful for the hours of work and effort that has culminated in a successful modernization of the Nebraska Liquor Control Commission. A huge thank you to the NLCC staff who are at this Agency at the end of this implementation. Your commitment and efforts were significant, and I am thankful for each person. I am also thankful for each State employee who contributed through the Office of the CIO on data conversion, geographic information systems, and other areas.”

“In addition and significantly, without our consultant, Gartner, and our vendor Computronix, we would not have been successful.”

LeAnna Prange
Deputy Director
Nebraska Liquor Control Commission

The Challenge

In June 2020, the Nebraska Liquor Control Commission (NLCC) was at a crossroads. Despite decades of manual process optimization to overcome the limitations of their mainframe licensing system, the Commission’s staffing resources would soon be insufficient to manage the State’s rapidly growing licensing volumes. Even with new hires in place, NLCC leadership could foresee an inevitable decline in the State’s signature customer service excellence given the intrinsic limitations of an outdated system that offered no further potential for extensibility or efficiency gains.

Further, the Agency was under pressure to meet the requirements of new state legislation requiring the advance registration of all alcoholic liquor products, prior to sale or shipment, by July 1, 2024. Doing so would require the identification of all alcoholic beverage products in Nebraska by source supplier, product type, and distributor—a first for the state.

Like so many regulatory agencies still working with a technology platform implemented in a pre-automation era, the NLCC knew they needed a modern software solution for Alcoholic Beverage Control. More importantly, they needed a solution that would empower the Commission to achieve three mission-critical project goals:

  1. Given a lack of dedicated programming resources to configure a custom solution, the NLCC was keen to avoid a feature-lite system that might cost less to deploy in the short-term but would ultimately hamper the Commission’s growth in the long run. Instead, the NLCC prioritized the procurement of a proven, feature rich COTS solution that could immediately meet the agency’s full requirements “out-of-the-box” without extensive ongoing configuration being required.

  2. In conjunction with their mission to implement a mature COTS software solution, the Nebraska Liquor Control Commission envisioned an opportunity to realign their internal business processes consistent with state-of-the-art best practices for liquor control and licensing. In partnership with Gartner, a technological research and consulting firm, and the Organizational Change Management (OCM) mentors at Computronix, the NLCC would embrace an innovation driven approach to tailor their business processes to maximize the full enterprise capabilities of their new ABC software system.

  3. Finally, and most importantly, led by their innovation champion, LeAnna Prange, Deputy Director & Wholesale Compliance Administrator, the NLCC would pursue a proactive project engagement approach—one that would fully invest their entire staff in their eventual project success while simultaneously mitigating project risks to keep the Commission’s new system launch on task, on time, and on budget.

“The NLCC has received overall positive responses from the liquor industry about POSSE, for its accessibility and straightforward online services for liquor license applications, liquor license renewals, industry complaints, brand registration, and excise tax reporting. POSSE also features a robust Education and Certification module which allows NLCC to move forward with improved education and training opportunities for the Nebraska liquor industry.”

Hobert Rupe 
Executive Director 
Nebraska Liquor Control Commission


“User Acceptance Testing allowed every staff member in our agency to get in the system and utilize it. This process helped us build our business processes around POSSE and work out any bugs ahead of time. I was very proud of how our team worked together and each team member used their unique skill set to test the system.”

Shannon Nyhoff
UAT Manager
Nebraska Liquor Control Commission

 

“Our previous system was so outdated that the license data was difficult to extract and needed considerable transformation in order to be in a format that would be compatible with a much newer system. We worked closely with our State IT to identify and map our data for the transformation process. After the first test run of data conversion was completed successfully, there was such a sense of relief and pride knowing that our staff’s hard work led to that success. Data conversion went from one of our most high-risk areas to no longer being a concern.”

Lisa Steward
Co-Project Manager
Nebraska Liquor Control Commission

 

“The licensing team reviewed statute and rule requirements to determine how our current business practices could be modified to make the out of the box functionality of POSSE work for us. Changes were implemented to the renewal process enabling renewal notices and renewed licenses to be sent by email rather than US mail. This change facilitated a quicker turnaround time and reduced the involvement of NLCC and local governing body personnel.”

“Another significant change we implemented was to the deadline to our Special Designated Licenses (one-day event licenses). This was made possible by the ease of submitting and processing the applications due to minimizing the data entry required by both the applicant and NLCC staff. POSSE ABC also gave us the ability to identify and monitor issued licenses, rather than being done in a spreadsheet.”

Brenda Hiland
Licensing Business Analyst
Nebraska Liquor Control Commission

The Solution

In achieving their fully realized CAMP software solution on time and on budget, two attributes stood out as guiding lights for the NLCC:

  1. The consistent, common-sense leadership of Deputy Director LeAnna Prange,
    and
  2. The Agency’s unerring emphasis on practical applications ensured that project decisions were focused, timely, and well-informed.

 

To achieve the best possible project outcomes, NLCC leadership facilitated a highly collaborative model that played to the strengths of each stakeholder invested in the success of the CAMP project. By humbly acknowledging the process and technology gaps outside the Agency’s core areas of expertise, NLCC leaders could quickly embrace a project framework that maximized stakeholder expertise and knowledge transfer amongst all project participants.

LeAnna Prange, Deputy Director, leads NLCC project principles in a planning session. 

CAMP System Workflow Groups

Shipper Workflows
Producer Workflows
Wholesaler Workflows
Beer Brand Registration
All Other License Applications
Training
Administrative Tasks
ROI Analysis

Procurement Process

From September 2020 through July 2023, the Nebraska Liquor Control Commission worked with Gartner,  to help guide the Agency through the procurement preparation>vendor selection>project activation process. From the start, the NLCC emphasized one clear organizational priority—their desire to choose a software vendor and OOTB solution providing the overall best value, not simply the lowest cost bid.

By proactively engaging a best-in-breed consultancy with domain knowledge specific to government licensing system implementations, this ongoing dialogue between Agency and Support Vendor enriched the subsequent project planning and vendor/product selection process on numerous fronts:

  • The planning process assessed NLCC’s current capabilities against their long-term modernization goals.

     

  • Pre-project analysis created business process flows for the future software state to define project requirements more fully.

     

  • A readiness assessment exercise identified areas of potential risk and suitable mitigation strategies.

     

  • The support vendor helped the Agency to develop objective evaluation criteria and an unbiased process for evaluating submitted proposals.

 

Individually, each facet of this analyses served to inform NLCC leadership with the necessary level of detail required to fully envision their desired innovation journey through every step of the subsequent organizational transformation and technology implementation. Collectively, the information also empowered the Agency to maintain its clear innovation vision throughout the entire process, an important consideration given the strong potential for technology transformations to become compromised by political wrangling, internal turf wars, budget competition, etc.

As a result of the sound strategic decision to engage with a proven technological research and consulting firm, NLCC achieved demonstrable project wins in several key areas:

  • The process to create more detailed RFP requirements saved time and money equipping the Agency to avoid unnecessary change orders during the actual project implementation.

     

  • A procurement process focused on immersive stakeholder engagement facilitated full transparency for business process changes, improving eventual OCM outcomes.

     

  • Informing their vendor evaluation processes with proven scoring metrics (i.e., heavily weighted experience category, scoring based on responses, low weight on cost) prudently leveled the playing field to equip the NLCC to select a competent vendor and solution that best matched the Agency’s business requirements and modernization objectives.

     

  • When risk tradeoffs arose, the nuanced perspectives gleaned from a robust planning and procurement process empowered the Agency to make informed decisions based on project best practices, thus limiting downstream impacts.

Internal Engagement

The smiling faces of the dedicated team at the Nebraska Liquor Control Commission.

Crucial as it is to get the procurement and vendor selection processes right, it’s equally imperative that an organization effectively engages its staff to activate their attention and enthusiasm for the transformation journey to come.

From the start, the NLCC adopted an effective “Product Owner” mindset, empowering key staff to make decisions. By involving staff at all levels throughout the procurement and evaluation process, Agency leadership excited future system users and prepared them for the modernization advances they could expect within their new CAMP system.

By thoroughly documenting existing inefficiencies in the initial planning analysis, and mapping these gaps to the future state capabilities of their new solution, the Agency was able to attract additional investment from the State legislature to ensure a sufficiently funded modernization project. Moreover, fully defining and articulating their POSSE ABC solution’s total capabilities helped to ‘sell’ the project internally to internal staff and stakeholders.

Instrumental in these efforts were the Agency’s Executive Director Hobert Rupe and Deputy Director, LeAnna Prange. Both leaders provided significant executive sponsorship, support, and leadership for the project, with additional support from the Commissioners.

The consistent thread throughout for the Nebraska Liquor Control Commission was the prudent and practical decision to not ‘reinvent the wheel’ but rather to make the best use of each project group (internal staff, software vendor, procurement consultant) by maximizing a proven system providing the best “Out of the Box” functionality for robust alcohol beverage control. By trusting that their chosen system would deliver nearly all their business requirements and innovation objectives, the NLCC was able to avoid scope creep, resistance to change, and sporadic solution adoption, which can plague less focused technology implementations.

In stark contrast to bloated custom builds, staff throughout the NLCC embraced their role as cost effective change agents in numerous areas:

  • A rigorous pre-project evaluation process established POSSE ABC as an industry leading solution, one that several other alcohol regulatory agencies had successfully implemented using the same approach. Properly vetting the solution track record in this manner contributed to an organization-wide willingness to refine Agency processes consistent with the best practices and industry standards supported by their chosen software solution.

  • Such organizational acceptance fostered project willingness to adapt business processes to the solution wherever possible to limit configuration/customizations, even going so far as to change legislation if reasonable and possible.

  • Internal project stakeholders consistently reinforced their new CAMP system’s customer service capabilities as a win/win for all involved. Maintaining internal enthusiasm for feature benefits providing quicker and easy communication, faster services, automation assisted self-service options, and information transparency, put wind in the sails of project participants helping to maintain consistent project momentum going forward.

  • By committing early on to a process of robust business process reinvention, NLCC staff were able to achieve a nuanced grasp of their future state solution empowering the Agency to enter the technology implementation phase with clear expectations and a sensible roadmap for internal stakeholders.

The NLCC commitment to innovation continued into User Acceptance Test (UAT) and beyond, where Agency staff now fluent in the capabilities of their CAMP system, are adept at spotting areas where their software solution can be more fully exploited to take advantage of the system’s full capabilities. From a software development perspective, this creates a truly virtuous and symbiotic customer/vendor relationship where customer feedback provides invaluable feedback to further refine the product configuration which in turn informs the overarching product roadmap for the benefit of all clients.

Product Implementation

From a vendor perspective, the CAMP Project showcased how efficiently and cost-effectively an enterprise software rollout can function when all parties are aligned with the common goal of maximizing a proven platform and implementation model. With the Computronix implementation methodology (“The CX Way”) already validated by both the NLCC’s procurement consultant and the company’s demonstrable track record of excellence; project buy-in and momentum was established from the start, empowering all project participants to quickly move past the theoretical towards the all-important practical application components of the project plan.

The same held true on the product side where the initial fit/gap sessions mapping POSSE ABC’s existing functionality to NLCC business requirements quickly reinforced the product’s off-the-shelf suitability for the Agency’s diverse needs. For many government agencies, these early project wins are crucial to help project leaders and senior stakeholders clearly visualize their new system, instilling confidence that the strong match between product/requirements will result in a project plan that avoids costly schedule delays and change orders.

As the project progressed through the various technical disciplines (organizational change management, data conversion, system integrations, etc.), NLCC expressed a strong appreciation for the various ways in which the Computronix Project Team maintained a customer-first approach to project management. Whether taking great pains to ensure clear communication between parties by avoiding technical jargon OR simply being an effective sounding board to help the client identify a suitable approach for overcoming internal project challenges, the CAMP project exemplified the customer-led philosophy that has contributed to Computronix’s industry unmatched 100% project success rate achieved through 45+ years of successful system implementations.

By prioritizing a prudent and practical application approach that maximized the expertise of all parties and the full capabilities of the POSSE ABC solution, the Nebraska Liquor Control Commission achieved exceptional project outcomes on all fronts.

  • Planning for a project implementation term of 16 months commencing on 1/10/2023, the project team crossed the finish line right on time on 5/6/24.

  • Given the intrinsic efficiencies now achievable with the CAMP system, NLCC is forecasting an additional 450 licenses per year and a 1.5% to 2.5% increase in excise tax collection totaling an estimated $640,000.

  • The lack of modifications affecting core functionality means the implemented software system will be easier to maintain through future product upgrades increasing lifetime ownership value.

“This modernization is a great example of effective state procurement, as we worked with industry partners, other state agencies and local governing bodies to make a unified system that works for all stakeholders. I am very proud of our agency and our staff for the hard work and commitment to providing great service to the State of Nebraska and its citizens.”

Hobert Rupe 
Executive Director 
Nebraska Liquor Control Commission

The Results

The Project Charter developed for the Centralized Alcohol Management Project (CAMP) defined several core objectives, including the following: 

Project Charter Objectives

The System will replace the State of Nebraska’s existing tax processing systems. The System will perform all functions in the current systems. In the future, it may also incorporate several tax and fee types currently administered in other State agencies. Consolidation of all taxes and fees into a uniform system of administration will streamline processing, resulting in better customer service to taxpayers.
The System will allow NLCC to maximize audit, collection, fraud detection, reporting, and estimation functionality either from within the System, via integration with the data warehouse, or by leveraging sources external to NLCC. Applying analytics to processing data will result in more efficient audit selection, targeted collections and fraud detection, flexible reporting, and more refined estimating.
The System will centralize all document processing, imaging, and storage. NLCC users will be able to access all returns and reports filed, account information, payment information, correspondence, and related documents within the System. The result will be the reduction in the number of systems that must be maintained, allowing NLCC to migrate business processes to more modern, flexible, and supportable technologies.
The System will allow NLCC to increase revenue opportunities by enhancing the collection of existing and new taxes, penalties, and interest.
The System will allow NLCC to maximize compliance with required and recommended security standards, internal controls, and policies by centralizing security. NLCC will continue to improve its security posture by implementing industry-standard security controls as advised by our State’s OCIO and other partners.
The System will automate business processes as much as possible to increase efficiency, eliminate inefficiencies, reduce duplication, and make better use of available resources. NLCC will realize a reduction in manual processing and redundancies and greater time savings due to the automation of work queues and approval processes and may consolidate or expand license types, excise tax types.
The System will enable taxpayers and licensees to manage their accounts through secure online self-service applications. The System will include paperless application forms and report submissions for all licensees to improve collaboration, tracking, and records management.
The System will streamline processes to improve efficiency, consistency and predictability for internal and external users. The System will provide comprehensive reporting and querying capability.

Following the successful implementation of the CAMP system powered by POSSE ABC, the Nebraska Liquor Control Commission has measured the success of the technology in meeting the Agency’s overarching goals. In addition to meeting all of the objectives of the Project Charter, the CAMP Project is meeting or exceeding all of the core KPIs expressed in the Agency’s performance measurement model, based on the initial system outputs.

By not only achieving but exceeding the capabilities envisioned for their CAMP System, the Nebraska Liquor Control Commission is on a firm foundation, both now and for the future, to increase the number of services offered, increase the number of licenses issued, increase transparency to licensees, and increase the overall user satisfaction for all people involved in liquor licenses within the state of Nebraska—with no increased burden to Nebraska taxpayers.

Reduction in minutes to process applications.
0 %
Additional licenses approved per year.
0 +
Reduction in licensing application steps.
0 %
Reduction in systems to process applications.
0 %
Increase in completed premise inspections.
0 %
Increase in inspections to confirm compliance.
0 %
Increase processing monthly shipper reports.
0 %
Increase processing Direct-to-Consumer reports.
0 %
Increase in industry communication.
0 %

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