Philippines Land Transport Office Leverages Global360 BPM to Streamline Administrative Processes,Improve Day-to-Day Operations and Deliver High-Quality Services to its Citizens

Executive Summary

The Philippines Land Transport Office (LTO) consists of 250 offices nationwide whose mission is to

rationalize land transportation and supporting facilities and effectively implement Philippines

transportation laws, rules, and regulations.

The LTO’s primary functions include: inspection and registration of motor vehicles, issuance of drivers

licenses and permits, adjudication of traffic cases, and the collection of revenues for the Philippine

government.

Challenges

Processing more than 45,000 motor vehicle and 25,000 driver’s licenses daily in the Philippines, the LTO

needed to improve their public service delivery through faster online transaction processing of

applications for motor vehicle registration and driver’s licenses; improve government revenue

collection; provide real-time information flow among regional and district offices; provide alerts when

questionable processing of spurious transactions is detected; provide audit trails of questionable

transactions and identify the parties involved; and report all stock inventories to prevent registration of

questionable motor vehicles.

Solution

Stradcom Corporation, LTO’s exclusive IT service provider in the Philippines, has chosen Global 360’s

Business Process Management (BPM) solution to streamline and automate the motor vehicle

registration and driver’s licenses applications, enable better control over their critical front-end and

back-end operations, provide real-time, end-to-end visibility into critical processes, and improve public

service delivery.

With a proven track record in Business Process Management, Stradcom Corporation worked closely with

Global 360 in the implementation of Global 360 BPM solution at the LTO. The LTO IT Project provides

real-time and online processing of LTO’s transactions with a decentralized architecture which enables

remote site operations to be less dependent on network availability. The system implementation

necessitates separate installation of the new Global 360 BPM solution at each of the 250 sites.

Implementation began by setting up all LTO district offices with the Global 360 system. The existing

implementation at the LTO Central Office, where all images are centrally stored, was replaced with the

Global 360 Magnetic Archive Manager. Once in place, the Global 360 BPM solution successfully began

processing five critical transactions including: duplicate license renewal; new student permit application;

and record change. Complete replacement of the existing system to Global 360 was successfully

accomplished in three months.

Results

“As a government agency serving a customer base that is both large and geographically dispersed, the

LTO’s success is founded on a strategy of transforming this public organization into a modernized agency

that provides much-improved public service and promotes good governance. The Global 360 BPM

solution allows LTO to achieve these goals by providing an end-to-end solution that enables control and

cooperation among different departments and offices, and enables interaction between personnel,

customers, and supply chain partners,” explains Mike Dalawampu, Stradcom Vice President – Technical

and IT Operations Division.

Global 360’s BPM solution is now one of the mission-critical applications at the center of LTO’s primary

business: motor vehicle registration and driver’s license application processing. The system supports

every aspect of the process from application origination, to scanning paperwork, indexing and archiving

documents, retrieval, customer service, and payments.

Instant Access to Records

The need for an improved archiving, retrieval, and automated workflow processing solution was

extremely critical, especially given that the existing system contained 9.2 million records of issued

driver’s licenses and 5.5 million records of registered vehicles in its imaging archive. Global 360

successfully upgraded the implementation to handle the increasing volume of information and

transactions. Stradcom’s Dalawampu emphasizes that “the migration was accomplished with no

performance degradation and operations interruptions during the replacement process.”

Global 360 BPM Solution enables LTO to manage a huge volume of information very efficiently, bringing

both internal and external improvements in their ability to service their customers. LTO agents can now

see the status of an application or file instantly and provide answers to questions right away, further

improving process productivity.

Integrated Business Units and Operations

A major challenge for LTO has been to integrate its geographically dispersed regional and smaller offices

with its Central Office in Manila and streamline the administrative processes in order to guarantee

service excellence.

Additionally, Global 360’s BPM solution has enabled LTO to integrate and automate their front-end and

back-end operations for greater visibility and control. Integrated front-end operations include: the

Driver’s License System; Motor Vehicle Registration System; Law Enforcement and Traffic Adjudication

System; Manufacturers, Assemblers, Importers and Dealers Reporting System; and Revenue Collection

System. Integrated back-end operations include: General ledger System; Human Resources

Management System; Payroll System; Inventory Management System; and the Integrated Procurement

and Disbursement Management System.

From a management perspective, supervisors are now able to observe the level of applications being

processed in real-time. This provides an accurate, up-to-date snapshot of business flowing through each

agency department or office and provides them with the process information they need to adjust to

changing business conditions in real-time.

Productivity and processing time improvements have been significant.

Motor vehicle registration processing time has been reduced from 4 to 8 hours, to 1 hour

New drivers license processing has been reduced from 6 months to 3.5 hours

Driver’s license renewals have been reduced from 3 months to 3 hours

Traffic violation settlement processing has been reduced from 8 hours to half an hour

General information queries have been reduced from 3-15 days to 30 seconds

Flexible System Enables Greater Customer Service

In order to deliver LTO services to its many remote citizens in the Philippines, the IT Project was

implemented and rolled out to six customized buses and vans, called LTO e-Patrols, providing realtime

online transactions. These mobile offices travel to the many remote islands to conveniently provide

public services to citizens that are unable to travel to the nearest LTO site or to locations where no

services exist. Using the Global 360 BPM solution, LTO staffs are able to issue and receive applications,

scan the paperwork into the Global 360 archiving system, and upload the data to the Global 360 BPM

Server in Manilla. And because Global 360 is flexible enough to support multiple bandwidths, this upload

can take place over anything from T1 land lines to 56K dial-up connections, enabling LTO with the

flexibility it needs to meet the needs of its remote citizens and provide them with proper services.

Summary

Today, with the implementation of the Global 360 BPM solution, LTO is able to convert all of its paper-

based application and processing forms into an electronic process management system, automatically

route all work requests to the correct department, reduce cycle times and increase response time to

customer requests, raise overall productivity and transform LTO into a tight, highly efficient organization

that is prepared to meet the demands of its customers now and in the future.