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ISPs for E-Commerce

ISPs for E-Commerce. Nizar R. Mabroukeh, M.Sc., C.S. nizar@ccse.kfupm.edu.sa http://www.geocities.com/mabroukeh E-Commerce Short Course 19 th April, 2000. Topics to be Covered. Planning & Requirements Market and business study Requirements for an ISP Tuning your ISP setup to E-Commerce

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ISPs for E-Commerce

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  1. ISPs for E-Commerce Nizar R. Mabroukeh,M.Sc., C.S. nizar@ccse.kfupm.edu.sa http://www.geocities.com/mabroukeh E-Commerce Short Course 19th April, 2000

  2. Topics to be Covered • Planning & Requirements • Market and business study • Requirements for an ISP • Tuning your ISP setup to E-Commerce • Starting the business as an ISP • Advertise • Sell (shopping, checkout, authorization, charge back) • Start your E-Commerce Business • Promote • Surviving the competition • Future Developments Nizar Mabroukeh, 2000

  3. Planning and Requirements

  4. Planning • Business Requirements • Technical Requirements • Selection / procurement Nizar Mabroukeh, 2000

  5. Know The Internet Market The Internet is: • Open 24 / 7 • Connects people “not computers” • Communicate with anybody, anytime, anywhere • Everything is a “click away” • You should be selling on The Internet Nizar Mabroukeh, 2000

  6. The Internet a Threat or an Opportunity ? “Internet represents a strategic inflection point for business - grab it or lose it” Intel Co-Founder Andy Grove Nizar Mabroukeh, 2000

  7. The Connected Society Nizar Mabroukeh, 2000

  8. CEO & Executive Quotes • The Internet revolution will have a larger impact than the industrial revolution • Unless you get INTO the Internet you will be replaced • Add value and you will survive • To be successful locally you need to be available globally Nizar Mabroukeh, 2000

  9. Internet Users Nizar Mabroukeh, 2000

  10. Internet Penetration Nizar Mabroukeh, 2000

  11. Net Users in Middle East Nizar Mabroukeh, 2000

  12. Middle East Net Demographics • 1 million users by 2000 • 27 % high school certificate • 58 % University Degree • 14 % Master & PhD • 21 - 35 yrs old largest group - 70 % • 72 % Connect from Home IAW Magazine Aug 5, 1999 Nizar Mabroukeh, 2000

  13. E-Commerce Revenues Nizar Mabroukeh, 2000

  14. Revenue Estimates Nizar Mabroukeh, 2000

  15. E-Commerce in Europe Nizar Mabroukeh, 2000

  16. US vs World Nizar Mabroukeh, 2000

  17. What about Middle EastE-Commerce ? • Barely exists • Purchased $ 95 million during April 98 - April 99 (IAW magazine) • 9 % made purchase compared to 4 % in 97-98 Nizar Mabroukeh, 2000

  18. Middle East E-Commerce ? • 33 % one purchase • 18 % regular purchases • What did they buy ? Software … Books … CD’s … Clothing Traveling tickets … gifts … flowers …. Nizar Mabroukeh, 2000

  19. However 82 % of purchases from int’l vendors They are now your competitors Nizar Mabroukeh, 2000

  20. Business Model Nizar Mabroukeh, 2000

  21. Technical RequirementsInfrastructure for regular ISP • A connection to a larger Internet Provider. • Hardware and Software to provide Internet Services. Nizar Mabroukeh, 2000

  22. Connecting To A Larger ISP • ISPs are divided into classes (A, B and C), according to how many sub-networks they can support with unique IP addresses. Example: AT&T  KACST Commercial ISPs Internet Café Satellite Leased Line Leased Line or Submarine or Frame Relay Fiber Optic Nizar Mabroukeh, 2000

  23. Connecting To A Larger ISP • Hardware depends on type of connection. • You are connecting your LAN to the larger provider. • Generally, you will need: • An appropriate Router. • A Gateway, if different types of networks. • A Web server, with Secure Socket Layer (SSL). • A Proxy server to cache your link. • A Firewall to protect your LAN from intruders. • May need a leased-line modem or digital modem. Nizar Mabroukeh, 2000

  24. HW & SW to Provide Internet • You will providing for 3 types of customers: • Your local users on your LAN (directly connected to the servers) • Dial-up users (using Modem) • Corporate accounts (Leased-lines, VPNs, Frame-Relay…etc.), like Internet Cafès and Intranet solutions to companies. Nizar Mabroukeh, 2000

  25. HW & SW to Provide Internet • For the 3 different types you will need: • A machine for each of the following applications: • Web Server: Ex. Microsoft Internet Information Server (MIIS), Apache server (for Linux)… • Proxy Server: Ex. Netscape Proxy Server • E-Mail Server: Ex. Microsoft Exchange. • Firewall: to protect your LAN. Ex.: SQUID, ipchains… Nizar Mabroukeh, 2000

  26. Dial-up Customers HW • For dial-up customers you will need a pool of modems (a modem for every phone line you have). • A customer dials your service using a pilot number which will connect him to the first available line from the pool. • Thus you need a Port Master and a RAS (Remote Access Server). • User Authentication follows the OS on the RAS. Nizar Mabroukeh, 2000

  27. Corporate Accounts HW • Leased-line modem, Frame-Relay switches, VPN routers…etc. depending on connection type. • Most importantly you will need to have a pool of vacant and static IP addresses to provide. Nizar Mabroukeh, 2000

  28. Your Team • Technical Team • Customer Support Team • Sales Team • Marketing and Promotion Team • Billing and Accounting Team (Customer Care) • Content and Quality of Service Team Nizar Mabroukeh, 2000

  29. Technical Team • Configures, manages and administers your connection as well as troubleshooting problems on the LAN and the Internet setup. • Supports and provides connection to corporate users. • Responsible for providing a continuous and smooth link with appropriate bandwidth to your ISP (Tune the connection). Nizar Mabroukeh, 2000

  30. Customer Support Team • On-site installation and setup of service for dial-up users. • Help-Desk service and troubleshooting. • Provides After-Sales service for dial-up users and small corporate accounts (like Internet Cafés). • Takes customer notes on service. • Works side-by-side with Technical team. Nizar Mabroukeh, 2000

  31. Billing and Accounting Team • Must be online with customer database • Always on contact and direct arrangement with Marketing team. • Aware of their limits that might depend on technical matters of the link. Ex.: If server cannot keep track of off-peak hours, we cannot sell off-peak accounts. Nizar Mabroukeh, 2000

  32. Content and Quality of Service Team • They provide content to the users. • Design your webpage and keep it up to date. • Keep users attracted and entertained: • Hold newgroups discussions. • Link people together: Chatting Services, small tutorials, free personal websites for users… • Link your users to the government or people who interest them. • Provide E-Commerce. Nizar Mabroukeh, 2000

  33. Sales Team • First Contact with customer thus first on-ground impression about company. • Must be knowledgeable about The Internet in general and about the company’s capabilities. • Promise only what the company can deliver and deliver what was promised. • Make friends with customers and keep in contact after closing the deal. • You Better have a sub-team for corporate accounts. Nizar Mabroukeh, 2000

  34. Marketing and Promotion Team • Advertise  Sell  Market  Promote. • Marketing is important for continuity of the company as well as in competition. • Hold promotional campaigns taking chances of special occasions. • Must have a clear goal (part of the general mission of the company) on each campaign. • Should be flexible and fluctuant with Competition (able to compete). Nizar Mabroukeh, 2000

  35. Marketing vs. Selling in Web Sites • In marketing sites there is often a reluctance to give complete information. • With selling, the objective is to close the sale electronically. Nizar Mabroukeh, 2000

  36. Sections of Selling Sites • Sites that sell generally have 3 sections: • Marketing and added value information. • The Catalogue: product specs and prices. • Order processing: Advanced systems may have a method for the customer to check progress and delivery of the order. Such sites may be stand-alone, or may form part of a larger site called a “Shopping Mall” Nizar Mabroukeh, 2000

  37. Tuning to E-Commerce • Online Catalogue • Shopping Cart • Secure Servers and SSL • Payment Gateways Nizar Mabroukeh, 2000

  38. Business Owner Mall Owner Internet Reports & Statistics Mall Front Manager Financial Institution Service Manager Mall Manager Business Owners Manager Mall Services Secure access (DID) Secure access (DID) Advertisers Secure access Secure access Remote Sales Classified Ads Customer Mall front Mall BackOffice Extended Services Electronic Mall Administration Browse Mall Services Order $$$ Extended Services Collect Services (shopping basket) Secure eCommerce Services & Hosting Nizar Mabroukeh, 2000

  39. Example on Mall Deliverables • Mall infrastructure: • Register/transfer/point Mall DNS • Database design and programming • Automated provisioning and upgrading. • Store ‘test drive’ • Central Category directory • Global shopping • Global search capability • Mall front: • Advanced shopping cart • Static store policy pages • Multiple payment methods Nizar Mabroukeh, 2000

  40. Example on Mall Deliverables • Mall Backoffice: • Service manager • Modify, add and delete services • Modify, add and delete templates • Modify, add and delete store • Mall manager • Fulfill orders • Generate invoices • E-mail confirmation notices automatically • Track open orders • Track and manage accounts receivable • Generate past due notices • Search orders • Search unordered baskets • Payment processing Nizar Mabroukeh, 2000

  41. Example on Mall Deliverables • Customer (store owner) manager • Modify, add or delete customer information • Manage customer passwords • Track account balances • Assign service levels • Set credit limits • Set credit length • Search for customers • Mall front manager • Modify, add and delete Mall front text • Modify, add and delete Mall front advertisements • Modify, add and delete Mall demo Nizar Mabroukeh, 2000

  42. Example on Mall Deliverables • Graphical Reports and Statistics • Mall front processes • Report on traffic and order analysis by day, week, or year • Report on store sales statistics by item number, rank, time period • Optional • VeriSign Server Set-up (to eliminate spoofing) • Automated Billing System Nizar Mabroukeh, 2000

  43. Shipper (UPS) Internet Business Owner Reports & Statistics Product Manager Supplier Inventory Manager Catalog Manager Purchase Manager Store Manager Financial Institution Customer Manager Store Services Secure access (DID) Customer Storefront BackOffice Electronic Store Browse Catalog Extended Services Order $$$ Collect products (shopping basket) Extended Services Secure eCommerce Services & Hosting Nizar Mabroukeh, 2000

  44. Each store is “rented” from a “Community” or “Mall” by a business • Each business selects the services that best meet the online requirements of that business • Each store may choose among different services like: • Home page for advertisement of a business or classified with contact information • About page • Order information page • How to shop page • Catalog list pages • Store ‘specials’ page • Reporting and statistics • Advanced reporting and statistics Nizar Mabroukeh, 2000

  45. Central directory search • Advanced shopping basket • Image uploading • Shipping matrix • Tax matrix • Automated order notification • Global ‘specials’ listing • Generic invoices • Real time payment processing capability • Drop ship supplier order notification • Customer profiling • Storefront management facilities • Backoffice administration facilities Nizar Mabroukeh, 2000

  46. You Have All The Gadgets Fully Equipped and ready….  Let’s Hit The Market

  47. Start Your Business • After you have decided on your company mission, you can advertise on the grounds of this mission. • Sell: • In-door sales: For walk-in customers • Out-door sales: Target a special class or group of people or industry sector, collect contacts, call them on the phone and visit them. • Market and Promote (again, have clear goals and targets) Nizar Mabroukeh, 2000

  48. Important Points for Sales • Internet Customers are usually interested in: • Price vs. quality of service. • Customer Support (after-sales service). • On-call Tech. Service. • Trial accounts. • Your Bandwidth and your ISP. • If I am a customer, I would ask you to convince me to buy from you and not other companies. This is when your “content” comes into action. Nizar Mabroukeh, 2000

  49. Building E-Commerce Business • Negotiate links with other websites. • Traditional Marketing (include it with your marketing team). • Advertising on search engines and other high traffic sites. • Associate programs where sites that refer visitors get a commission on sales. Nizar Mabroukeh, 2000

  50. Online Catalogue • Navigation • The shopping cart • Check-out Nizar Mabroukeh, 2000

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