Document Sample
ISP Powered By Docstoc
					ISPs for E-Commerce

Nizar R. Mabroukeh, M.Sc., C.S.

For E-Commerce Short Course
18th April, 2000
            Topics to be Covered
 Planning
 Requirements
   – Requirements for an ISP
   – E-Commerce Add-ons for ISPs
 Starting the business as an ISP
   – Advertise
   – Sell (shopping, checkout, authorization, charge back).
   – Promote
 Surviving the competition
 Future Developments

                        Nizar Mabroukeh, 2000                 2
Planning and Requirements
Business Model
   Small                                                       Software
 Companies            Medium            Large                   Vender
                     Companies        Companies

            New                                          New
         Products &                                   Products &
       Services for the                             Services for the
     Business Community                           Business Community


                          Nizar Mabroukeh, 2000                            4

 A connection to a larger Internet Provider.

 Hardware and Software to provide Internet

                 Nizar Mabroukeh, 2000          5
     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.
   AT&T  KACST Commercial ISPs Internet Café
        Satellite Leased Line   Leased Line
    or Submarine              or Frame Relay
     Fiber Optic

                   Nizar Mabroukeh, 2000          6
       Connecting To A Larger ISP

 Hardware depends on type of connection.
 You are connecting your LAN to the larger
 Generally, you will need:
   –   An appropriate Router.
   –   A Gateway, if different types of network.
   –   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            7
  HW & SW to Provide Internet

 You will providing for 3 types of
  – 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          8
   HW & SW to Provide Internet
 For the 3 different types you will need:
   – A machine for each of the following
     • 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 from the last 2 types
       of customers. Ex.: SQUID, ipchains…
                      Nizar Mabroukeh, 2000                  9
       Dial-up Customers HW

 For dial-up customers you will need a pool of
  modems (a modem for every phone line you
 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           10
     Corporate Accounts HW

 Leased-line modem, Frame-Relay switchs,
  VPN routers…etc. depending on connection
 Most importantly you will need to have a
  pool of vacant and static IP addresses to

                Nizar Mabroukeh, 2000         11
Tuning to E-Commerce

 Online Catalogue
 Shopping Cart
 Secure Servers and SSL
 Payment Gateways
 Commerce Service Providers (CSP)

                  Nizar Mabroukeh, 2000   12
                                                  Mall Services

Business Owner
             Secure access                                                             Mall Owner
                                                                      Secure access

                  Secure access                Internet
                                                                  Secure access       Remote
    Ads                                                                                Sales
                    Mall front                              Mall BackOffice
                                   Electronic Mall
                     Browse                                                               Statistics
                                                                                                    Mall Front
                                        $$$                                                                                     Financial
                                                                                                                 Extended      Institution
                                  Collect       Service Manager                                                  Services
                                 Services                                              Mall
                                (shopping                             Business
                                                                       Owners         Manager

                     Secure eCommerce Services & Hosting

                                                          Nizar Mabroukeh, 2000                                                              13
• Mall infrastructure:
    •   Database design and programming
    •   Store ‘test drive’
    •   Central Category directory
    •   Global shopping
    •   Global search capability
• Mall front:
    •   Advanced shopping cart
    •   Static store policy pages
    •   Multiple payment methods
• Mall Backoffice:
         Service manager
             Modify, add and delete services
             Modify, add and delete templates
             Modify, add and delete store

                           Nizar Mabroukeh, 2000   14
 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
 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
                 Nizar Mabroukeh, 2000              15
 Mall front manager
    Modify, add and delete Mall front text
    Modify, add and delete Mall front advertisements
    Modify, add and delete Mall demo
 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
 Options
    VeriSign Server Set-up (to eliminate spoofing)
    Automated Billing System
 Staff administrative training

                Nizar Mabroukeh, 2000                              16
                                         Store Services

                                     Internet                                                            Shipper
                                                      Secure access        Business Owner
Customer                                                  (DID)

           Storefront                              BackOffice

                          Electronic Store                                        Reports &
            Browse                                                                             Manage
            Catalog                                                                               r
                             Order                                                     Inventory
                              $$$                                                       Manager

                       Collect         Catalog Manager
                      (shoppin                            Store                       Purchase                     Extended Financial
                      g basket)                          Manage                       Manager                      Services Institution
             Secure eCommerce Services & Hosting

                                                Nizar Mabroukeh, 2000                                                                     17
• 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
    •   Home page for advertisement of a business or classified
        with contact information
    •   About page
    •   Order information page
    •   How to shop page
    •   Catalog list pages (one level, up to 100)
    •   Product list pages (up to 100 items)
    •   Store ‘specials’ page
    •   Reporting and statistics
    •   Advanced reporting and statistics
                       Nizar Mabroukeh, 2000                      18
   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
   Store infrastructure
   Storefront management facilities
   Backoffice administration facilities

               Nizar Mabroukeh, 2000          19
               Your Team
 Technical Team
 Customer Support Team
 Sales Team
 Marketing and Promotion Team
 Billing and Accounting Team (Customer
 Content and Quality of Service Team

                Nizar Mabroukeh, 2000     20
             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

 Responsible for providing a continuous and
  smooth link with appropriate bandwidth to your
  ISP (Tune the connection).

                   Nizar Mabroukeh, 2000              21
       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          22
                 Sales Team
 Sell…Sell…Sell…
 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
                   Nizar Mabroukeh, 2000             23
 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               24
    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              25
  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          26
You Have All The Gadgets
 Fully Equipped and ready….

      Let’s Hit The Market
             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

                       Nizar Mabroukeh, 2000                     28
      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            29
Online Catalogue

 Navigation

 The shopping cart

 Check-out

                Nizar Mabroukeh, 2000   30
Payment and Order Processing
 What is involved in credit card processing?
  – Authorisation.
  – Capture.
  – Charge back.
 Other payment methods:
  – Fax.
  – Telephone Order.
  – Micro-payments.
  – Electronic cheques.

                 Nizar Mabroukeh, 2000          31
Surviving The Competition
            Ensure Continuity
 Try as much as possible to keep your
  configuration tuned for best performance.
   – If you need more bandwidth get more.
   – If you need more phone lines get more.
   – You might need to install new modems to keep up with
     technology that you’re customers are using, do it.
 Provide Content and Entertainment as mentioned
 Make a survey about your service every now and
  then by calling customers and asking them (keep
  up quality of service).

                     Nizar Mabroukeh, 2000                  33
           Ensure Continuity

 Get rid of nosey customers, naggers,
  hackers, and hot shots ! HOW?

 Make friends with your loyal customers,
  arrange gatherings.

 You can also promote and market for your
  new services in these gatherings.
                  Nizar Mabroukeh, 2000      34
         Future Development

 The Internet is growing dramatically
  everyday. Thus the emergent need for
  development to keep up with technology.
 It would be good if you had future plans in
  mind since day one of establishing your
 Development in hardware and in content.

                 Nizar Mabroukeh, 2000          35
         Development Team
 Establish a team for Research and
  Development (R&D).

 Give them resources they need: Money,
  testing devices, library, research tools…

 Usually R&D is the most money and time-
  consuming department in any company.

                 Nizar Mabroukeh, 2000        36
         R&D Responsibilities
 Should follow up on new technologies and
 Should be able to carry out experimentation and
  testing on new technologies and provide
  management with consultation and support in
  futuristic plans.
 Should be able to come out with new ideas and
  plans to enhance the performance of employees,
  the network and the system as a whole.

                   Nizar Mabroukeh, 2000            37
 We have seen the basic steps one needs to start his
  business as an ISP.
 To be a successful ISP keep in mind the following
   – Good planning (the internet provides a lot of services
     and there is a lot of technology involved, you might get
   – Robust connection to your ISP and enough resources.
   – Quality of service.
   – A lot of customer care.
 The competition is wild !

                      Nizar Mabroukeh, 2000                     38
Points to Ponder:

Globalization: What is your part in it? And
 where is your contribution to it?

                 Nizar Mabroukeh, 2000        39