isps for e-commerce nizar r. mabroukeh, m.sc., c.s. [email protected] for e-commerce short...

ISPs for E-Commerce

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

[email protected]

http://www.geocities.com/mabroukeh

For E-Commerce Short Course

18th April, 2000

Nizar Mabroukeh, 2000 2

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

Planning and Requirements


Business ModelInd ep end e nt

S o ftw a reV e nd e r

B u s in e s sC o m m u n ity

N ewP ro d u c ts &

S e rv ic e s fo r theB u s ine s s C o m m u nity

N ewP ro d u c ts &

S e rv ic e s fo r theB u s ine s s C o m m u nity

T ru s te dInte rne t

M a rk e tP la c e

La rgeC o m p a nie s

P ro fe s s io na ls

M e d iu mC o m p a nie s

S m a llC o m p a nie s


RequirementsInfra-structure

A connection to a larger Internet Provider.

Hardware and Software to provide Internet Services.


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 CaféSatellite Leased LineSatellite Leased Line Leased Line Leased Line

or Submarine or Frame Relayor Submarine or Frame Relay Fiber OpticFiber Optic


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 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.


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.


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 from the last 2 types of customers. Ex.: SQUID, ipchains…


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.


Corporate Accounts HW

Leased-line modem, Frame-Relay switchs, VPN routers…etc. depending on connection type.

Most importantly you will need to have a pool of vacant and static IP addresses to provide.


Tuning to E-Commerce

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


Mall Services

Business Owner

Mall BackOfficeMall front

Electronic Mall Administration

Internet

Secure eCommerce Services & Hosting

Browse Mall

Services

Collect Services

(shopping basket)

Order$$$

Service ManagerMall

ManagerBusiness OwnersManager

Mall FrontManager

Reports &

Statistics

Advertisers

Extended Services

Financial InstitutionExtended

Services

Secure accessSecure access

Secure access (DID)

Classified Ads

Customer

Mall OwnerSecure access (DID)

Remote Sales


• 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


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


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

period

Options VeriSign Server Set-up (to eliminate spoofing) Automated Billing System

Staff administrative training


Store Services

Internet

PurchaseManager

Business Owner

Electronic Store

Customer

Browse Catalog

Store Manage

r

Collect products (shopping basket)

Order$$$

CustomerManager

Inventory Manager

Supplier

Shipper (UPS)

Extended Services

Secure eCommerce Services & Hosting

Product Manage

r

Catalog Manager

Extended Services

Reports & Statistics

BackOfficeStorefront

Financial Institution

Secure access (DID)


• 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 (one level, up to 100)• Product list pages (up to 100 items)• Store ‘specials’ page• Reporting and statistics• Advanced reporting and statistics


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


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


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).


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.


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 accounts.


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).


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.


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.

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 targets)


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.


Online Catalogue

Navigation

The shopping cart

Check-out


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.

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

before. Make a survey about your service every now and

then by calling customers and asking them (keep up quality of service).


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.


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 company.

Development in hardware and in content.


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.


R&D Responsibilities

Should follow up on new technologies and services.

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.


Summary 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

points:– Good planning (the internet provides a lot of services

and there is a lot of technology involved, you might get lost).

– Robust connection to your ISP and enough resources.– Quality of service.– A lot of customer care.

The competition is wild !


Points to Ponder:

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

isps for e-commerce nizar r. mabroukeh, m.sc., c.s. [email protected] for e-commerce short...

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