ISPs for E-Commerce Nizar R. Mabroukeh, M.Sc., C.S. For E-Commerce Short Course 18 th April, 2000

Nizar Mabroukeh, 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

Nizar Mabroukeh, Business Model

Nizar Mabroukeh, Requirements Infra-structure  A connection to a larger Internet Provider.  Hardware and Software to provide Internet Services.

Nizar Mabroukeh, Connecting To A Larger ISP

Nizar Mabroukeh, 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.

Nizar Mabroukeh, 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, 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 Server: Ex. Microsoft Exchange. Firewall: to protect your LAN from the last 2 types of customers. Ex.: SQUID, ipchains…

Nizar Mabroukeh, 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, 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.

Nizar Mabroukeh, Tuning to E-Commerce  Online Catalogue  Shopping Cart  Secure Servers and SSL  Payment Gateways  Commerce Service Providers (CSP)

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

Nizar Mabroukeh, 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,  Mall manager  Fulfill orders  Generate invoices  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,  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

Nizar Mabroukeh, Store Services Internet Purchase Manager Business Owner Electronic Store Customer Browse Catalog Store Manage r Collect products (shoppin g basket) Order $$$ Customer Manager 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)

Nizar Mabroukeh, 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

Nizar Mabroukeh,  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, 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, 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, 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, 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.

Nizar Mabroukeh, 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, 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, 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

Nizar Mabroukeh, 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, 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, Online Catalogue  Navigation  The shopping cart  Check-out

Nizar Mabroukeh, 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

Nizar Mabroukeh, 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).

Nizar Mabroukeh, 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, 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.

Nizar Mabroukeh, 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, 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.

Nizar Mabroukeh, 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 !

Nizar Mabroukeh, Points to Ponder: Globalization: What is your part in it? And where is your contribution to it?