1. I N F O R M A T I O N T E C H N O L O G Y S Y S T E M S & S E R V I C E S - 1 - Electronic Commerce CSG October, 1999 Sandy Senti

2. I N F O R M A T I O N T E C H N O L O G Y S Y S T E M S & S E R V I C E S - 2 - Primary Goals n Flexibility for departments n No credit card numbers stored on campus n Single transaction processing service n Integration with financial systems n Service is self-sustaining

3. I N F O R M A T I O N T E C H N O L O G Y S Y S T E M S & S E R V I C E S - 3 - A Middle Approach n Out-source credit card processing, run web sites locally - ICOMS, OpenMarket n Vendor takes risk of credit card fraud n Vendor provides technical support for financial transaction n Centrally built infrastructure to make it easier to use for departments

4. I N F O R M A T I O N T E C H N O L O G Y S Y S T E M S & S E R V I C E S - 4 - Infrastructure n API framework for customization n Data warehouse for transaction tracking n Hooks into financial systems n Database for product management n Web site to get people started n Stanford branded payment forms

5. I N F O R M A T I O N T E C H N O L O G Y S Y S T E M S & S E R V I C E S - 5 - Benefits/Issues n Everyone wants to customize n Everyone needs a substantial amount of consulting to start n Bank relationship  slow progress  have reduced credit card fees n Cash management/finance  reduced manual operations  control worries n Not clear if it will be self sustaining n Policy requires use of infrastructure

6. I N F O R M A T I O N T E C H N O L O G Y S Y S T E M S & S E R V I C E S - 6 - Service Offerings n Vanilla  fast, inexpensive  standard payment forms n Partial customization  more flexible  relies on infrastructure  standard payment forms n Full customization  everything is customized through an API

7. I N F O R M A T I O N T E C H N O L O G Y S Y S T E M S & S E R V I C E S - 7 - Costs n 40 cents per transaction - sliding scale n $100 per store setup fee n Credit card fees  Visa, Mastercard - 1.95%  American Express - 2.65% n Consulting fees n Central costs  $12,000 to brand payment forms  Infrastructure projects