Web Trends and Technologies

1
Web Trends and Technologies

• David Strom
• david_at_strom.com
• [phone]
• T6 11/1/99

2
Outline

• Web basics and protocols
• New web technologies and trends
• New eCommerce technologies
• eCommerce Service Options
• Storefront design basics

3
Goals

• Describe and demonstrate new web products and
  services
• Articulate some web futures
• Debunk some myths
• Provide the foundation for making your own
  technology choices

4
Topic 1 Web Basics and Protocols

• HTML vs. HTTP
• SET vs. SSL
• XML vs. OBI

5
HTML vs. HTTP

• History lessons
• Similarities and differences

6
HTML

• Markup language of the web
• Describes the structure and content of a page
• Contains both display control and the actual
  content itself
• Developed first for document distribution, later
  used for publishing

7
Word Processing History

• Wylbur (1974-80)
• TeX and other VT page editors (1976-85)
• NBI, Xerox, Vydec word processors (1977-83)
• Multimate/Wang (1982-5)
• Word Perfect (1984-96)
• MS Word (1992-)
• HTML (1993-)

8
HTML History

• v 1.0 early 90s
• HTML 1993
• v 2.0 (RFC 1866, forms) 1995
• v 3.0 (tables, frames) 1995, schism between
  Netscape and Microsoft
• v 3.2 (style sheets) adopted 1996
• v 4 1998, three versions proposed by W3C, but
  nothing really adopted yet
• XHTML 1999, a marriage of XML and HTML
• (see www.w3c.org)

9
Lessons Learned

• Dedicated machines with incompatible formats
• New hardware platforms every 3-4 years
• Alternating between WYSIWIG and tagged text

10
HTML Features

• Operating system independent
• Browser independent
• The user controls the browser
• The author controls organization
• The server controls -- well, not much!

11
HTML Goals

• Interoperability (I can read your docs)
• Cross-platform compatibility (Macs can read PC
  docs)
• Collaborate with my colleagues (We can jointly
  author docs)

12
HTML Realities

• New tags dont have the same impact of yore
• Netscape/Microsoft battle is still relevant but
  not significant (remember D-HTML?)
• Look to XML for most interesting innovations in
  the near future

13
HTTP A Brief History

• Developed by CERN in 1990/1
• Became open source in 1992/3
• The server side of things

14
Typical HTTP Conversation

• Open connection from browser to server
• Request a particular page and other objects
• Server responds, delivers data if possible
• Close the request

15
HTTP is Stateless

• Each page request is independent
• Servers have short memories
• One-at-a-time processing
• This has all sorts of problems for web shopping
  or tracking browsers over extended time periods

16
So How to Fix This?

• Use cookies or crypto certificates to keep track
  of users
• Run scripts or programs on your web server
• Use a database server and logins to keep track

17
SET vs. SSL

• Similarities and differences
• Protocol descriptions
• Practical applications

18
SSL Encrypt Transactions

• Why encrypt?
• Principles of cryptosystems
• Understand certificate management

19
Why Encrypt? TRUST!

• Ensure your customer is authorized to use his
  account
• Customer wants to make sure you are the legit
  seller
• Ensure payment is received
• Ensure goods are received

20
Steps in SSL Certificate Creation

• Select a CA to use and fill out their forms and
  pay them
• CA verifies information provided
• CA creates a certificate containing public key
  and expiration date
• The certificate is stored on your web server

21
Hierarchy of Trust for Certificate Issuance

• Visa and MasterCard will designate or become CAs
• Merchants trust these issuers or their banks
• Cardholders will obtain certificates from their
  banks CA and store in electronic wallet

22
Examples of Certificate Authorities

• VeriSign
• www.Verisign.com
• GTE CyberTrust Solutions, Inc.
• www.cybertrust.gte.com
• Thawte Consulting
• www.thawte.com

23
Certificate Creation

• Demo of key generation and certificate request

24
Verisign Server Certs

• www.verisign.com/server/prod
• Different features, ranging in price from 349 to
  1295/year
• Offer different warranties, encyrption levels

25
Certificate Management

• Once public key certificates are issued, they
  must be managed to maintain integrity
• They contain expiration dates
• They may be revoked for various reasons
• Upon expiration, certificates must be renewed or
  reissued
• This is a consideration for using an external CA,
  as opposed to managing an internal CA

26
How is this accomplished?

• Secure servers and browsers
• Capable of strong encryption (up to 128 bit)
• 40 bit encryption is no longer considered
  adequate for financial transactions
• Digital certificates
• Ensure the identity of the certificate holder
• Also called digital IDs
• The common protocol in use today is Secure
  Sockets Layer (SSL)

27
Secure Sockets Layer (SSL)

• Authenticates the merchant server
• Merchant Certificate obtained from trusted
  Certificate Authority
• Provides privacy through encryption of the
  message for both the sender and receiver
• Secure pipe negotiates maximum encryption
  compatible at browser and server for each message
  transmitted
• Ensures integrity of data transmitted
• Message authenticity check (algorithm)

28
Secure Sockets Layer Protocol (SSL)
Merchants Certificate (Digital ID) can be viewed
by any secure browser

• https// in the URL a secure connection
• SSL allows customers to verify who the merchant
  is
• The merchants digital ID does not certify the
  integrity of the merchant

29
Secure Sockets Layer Protocol (SSL)
Customer Order with Payment Information
Encrypted order sent
Customer order decrypted at merchant server

• SSL encrypts the customer order, which includes
  the payment information
• This data is sent from the customer to the
  merchant via a secure pipe

30
What SSL Doesnt Encrypt

• Once the data arrives on the secure server, it
  could be stored in an insecure location!
• Or if someone has physical access to your desktop
  or server

31
Encryption Strength

• It is illegal to export outside the US products
  containing encryption that is stronger than 40
  bits
• It is not illegal to use encryption stronger than
  40 bits internationally
• Financial institutions do not consider 40-bit
  encryption adequate for Internet transactions

32
Encryption Strength

• Newer browser and server software are capable of
  128-bit encryption
• 128-bit encryption is exponentially stronger
  than 40-bit encryption

33
SET Authenticate Buyers

• What is the protocol
• How it works
• Advantages and disadvantages

34
What is SET protocol?

• Secure Electronic Transaction protocol is a
  common standard that was developed jointly by
  Visa, MasterCard and other partners to ensure the
  processing of secure transactions.
• Based on RSA encryption
• Uses public and private key pairs that have a
  mathematical relationship

35
How is SET Different from SSL?

• Digital certificates for SET will be
  payment-specific
• Merchants will be certified as legitimate to
  accept branded payment card transactions
• Cardholders will be certified as valid account
  holders
• Merchants will not see customers account number
  (it will only be passed to the acquirer)

36
How is SET Different from SSL?
With SET
Merchant Server gets Customers Digital ID minus
the account number Customer Order
Customers Digital ID related to a specific
account Customer Order info
Acquirer gets order receipt Customers Digital
ID with account number
37
The Mechanics of SET

• (1) Payment info sent from user to merchant
• (2) Merchant confirms, fees charged
• (3) Transaction to bank, funds debited/credited
• (4) Merchant sends item to user

38
MasterCard Example of a SET Transaction
http//www.mastercard.com/set/screen1.html
39
SSL vs. SET

• SSL
• Server authentication
• Merchant certificate as legitimate business
• Possible for client authentication
• Not tied to payment method
• Privacy
• Encrypted message to merchant includes account
  number
• Integrity
• Message authenticity check

• SET
• Server authentication
• Merchant certificate tied to accept payment
  brands
• Customer authentication
• Digital certificate tied to certain payment
  method
• Privacy
• Encrypted message does not pass account number to
  merchant
• Integrity
• Hash/message envelope

40
Is SET the Answer to eCommerce?

• SET has been proposed as the answer to secure and
  interoperable eCommerce
• It is not currently mandated by Visa and
  MasterCard
• There are big implementation issues for all
  concerned
• The SET protocol is definitely more secure than
  SSL

41
SET Issues

• Implementation of SET has some big drawbacks
• Lack of interoperability among systems
• Management of public key infrastructure
• Distribution of digital certificates requires
  action on the part of the consumer
• Will banks want to become cert authorities?
• And who will pay for all this?
• Meanwhile, eCommerce goes on

42
The Future of SET

• Non-repudiation of transactions through digital
  certificates for both merchant and customer
• SET may be the industry standard for payments,
  but yet to be implemented
• It will be far more difficult for a customer to
  claim no knowledge of a transaction
• Demonstrations continue

43
Another View of SET (Lincoln Stein)

• An over-engineered, committee-designed
  solution to a nonproblem, a boondoggle invented
  by hidebound credit-card companies panic-stricken
  over the prospect of not getting their piece of
  the Internet pie.
• WebTechniques, 8/98

44
What About eWallets and SET?

• Verifone vWALLETSM
• GlobeSET (SET now, server-side non-SET later)
• Transactor/Citibank Wallet (Jscript bookmark)
• eWallet.com (only SSL)
• Microsoft Wallet (in Win98, IE 4.01) (both SSL
  and SET)

45
Whats in an eWallet?

• Credit card accounts
• Debit card accounts
• Checking accounts

46
All of These Have in Common

• Access to your accounts
• Credit card and other account numbers are stored
  by the service provider in a database, or on your
  hard disk
• These numbers are not transmitted to the merchant
• Consumer must initiate account set-up in advance
  of making any purchases

47
How Electronic Wallets Work Today

• Consumer must initiate request for electronic
  wallet software
• Credit card or other account numbers are given to
  provider one time before any purchases are made
• Closed system only available to participating
  merchants and cardholders who have signed up in
  advance

48
How Electronic Wallets Will Work in the Future

• With SET protocol, will contain digital IDs with
  encrypted account information
• Since digital IDs will be tied to specific
  accounts, wallets will keep track of all that
  information
• At that point, wallets will be widely distributed
  and universally accepted

49
Interoperability is the Key

• Wallets will become widely used when the
  following events occur
• Mass distribution of wallets to consumers is
  easily made
• Will be accepted by all merchants, regardless of
  wallet brand or payment brand

50
eWallet Demonstration
51
Some Problems with eWallets

• Not transferable to other wallets
• Tied to a single PC
• Not available for use at many web storefronts
• Just solve a small part of the overall payment
  process

52
Trends

• eWallets will eventually go away
• SET becomes a server-side issue
• SSL still dominates eCommerce transactions for
  many years

53
XML vs. OBI

• Similarities and differences
• Protocol implications
• Practical applications

54
XML History

• v .01 First XML working group, 1996
• v 1.0 Feb 1998
• To some extent, having a version number isnt
  really that important!

55
Key XML Points

• A method for putting structured data in a text
  file
• Looks a bit like HTML but isn't
• Is text, but meant to be read by computer
  programs
• Is new, but based on SGML like HTML
• Is license-free and platform-independent
• Is database and file-format independent

56
How Did XML Come About?

• SGML was too thick for building new applications
• Complexity of building DTDs
• No standard syntax or parsers
• HTML was too thin
• New tags got stuck between MS and NSCP
• Adding scripts inside web pages dicey
• Never designed with data structures in mind
• Solution is XML!

57
Why is XML a Better Mousetrap?

• Syntax standard of lt .. gt and s and s
• DTD is optional but ...
• Tags arent
• All of this makes for a better-formed document

58
What about OBI?

• Open Buying on the Internet
• A bunch of standards SSL, X12 EDI, X.509 PKI
• Proposed 3/97, revised 6/98
• Emphasis is with OPEN and not point-to-point EDI
• Products from Netscape, Commerce One, IBM, Epic
  Systems

59
OBI Components

• Buyer (could be software or a person)
• Buyers server
• Sellers server
• Payment authority/clearinghouse

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Typical OBI Process

• Buyer connects to web site with https
• Seller verifies buyer, then displays catalog
• Buyer fills out forms, submits order
• Seller checks transaction using certs
• Servers talk to each other and approve order
• Buyer server sends order up his chain for
  approval
• Seller determines how to get paid

61
Unresolved OBI Issues

• Who owns the catalog (buyer or seller)?
• How much infrastructure is really needed to
  connect them?
• Does it compete with existing EDI solutions?
• Knitting together a solid solution is more than
  enumerating standards!

62
Trends

• XML becomes more important and useful as number
  of products increase
• OBI implementations still lag and are far too
  complex for most site operators

63
Topic 2 New Web Technologies

• Caching servers
• Distributed content providers
• Load balancing tools
• Web monitoring services
• Internet appliances
• Streaming media servers
• Web conferencing

64
Some General Comments

• The browser is the defacto user interface and
  management tool
• The IP Internet is the defacto infrastructure
• ISPs arent just about access anymore
• Web applications need their own network
  infrastructure

65
Caching Servers

• Overall purpose
• Typology
• Advantages and disadvantages

66
Overall Purpose

• To move remote web content closer to the user
• Reduce transit time and overall network latency
• Reduce the world wide wait
• Really, what is involved is just a big hard disk!

67
General Issues

• Freshness of cache can you keep track of when
  objects change
• Bandwidth conservation to reduce updates to the
  cache and avoid uncachable items
• Size of the cache and where it is placed on your
  network
• Integration into existing web and Internet access
  strategy

68
Types of Caching Servers

• Software-only
• Specialty appliance
• Software on Unix, other general OS

69
Software Only Caches

• Began with Squid, evolved into Inktomi
• Novell, Microsoft have caches to web server line
• () Inexpensive, convenient
• (-) Dont scale well and difficult to admin

70
Pre-packaged Unix Devices

• Installed Squid and tuned copy of Unix just for
  caching
• Cobalt, Network Appliance, PacketStorm
• () Inexpensive, convenient
• (-) Dont scale well and difficult to admin

71
Specialty Cache Appliances

• Dedicated caching device, typically running its
  own OS
• Infolibria, Cacheflow, Cisco, Lucent
• () Easy to admin, optimized for performance and
  reliability
• (-) Costly and may need other network
  infrastructure improvements

72
Server Issues

• Microsoft, Cisco and Entera servers all require
  their own software and protocols to be loaded on
  all network routers
• May have to change proxy setup in every browser
• May need additional network infrastructure

73
Caching Resources

• Brian Davisons comparison sitewww.web-caching.co
  m/proxy-comparison.html
• Internet Research Group www.caching.com/vendors.ht
  m

74
Trends

• More caching appliances as time goes on
• Better and cheaper caching devices appear
• Most ISPs will use them within a few years if
  they want to retain customers

75
Distributed Content Service Providers

• Problem even the best cache cant get around
  Internet congestion issues
• Solution a new breed of providers who have
  extended co-location into content replication by
  using a series of products that do more than just
  caching pages

76
What Do These Things Do?

• Balance and manage loads
• Distribute content to various data centers
  located on different continents
• Guaranteed quality of service levels and response
  times
• And, of course, cache your site!

77
Vendors

• Sandpiper, Akamai, Mirror Image
• Skycache and Digital Island build on top of
  Inktomi cache servers
• F5.coms Global Site, merges distributed servers
• () Turnkey operation ala the best of the
  co-los, added redundant operations
• (-) Can be expensive

78
Trends

• More and more providers appear
• Most ISPs will offer some kind of content
  replication as the next step in co-location
• Prices will drop as competition gets fierce

79
Load Balancing, Web Switches and Redirectors

• Cisco Local Director
• Network Engines Cluster Control
• Arrowpoint's Content Smart
• Alteon WebSystems
• Foundry Networks Server Iron
• iPivots Commerce Accelerator

80
How Do These Things Work?

• Typically installed between router and web server
• Sometimes have to reconfigure routers or proxy
  server entries
• Some include caching or proxy services
• Really are layer 4 (UDP, transport) switches that
  examine packets for web content
• Managed via web browser, of course!

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82
Notable Features

• Arrowpoint ignores obvious uncachable items
• Cisco does application server load balancing and
  domain load balancing
• Network Engines' ClusterControl handles content
  management/replication
• iPivot looks at ways to do SSL better, using
  inline crypto

83
Issues

• Performance
• Overall response times
• Security
• Reliability
• More information, see www.nwc.com/913/913r2.html

84
Trends

• Prices will remain high as these are specialty
  items
• Will compete with distributed content providers

85
Web Monitoring Services

• WebPartner.com, monitor server uptime
• Uptime, another one from Phil Grenspun
  (uptime.arsdigita.com)
• ServerSittter.com, a monitoring card that fits
  inside NT machine
• Manage.com, for entire eCommerce transaction path

86
Monitors, cont.

• Sitescope from freshtech.com and Netiq.com,
  network monitoring software
• Tracerlock, notify you when a page mentions your
  keywords (peacefire.org)
• NetResolve, monitoring your site from 25 cities

87
Why Use These Things?

• Outsource a key element of your data
  infrastructure
• Use the Internet to check up on itself
• You want your web up as much as your mainframe
  but dont have the staff or skills to do it

88
Example WebPartners Services

• Free web-based registration
• Monitors set of URLs
• Notification via email when down and weekly
  reports
• Compares performance with a set of 100 other
  sites
• Demonstrate reports at www.webpartner.com

89
Example Manage.coms Services

• Transactions performance and reliability
• Service chain analysis, including key
  infrastructure components
• Traffic loads actual vs. expected
• User interface analysis
• Action plan for management
  (all for 45k!)

90
Trends

• More and more of these services will be available
• Free services will abound, some will actually be
  pretty good!
• Still need some market consolidation to be truly
  useful

91
Internet Appliances

• Cobalt Qube
• Technauts eServer
• Encanto
• Technologics InstaGate

92
What is an Internet Appliance?

• Pre-packed hardware and software
• Simple to setup, use and manage
• usually with a web browser
• Dont have keyboards or monitors
• Integrate into existing Windows and other NOS
  environments
• AppleTalk, IPX, UNIX/NFS
• Serves a variety of needs

93
Target applications

• Small business Extranet
• SOHO/ROBO Intranet server
• Discussion Forum server
• Workgroup file/CD ROM sharing
• Firewall, VPN server
• Remote access router
• Remote access server
• Office email server

94
Six categories of appliances

• Shared network storage
• Web server
• eCommerce server
• Security server
• Intranet applications server
• Communications server

95
A partial taxonomy
96
General state of appliances

• Almost plug and play
• User interfaces intentionally limited
• Matching categories and needs not easy
• Setup of users and groups may be tedious
• Most not well integrated with NOS access controls
• Not an issue if this is first/only server
• Scalability?
• Units designed for small/branch office needs

97
What features do you need?

• Ask yourself, ask your vendor
• If web or other Internet/Intranet server,
• How extensible? Expansion slots? Type?
• Type of built-in OS? Type of server software?
• How many ways to upload files to your web?
• If communications server,
• Types and number of network interface(s)?
• If security server,
• Firewall features? What VPN? Client software?

98
Appliances Pros

• Simplicity over NT UNIX servers,
• especially for organizations with little orno OS
  admin expertise
• Reduced total cost of ownership
• Appliance may cost less than software to provide
  equivalent features
• Vendors seek to user-proof appliances
• limited access to OS, not as easy to shoot
  yourself in the foot
• Often more secure out-of-box than OS servers

99
Appliances Cons

• Cant find and manage on corporate net
• not issue for those that support SMB/AppleShare
• May need more than browser to manage
• telnet, configuration wizards and monitors
• Separate access control, authentication
• Difficult to apply uniform user and group access
  controls across appliances and NOS systems
• How scalable are CPU,disk, networks

100
Demonstration Cobalt Qube

• For more information, check out my report at
  www.corecom.com/ia

101
Trends

• More of them and cheaper too
• Still for SO/HO environments mainly, although
  that is changing
• Already some vendor consolidation

102
Streaming Media Servers

• Microsoft NetShow (NT/Server-only but free)
• Real Server (NT and Unix but )

103
Why Use These Products?

• Training films
• Corporate speeches and briefings
• Live broadcasts

104
Pieces Required

• Web server
• Appropriate player
• Media server
• Encoding tools

105
Steps to Production

• Record your event or arrange for live broadcast
• Encode your media
• Copy file to media server
• Post link on your web site to stream
• Make sure everyone has right version of players
  to view

106
What Could Go Wrong? Everything!

• Matching file formats with correct player
  versions (and picking the right .avi, .wav, .au,
  MPEG, MP3, etc)
• Tying the web and media server applications
  together
• Setting up encoding sessions properly

107
Trends

• Ease of use remains biggest obstacle
• Bandwidth-challenged users need not apply
• Encoders, file formats, et al. are getting more
  complex still
• Maybe some hope with MP3?

108
Web Conferencing

• Differences and typology
• Issues
• Typical products

109
Different Conferencing Types

• One to one, screen sharing
• One to many, broadcasting seminars
• Many to many, collaboration and distance learning

110
Why Conference?

• Save money on travel costs
• Improve real-time customer support over the web
• Collaborate on work product

111
Different Conferencing Data Streams

• Just text chat, AOL IM and IRC
• Sending audio or video over the net
• Net for visuals, phone bridge for audio
• Real-time conference or stored/replayed lecture

112
Conferencing Issues

• Too many pieces and products to fit together
• Three words browser plug ins!
• Better bandwidth, low latency needed
• Cant always share any desktop application
• Can get pricey

113
Typical Products

• Webex, for collaborations and product tours
• Webline, for collaboration and screen sharing,
  chat and technical support (new email management
  system), using the phone out of band or VoIP
  inband
• Webpodium, for video events and web presentations

114
What Are They Good For?

• Regular sessions with the same attendees
• One-on-one or one-to-three meetings best
• Run tight control over computing environment of
  your attendees
• Have at least T-1 connection

115
Trends

• Bandwidth-challenged issues as with streaming
  servers
• Audio/video synchronization still a big problem
  due to network latencies
• Live events can bring congestion quickly but lots
  of PR value (Victorias Secret as case in point)

116
Topic 3 New eCommerce Technologies

• 1Click payment providers
• eCommerce hosting vendors
• Personal shopping portals

117
New Payment Providers

• 1Clickcharge.com
• qPass.com
• Cybercashs InstaBuy.com
• eCharge.com
• Others

118
First, Remember the Old Payment Providers?

• Digicash
• Cybercash (first generation)
• First Virtual
• Mondex
• GlobeID

119
Why Didnt They Work?

• Too complex to implement
• Too much cumbersome infrastructure
• Not too many stores took their kind of money
• Too many other technical challenges
• Solved the wrong problem first (credit card
  snooping)

120
How NOT to Design a Payment Screen

• www.netmar.com/new/norderform.shtml

121
Characteristics

• Mainly for digital content delivery
• Per day pass (WSJ)
• Charge 8- 12 per transaction
• Universal membership
• Dont leave site while completing purchase

122
Advantages

• Ease of use
• No credit card transmission over the Internet

123
Disadvantages

• Need to reach critical mass of users almost at
  launch
• Still rely on username/password combination which
  can be cumbersome
• Small companies without a lot of depth

124
Ad networks/Link and Banner Exchanges

• LinkExchange/Microsoft
• SmartAge.com
• Eliancecorp.com, charges of net sales
• Netcentives ClickRewards

125
ClickRewards

• Pays you in airline miles for your patronage
• Accrue miles on many sites
• You redeem benefits on their site

126
Trends

• Is this deja vu all over again?
• It will take a lot to dislodge SSL as king
• Critical mass issue biggest obstacle

127
Turnkey eCommerce Hosting Providers

• GeoShop/Yahoo
• ViaWeb/Yahoo
• iCat
• Shopsite/Open Market
• iTool
• Shopzone
• Encanto

128
GeoShop/Yahoo

• Builds on GeoCities communities but for
  merchants (www.geocities.com/join/geoshops)
• 25/month for just commercial listings
• 180/month (or more!) for actual transactions
• working with Internet Commerce Services Corp. who
  uses Open Market Transact servers
  (www.icoms.com/pp.htm)

129
ViaWeb/Yahoo

• 100/month (lt50 items) or 300/month options
• CyberCash processing 500 setup
• Solid reporting and admin options

130
iCat Commerce Online Hosting Solution

• Free for lt10 items, 99/mo. for 100 items
• No per-transaction fees
• Email and browser-based notifications of purchase
  completion
• Advanced items like upsell, featured products,
  cybercash gateways

131
ShopSite demo

• www.reliablehost.com/cgi-bin/bo/start.cgi
• Can now handle two concurrent currencies
• username test8
• password test

132
iTool

• www.itool.com/admin/controlpanel.cfm
• 25-100/mo.
• Username dstrom/pwd1

133
Shopzone

• www.btsw.com, 995
• Real-time credit card verification through
  CyberCash
• Store builder and publisher functions to both NT
  and Unix web servers

134
Encanto

• Turnkey server/software for free!
• Payment gateway included (50 initial, 70/month)
• Web storefront, shopping cart, catalog
• Also need secure cert, merchant bank acct.
• All managed via browser, steps are clearly
  documented
• Demo at www.encanto.com/ego/demo

135
Personalized Shopping Portals

• Shopnow.com
• iGive.com for charities
• eBates.com

136
ShopNow, eBates

• Each user registers and sets up own mini mall
  with links to stores
• Basic rebate program but large collection of
  stores

137
iGive

• Percentage of sales goes towards charities
• Clickthroughs also are measured and accumulate
• Members have earned 300k for charities so far

138
Why Use These Services?

• Save money
• Build loyalty, return visits
• Make eCommerce easier? Not sure.

139
Topic 4 eCommerce Service Options

• Rent, Buy, or Build
• Rent outsource to a CSP
• Buy suite of software
• Build it yourself

140
Find an CSP

• More ISPs are offering eCommerce solutions
• Have to use their software standards and payment
  schemes
• Could be pricey
• Just catching on in USA

141
Evaluating CSPs

• Do they offer storefront design?
• Have in-house programmers?
• Hosting of your own web server machine?
• How many payment systems do they support?
• What kinds of accounting reports do they offer?

142
The Catch-22 of CSPs

• To be successful, a provider has to promote his
  products via the Internet and have detailed
  descriptions on their own web sites!
• But try to find this information isnt easy.

143
Some CSP Examples

• www.psi.net/web/ecommerce.shtml
• www.Best.com/bizcomm.html
• www.Brainlink.com/html/
• www.Earthlink.net
• IBM mypage.ihost.com
• www.Netcom.com
• business.Mindspring.com/prod-svc/smbiz/
• www.Mindrush.com/
• www.outer.net/ONCommerce

144
Price Comparison assumptions

• 10 Mb disk storage
• Single email account
• InterNIC 75 fee included for domain name

145
Price Comparison
146
Earthlink pricing explained
147
One Way to Support Lots of Payment Systems

• Wired-2-Shop
• www.wired-2-shop.com/TestDrive/Admin/PaymentList.a
  sp

148
Storefront service providers

• www.sitematic.com, flat rate for 40/mo
• www.stumpworld.com/Alpha Software, 99, connects
  to Cybercash and OM Payment systems

149
The Suite Approach

• Leading contenders
• What is part of the suite and what isnt
• Prices and platforms

150
Popular eCommerce Suites
151
Popular eCommerce Suites (cont)
152
Four Typical Elements

• Catalog
• Storefront designer
• Ordering/inventory system
• Shopping cart/check out system

153
The Cold Hard Reality of Suites

• Suites are nothing more than collection of
  products
• Lack integration among various elements
• Difficult to setup, customize, and use
• Require you to live inside their structure
• Limited payment options
• Sounds like early MS Office

154
Payment Systems Included in Each Suite

• Microsoft Verifone, Buy Now
• IBM (Net.Commerce) Verifone, SET/eTill
• Domino Merchant CyberCash, Verifone
• OpenMarket Verifone
• WebSite Pro IC Verify, PC Authorize, CyberCash,
  others
• Intershop CyberCash, ICVerify, others

155
Sample Stores Included in Each Suite

• Microsoft 4 stores
• IBM eMall, simple and advanced sample stores
• Domino 1 store
• OpenMarket none
• WebSite Pro 1 bookstore
• Intershop 3 stores

156
Database Support
157
Dealing With ODBC

• Have to understand how to set up data sources
• Intimate knowledge of your data structure
• Re-install ODBC drivers at least once!
• Best to start with built-in database

158
Store Wizards Included in Each Suite

• Net.Commerce (the best)
• WebSite Pro (but doesnt do much)
• Intershop (various wizards)
• MS Commerce (although youll really need to know
  COM!)

159
WebSite Professional website.ora.com

• Version 2, shipping since 9/97
• US799!
• NT (or 95)
• Supports seven different payment processors SSL,
  CyberCash
• One sample store (bookstore)

160
Sample storefront

• merchant.inline.net/admin

161
WebSite Configuration Sheet
162
Store Properties

• Only can operate a single payment system
• Run on a series of Access databases
• Built-in tax table, but for N.Americans!
• Well documented data structures in typical
  OReilly fashion

163
Recommendations

• Lowest priced suite by far!
• iHTML is robust, but will take some learning
• Nice store setup and organization of catalog
• Good low-end solution
• Other alternatives ShopZone (www.btsw.com),
  Alpha Merchant (www.alphasoftware.com)

164
Intershop

• demo at demo.intershop.com (admin/admin for
  store)
• Includes Sybase SQL 11
• US5000, includes 3 mos. support

165
Seven Different Managers

• Catalog
• Products
• Store
• Purchases
• Inventory
• Customers
• Admin

166
Characteristics

• Everything managed via browser, which can get
  tedious
• But you already have a database behind it

167
Payment Options galore
168
Recommendations

• Most flexible payment options of any suite
• Better at processing orders than site creation
• Not good for large catalogs

169
Microsoft SiteServer Commerce

• Still evolving
• More of a development platform than a suite
• Closely tied to IIS, SQL Server et al.

170
Shopping with MS Commerce
171
Recommendations

• If you are going to use any other MS apps
• If you dont mind doing lots of integration on
  your own
• If you must stay on the cutting edge of MS
  products
• Look at www.siteserver101.com for more tips
• Youll need at least one other piece ...

172
ClearCommerce.com Merchant Engine

• Complements Site Server for payments
• Handles real-time credit card processing, fraud
  detection (via email)
• Works with MS Order Pipeline, DCOM and ASP
  components

173
Commerce Server Specifics

• NT, fast Pentium with 256 M RAM essential
• US5000
• www.microsoft.com/commerce

174
Inex Commerce Court

• Two different versions Lite (595) and Pro
  (995)
• Runs on top of NT/IIS
• Comes with catalog, publishing functions
• Includes accounting links

175
IBM Net.Commerce
176
Included

• IBMs Go Web Server
• DB2 database
• Shopping trolley system
• Credit card verifier, eTill software

177
Several ways to setup your store

• Use nine-step wizard with populated catalog
• Use wizard with empty catalog
• Start from scratch
• Import existing databases

178
Recommendations

• Great if you already use DB2 for inventories
• Most security-conscious suite
• More depth than iCat
• Start with all IBM defaults to save time

179
Net.Commerce Specifics

• NT, fast Pentium with 256 M of RAM
• AIX, 390, OS/400, Solaris
• US5000 Start, 20,000 Pro
• www.internet.ibm.com/net.commerce

180
Latest features

• Intelligent Catalog
• Java-based wizards to setup and manage store
• Recognizes shopping preferences and upsells
• Improved SET payment server, ad tracking
  partnerships
• Integration with Domino Merchant

181
Domino Merchant v2.0

• Uses Notes server, but not Notes clients
• Payments, catalogs, wizards galore
• Easiest to setup, difficult to add products
• A good entry-level product for now
• Screencam demo

182
OpenMarket

• High end solution
• Worldnet offers hosting of OM servers
• Still needs customization!

183
Recommendations

• If you can afford it ....
• Really the price covers lots of consulting time
• High transactions and throughput needs
• Use with Icoms.com front end service (1000
  100/month)

184
OpenMarket Specifics

• Various Unix
• US250,000 and up!
• www.openmarket.com

185
Trends

• Suites will get better, but no one will really
  care
• Rental options will continue to get cheaper and
  more functional
• Web/database integration still difficult problem
  that suites are ignoring
• Backoffice integration still difficult problem
  but getting better

186
Topic 5 Good and Bad Web Storefront Design
187
Sad State of Todays eCommerce Marketplace

• Poor quality tools
• Hard-to-find stores
• Limited payment methods
• Credit card snooping perceptions
• Older browser versions cant view latest sites

188
Case in Point Buying a Bike Rack

• Item not carried outdated catalog
• Telesales not familiar with web
• No cross-sell or substitutions online
• Needed three phone calls to complete purchase

189
Lets Learn From the Real World

• Compare what works for physical stores
• Try to extend to the web

190
Critical Success Factors for Physical Storefronts

• Location
• Branding
• Good service
• Good product selection
• Proper pricing and margins
• Traffic

191
First Problem

• None of these translate on the net!

192
Now Try to Agree on Definitions for Web Stores

• What determines a good location?
• Position on a search page
• Nearness to popular destination
• Ad on a popular server
• What determines branding?
• Memorable domain name
• Popular search category destination

193
An Example of bad location Montana Meats

• www.imt.net/lingerie/buffalo/buffalo.html
• Cant they afford their own domain name?
• www.company.com/anything is BAD NEWS!

194
Email Receipts Should Contain the Following Items

• Total price, including shipping
• Your address and the stores
• Items ordered
• Whether they are in stock or not
• When they shipped
• Bonus order number and URL to view this info
  online

195
When to Send a Customer Email?

• To acknowledge the order was placed
• To say items shipped (or not ) and money changes
  hands

196
Determining Traffic

• Hard to do -- is it hits, page views, registered
  users?
• HITS How Idiots Track Success
• Hard to measure -- do you count gifs? Use log
  files?
• No general agreement on any metrics!

197
Does a site actually have to sell something?

• Many actual eCommerce sites dont do the complete
  transaction
• Require faxes or telephone calls!
• Some merely have catalogs
• Examples Singapore Power Authority
  www.spower.com.sg/readmeter.cgi?cmdform
• Cisco Connection Online

198
Principles of Good eCommerce

• Easy to find merchandize
• Good service
• Individual customization is key
• Simple navigation
• Make payments easy
• Make buyer feel transaction is secure

199
AMP Connect

• Have customers in 100 countries
• Speak many languages
• Produce 400 catalogs covering 135,000 items
• Mailings cost US7MM/yr
• Fax back cost US800,000/yr
• But you cant buy anything directly!

200
Solution Step Searching

• Saqqara.com software to enhance Oracle database
• Provide user feedback as they do the query
• Show how many matches in the database
• Different mechanisms for searching
• by part number
• by alphabetical names
• by part family
• by picture even

201
AMP
202
AMP Connect (cont)

• And can set to list parts that are available in
  specific countries!
• Updated daily with over 200 item changes
• Detailed drawings saves time for customers to
  pick the right item
• Saved AMP over US5MM in production costs
• Saved US1MM in translation costs

203
Danish eShopper Survey (2/99)

• Why people shop on the web http//www.useit.com/a
  lertbox/990207.html
• Convenience and ease of use are the main reasons
  people buy
• After you have deliberately looked for
  information about a product or service, how often
  do you buy it? Almost always, 2!
• Only 5 of their visits to eCommerce sites are to
  buy!

204
First Principle of eCommerce

• Make it easy to buy!

205
Amazon.com

• Services frequent readers with a variety of
  programs
• Editorial comments
• If you liked this book, youll like...
• Notification of new books by author, topic
• Simplified 1 Click ordering
• Uses simple pages and email
• Associates program for commission kickbacks
• Gift certificates via email

206
Use Affiliates Programs Wisely

• They bring traffic to your doorstep
• Nice revenue sharing model
• Lots of them to choose from to model your own on
  
• AssociatePrograms.com
• Refer-it.com

207
Amazon vs Borders

• Cookies vs logins
• www.borders.com/msprotect/ncommerce/order/list?st
  atusC
• Who makes it easier to buy books?

208
Now Look at Hatfactory.com

• Easy to pay and track your purchases
• Clean and effective use of graphics
• Innovative use of cookies
• Demo (with 2 browser windows)

209
Update your directories!

• This one is almost a year old
• www.asiapage.com/alist.htmljewellery

210
Another Side of Service Repeat Business

• Make the shopper feel part of the family
• Shopping as entertainment (online auctions)
• Do what I mean search function (Amazon again
  looks at common misspellings made in the previous
  24 hours for book searches)
• Periodic targeted email updates and reminders

211
Second Principle of eCommerce

• Deliver solid service!

212
Dell positives

• Most notable site for computer buyers
• Customize the features you want via a web form
• Simplifies and personalizes the shopping
  experience
• WYSIWYB (buy)

213
Dell problems

• Site is now very complex
• Print ads contain eValue codes
• Too many pages to get to actual PC configuration

214
Canadiantire.com

• eFlyer uses email notification along with web
  forms
• Customize exactly what coupons and deals are sent
  to you

215
Third Principle of eCommerce

• Individual customization is key

216
BMW Motors

• Example of what not to do
• Use gratuitous graphics
• Cheesy low-res videos
• Toys, not tools

217
BMW
218
Compare with Subaru

• Find specific information about each car
• Can price options to your particular needs

219
A better example fishing licenses

• Simple, quick, and does the job with a minimum of
  clutter
• www.permit.com

220
Fourth Principle of eCommerce

• Make navigation simple!
• Use small graphics, site maps, indexes
• Avoid graphics just to display text
• Avoid plug-ins, Jscripts to complete purchase
  process
• Avoid link and button clutter, frames

221
Common mistakes with payments

• Provide too few or too many order confirmation
  pages
• Confusing methods and misplaced buttons on order
  page
• Make it hard for customers to buy things
• Dont make your customers read error screens

222
Fifth Principle of eCommerce

• Make payments easy!

223
Making the Buyer Feel Secure the Six Components
of eCommerce Trust

• Seals of approval, logos of credit card cos
• Identifiable brand name
• Ease of navigation
• Order fulfillment easy to understand
• Clear purpose and site presentation
• Fast and simple technology
  
• (Cheskin Research)

224
Perceptions of Credit Card Snooping Still Exist

• But are largely popularized by media, not
  consumers!
• Internet fraud stories are still common from both
  buyer and seller sides
• Just starting to see authentication services
  (such as Cybersource) ramp up
• Trust will take a long time

225
Sixth Principle of eCommerce

• Make the buyer feel secure!

226
Summary

• New web technologies being created at a furious
  pace
• eCommerce still far from easy and obvious
• Still lots of room for improvement in storefront
  design