E-business

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E-business

• Andrew R. Aird
• Director of Web Services at Kings College, London

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E-business

• Online survey of institutions and users
• Business matters, payment models
• A case study Joyce 2000 Conference
• Questions

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E-COMMERCE SURVEY

• 76 responses about 50 of HE community
• 31 web staff
• 38 (20) have e-commerce systems now
• Additionally 44 (34) plan to set up systems

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Categories of goods sold (or planned to be
sold)  
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SurveyPayment systems

• 2 have online payment systems
• 12 plan to
• 2 have outsourcing
• 7 plan to
• 40 planned expect to be running in next 6 months

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Survey WHO DOES IT?
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SurveySECURITY

• 38 (20) have secure server
• 18 (14) have x508 certificate

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SurveyPERSONAL USE

• 47 use e-commerce every month
• 81 are likely to buy on line in the next month
• 98 are satisfied with transactions
• 92 regard it as safe
• 52 - institutional use of ecommerce

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USERS DO WORRY

• World view
• 25 of e-commerce transactions are never
  fulfilled
• 53 of online customers are concerned about
  security and privacy.
• Conversion rates of visitors to buyers
  currently run at about 1.8.

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Credit and Credibility (1)

• Brand quality and credibility (?)
• Make it clear what the customer is buying and who
  they are buying it from.
• Exemplify privacy, disclosure and quality control
  policies
• Consider seals of approval logos from VISA,
  Verisign etc.

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Credit and Credibility (2)

• Quality institutions produce quality web sites!
• Decide on the level of security needed and deploy
  appropriate technology
• Consider outsourcing Online credit card payment
  will involve outsourcing in any case.

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Its a business (1)

• Four business models
• Physical fulfilment
• Online fulfilment
• Ticketless travel
• Hybrids

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Its a business (2)

• Design e-commerce into the product
• Good fulfilment systems (remember Boo failure,
  Amazon problems)
• Is it worth it?

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Getting the money

• Off-line card processing
• Full online card payment and fund transfer
• Payment by Standing Order, Direct Debit or Cheque
  in post
• Generation of invoice for subsequent settlement

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Off-line card processing
The University
Web Site
Management Info
Money!
Finance dept
Client selection
PDQ
Bank / Card issuer
Payment page Card details, etc
PGP ENCRYPTION
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Online card payment and fund transfer
The University
Web Site
Management Info
Money!
Client selection
Payment page Card details, etc
Payment Service Provider
SSL/VPN
SSL/VPN
Institutions bank
Card issuer
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COSTS (1)

• With Trustmarque plc
• Initial set up 400
• Monthly support 100
• Per item charge 14p
• CC merchant 2.5?

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COSTS (2)

• (excluding setup fee)
• 100 transactions _at_ 300 will cost 19.64 each
  (6.55)
• 100 transactions _at_ 30 will cost 12.14 each
  (40.47)
• 1000 transaction _at_ 10 will cost 1.34 each
  (13.40)

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WHAT YOU NEED

• Product to sell
• Database, middleware, web-pages/forms
• SSL or VPN, PGP Encryption
• Security certificate (x509)
• Administration
• Marketing

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USING VPN
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USING SSL
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More SECURITY

• SSL for user connections
• PGP Encryption of messages
• Database security
• Save CC details?
• Paper security!

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SAMPLE SOLUTIONS

• Filemaker database / middleware (no SSL)
  (FMPMac)
• MySQL, PHP (Apache Unix)
• Access database, ASP (IIS NT, 2000)
• Oracle, ColdFusion (IIS NT, 2000)
• Etc.

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What we all need

• Authentication standards
• Kite-marking
• Site design standards
• National portals
• CHEST style deals

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JOYCE 2000
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CASE STUDYJOYCE 2000

• Entail less paperwork for the organiser
• All conference documentation produced from one
  (accurate) source
• Handle overseas delegate registrations time
  differences, etc.
• Allow credit card payments (as well as invoices)
• Convenience attracts more delegates

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THE SYSTEM

• Web site, registration forms
• PHP , MySQL database on UNIX server
• Viewed in Access
• Encrypted email for financial information
• Manual CC processing

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• Authenticates the server operator and server
  software
• Indicates that SSL encryption is being used
• Wont work on non-compatible (insecure) browsers

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how did it go?

• 260 out of 350 delegates booked online -74
• Of these, 65 used CC payment, 5 cheque, and
  remainder on invoice
• Value of on-line transactions about 30,000, or
  half the total amount.

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What went wrong?

• Decision not to use an automated payment system
  created most problems
• Still need for paper confirmations
• Cancellations and changes were time consuming and
  tricky

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How could we improve it?

• Include e-commerce in early stages of planning
  conference
• Ensure everyone involved is fully trained
• Organising conferences is always going to be hard
  work dont expect miracles.

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FUTURE OBJECTIVES

•  
• Maximise income generation
• Simplify stock control, reduce costs
• Enlarge range of publications and other goods on
  sale
• Encourage independent publication of academic
  research, etc.

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URLs

• Ariadne articlehttp//www.ariadne.ac.uk/issue26/
  e-commerce/
• These slideshttp//www.gold.ac.uk/webmanager/e-c
  omm1/bristol2.htm