Driving business and saving money: the key in 2004 - Best practices: e-commerce

We hear that the economic turnaround has begun, and each of us needs to be in a position to drive our business and reach more customers than ever before. How do we reach more guests effectively and efficiently in this e-commerce era? Does a change in economic temperature mean that we don't worry about the old adage that "a penny saved is a penny earned?" How can each of us keep our bottom line strong? We believe that these questions are important elements of financial success in 2004.

In response to the first question, Accor has launched a Property Website Program that gives our Red Roof Inns, Studio 6 and Motel 6 franchisees a fast track to Internet marketing that is hassle-free and low cost. The new program allows entrepreneurs the opportunity to create property specific Web sites without needing Web design experience or training. The new program is aimed at helping franchisees drive bookings, increase revenue and build profit using the Internet. Site elements include customized property amenities, photos, features, local attractions and airports, and Web site links. The program was presented to the Accor Franchisee Advisory Councils before pre-release workshops held at the Accor convention in April 2003. Following the workshops, R.C. Patel, owner of Diplomat Hotels, and franchisee of all three Accor economy brands, raved, "This new program is very impressive with its ease of use and low cost."

Saving money is also top of mind for each of us. We have launched a franchise e-procurement program, which initiates an unparalleled rebate program to put money back into the hands of our franchisees. Through the company's new rebate program, franchisees who purchase goods, supplies and equipment using e-procurement or directly from any of Accor's suppliers, do so at the same prices offered to company-owned locations. In addition, any purchases from Accor's 108 approved suppliers will result in year-end rebates to the franchisees at the same rate as company-owned locations.

We believe that these two programs will propel our franchisees toward success in 2004.

Accor is a proud member of the International Franchise Association, American Association of Franchisees and Dealers and Founding Sponsor of AAHOA.

Hotel Web sites use third-party links to direct guests - News - E-commerce

NATIONAL REPORT -- Hotel companies increasingly are relying on third-party Web sites and services to help drive reservations traffic to the hotels' Web sites.

Many of these partnerships fall into the realm of destination information content offered to the hotel reservations site by the third-party provider. Examples of such content include special event calendars, restaurant reviews, mapping information and weather.

In terms of what the end user sees, the aggregation of destination information on hotel-branded sites is similar to the integration of restaurant reviews from CitySearch with many of the hotel information and booking pages on Expedia.com. IAC/InterActiveCorp. owns both sites.

But when it comes to uniting booking with e-commerce, lodging chain marketers would rather not depend on the third-party travel sites. Sensing that their most brand-loyal customers are more likely to go to hotel sites than to third-party Web addresses, marketers increasingly regard their own site's content aggregation efforts as crucial.

Del Ross, director of e-commerce services for InterContinental Hotels Group, said there's a direct relationship between the availability of such services for site visitors and the percentage of site visitors who make a reservation when they click on the company's site .

"These partnerships influence our demand and conversion rate," Ross said.

"Our philosophy is that we are trying to create an experience for people to shop and book travel," said Wendi Mazzucco, senior director of channel marketing for Cendant Corp.'s hotel group. "We know our own core competency, and we like to stay focused on our hotels' sites. But if we can give our [site] customers even more information, they are going to find our site even more valuable."

MapQuest, an Internet-based mapping service, is a key third-party partner on Cendant's brand-specific Web sites. For payments that Mazzucco would only describe as being in the millions of dollars per year, a "Map It" icon appears for each property listed on the page a prospective guest sees when he or she enters a query for a hotel in or near a city.

When the site visitor clicks that icon, a page with a MapQuest-drawn map, often with driving directions from the nearest airport, appears. For example, a search on Cendant's Days Inn site for hotels near Grand Junction, Colo., shows the Grand Junction Days Inn as one of the listings. The map page for that property describes the route from the local airport. If the customer regards the route to the hotel as a convenient one, he or she can start the booking process by clicking the reservations icon on the same map page.

"Our customers have told us that they want quick reservations, and they are open to receiving additional information of this kind," Mazzucco said.

Of course, many travelers don't base their booking decisions entirely on how easy the drive is to the hotel as much as what attractions and amenities are in the immediate area. Hotel chains have always been aware of this, and an array of third-party destination sites are happy to help provide this type of information.

Choice Hotels International provides destination information on www.hotelchoice.com, as well as its branded sites. Mary Beth Knight, v.p. of e-commerce for Choice, said that in addition to a new look and better site navigation, additional enhancements will include destination information from third-party providers. She said the site will offer an entire menu of content, including local sporting events, museums, attractions and restaurants. Weather conditions and forecasts for local areas also are likely to be added, also via an as-yet unnamed third-party partner site.

Choice already has a third-party mapping site partner, Microsoft's Vicinity.com. Vicinity also partners with Hilton Hotels Corp., Best Western International and Starwood Hotels & Resorts Worldwide.

As an example of how the information is delivered on the site, a prospective guest searching for a Clarion Inn in or near Seattle would see a search-results page that highlights the Clarion Inn Totem Lake in nearby Kirkland, Wash. Clicking the property's info/photos icon on the search results page would bring a pop-up page with a link to another page with a list of nearby restaurants and attractions.

"Location is a key in a booking decision," Knight said.

InterContinental takes the third-party model a step further by means of a partnership with online destination information publisher 10Best, (www.10best.com). The site's Virtual Concierge product is offered by IHG and on the Web sites of brands such as Doubletree, Hilton, Fairmont, Radisson and Omni.

"[10Best] has the information our customers want, so we marry our online offerings with theirs," said Ross, who described the relationship as a fee-based arrangement.

As an example, a customer making a reservation on the Web page for IHG's Staybridge Suites in Houston would see a page with a linked list of "Recommendations In The City." Supplied by 10Best, these links would include dining, cultural events, leisure, nightlife and shopping suggestions.

Double play: could sending a paper catalog to customers boost your e-commerce business?

WHETHER YOUR GOAL IS TO ENTICE customers to shop at your Web site more often or to combat stagnating sales, you could try boosting business with a decidedly traditional strategy: the catalog.

It's not a new trend per se, but those e-tailers taking the plunge are seeing real results. The idea is to increase the number of touch points you have with your customers so you can ultimately build more sales. It's common knowledge, after all, that people who shop in multiple channels are more valuable than single-channel shoppers.

Research conducted earlier this year by comScore Networks, for the U.S. Postal Service (USPS), found that a business doubles its chances of making an online sale by mailing a catalog. Other findings from "The Multi-Channel Catalog Study" include:

* Catalog recipients account for 22 percent of traffic to a catalog company's Web site and 37 percent of its e-commerce dollars.

* Catalog recipients make 16 percent more visits to that company's Web site than those who do not receive a catalog.

* Catalog recipients view 22 percent more pages and spend 15 percent more time at the Web site than those who do not receive a catalog.

* On average, the total amount spent on a Web site by a catalog recipient is $39, more than twice the $18 spent by noncatalog consumers.

Catalogs also work well as a channel for e-tailers because they can easily leverage the Web site's marketing, creative, infrastructure and fulfillment systems and repurpose them for a catalog. "They can use the same call center that's listed on the [toll-free] number for the Web site, for instance," says Dawn Brozeck, a senior analyst at Nielsen//NetRatings, a Web traffic anaylsis firm with head quarters in New York City.

Catalogs also reinforce an e-tailer's brand. Especially for growing businesses, they are a quick and easy way to add legitimacy to your company. An e-tailer with a multichannel presence appears as "more established" to consumers.

Taking the Plunge

Gift Services Inc. dba GiftTree (www. gifttree.com) is just one e-tailer that has made catalogs a key part of its marketing plan. Online since 1997, the Vancouver, Washington, online seller of gift baskets targeting the corporate market sent out its first catalog to 60,000 customers and prospects during last year's holiday season. According to Craig Bowen, 41, GiftTree's CEO and co-founder (with Esther Diez, also 41), catalogs are a necessary marketing tool for e-tailers. Catalogs keep e-tailers "top of mind" with customers and ultimately encourage those customers to come back for more.

"Our customers typically have purchased with our competition, and the company they purchase with next is the company that's in the right place at the right time," says Bowen, whose company had sales of $12 million last year. "It allows consumers to [shop for couches] at home, then [be] reminded about your company when they're leaning against theft kitchen counters--and then they place the order online" Without a catalog he warns, "They might forget about you altogether."

GiftTree decided to create and design its catalog in-house. Employees took photographs of GiftTree's products in the company's own photo studio. The company hired a printer to print and manufacture the catalogs, and then mailed the catalogs through the USPS.

Since the catalog was launched in tandem with other fliers it printed--and since GiftTree used in-house employees for the work--Bowen could not provide an exact figure for how much the whole project cost. However, taking on this kind of project is "definitely not cheap," Bowen says, adding that it can cost at least $100,000 once you factor in the costs of hiring an agency to produce it, in addition to printing, mailing and perhaps buying or renting a prospect list.

But for those who can afford it, a Web site and a catalog make the perfect marriage, says Bowen, who adds that launching the catalog was a logical channel for GiftTree to explore. The company's fulfillment system was already in place, ready to take orders. And GiftTree had already collected the names and addresses of customers to whom it could send catalogs.

Risks and Rewards

Considering all the work and expense inherent in such an endeavor, is launching a catalog really worth it? "Definitely," says Bowen. "We saw a lift in sales." In fact, GiftTree is already planning to send out a second holiday catalog this November.

"There's a reason people do catalogs," Bowen explains. "They work. If you make a very beautiful catalog, and it's got what [consumers] want in it when they see it, they are far more likely to order from you than if you didn't send them something."

In reality, not every e-taller will have the funds required to launch a full-fledged catalog. An affordable option for business owners on a budget is to send out postcards or brochures as a way to keep in contact with customers. "It's really just reminding your customers that they're important," Bowen says. "If you can't print a beautiful catalog, maybe it's a better idea to save your money and instead offer your customers a dollar-off postcard."

Making a seamless connection between in-store and online - E-commerce

Walgreens kicked off 2004 with more than 1.6 million unique visitors to its Web site during January, second only to Drugstore.com, with 11.9 million unique visitors. The retailers outpaced CVS.com and RiteAid.com, with a respective 923,000 and 515,000 unique visitors, according to comScore Media Metrix data.

Walgreens.com also received accolades from The Customer Respect Group for its online qualities in the areas of customer responsiveness, ease of use and consumer privacy.

Those qualities matter, said CRG president Roger Fairchild, because a user-friendly, easy-to-navigate and trustworthy site translates to the same feeling a customer gets when he or she walks into a bricks-and-mortar store and is met by a helpful and knowledgeable staff. It also translates to more online rings.

In addition, to capture an even larger online customer base, Walgreens is addressing specific consumer groups with a newly tailored online format.

As part of its ongoing effort to attract the growing number of Hispanic consumers, Walgreens became the first national pharmacy retailer to launch a Web site designed specifically for the Spanish-speaking population. Launched in August, WalgreensEspanol.com provides drug information, an online prescription refill form, a store locator and directions on how to use services on Walgreens.com. The site also redirects users to Walgreens.com for more information. While WalgreensEspaSol.com is a pared down version of the retailer's English-language Web site, Walgreens plans to add new online services based on user feedback.

In addition to its Spanish-language site, Walgreens also was the first pharmacy chain to fully integrate its online pharmacy with its retail locations, offering patients a chance to view and update their personal prescription history online. In 1998, the retailer began offering prescription refills online, which patients picked up at the store location where the prescription was most recently filled. Walgreens then launched its full-service online pharmacy in 1999, encompassing new prescriptions and refills for pick up at any Walgreens location or by mail. Walgreens later opened its full online drug store in 2000.

Last year, the retailer processed more than 18,500 online prescriptions per day, with more than 95 percent of patients picking them up at a store location, said Walgreens spokeswoman Carol Hively. The transaction gives Walgreens the chance to interact with customers at two points of purchase.

Walgreens' customers can learn more about Walgreens.com by picking up a store circular. The retailer promotes its site and Web-exclusive offerings through its weekly circulars. Walgreens' circular for the last week of February told customers to track their rebate earnings online by going to Walgreens.com/easysaver and clicking on Rebate Status. The circular also promoted the UpEasy Lifting Cushion, an exclusive Internet offer sale-priced at $80 from an original $99.99.

The ultimate message to consumers conveyed in the circular: Walgreens is there for them 24/7. "Make Walgreens your store. Online. Day or Night @ Walgreens.com," was touted.

That seamless integration from in-store to online retailer has helped propel Walgreens.com to the top.

A CRG study measuring retailers' performance from an online perspective found Walgreen Co. tied for third out of 52 Fortune 1,000 companies in the retail sector, beating out Amazon.com, Wal-Mart Stores and Kmart Corp.

The results affirmed Walgreens' e-commerce strategy to extend its products and services available at its more than 4,300 stores, while providing customers additional convenience and access to information. Transcending its bricks-and-mortar pharmacies, Walgreens.com gives patients direct control in managing their health care online and access to the same information their Walgreens' pharmacist holds.

Released in the fall, the study gave both Walgreens and CVS Corp. a customer respect index of 8.9 out of a possible 10. In comparison, Rite Aid Corp. rated an 8.5, Longs Drug Stores rated 6.4, and ShopKo Stores rated 5.4.

CRG based its scores on attributes that create the optimal online customer experience, including respect for privacy, valuation of customer data, a strong customer focus, open and honest policies, ease of navigation and a quick and thorough response to inquiries.

According Fairchild, Walgreens achieved a perfect 10 in the area of responsiveness. CRG's research team said Walgreens.com sent an auto-response, followed by a full response, to a question posed to a Walgreens pharmacist the same day the question was submitted. CRG said Walgreens' response was relevant to the question, provided detailed information on the topic and was fully personalized with a friendly and appropriate tone.

Walgreens.com also achieved a high score on ease of navigation. Its Web site was clear and easy to navigate, according to the study, and the contact form for customers to fill out was easy to use and quick to complete. The privacy policy also was easy to find with a clear link on each page, said Fairchild.

Taking the risk out of e-commerce - Insuretrust.com services - Company Profile

Rick Davis ensures that Internet integration won't be a liability for your company

At the relatively young age of 30, Rick Davis has just had reconstructive knee surgery and expects to have no less than three similar operations in the coming years, including both ankles and the other knee. Yet Davis could be considered healthy and in great shape. So why the surgeries? "I don't want to be 40 years old with aches, pains and nagging injuries slowing me down," says the former Stanford University football player. Such preemptive surgery could almost be considered a representation of his current profession--risk management.

Davis is the co-founder and strategic marketing and corporate development officer of Insuretrust.com, an Atlanta-based e-business risk management firm that focuses on companies whose operations rely on internal and external computer networks. "We have created a new space that combines the best elements of information security, consulting, risk management and insurance," explains Davis. "By combining these disciplines into a unified e-business approach, we effectively address all the critical exposures that affect e-business, the Internet and networked computer environments."

The very same electronic connections that allow us to conduct business and communicate with business partners can be compromised by hackers or unscrupulous employees. Insuretrust conducts full-scale analyses that identify the areas of risk in your business and helps to protect them. Surprisingly, even with the myriad technologies and points of entry that comprise most corporate networks, Davis says the most common security risks are related to human error and miscommunication. However, the risk of a security breach could be reduced if upper management paid careful attention to security issues. Here are the top three problems Insuretrust routinely addresses:

* Lack of a companywide security policy. Many companies don't tell users how to protect their information and how to use networked resources accordingly. This is an accident waiting to happen.

* Lack of executive sponsorship of security initiatives. Senior executives need to be an integral part of the security solution, which should also be a line item in the budget.

* Lack of integration between business decisions and IT decisions. In the e-business environment it is imperative that decisions are made based on both business and IT considerations. For example, if the marketing department wants to create a shared network with its business partner, it is essential to have an IT perspective to make sure all security and infrastructure considerations are addressed from the beginning.

Although internal breaches of security are still the most common type, there has been a dramatic rise in the number of successful "attacks" from the outside. Earlier this year Information Security magazine conducted a survey of over 700 companies that revealed a 91.6% increase in the number of companies suffering unauthorized access (hacking/cracking) intrusion between 1998 and 1999. "Companies conducting e-commerce suffer more frequent attacks than those that don't," says Andy Briney, editor in chief of Information Security. Fewer than 100 of the companies that suffered these invasions attributed a dollar amount to the attack--yet the total exceeded $23 million.

"Traditional insurance companies insure property losses and liabilities but not those that arise from e-commerce," says Davis, whose family has run Davis Insurance Agency for three generations. Ironically, he only joined the family business three years ago--when he stumbled upon this new industry. At the time, the Omaha, Nebraska, native was employed as a computer security and systems integration consultant. "One of my customers asked me who was responsible if the security safeguards I'd installed failed to stop an attack. I told him he was," recalls Davis.

At the customer's request Davis contacted the family firm to find out if there was an insurance policy that could cover this type of loss. The answer was no. By early 1997 Davis launched the Information Risk Management unit of the Davis Insurance Agency to capitalize on the opportunity. "Rick realized the opportunity a couple of years ago and the rest of the industry is only just catching on," says Kevin Field, a technology risk specialist with London-based Willis, a worldwide risk management firm. However, there was at least one other person in the country who was as far ahead of the crowd as Davis--Steve Haase. Haase, a 20-year insurance industry veteran, actually beat Davis to the punch by selling the first e-business security policy in 1997.

"As soon as I heard about that policy I gave Steve a call," says Davis, who contacted Atlanta-based Network Risk Management Services to discuss a possible partnership combining Davis' technical, Internet and underwriting experience with Haase's insurance policy expertise. "We were developing a new area and didn't have anyone from the technology field working with us," recalls Haase. "Rick calls me up out of nowhere and understands the whole market and was able to fill in the void in our planning and strategy."

Integration & Extension: Data Services Platform - Products.new - iPlanet Integration Server, B2B Edition from iPlanet E-Commerce Solutions - Software

The Sun-Netscape alliance, iPlanet E-Commerce Solutions, announces its integration platform incorporates SOAP, Java technology, and XML into a comprehensive solution. The platform includes iPlanet Integration Server, B2B Edition, iPlanet Integration Server, EAI Edition, and iPlanet Message Queue for Java, addressing a range of simple to sophisticated integration demands, while eliminating the need for restrictive proprietary languages.

The iPlanet Integration Server, EAI Edition, is an upgraded version of iPlanet Integration Server 2.1. The product includes Planet's scalable business process management engine and new SOAP support, enabling back-end data sources to be represented as Web services, which can then be leveraged by other organizations or applications.

The iPlanet Integration Server, B2B Edition joins two independent products, formerly known as iPlanet ECXpert and iPlanet TradingXpert, into a single product for business information exchange, including document routing and conversion.

Launched in June, iPlanet Message Queue for Java is an implementation of the Java Message Service application programming interface. This solution provides Web services developers with a messaging infrastructure to route messages between disparate applications and services.

The Planet Integration Server, B2B Edition is $1100,000 per CPU. The iPlanet Integration Server, EAI Edition starts at $40,000 per CPU. The iPlanet Message Queue for Java is priced at $4,000 per CPU. A developer version of Planet Message Queue for Java can be downloaded for free. The iPlanet integration platform supports the Solaris, Windows NT, and other platforms.

Rx for growing pains: clean data, consolidation and an e-commerce solution streamline the purchasing process at a Chicago healthcare network

For many healthcare organizations, growth makes good financial sense, enabling them to lower costs through shared services and take advantage of better contract pricing afforded to high-volume customers. While Ed Friese looked forward to lower supply costs that expansion at Resurrection Health Care would bring, he knew trying to reconcile five different materials management information systems (MMIS) would create "a headache and a half for everyone in the organization." The Chicago-based healthcare system ultimately found synchronicity and success with e-commerce solutions vendor Global Healthcare Exchange (GHX), Westminster, Colo.

Growing Pains

Three years ago, Resurrection Health Care doubled the number of hospitals included in the system from four to eight in an 18-month period. Disparate technology made it virtually impossible for the healthcare system to capture aggregated data on total purchasing, which was necessary to secure the best contract pricing. While many of the hospitals ordered identical products from the same vendors, these items were often listed differently in each of the eight item masters hosted by the various hospitals.

Friese needed to improve the overall purchasing process--still a highly manual effort--leaving the purchasing staff with little time to handle special needs such as urgent requests for products or services required for critical patient care. Similar problems plagued the accounts payable department, which entered and paid invoices by hand. The time involved often delayed payments to suppliers, making it difficult to take advantage of lucrative early pay discounts.

Friese had tried earlier to consolidate purchasing and automate the process, with limited results. Electronic data interchange (EDI) connectivity had been set up with a few vendors, making it possible for buyers and their assistants to send purchase orders electronically, but corresponding purchase order acknowledgements were "sporadic at best," he says. The purchasing staff still had to follow up with vendors, usually by phone, to confirm that orders were received and the products were shipped. Even when suppliers sent electronic confirmations, the information mapped in the purchase order did not include the name of the buyer. As a result, there was no way to directly notify that person about back orders or other problems that needed attention.

Using dial-up connections also had its inherent problems. The slow batch process made it difficult to make cutoff times for next-day and second-day deliveries. Without technical notification that the full transaction had been successfully received, purchasers were never sure if any of the data was lost during transmission. There were also capacity issues. Dial-up connectivity simply could not handle the volume necessary for Resurrection Health Care to significantly expand the number of electronic vendors and, most importantly, the percentage of orders handled via e-commerce.

Cleansing Data

Resurrection Health Care ultimately chose GHX for its integration, data cleansing and automation processes. The healthcare system also wanted GHX's ability to connect to a wide variety of MMIS, its reporting capabilities, the number of suppliers connected to the exchange, its revenue- neutral business model and broad industry ownership.

Before its July 2002 go-live with GHX, Resurrection Health Care tackled its data cleansing needs. GHX and the healthcare system's staff first compared information in each of the eight hospital item masters to product data maintained and verified by suppliers in the GHX AllSource content repository. They made necessary corrections to item numbers, unit of measure and supplier divisions, and removed duplicate or obsolete entries. Once all of the item masters were cleansed and synchronized, the healthcare system utilized GHX Content Intelligence to maintain that level of accuracy and synchronization.

The GHX solution relies on supplier-established business rules and updates to the AllSource repository to identify and correct inaccurate product data in purchase orders during the transactional process. Hospitals are also notified of changes needed to keep their item masters current. Resurrection Health Care was eventually able to consolidate the original eight item masters into a single and more manageable database, with less than half the number of products contained in the multiple databases combined.

Resurrection Health Care connected to GHX using the Connect Plus solution, which provides standard connectivity to the majority of MMIS commonly used in healthcare and requires little effort from a hospital's IT staff. GHX placed a communications server behind the healthcare system's firewall, into which information was funneled from the various MMIS. The on-site server provides more reliable connectivity than dial-up, improved order monitoring, and secure and confidential (HIPAA-compliant) data transfer back to the MMIS, while minimizing much of the work that the MMIS had to handle. Orders placed via GHX are secured through encryption with non-repudiated high-speed delivery, enabling purchasers to confirm they were received in time. They can also be mapped to specific buyers to handle any necessary follow-up.

Online games and e-business: architecture for integrating business models and services into online games

Online games are the future of the interactive entertainment industry. The idea of integrating business services into online games holds a number of exciting possibilities for new business models, new markets, and new growth. We describe an architecture, Business Integration for Games, and an implementation prototype, for integrating online games with business services. We also describe a demonstration system that embeds our prototype into the popular first-person-shooter game Quake II[TM].

INTRODUCTION

Online games, which give the player the ability to compete against other players over a network, emerged seriously in the mid-90s. This rapidly evolved from a novelty feature to an expected function by players, and game designers adopted this approach to build multiplayer (MP) and massively multiplayer (MMP) genres of games.

A key difference between these genres is scale, and with it, the associated infrastructure to support it. The MP games confine the number of concurrent players in a single game to somewhere between 16 and 32. Usually, the game can be played either stand-alone or in multiplayer-network mode, and one of the players' machines acts as the server. The game session is relatively short-lived (minutes to hours). If the server crashes, the game is, at worst, over or, at best, severely disrupted. The MMP games, though, are a very different affair. The most popular MMP games today have subscription bases in the millions, with hundreds of thousands of players online at any one time, spread over hundreds of servers. The shared game session lasts indefinitely. This requires a much more stable environment; thus, these games have to run on dedicated servers equipped with a persistent database. Network bandwidth to support the game-related traffic is also required, and all this obviously has an associated cost.

These two different genres and their associated infrastructure requirements and costs spawned two different approaches to sustained revenue generation. The first one, mostly associated with the MP games, is based on the provision of a portal to act as a hosting and matchmaking Web site for players of these games. The portal site offers either a free membership to players and generates revenue through online advertising or a premium membership, free from advertising. The members gain access to services for locating other players and games, league tables and high scores, patches and add-ons, and use of the portal's dedicated server machines for playing games. An example of such a portal is GameSpy.com, (1) which maintains a subscription-based membership and provides an aggregation point for a variety of games that run on a variety of platforms. Some game publishers run their own portal sites with free membership, dedicated to hosting their own games and ensuring a quality experience for the community of players. The downside from the player's perspective is that these sites are limited to the products of the publisher. An example of a publisher portal site is Battle.net, (2) dedicated to games from Blizzard Entertainment.

The second business model, associated with the MMP games, is based on subscriptions that include a persistent presence in the game environment. For typically ten to fifteen U.S. dollars per month, a player has access to a game character that may be developed over time to accrue additional features for a more enjoyable game experience. The reasons players continue to subscribe include a strong community spirit, exciting game experiences, and an ever-increasing investment of time and money in the game character--if you stop paying for your subscription then your character (and all the experience and wealth gained) is lost. It is not uncommon for the subscription to be continually renewed while the account is dormant.

These games belong to the role-playing game category, and are often referred to as MMORPGs (massively multiplayer online role-playing games). Game characters are often involved in adventure and exploration jointly with other players, and aim to achieve some objective and gain rewards. The more rewards gained, the more powerful the character. Virtually all of these games have some kind of embedded trading mechanism that allows players to exchange wealth among them in the game world. For instance, in one of the most popular MMP games, EverQuest ** (3) from Sony Online Entertainment Inc., players assume the roles of pseudo-medieval fantasy heroes, gaining magic and gold in a land of dragons and wizards. Players are able to buy and sell their virtual property in exchange for virtual wealth, but this virtual economy is confined to the game world and is not a means by which the game service provider makes any of its revenue. Trading virtual wealth in the game world, however, has spawned a third business model that is now emerging.

From the earliest use of MMPs (Ultima Online ** (4), EverQuest, Asheron's Call ** (5)), the players in the community have recognized a gap in the market. Whereas some players are unable to devote the time, or lack the skill, to develop powerful characters and gain access to the more enjoyable game experiences, they are willing to pay real money (above and beyond the subscription fee) in order to acquire this virtual property. Thus, a real economy has emerged in which artifacts of the game world, such as magical items, weapons, or even whole characters, are bought and sold for real-world money. The means by which these transactions occur are often through an external medium, such as an online auction site like eBay. (6) The game service providers have historically frowned upon this practice, claiming that it is they who own the intellectual property rights to the items being traded, not the players, and that the trade is therefore illegal. But despite various attempts to prevent it, the practice is now an acknowledged side effect of the MMP game genre, and some newer MMP releases have attempted to build this into their design from the outset by providing auction functions and the ability to exchange real-world currency for virtual in-game currency. The open market, however, is a strong force, and this has not really deterred players from continuing to use external auctions and payment services.

Digital River Acquires NetSales' Software Services Division - e-commerce service companies

Digital River announced that it has acquired the software services business of NetSales, which provides B2B and B2C e-commerce services for software publishers and software retailers. The acquisition of the NetSales' technology division further establishes Digital River's position as a provider of both B2B and B2C e-commerce services for software and digital content publishers.

Under the terms of the agreement, Digital River acquired NetSales' software services assets in exchange for 1,000,000 shares of common stock, with a contingent earnout for an additional 350,000 shares of common stock based on performance over the next 180 days. NetSales generated 1.3 million in net transaction revenue in 1999 with over 500 clients. All of the operations will be consolidated at Digital River.

Over the next 90 days, NetSales' clients will be transitioned to Digital River's commerce system and can immediately tap into the company's comprehensive e-commerce services.

Office.Com Expands E-Commerce Capabilities with Request for Quote and Auction Services

Winstar Communication Inc.'s Office.com recently began offering business-relevant auctioning, bidding, purchasing, and selling opportunities for small- and medium-sized businesses (SMBS) on the marketplace section of the Web site.

Through its partnership with BizBuyer.com Inc., a business-to-business Request-For-Quote (RFQ) marketplace, Office.com business users can now receive competitive quotes on a broad range of products and services from qualified sellers. Office.com's partnership with FairMarke, a provider of on-line, outsourced distributed selling solutions, gives its customers access to on-line auctions and AutoMarkdown services in approximately 200 product categories.

"These new e-commerce capabilities give our users even more tools to grow their businesses," said Jeff Cutler, general manager and COO of Office.com Inc. "Working with these top-rated service providers, we make on-line RFQ purchasing and auction-style selling more objective and applicable for the SMB marketplace by putting control in the hands of buyers and sellers."

Office.com rigorously evaluates every marketplace partner and highlights third-party reviews on hundreds of business-relevant products, allowing users to browse detailed research before buying. In addition, Office.com's extensive content covering nearly 150 vertical industries and professions is integrated with its marketplace area, enabling SMBs to research and procure goods and services in a targeted fashion.

New telematics a success in Japan - Asia Report - there are currently over 40 services available, including e-commerce and music

Although the jury is still out, early signs indicate that the latest generation of telematic services by Japan's Big 3 carmakers has been more favorably received than their predecessors.

Toyota Motor's 'G-Book,' the most comprehensive of the systems, debuted last October on the new WILL Cypha. Through December, an estimated 80 percent of 8,090 Cypha buyers had enrolled in the service.

Honda Motor's 'InterNavi Premium Club,' introduced last fall on the remodeled Accord, has had similar success with nearly 100 percent of domestic customers opting for car navigation (some 60 percent of the total) signing up.

Meanwhile Nissan Motor's CarWings,' introduced on the remodeled March last spring, is now available on the Cube, Primera, Elgrand and Fairlady Z. Nissan provided no sales results, but was encouraged by the level of interest in the service, particularly among younger drivers.

Analysts note that it is still too soon to gauge profit potential, though they also feel that Toyota, judging by the range of G-Book services, has decided such offerings will help it sell cars--if not now, in the future.

In total, there are more than 40 services ranging from music and entertainment to vehicle security and e-commerce. Half are provided for free.

Included in G-Book's basic package: online business, financial and general news, weather forecasts, sports scores, traffic advisories and incoming email messages, all read out load in synthesized voice. Tapping into "Gazoo," a related Toyota service, G-Book provides a broad listing of hotels, restaurants, golf courses and other recreational facilities, complete with reservation procedures and fees. And in the safety field, G-Book features a mayday' service that automatically alerts the G-Book center in the event of an accident or breakdown. The center, which is paid for and staffed by Toyota, then notifies the appropriate repair or emergency service.

With all these features, the main question left is whether Toyota can price G-Book at affordable levels. For the WiLL Cypha, it may have done so. However, no one believes that the $5.40 monthly fee or $55 yearly rate comes close to covering costs.

Verizon and Interland Announce Three-Year Agreement to Offer Web Hosting and E-Commerce Services

Verizon Communications and Interland Inc., a provider of Web enabling solutions, announced a three-year strategic relationship to market and sell a full range of Web hosting, design, and consulting services, as well as bundled packages of these and other Internet services, to small and medium-sized businesses.

"Surveys have indicated that Internet hosting and e-commerce are the hottest emerging issues with business managers, and there is a strong demand in the market right now for reliable access and hosting services to enhance the competitive position of small and medium-sized businesses," said Bob Ingalls, president of Verizon's business solutions group. "Interland's extensive customer support system and the reliability and scalability of its technology will enable us to deliver to our customers solutions that will enable them to grow their business and work more efficiently via the Web," Ingalls said.

The relationship is outlined in three agreements: a marketing channel agreement, a service provider agreement, and a billing and collection agreement. Under the marketing channel agreement, Interland and Verizon will jointly market Interland's full suite of Web hosting, managed services, Web design, and related e-commerce solutions to over two million Verizon small and medium-sized business customers in the Northeast and Mid Atlantic states beginning in November. Under this agreement, the services will be sold and supported by Interland's sales and customer support teams to businesses that will become Interland customers.

As part of this agreement, Verizon and Interland will equally split marketing expenses, with each company initially committing a minimum $6 million in co-marketing funds. The Interland-enabled services will be co-branded and will be Verizon's only stand-alone shared Web hosting offering to small and medium-sized businesses in the region. Prices for the hosting and support services will depend on the hosting plan, storage capacity, and other features selected from Interland suite of services.

Old dogs, new clicks: during the past 10 years, e-commerce has changed dramatically. Is your company keeping up?

EXECUTIVES WHO THINK THAT THE DOT-COM collapse, channel conflict, and consumer fears of identity theft have combined to make E-commerce strategy a low priority should think again. Ten years after Amazon.com and eBay made "E-tail" a household word, companies in many industries are taking a second look at E-commerce, and finding ways to overcome old problems and tap new opportunities.

Last year, E-commerce sales hit $69.2 billion, and while that equates to less than 2 percent of all retail sales, it is a startling 23.5 percent jump from the previous year. Analysts believe the online channel may account for 7 percent of all retail sales by 2010. That's a potential increase of nearly $200 billion, which means companies that were turned off or got burned the first time around have plenty of incentive to try again.

And many are. No longer seen as a separate entity (with its own dreams of IPO glory), today's E-commerce effort is framed as an integral part of a multichannel sales-and-marketing strategy predicated on giving customers what they want the way they want it. That means company strategies vary widely. One retailer's Website may sell a fraction of the inventory displayed at its stores, while another may sell quite a bit more. Some see their E-commerce platforms as the carrot enticing customers into their shops--or, if they are manufacturers, into the shops of their channel partners. Others see E-commerce as a way to reach customers who can't, or won't, shop any other way. Rather than build dot-corns because their competitors have them--often the motivation 10 years ago--companies today think deeply about the purpose of their E-commerce effort before giving it life.

Dot-Com Delivers - two e-commerce delivery services, Urbanfetch.com and Kozmo.com, battle to control the market in New York City

For less than you would pay at the store, INTERNET SERVICES bring media and munchies right to your door.

THE REAL FIGHT in New York this year has nothing to do with the Senate contest between Rudy Giuliani and Hillary Clinton. It's the battle between two Manhattan companies--Urbanfetch.com and Kozmo.com--for supremacy in a business that barely existed a year ago: whizzing Web-ordered food and entertainment to customers in an hour or less.

But then New Yorkers expect, and usually get, just about any sort of consumable delivered to their door. What makes Kozmo.com and Urbanfetch.com novel is their use of the Internet to deliver faster and better than anybody else. All you do is fill out a short account form, add goods to a shopping cart, check out with a credit card (sorry, no cash on delivery), and the goodies appear on your doorstep.

With the help of our far-flung associates (who literally worked for food), Online Shopper put Kozmo.com through its paces in the five cities it serves: Boston, New York, San Francisco, Seattle and Washington, D.C. If you don't live in one of those places, sit tight, because Kozmo.com plans to incorporate at least 20 more cities this year, starting with Los Angeles (Chicago and Atlanta are next). Urbanfetch, which we tested for comparison, serves only New York but is considering expansion here and abroad.

A Web weekend. Here is what Kozmo can slide on to your doorstep in less than one hour: books and CDs, DVDs and videos for rent or sale, video games and magazines--plus drugstore items and the snacks needed to experience all this entertainment properly. Kozmo will also sell you a Sega Dreamcast, Nintendo 64 or Sony PlayStation player, and Urbanfetch has a full electronics store for those who need a Palm Pilot on their threshold in a New York hour.

The edibles vary by city, but nowhere could Online Shopper spin a proper meal from Kozmo's menu--flatbread sandwiches in New York and refrigerated pizza in San Francisco are as close as it gets. Urbanfetch has a few offerings at the other extreme of the scale, including a lobster dinner for two. Both services mercilessly target the instinct toward sugary indulgence with candy, cookies, sodas and more flavors of Ben & Jerry's ice cream than anyone should be familiar with. Kozmo makes concessions to local tastes, such as fresh coffee beans and gourmet salsa in Seattle, but local online delivery at this stage is more like a convenience store than a supermarket.

The New Economy: don't look now, but E-commerce—and E-commerce companies—are staging a comeback

EXCEPT FOR XEROX AND FEDEX, few corporate names ever make it into the lexicon of action verbs. The latest entry, however, appears to be search-engine specialist Google, which is now invoked routinely by users of the Internet ("How did you find me?" "I just Googled your name.").

While Google's migration into the realm of public usage may be surprising, it's not nearly as surprising as its migration into the realm of public markets. Google management is expected to take the company public in a deal that could be valued as high as $20 billion.

The underwriting would be the surest signal yet that the retreat from all things Net may finally be over. Of late, commercials for online businesses--not seen for the past two years--have started popping up on television once again.

Such profile-raising is big news in the virtual world. Even bigger news: the recent run-up in the share prices of many dot-corns. During the first three quarters of 2003, the stock price of Ebay Inc., the E-commerce standard-bearer, jumped from $34 to just over $54 (the company also launched a two-for-one stock split). Likewise,

Those spikes--plus the emergence of such lesser-known but thriving dot-corns as RedEnvelope and prototyper Quickparts.com--could have finance executives revisiting their dot-com strategies. Odd as it may sound, investing in Internet projects may make sense again. Same thing for mimicking successful E-business models. Wal-Mart Stores Inc., for example, is gearing up to compete with Internet movie darling Netflix Inc.

Talk of acquiring an Internet company is no longer grounds for institutionalization, either. Consider InterActiveCorp, the New York-based owner of TV shopping channel HSN. The company; which is run by former Vivendi Universal boss Barry Diller, has gone on an E-acquisition frenzy during the past six months, purchasing Expedia, Hotwire .com, and Hotels.com, among others.

Bricks and clicks slow to connect - E-Commerce - retailers using online services to sell product

By the start of 2001, bricks-and-clicks had emerged as the winning business model of online retailing. Traditional retailers, such as Target and Wal-Mart, had proven themselves to both customers and pure-player predecessors with an incredibly successful online holiday selling season. They, along with the survivors of the "dot-bomb" era, helped bring a renewed practically to the alternative sales channel, one rooted in old-fashioned business principles.

But multichannel retailers doing business online had little time to rest on their laurels. Customers had become fairly comfortable with the online buying process and, therefore, demanded a consistent experience in all channels--which posed great challenges for traditional retailers that were ill-equipped to deliver a full range of products. And in as little time as the channel took to gain popularity, bricks-and-mortar retailers went from telling themselves, "Hey, we can do this," to asking themselves, "Do we really want to do this?"

When the Internet economy began to implode, retailers responded by shifting their focus to tighter integration and seamless customer service. Those that had spun off their Internet divisions--such as Staples, Kmart and Wal-Mart--in the hopes of lucrative IPOs, slowly began to reel them back in under the corporate umbrella.

The real headaches of achieving integration and customer service involve streamlining different systems, technology and databases. A typical retailer could have anywhere from seven to 30 consumer databases, making it virtually impossible to recognize a customer across all channels, said Forrester Research retail analyst Carrie Johnson. Smaller tactical issues, such as how to effectively collect customers' e-mail addresses at the store, have yet to be resolved.

Scott Silverman, executive director of Shop.org, the online arm of the National Retail Federation, told the story of how one retailer attempted to solve the problem with a contest to see what store associate could gather the most e-mails at the point of sale. The woman who took first prize won by copying e-mail addresses from her husband's address book. The unsuspecting persons contacted by the retailer were outraged by the rash of unsolicited e-mail promotions.

Valuation of the E-Commerce and Internet Services Industry

The e-commerce and Internet services industry includes companies that sell goods or services online, including information products and information retrieval services. The industry also covers networking and other support services for companies that operate primarily on the Internet.

Industry Overview

Consumer online spending has become part of our society. eBay is posting record profits and Amazon.com is profitable for the first time in its eight-year history. But e-commerce growth rates in the United States are starting to slow. Major e-commerce sellers such as eBay currently expect to make greater profits outside the US this year.

Spending on information technologies rose in 2003 and early 2004 but declined in the second quarter of this year. As a result, many companies in the support services segment of the e-commerce industry have fallen short of their earning projections. A possible reason for the shortfall is that corporate buyers of Internet services have become more cautious, extending the time required for dealing with them. If this is the case, contract signings already in the works may be extended into the following quarters, causing an increase in sales for the second half of the year.

The fourth quarter is typically a strong one for the industry. Consumers increase spending for the winter holidays and corporations attempt to resolve service issues before the end of the fiscal year.

The selling of goods and services to individual consumers online, once a limited industry, has grown considerably since its formation. Internet savvy consumers are now purchasing big-ticket items online as well as smaller products. The online buyer's market for cars, for example, is a rapidly growing industry segment. About 20 percent of eBay clients now shop for autos and auto parts. eBay sold its millionth car in 2004. Other websites have developed to support online vehicle shoppers. Kelleybluebook.com provides data on prices for used cars by year, make and model, while sites like capitaloneautofinance.com and householdautofinance.com provide data on auto loans.

E-commerce Gets and Keeps Service Customers

Getting - and especially keeping - more service department customers is a major focus of e-commerce at dealerships these days.

Dealerships wired to do that are seeing trend-reversing returns thanks to e-mail service reminders, online appointment capabilities and other web-based customer contacts, says Byron McDuffee, ADP's director of e-commerce-integration services.

Those dealerships are keeping more service customers whose vehicle warranties have expired. Those people traditionally are most likely to switch their business to independent repair shops.

But of customers booking dealership service appointments online, 75% drive vehicles that are older than the 2000 model year, says McDuffee.

"I don't think that four or five years ago we'd have seen that many people returning to the dealership with cars out of warranty," he says.

The ability to book service appointments on line seems to be the biggest hit.

Of customers doing that, 47% do so after hours, 83% keep the appointments and 17% are new customers. The average repair order is $300 vs. NADA's industry average of $160-$180, says McDuffee.

Benefit Cosmetics chooses Amazon Services for e-commerce solutions

Amazon Services and Amazon Services Europe, providers of technology solutions for retailers and subsidiaries of Amazon.com Inc (Nasdaq:AMZN), and Benefit Cosmetics, a cosmetics company and subsidiary of LVMH group, announcedon Wednesday (19 April) that Benefit Cosmetics has chosen the Amazon Services Enterprise Solution to develop and support new Benefit Cosmetics online and telephone order offerings for the US and UK.

Under the multi-year agreement Amazon Services and Amazon Services Europe will provide phone order processing and an end-to-end e-commerce solution, including Amazon technology,for Benefit Cosmetics' US and UK websites.

The agreement also covers design and usability, technology platforms, order fulfilment and customer service for orders placed online.

Both websites and phone order services are scheduled to launch later this year.

Financial details of the agreement were not available.

Computer Information Systems Vocational Schools

Interested in attending a Computer Information Systems vocational school? Courses in computer information systems prepare students to gain entry-level positions in the information technology field. Instructing a broad array of in-depth courses, Computer information systems vocational schools often provide extensive coursework in e-commerce, desktop applications support; networking administration and web application development. Additionally, curriculums usually offer comprehensive education and training in software applications; programming language and other pertinent, but commonly-used office applications.

Vocational schools that offer courses in computer information systems afford students with basic education and training courses in computer programming, maintenance, service and repair; microcomputer applications; Internet technology; network applications; algebra and mathematics – to name just few.

Computer Information Systems vocational schools enable candidates to attain fascinating information technology careers such as programmers; network administrators; software application support technicians; and web system developers.

For those students who desire to enhance their career outlook, attending a computer information systems vocational school is a stepping stone to achieving that accomplishment. Students who have successfully completed comprehensive coursework in computer information systems at a vocational school, can further their educational potential by transferring their credits to a four-year college or university to achieve their Associates, Bachelors; or Doctorates degree.

If you are interested in the exciting and lucrative field of Computer Information Systems, apply to a computer information systems vocational school today!