Implementing an E-commerce Order and Payment Processing Solution

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Implementing an E-commerce Order and Payment
Processing Solution

• Created by
• Isabelle Papillon
• Shanaz Nagji
• MIS 7500
• April 25, 2000

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Consumer Expectations Are Growing
Selection of Products
On-Time Delivery
Entire Experience
Personalization
Convenience
Customer Service
More Customers More Demands
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Headaches...
Product Fulfillment How do I locate
suppliers? How do I manage vendors, returns,
new products, and product availability?
Customer Services How do we track the status of
orders? How do I reduce shopping cart
abandonment?

• Financial Implications
• How can I get my commerce site up fast and cost
  effectively?
• How do I predictably manage on-going back-end
  maintenance costs?

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E-commerce Implementation Issues

• E-business (EB) 2000
• Innovative integrated solutions
• Externalization
• Commerce chain competition
• What organizations typically possess
• Legacy people, processes systems
• Fragmented EB strategy, resources
  organizational model
• Impatient confused management, boards, etc.
• Dot.com competition
• More than brains (or experience)
• Options
• Defer EB initiatives
• Acquire talent and resources
• Build your own model

Source MetaGroup
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The Anatomy of E-Commerce
End-to-End Electronic Commerce
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Front-end Challenges
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Back End Challenges
Fulfill Orders
Manage Orders
Provide Customer Service
Measure Evaluate

• Capture order
• Web sites
• Catalogs
• Retail
• Process order
• Payment
• Order
• Route orders
• SKU
• Vendor
• Monitor and
• track

• Deliver orders
• EDI
• Proprietary
• E-mail
• FTP
• Web
• Fax
• FedEx
• Payment settlement
• Provide phone support
• Vendors
• Fulfillers
• Monitor and track

• Select vendor
• Connect CSRs
• Vendor
• Fulfillers
• Provide phone support
• Vendors
• Fulfillers
• Monitor and track

• Monitor daily metrics
• Business
• Operational
• Manage exceptions
• Measure performance vs. objectives
• Phase I
• Launch

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A tale of two companies

• 1. Yantra
• Taking a closer look at the build your own model
• 2. OrderTrust
• Taking a closer look at the outsourcing model
• .. From the point of view of an IT manager

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Yantra
www.yantra.com

• We Develop and Market e-fulfillment solutions
  for e-commerce
• What it means
• Provide software and consulting services for
• Transaction, order and payment processing
• Personalization of product package and delivery
• Real time order and ship status
• Warehouse fulfillment and return
• Customer Service and support
• Inventory Availability
• Consulting Services

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Yantra
www.yantra.com

Yantra supports the build your own model and
has an extensive partner list to develop a
software solution called PureEcommerce.
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Yantra
www.yantra.com

• Notable customers Mothernature.com
• Toysmart.com
• Petstore.com
• Rockport
• Ivillage.com
• Verticalnet
• Pricing Model
• Software licensing and implementation
• Starts at 500,000
• Quick Facts Infosys Spin-off
• Consulting is a strength

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www.ordertrust.net
OrderTrust

• We enable marketers to enhance customer
  relationships by selling any product anywhere at
  any time
• What it means
• Transaction Order and Payment processing
• Fully redundant network infrastructure
• Real time credit card authorization
• Real time order and ship status
• Warehouse fulfillment and return
• Supplier derived SKUs to populate website

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Order Trust Business Model
Future Supplier
Manufacturer
Fulfiller
Payment Processor
Merchant Warehouse
Supplier
PRIVACY
SECURITY
OrderTrust
PRIVACY
SECURITY
Direct
Web Store
CommerceSM
Customer Service
Call Center
Merchant
Retail Kiosk
Interactive T.V.
OrderTrust positions itself in the middle of the
e-commerce value chain to allow for back end
order and payment processing...
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Order Trust
www.ordertrust.net

• Notable customers 1-800-Flowers
• blockbuster.com
• espanol.com
• skymall.com
• dining a la card
• Pricing Model
• Set up fees for implementationStarts at 25,000
  
• Per order fee 1.00/order
• Monthly network rental fee Nominal
• Quick Facts Founded in 1995
• Over 50 partners

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IT Manager should keep in mind ASP/ Outsourcing
Trends

• Positive
• Selection diversity
• Full-service offerings
• Funding available
• Creative pricing/equity
• Solutions focus
• Partnering alliances
• Wall Street focus

• Negative
• Selection confusion
• Consolidation
• One-stop shopping roll-ups
• Solution up-selling
• Wall Street distraction
• Creative pricing distraction
• Skills shortages
• Leveraged model resilience

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Key criteria to consider outsourcing versus
in-house option

• Costs
• Risks
• Level of solution provided vs needed
• Human Resources
• Corporate culture
• Training Issues
• Inherent advantages of each business model
• Industry Standard

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The outsourcing benefits

• Faster time to market
• Freedom to focus on core competencies
• Immediate access to an extensive commerce
  community
• Low, predictable costs without a significant
  capital investment
• Ability to grow your business seamlessly and
  respond to market changes quickly

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The in-house benefits

• Consulting expertise
• High customization
• Relatively short implementation time
• Higher control over business processes
• Maintain exclusive supplier relationships

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Strategic Sourcing

• Issues
• Resources
• Skills
• Strategic partnering
• Core competencies

Value to Core Business
Sourcing must become a core competency to enable
e-business success.
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What about the future?

• The EB service provider market continues to grow
  rapidly, though offering quality is still
  inconsistent no killer app identified!
• Companies should continue to outsource basic
  functions but set the stage for strategic network
  focused relationships operations (Forrester)
• Companies that partner will be the most
  successful Winners will hyper
  partner(Forrester)

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Thank you!Questions?Please Let us Graduate!
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IPOs Distinction or Distraction?

• Issues
• Do public firms deliver better services?
• Is getting filthy rich a distraction or
  incentive?
• Service firm products (people) are highly mobile
  and in great demand
• Pros
• Stock Options
• Capital
• Visibility
• Legitimacy
• Cons
• Pressure
• Rigidity
• Visibility
• Distractions
• Growth

• Users must
• Scrutinize
• Business models
• Financial backers
• Employee lock-ups
• Organization components
• Include financial analysis in due diligence
  process
• Use caution with
• Firms in IPO process
• Performance weak firms reliant on stock options

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Does Size Really Matter?

• Pros
• Hands-on
• (More) experienced staff
• Specialized
• Creative with pricing
• User friendly
• Nimble
• Leveraged
• Aggressive

• Cons
• Resources
• Specialization
• Leveraged
• Aggressive
• Staying power
• Culture
• Project management expertise
• Industry/process expertise