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Harry Nygaard,
P.Eng, BAScEE
April 2000
The theme throughout this document is to give the customer "what
he wants, in the form he wants it in, when he wants it and at a price he was happy
with - regardless of what it was he wanted!" From a business perspective,
we would venture in to become "active" participants in these transactions,
and where feasible add further value by being the enabler or agent for the customer.
From the network perspective we would ensure that the most appropriate network resources
were used to enable these transactions, regardless of whose network it was. In a
Multi-Network environment additional functions are needed, such as gateways or interfacing
facilities, network monitoring and division of revenue agreements.
INDUSTRY INITIATIVES
ELECTRONIC COMMERCE *
-Secure Electronic Transactions
-Banks
-Smart Cards
-Web TV
-IP Phones
-Gaming
-Directory Services
OUTSOURCING
NETWORK COMPUTERS
SPEECH RECOGNITION
* Note: Electronic Commerce is so broad it has been broken into
related sub-sets
Discussion:
There are current industry activities, primarily on the Internet, that are setting
directions and standards for many new applications. The vast majority of these are
targeting Electronic Commerce. Supporting activities such as the upgrading of the
Internet to Gigabit backbones, deploying phone service on the Internet, manufacturing
set top boxes for "surfing the Web", experimenting with "real time
audio/video streaming" on the Web and the creation of secure Extranets, and
Intranets are all indications of a global consensus emerging on the definition and
utility of an IP over ATM next generation Information infrastructure. G7 participation
in this Global Information Infrastructure is an indication of the magnitude of this
new direction.
Electronic Commerce, ie conducting secure electronic commercial transactions, is
believed to be the killer application. In Canada we also know it as the Digital Economy.
In the U.S. the National Research Council has taken a position encouraging the phone
companies et al to expand into this very broad new business direction. President
Clinton has advisory boards on public policy wrt Electronic Commerce and the Information
SuperHighway. Canada has taken similar positions and there isn't an institution or
major business or corporation that is not experimenting, offering services, advertising,
or manufacturing appliances for this new INDUSTRY.
Banks have started with e-Banking and are moving into financial transaction management
as well as E-Commerce. They and others are beginning to offer new services that take
advantage of a new generation of Smart Cards. AOL is charging rent to host advertisers
and Electronic Retailers. Software Gaming developers are convinced that network based
multiplayer games are their killer application.
IBM recently stated that "Electronic Commerce will become a killer application,
connecting a Million businesses with a Billion consumers who will spend a Trillion
dollars". This is the message in these new and emerging value added services.
Where will we participate? Within Electronic Commerce there is online shopping, transaction
management, Finder Services, Verification Services, Security Services, Advertising,
Directory, Billing Services; in addition to Personal Agents, Brokers, Matchmakers
and the list goes on.
There is a simple analogy; we can be in the Highway Business, or we can be in packaging
and shipping; others want to provide the produce for this highway. I believe these
are valid initiatives, but I also think we need to look closely at the businesses
in the management of the flow of "goods" from
supplier to the final consumers.
How do we start doing this. We need to step back and understand how to give the customer
what he wants, in the form he wants it, when he wants and expects it, and at a price
he feels is reasonable.
INDUSTRY INITIATIVES
This is by far the most popular "business initiative" in emerging services,
Globally. It is as simple as a Web site offering books for sale (amazon.com), to
flowers (1800Flowers) to groceries, records, CD's, PC's and so on, to more complex
tasks such as legal verification of E-Mail sent and received. It can use finders,
brokers, agents, matching services, and can refer to associated tables of routing
paths, rates, and records of transactions. It may do total processing of a transaction
from query to payment and allocation of service fees, and then maintain audit trails.
These more complex tasks are what really constitute the core value added services
of the Interface Initiative; this is where the trusted 3rd Party is adding value
and operating on behalf of the consumer.
Many entrepreneurs will try to focus on one service only whilst others will offer
a complete end to end transaction process. E-Commerce is believed to be the Killer
application for Internet.
Barriers to this service are privacy and security concerns by the end parties. Both
of these issues are addressed. Other barriers are the numbers of PC's in the market
owned and maintained by the consumers. Network Computers (NC's) and WEB TV addresses
this concern.
NC's are low cost ($300-$600) computers (clients) served by a Host (server) for networking,
providing software, maintaining the software, as well as for providing agent services.
WEB TV's are a cheap set top box that allows the consumer to use a TV, rather than
having to buy a PC or Mac, for his Interactive transactions and e-Mail.
The last barrier and possibly the most important is the effectiveness of search engines,
used during a scan or complex and specific search, whether it is for goods or for
services. E-Commerce permits on-line negotiations or auctions, not necessarily favoured
by suppliers. They may set up intermediaries to position "Industry Prices"
for the consumers. The other problem is finding exactly what it is one wants. This
is no different from today , so a degree of browsing may be needed.
The trend appearing is for every barrier that is identified, someone else provides
a solution. For those who do not type, user independent speech recognition and activated
commands will be used. These are being marketed today by numerous suppliers.
2.Secure Electronic Transactions:
In general terms this is broad category of transaction services, such as shopping,
banking, or even browsing although the emphasis is on transactions where funds are
transferred or exchanged.
In specific terms it is a set of standards that define security, privacy of the users,
validation services, authentication services and encryption. Its main context is
Electronic Commerce, though specific applications such as EFT, electronic banking,
and EDI, to name a few, are also using "SET".
SET can be evoked from the end users where the network plays a pure transport role
or can be enabled integral with the transaction through the network. Secure Electronic
Transactions are viewed as a necessary facet of E-Commerce and E-Banking.
3.Banks:
Banks have used Secure Electronic Transactions for years and continue to use it for
electronic transactions. They are now trialling banking from home, and have started
to look at the larger field of Electronic Commerce. AMEX, VISA and MasterCard are
also active in both SET and E-Commerce. Banks as well as the different Non Banks
are all potentially strong competitors in E-Commerce.
4.Smart Cards:
They have been around for 20 years, but recently a broad set of smart cards have
emerged that provide simple features as Electronic Coin/Cash, electronic keys and
transit tokens, to secure remote access to IntraNets. Other versions are storage
intensive and are being used as portable personal medical files (complete with details
such as X-Rays), portable enablers and agents for secure access and shopping on the
World Wide Web, and consideration is being given to their use as Passports.
Any ventures considering E-Commerce need to look at the role of these smart cards.
Public use of the Internet is a very recent phenomenon. It started with e-Mail around
1990, the same time the World Wide Web (Web) was invented. E-Mail remains the most
widely used service on the internet, followed by the large number and variety of
services being supported on Web sites.
Internet is now being used to offer high performance Business and Institutional "Intranets" or Secure Wide Area Networking for voice, data and various forms of graphics and compressed video. The trend appears to be the adoption of internet's addressing and routing protocols in the development of National Gigabit Information Infrastructures in parallel with constant upgrading of the Internet's performance through large scale Fiber Optic Backbones and compatibly fast Routers.
U.S. Industry favours a global free trade zone on the Internet. This has been countered
by National Initiatives for obvious economic and political reasons.
The trend appears to be to continue improving the tools to provide limited quality
continuous bit rate services such as phone, audio and video on the Internet in anticipation
of acquiring local access. At that point, IXC's can reposition as Full Service Providers
of voice, data, video and Multimedia. This would be followed by capacity upgrading
of the Internet. IP Phone, Web TV, and Network Computers are the appliances need
to complete the picture, and are currently being marketed.
6.Web TV:
Several products are available now to allow low cost entry into Surfing the Web,
and buying goods and services on the Internet via the consumers home TV set. This
is done through a set top box, but set manufacturers are announcing TV's with the
chip set already equipped. For several hundred dollars "anyone can now access
the Internet for e-Mail as well as commercial transactions.
The access technologies vary from Cable modems or broadcasting in full or part (using
the vertical blanking interval) in conjunction with a voice grade modem or cable
modem. ADSL is another option. There is one objective behind the Web TV, and it is
to get a larger market participating on the Internet.
7.IP Phone:
There are numerous trials as well as services offering phone service over the Internet.
The issue is will this pose a threat or offer opportunities to the Phone Companies.
It is a pricing issue, not a cost issue. Industry consensus is that as IP Phone is
refined, it will be the Phone Companies that will be adopting the technology and
benefiting from it. I personally don't think so.
With open access to the local loops, the service provider that can offer the best
package deal of local, LD, data, e-Mail, multimedia, Web browsing and so on, stands
to place the incumbent phone companies in a wholesale role. IP Phone on its own does
not appear to be an issue. Cable TV providers are well positioned.
8.Gaming:
Gaming companies see Network based gaming as their killer application. In order to
provide seemingly realtime multi player games, these companies need to work around
the problem of network and processing latency. Bingo just needs a mediator ( an opportunity),
however, time critical simulations such as a "B-29 SuperFortress" needs
true accounting of the status of all the events and all the players. This can be
partially corrected by built in delays in the gaming software, but additional delay
from latency will need a more complex network based game controller. This is considered
feasible and is another opportunity.
It is worth remembering that in 1993, Nintendo made more money than ABC, CBS, NBC
and FOX combined. The large number and variety of multiplayer games, especially those
where substantial prize value is involved, open up good opportunities.
9.Directory Services:
Both Yellow pages as well as White Pages can now be accessed on the Internet. In
the case of Yellow, revenues are generated from increased exposure of advertising,
and this can not be understated. Few if any, however are following through to the
next stage, that is in connecting the buyer with the supplier. This is an opportunity
similar to the Finder service, culminating in a transaction.
White/Yellow or Generally directory searches are beginning to surface. These are
Finder services on their own merits, no more no less. The major opportunity is in
Global Finder capabilities. National politics are seen to be the only barrier.
10. Outsourcing:
This is a growing business with both human as well as automated resources. Many of
the tasks facing a consumer in Electronic Commerce are candidates for outsourcing
opportunities. In addition many of the supporting tasks may be best handled by a
3rd party, ie outsourced.
It is worthwhile to note that many of the more complex systems described so far and
in the following section may need to be outsourced to get them operational. How much
of the operations is outsourced is another question. If the cost/benefit ratio favours
outsourcing then serious consideration may warrant outsourcing. They are all opprtunities.
11. Network Computers:
These are a most interesting product, mainly due to the nature of it's architecture
and Host relations. There are at least two primary strategies for this product, besides
selling them.
The notion of a low cost PC ($300 and up) is hoped to increase consumer participation
in Internet, and E-Commerce. The NC in addition to the Web TV are expected to create
the truly wired Nation.
The Network Computer is intimately couple to a "Host". It is in this host
that all services for the NC are enabled. The host is a Warehouse of Interface Services;
user preferences, profiles, finders and enablers, hosting software for the PC, and
Speech interfaces. The host if carefully managed is the gateway to the world . The
Network Computer is a key component in the overall strategy.
12. Speech Recognition:
This technology has two main applications. It is being manufactured for people who
don't like typing, specifically on a PC. For that it is hoped to increase PC and
NC penetration.
The area we see it's utility is as a voice interface to the Web, Electronic Commerce
and the host of supporting "New Economy" Services in the Hosting ISP. It
is for all those who do not have a PC, NC, Web TV but would like to benefit from
shopping on the Internet, participating in E-Commerce.
Speech Recognition technology has many other applications such as language translation services, and these need to be explored more to determine their overall value.
NEW ECONOMY: SERVICES FUNCTIONAL DESCRIPTION
New Opportunities have been described throughout the document. To recap, these are the value added services that relate to customer applications, to internetworking or the combined networking of value added services. They are characterized as services or applications that are enabled through a third party. They tend to be enabling services, which require the Entrepeneur to take an active and participatory role in the satisfaction of a customers' request, whatever it may be.
Many of these services are supporting functions for a more primitive service. As
an example, Finder services require directories, routing tables, customer preferences,
and knowledge of foreign or competing networks. Also needed are real time rate schedules
to enable "least cost routing", should the customer make that request.
Should security and authentication be required, these are evoked. Having completed
the Transaction, all parties involved need payment for the various services, so a
comprehensive billing system is pulled in.
(Examples)
1. Account Management
Acting as an agency, a broad set of resource skills and a local to national hosting data base structure tracks existing accounts and search out new potential customers on behalf of numerous small businesses. Access to "clients" PC or Data Base is via dial up modems to high speed data links. The Alliance Servers are in turn interconnected with Higher speed data links in a National WAN , giving clients access to a much larger customer base while the agency focuses on automating the processes. IT processing HW and SW for the Host Servers are required. The main benefit is to off load small companies of their operating overheads, allowing them to focus on their main business.
An additional service to this market is structuring CUG capabilities for voice or
data/image communications via a National WAN. The structure could be an IP based
Extranet riding on the National ATM networks.
2. Accounting Services
As value add to the Account Management (1.) the same systems provide basic accounting and financial services including Billing Services and Electronic Funds Transfer. The end customer would have the option of Secure Electronic Transactions (payment). Financial Institutions could be linked to the Host Servers where by the "agency's" customers are the small business, their clients, and the financial institutions.
3. Advertising
These Regional or National "agencies" can add additional value through the coupling of the favored accounts to a National or International Directory Service to the regional Servers. Targeted or broadcasted ("push") advertising would be enabled in text, audio or Multimedia formats and could be accessed via dial up or IP formats, as well as PC's and may be extended to the Global Internet.
Madison Ave., in a Global Telecommunications Forum in 1990, made some interesting
proposals regarding Advertising. In general it is not as effective as they need using
existing Broadcasting Platforms. In fact it was outright in-effective. (Ford, GM
and Chrysler have long ago made similar claims and vowed to cut their Advertising
Budgets. The Big 3 ended up matching their competitors level of Advertising.) The
problem was based on the finding that viewers "channel hopped" during commercials.
Nielsons feedback was inadequate. What Madison Avenue was after was real consumer
viewing feedback. To get that they made the statement that in order to get that detail,
they were prepare to fund and Install the U.S. Broadband Video on Demand Infrastructure
for 100 Million users over a ten year period. They could not afford to wait for the
Telco's and Cable Operators.
Today they have more options, from sponsoring Web sites and dial up services on E-Commerce
to large Data Warehousing initiatives which store and process massive volumes of
consumer "viewing and purchasing" preferences.
4. Advisor Agencies
So far the New Economy Opportunities take a direct or focused roll with the various customers. Here we take a higher position as an Advisor based on in-place Business, Marketing and Technical strengths. Customers can Call in or can be sent "proposals" to meet or better their needs. Services as simple as "how to", or "where" as well as higher value propositions that aim to improve the financial structure of small companies may be offered. Derived Information for this initiative comes from Data used in the customers Servers/Databases and Directories in simple form or from scenario/business evaluation where better approaches are "offerred"to the small companies or the end users themselves through auxiliary data processing in associated data processing systems.
These auxiliary Data processing Systems may be resident in the regional servers or Data Bases or may be a subtending system, connected to the main Servers through High speed data links. The fee for this form of service is flexible to meet the variety of different Advisory Roles offerred. The proposition is based on meeting or improving customers expectations by adding expert support.
5. Audit Trails/Infomate
As more transactions and communications of a business or commercial nature transpire over multiple regional or International Networks, there is a need for an Electronic Audit Trail. Where did the product or information transaction take place? This service provides both a validation of end to end communications in addition to what or whose facilities were involved in the Transaction. This provides customers with a "legal recourse" in an anonymous network, in addition to ensuring secure links and final division of revenues between the numerous carriers and service providers. It provides a tracer for any potential counterfeit goods and services.( See 6. Below.) It involves the monitoring of a "call" in the network, to the use of electronic agents that accompany the transaction in a router based data network, such as the Internet, and continually log each leg or route used including the end Server or Web site. For business and legal reasons Audit trails can be called upon to describe in detail who was involved in the transaction.
The service can be flipped around to protect carriers and especially the end suppliers, as in the case of high end goods, data processing services or software houses. Large Software companies would be less concerned knowing that every purchase is accounted for.
6. Authentication Services
This is associated this the audit trail. Data gathered from the audit trail coupled with SET and security codes associated with the end product in the transaction (whatever its nature) and the requester (end customer) ID would be packaged by the host server sub system to log and if so requested, to send verification of a transaction. "The authentic goods were delivered, and the deal was not compromised." This is especially important for Commercial Transactions that use Intra or Internet transport.
7. Bill Collection Services
This service/opprtunity is anticipated to be brokered out. However, the data and information associated with unpaid or overdue accounts would be subject to a variety of screens as it is dumped out of the Main Billing/Cost Tracking systems once the grace period has passed. This Information Bundle now goes out to "dead letter files" for further processing and "distribution" before it is handed over in trust or sold to specialty service providers for the next phase, "collection services".
Where loss of property is relevant, Insurance companies would be brought on board
as main clients or customers of the "agency". Data processed from the Audit
Trail and Authentication Services is refined by Data processing centers and forwarded
to other clients such as insurance agents.
8. Billing/Div. of Rev
This has been described above but is now a more general purpose process. It will build on data gathered from a large number of service providers own data bases, forwarded to "agencies'" central data processing center, where the usage/billing data and Audit trails for various wholesale and retail carriers and vendors is impartially transposed to a settlement formula. In other words, this business is built on the various pieces all the players in a transaction (or phone call) gather from their own billing systems.
9. Broker/Bondsman
The Brokerage Business is the Electronic Middleman; As these new services roll out it becomes evident that another supporting task is that of the Broker (and a Bondsman). The Broker is positioned to service the transactions to mutual benefit of the Consumer and the Supplier. This can be further broken down to logical and independent Brokers acting on behalf of the end user; another for the Carriers, the service providers, and the suppliers.
Associated sub systems, databases and processors would be closely coupled to the main Servers. In one case their role is to enable all transactions on behalf of the buyer. In this sub system they are structured to support a preferential customer; the individual buyer. The database is logically partitioned to perform all functions involved with Transactional Services on behalf of the end user or Buyer, including network routing, billing searching, Finding, negotiating, logging Audit trails, collecting and processing of Confidential User Preferences and so on. The Broker for its bias is paid by the end user as a monthly fee, or as a portion of the value of the Transaction.
The disassociated Broker is a external Data processing and Transaction System and will interface in a physical manner as an independent to the Main Servers. This may be a competing broker or a more optimized data processing structure very much dependent on costs, scope and scale.
Other Brokers are structured to function on behalf of the Main Server/Database/Data Processors; At the other end there are brokers functioning solely for the suppliers. One bargains for the most competitive price, another for the lowest price. When these logical entities all negotiate among themselves we have the Automated Electronic Auction, whether it's for products, information or services......and the market forces win.
Brokers also can represent large Industrial/Commercial conglomerates. These systems
align their "Mission Statements" or prime objectives as in cartels. It
remains to be seen if Electronic Commerce will be driven to mimic collective human
behavior. In the near term, system designers would be well aware of these anti-competitive
initiatives, but it will remain an issue.
Where the Broker stood behind the various customers for quality of service, the Bondsman
backs it up with money. It is likely that the Bondsman will be a supporting IT activity,
interconnecting to numerous brokers. At this point it is premature to speculate about
Logical Bondsmen, although it seems to align in the Banking and Financial Structures.
An example could be a structure that identifies market voids or shortage (or oscillating)
of supply in which case risk is so low that the Electronic Bondsman stands to be
very profitable.
10. Configuration Mgt
This service tracks and updates larger customers services and network configurations dynamically on a need to do or real-time basis. Customer records kept in the databases are updated as new services or network facilities are enabled by associated network and services "manager".
11. Customer Prefs
This is the gold mine; customer information is collected from every transaction and processed in subtending databases or warehouses where it is used to redirect advertising strategies, sales presentations, product inventory, pricing strategies, manufacturing and production strategies, in addition to personalizing the services to each customer, whether a consumer, supplier or variety of middlemen or brokers. In certain circumstances numerous unsatisfied transactions will be re-interpreted as new market or product opportunities. The data may be gathered directly from the customer (i.e. buyer and vendor), to the agency, be drawn out from the transaction itself, or be collected through the financial components in a transaction where the data is stored and processed on behalf of the various players in the transactions. Clients are banks, the end customers, and the enabling transport and computer networks.
The most important feature of this resource is the privacy of the individuals in the transaction, whatever the product. As secure electronic transaction (SET) technology is deployed, as a validation service, it also safe guards the privacy of the individuals in the transaction as well as the transaction itself. It is expected that SET impacts will be comparable to today's physical transactions. Where anonymity is desired it will be provided; where details of the transaction are deemed to be confidential, that will remain. However, the vast majority of transactions involving the exchange of goods and service need to be recorded, for a variety of reasons, and these are processed in data warehouses, with the profiles and preferences being recycled as valuable economic products.
Where there is an Agent in the process, individual's preferences may reside with that Agent and are safe guarded.
The consolidated interpretation of the entire customer profile is a second and potentially more valuable resource. Here the Individual is coded and "should not" be identified. Of interest are the variety of interpretations and profiles for all the fields used in the data base. This is what Madison Avenue would pay 100's of Millions of Dollars for. This is where manufacturers, producers, growers, or vendors get real product feedback. The larger the customer base, the broader the profile and the more valuable the end products.
This is where brokerage services can profit in assisting in the creation of new products
or services in the "supply side" of the New Economy.
12. Customer Agents
These are a broad set of electronic utilities that enable or enhance processes in transactions and range from finders, brokers, enablers, transporters, encoders, encrypters, and carriers to Personal Agents acting on behalf of the customers. Based on the profile input by the customer, the agent will attempt to behave accordingly. These Agents can be data messages as in validation services or can be algorithms that reside throughout the network and customers appliances. The personal agent may be virtual, residing in the customers host data base or it may be called upon based on triggers in the customers transactions that request an agent.
The Agents are seen to be open to competition for the customer, where customers find value to the Agent.
13. Customer/Network Mgt Services
In a multi-network, multi services competitive environment the need for a higher tier End to End management of calls becomes a necessity as well as an opportunity. Calls, messages or transactions initiated in one locale have NO way to find, say, product information that may reside in another country, or for that matter, next door if serviced by another carrier and service provider.
In a store and forward arrangement many intermediaries could be playing active and valuable roles. This boils down to two fundamental problems: how are these intermediaries identified, and secondly how are they reimbursed for services provided. Part of this answer is in the role of the Finder, broker or agent. Other parts of the answer are found in "real time negotiations" by agents in the network management and control layers in finalizing routing links from various vendors. This becomes mandatory is the customer is requesting least cost routing, for his transaction.
The last part involves negotiations or arbitration when more than one source of the product, in the case of a transaction, is found. Here there may be a need for electronic bargaining between the vendors and a broker or "Agent" in order to finalize route selection.
A simpler illustration is to position the Networks Manager Systems as an outsourcing agency to off load various network providers of their own discrete management overhead. This will facilitate easier end to end call control.
14. Data Encryption Services
At the request if a customer the body of messages of any form may be encrypted at the source. This may be done in the originating source or can be initiated once the message and request for encryption reaches the customers hosting server.
15. Data Integrity and Verification Services
See 6. above, Authentication Services. This application adds security and Integrity functions in the message request. It not only verifies the completion of a transaction but also ensures the Integrity of data sent and received. It may be provided by the end customers or by intermediary servers (agents). It has a broad set of applications, from financial transactions and business data transmissions to signature verification.
16. Data Warehousing
See 11, above, Customer Prefs. Transaction data of any form are store in data bases and then processed based on the characterization of transactions. The warehouse is viewed as a client to the main servers enabling transactions.
The data bases may be customer specific and off network as in the case of large businesses or may be a network resource shared by many customers. Value is in derived information and customer preferences and responses.
17. Data Mining
This can be seen as the process of searching out for data to place in the warehouse and would involve mediators as well as Finder Agents. The action can be initiated by end customers in competition with larger warehousing agents and would involve transactions and negotiations between these databases and associated processors where acquisition of data or lease of warehouse capacity is being initiated. All forms of these transactions would apply SET features
18. Dating Services
This specific matching service caters to the creation of human engagement of all forms and interests. It is enabled by the customer preferences and profiles and provides a valuable social function. It is a trivial database function that is in turn value add to a more general purpose matching service used in shopping, auctions, job finder and help wanted agency. Public Kiosks could be used in providing supplementary information such as photographs. The normal interface would be PCs.
19. Directory Services
This automated information service provides at its disposal the ability to get Names, physical addresses, electronic addresses, and primary yellow page information. This can be done by the customer or agents, on behalf of the customer. Secondary levels of information would to get into physical routing or directories, Business Advertising, inventory levels, product pricing information, product profiles and specifications, and delivery options.
The directories would also be used as the primary resource for Finder services. Successful advertising strategies as well as completed transactions would fund the service. There are no reasons for imposing geographical constraints to the Databases or the information in these Directories.
20. Distribution Services
The automated distribution of messages to CUG's, of promotional information to a large variety of "mailing lists", of timely control of physical distribution of consumer goods or information, of targeted information to favored customers, of periodic distribution of consumer feedback to suppliers, of market demand, or supply shortages to the large variety of suppliers or their brokers are all examples of Distribution Services, as distinguished from transactional services.
This service takes the form of defining relational data, customized packaging of that material and enacting on a customized customer base in completing numerous "many to many" messaging sets. In some respects it is targeted junk mail.
A more common form of this service is the ongoing updating of all the affiliated data centers across the variety of networks.
21. Dynamic/Prioritized Routing(Q of S)
Customer requests are translated in the host servers to pre-set the facilities to specified criteria such as preferred carrier, vendor, grade of service and so on giving the customers unlimited flexibility in how messages or transactions may be provided. The Dynamic nature of this service forces a tight coupling to Network Mgt Services, Item 13. above.
22. Electronic Commerce (My View)
Name given to a host of initiatives related to doing business in a secure and electronic fashion. In popular terms it covers electronic messaging, electronic shopping, Data Warehousing, home shopping, end to end electronic transactions, financial transactions, electronic auctions, Finder and Enabler Services, Home banking, advertising and so on via a large set of platforms from dial up servers, to the Global Internet. Most subjects in this document relate to or are part of Electronic Commerce.
The theme is based on giving customers whatever they want, at any time from any place, to anywhere via the numerous platforms in the information Electronic SuperHighway. It is a relatively mature business for large corporations and Institutions. The focus now is on pulling in smaller businesses and the consumers. It has been coupled to the Digital Economy/New Economy.
The Evolving Global Internet is vying for popularity as the main transport medium for Electronic Commerce, and most the ancillary support systems are what we call the agencies. This becomes the "trusted 3rd party that stands behind the customer when he buys a used car from "Ed's" or arranges for plumbing or roofing repairs.
23. Electronic Employment Agency
Resumes are stored in this Data base and can be browsed by potential employers based on the criteria they choose. It is also a matching service that couples "Help Wanted" to "Work Wanted", matching specific needs of either party. Generically it is a finder service. And Very Profitable.
24. Electronic/Automated Auctions
A large number of venders will submit their goods to a data base that has a mediator to evaluate all the bids on each item. After a predefined protocol or a certain time has expired the mediator will forward the highest bids to the vendors and confirm closure with the highest bidder. Secure transfer of payment will then follow, along with arrangements for physical delivery or pick up.
25. Electronic Copyright Services
This is a hosting service where customers can submit their papers or software to be registered for a copyright. They can also scan the directory for a listing of documents that have been copyrighted. The legal registration for copyright would be done through an associated legal authority/agency.
26. FAST Web Surfing
This is primarily a transport technology strategy. For the carriers it implies ADSL, ISDN, Direct PC, LMDS, and access to the coax drop using cable modems ( in several manners-JV, rental of bandwidth, or CATV's own HFC facilities.
There are also ISP initiatives such as preloading the local ISP with information provided by user preferences; this can be personalized or done for a larger market ( 30% solution, satisfying 90% of the needs ).
The main initiative is based on reduction of congestion in the Internet providing sufficient access at the Web site to prevent blockage, queuing or re-routing. It is done to a lesser degree with proxy servers.
27. Finder Services
This is one of the most important features in the E-Commerce Structure. It is used in lieu of browsing and is platform independent. It operates under one mandate, "based on the users needs and preferences, search out and find it, whatever it may be." It is part of a transaction or is the main service feature itself. It will use whatever transport facilities are available and is supported by associated as well as distant directories.
28. Gaming Services
The main thrust in this service is hosting and mediating networked "games". These vary from BINGO and lotteries to multi-player entertainment such as flight simulators. As a host , the main technical feature is to monitor and modify as needed "network latency", to ensure proper timing of games, and to ensure the correct order and sequencing of participants in these games. Hence it will also validate winners, runners up and so on with valid electronic score cards.
It is worth noting that in 1993, Nintendo was making more money than ABC, NBC, CBS and FOX combined.
29. Global Real Time TPF (as in SABRE)
Global real time transaction processing facilities is an initiative announced by Microsoft to capitalize on and attempt to dominate a large spectrum of transactions for E-Commerce, necessarily on a Global scale. Opportunities in this business is the capture, on the minimum, of a large portion of transactions (of any form). These transactions include "reservations", so such a system would need to communicate well beyond national borders.
30. Global Buy & Sell
This service would likely be part of a global infrastructure in partnership or associated with local and regional "Buy and Sell agencies". Local data bases would store products and services wanted or for sale. An associated directory lists paths to regional or distant directories. All relevant data is processed in accordance to product, price wanted, locations and any other factors needed in the transaction. Local databases then provide the information in the user's requested forms, or provides a 2-way matching profile, on which it further negotiates with the customer. This may include mediation services to get the "best" deal for the customer, and final funds transfer and property sales agreements. This is distinct from auctioning, in that all parties involved benefit from the lowest prices paid for goods or services. This is an extremely important and profitable venture.
The service integrates a global shopping service with a global vending capability, all enabled locally.
31. Human and Computer Language Translation and Conversion
As a translation/conversion service this server based application offers a voice interface to any service provider in a variety of computer languages. It also can be a natural language converter, say, English to Norse, in basic voice calls. In other cases it converts one form of computer language to another. Most of these services fit into the Host for a large client base, and is a natural service for the Network Computers.
Competing versions of this service would reside in the CPE itself where it is found in a high end PC or server.
32. Intra/Extranets (Bus and Inst'ns)
In general, these are private networks. The opportunity lies in the configuration and management of Closed User Groups using the Internet or Extranets.
33. I-Malls
Virtual Malls in Cyberspace have yet to make any public impression. The service is Electronic Shopping with the choice to browse between different venders. This can be a PC to ISP (Host). The opportunity is in an intermediary role when the customer is doing comparison shopping or specialty shopping (for hard to find goods or services ), as well as in voice to text conversion and call centers for customers not equipped with a PC or equivalent appliance.
A better approach uses an agent, finder and or mediator to get the best price.
34. Inform, Educate, Update Services
This is a broad set of applications that focus on individual customers, or groups of customers information needs or wants, very much like a news line, but customized. The service offering will be delivered to the customer or be held in his mail box in the Server. It requires an information gathering facility to search out on a demand or regular basis for the latest in "what ever interests the customer and he is willing to pay for". It may be as simple as answering a request to find something, to a news letter service or "How to" manuals.
It may be gathering statistics, or legal information. It has a large customer base with many divergent interests and needs. The key utility is a search engine, with access to a large set of databases. The educational aspects may be business related or for supplementing formal schooling.
35. Information Search/Create
This service requires the search engines or finder services already described in cooperation with a data processing service to manipulate data into meaningful and new information. It tends to be a supplementary service to data processing, to fill the need for new Information created from trends, statistics and other forms of lower layer data. It may be as simple as creating a "list" of potential buyers or suppliers, to more complex information that identifies a new opportunity.
36. Inventory Control and Merchandise Mgt.
This is an automated service that offloads businesses of maintaining their own level and management of inventory. It links closely to account management, Item 1. above. There will be a need to have transaction records for each account and to have Customer Verification Services to validate any action triggered by changes in inventory. The service will also need audit trails and be involved in the electronic exchange of funds; the value add is the customer will get dynamic feedback on what products are moving the fastest, and will be given the option to look to lower cost suppliers to fill those shortages.
37. Network or Business System Modeling
The focus of this service is computer simulation. The simulator is a high performance computer called upon to model network structures, Operating systems, Business Proposals, to a wide array of real life situational models, such as the traveling (or electronic) salesman. The objective is to evaluate system performance given a variety of constraints and variables, and to play with these variables to find an optimum or "near optimum" solution.
Until recently such tasks were virtually impossible. The uses for "optimum" energy or capital deployment are enormous. The simulator could in fact be used in many Finder or matching services already described to optimize the role of numerous tasks and players.
As an information creation resource, it answers with qualities that meet parameters such as best, cheapest, least cost route, best deal and so on. These situation simulators have enormous potential, and will likely be a separate "optimizing Engine" unto itself, called upon as needed by the Host databases or subtending processors.
38. Network PCs
This PC strategy is geared at expanding the market penetration of the PC through lower first costs, simplified user operation and interfacing, and ongoing maintenance through the use of thin or fully endowed Host computers. The second strategy is to ensure an ongoing market for the Host. These hosts will be the service providers for the Network PC and will provide ongoing software support, voice interface, system maintenance and anti-virus support. They will be the gateway for the Network PC to the global information infrastructure ( Internet, in the near term).
All the services described with a PC as the interface can be supported by the Host Server directly or through associated or subtending Databases and processors. Tight coupling of PCs to web based servers are now emulating NC's.
39. One Stop Shopping
In the context of the personal agent or broker, the customer would rely entirely on his agent for his "shopping". In a larger business context the aim is to provide all the customers needs through one service provider. It is remarkable that no large retailer has taken the move from merchandizer to hosting one stop shopping.
40. Opinion Polls
With the use of a consumer/population database, and of any other carrier's facilities required to reach out for a variety of customer or "citizen " profiles, the data bases would broadcast to the end users, or their agents, with numerous queries required to meet the objectives of the various Opinion Polls. A simple format would be a mechanized call waiting procedure, with the (electronic) questions residing in the server or database waiting for the polling data from the user.
Customers can be forwarded the results of the poll in any format that best fits their needs. End users have the option of responding on the notification, or replying and interacting with the polling centers queries, at their convenience.
41. Person Locator Services
This service is used to locate a person, or firm based on the needs of the seeker. It may be a location, with address, or a phone number or e-mail address, or post office box.
The resources used may be the regional phone companies billing systems, Number Portability System, a data scan in all the affiliated transaction databases, a query to all the ISP's, or connection into the post office data base. The number and degree of searching utilities is dependent on the nature of the seekers social or legal status. If the locator is looking for a mobile user, a set of queries is sent out to the various wireless utilities. All the data collected would be compiled into an audit trail, formatted and forwarded to the seeker, for completion of payment.
Current means of looking for an old friend using the web, or someones e-mail address do not work.
42. Rating Services
This is a matching service based on the preferences made available, or enabled by the user. Ratings can be applied to virtually all goods and services, from TV programs to retailers. It can screen for a large variety of qualities, such as price, brand, age, sex, Financial Track records, and if so required, driving or criminal records. It may be a specific service bureau that focuses on only one form of rating or it can be structured to be a multi-client service provider. It may track "performance measures" of any form and package these for the buyer or user. It can cast opinions on a large number of financial services, using data gathered from the business clients or the consumers.
43. Record Keeping
This is largely a secure data base service, but can be enhanced to process the records at the discretion of the user, up to and including doing the customers income tax! It may be extended to meet the more complex needs of individual clients, whether business or consumer. It may be augmented with various levels of security based on the nature of the records or needs of the client.
44. Repair services
This is a real-time finder service specializing in repairs, very similar to "the directory services in "work wanted, or needed".
45. Secure Telecommuting
SET can be applied to remote access to Corporate databases for telecommuting, regardless of the access mechanisms or the distances involved. Larger firms may have their own protocols and procedures, however, when the end user is mobile or is working for a small firm, extensive end to end security can best be provided by an agent with access into the various networks used in the communications.
46. Secure Home based Banking
Secure Electronic Transactions are a necessity for banking over the networks. Financial institutions are looking to ways of further reducing their costs of doing business. With SET, in conjunction with various smart cards, banking, bill payment, e-cash and so on can all be enabled from the home or distant location.
Higher volumes of users and increased levels of security can be provided though an agent or broker that tracks the transactions' route, and creates an audit trail to provide ongoing tests and records of the remote banking transactions, on behalf of the end user or the bank. (In other words, services mediated by this 3rd party increases the users' confidence in the service.) SET on its own appears to be insufficient to get this service moving, especially in the context of web TV's.
47. Self Help Services
This is some what contrary to the use of a middleman, or agent, except that the self help programs, dialogs, or query services are provided by the customers hosting database or server. Accurate and easy to use self help approaches can simplify dialog between the user and the host, or can be a supplementary service provided by numerous suppliers designed to help the consumer. With the "agency" approach a broad set of techniques can be used from downloading the software to using voice to text/speech recognition technologies, where the user queries the server supporting speech technology and walks the consumer through the process. Again, the middleman offers that extra degree of consumer confidence. It may be a Kiosk service.
48. Smart Card Services
There is a broad category of Smart Cards and they vary from simple cash cards to agents in the transactions. The extreme is a card used primarily for data storage, personal history, health files etc. It is expected that a large variety of smart cards will continue to supplement Secure Electronic Transactions (SET) and record keeping. They play a supplementary enabling role in E-Commerce and Information Transaction.
49. Software Sales, Rental and Promotion
Low end soft ware can be down loaded and purchased over the Internet. Very few major vendors let out commercial software over the networks for simple piracy problems. However, major software vendors could use E-Transactions and various electronic delivery systems if the transactions were SECURE and complete with legal audit trails. Network based servers and hosts for the Network Computers can readily enable such a change in software sales and promotion.
The sale or rental of software is registered by the hosting servers or databases, with all the relevant customer details, product descriptions and registration codes. Host servers (for NC's) can readily scan the client computers for illegal use or storage of unauthorized software, as can any intermediary acting on behalf of individual users. In this situation, the user would be advised to register his software or have it destroyed. In simple terms the service brings the notion of software "theft" to the foreground. The server then can continue to act as a wholesaler or retailer /distributor of software and doing so in conjunction with the other tools such as records, audit trails and ongoing client support.
Similar measures are taking place now with client-server LANs and WAN's in corporations and large business. Network administrators can screen the client PC for unauthorized software.
50. Tourism Agents and Kiosks
Kiosks are NC's. Whether they are used for tourism, banking , games, public multimedia communications, self help and so on, the benefits lie in their convenience, security, and the services are provided by centralized servers and supporting processors and data networks. They are in a sense a public PC, akin to the traditional pay phone, except the benefits derived are from a public user, or in conjunction with a smart card, a private user.
51. Trivial Pursuit
This is a basic information finder service. As in other services it can be a PC interface of many forms, call center or speech recognition system. The user makes a information request and the call is handled by an information broker, and the search engine. As it suggests, the request can be for any form of information. If the information has any social or commercial utility, the user would pay before the transaction is consumated.
52. Virtual University
This is a topic unto itself. The need for wide scale accessible secondary and post secondary education is a National, as well as Global Social and Economic Requirement. The strategy is straight forward; redeploy investment in schooling into content and electronic accessibility rather than "Brick and Mortar". All the agents, servers, databases and security measures in electronic transactions can be applied to the Virtual University. Self paced, customized education, with "democratic" access to the leaders in the various educational fields enables a new phase in what we know as Post secondary education. It may be in real time or from the "Best Archives" of educators past.
As computer and communications technologies continue to drop in price, and as the user interface continues to be simplified, we can see this trend move to less privileged families and students, and into K1-12. Move Information, not the students.
53. Web Hosting
A hosting service provided by larger ISP's/websites that enables smaller sites to share the common assets of these large web sites. That would include all the support services, finders, agents, databases, advertizers, sponsors and so on.
As an Internet strategy it is designed to reduce the total number of physical Web sites, and to remove the low performance sites from the Internet, with the end objective of simplifying the architecture and speeding up the average transactions, and increasing the overall Internet capacity. Done well it is a profitable venture. Hosts may be open to numerous additional and important Pay services for each client.
Characterization of the Primary Functions
in E-Commerce
These are the Horizontal and vertical functions or services used in e-Commerce to
enable subsequent (User , Client or Networks and their peripheral components) "applications"
or end services; Some are direct,others are indirect, involving additional processes
or offerring value add benefit to the user, suppliers or the Service Provider (of
middleware ).
They are essentially the pseudo technical support capabilities to enable the applications
as described in the Elaboration of Opprtunities, above, and were derived by inspection
of these applications.
Services:
1. National/local hosting data base structure
2. Search tools
3. Higher speed data links
4. (Customer processes) Modeling tools
5. Computer based Simulators
6. CUG partitioning/firewalls and support systems
7. Call Centers and associated support and management systems
8. Voice interface/conversion systems
9. Service monitoring/useage tracking
10. Network and network element status and performance monitoring
11. Real time element pricing tables
12. Service pricing systems
13. Customer qualification/status tables
14. Directories
15. Routing tables
16. Message formatting, conversion, and packaging
17. Preference (useage) creation and maintenance
18. Preference (interpretation) Mapping
19. Knowledge and skills data bases
20. Expert support-staff and systems
21. Transaction analysis and recording-packaging/audit trail assembly and maintenance.
22. Verification Messages and tags/Agents
23. Media conversion and processing systems
24. Billing Systems
25. Revenue allocation systems
26. Brokers-aggregation of intermediary services
27. Bondsmen- aggregation of intermediary services
28. Service configuration systems
29. Facilities configuration systems
30. User/customer isolation/insolation mechanisms for preference processing
31. Preference Interpretation systems
32. Multi/Inter-Middleware Arbitration systems
33. Data encryption systems
34. Data Integrity systems, as part of audit trail
35. Insurance and legal support systems
36. Mass storeage and archiveal Systems
37. Messaging systems, inc broadcasting systems
38. Route creation and maintenance
39. Finder agents
40. Matching systems/matchmakers
41. Personal arbitrator/agent
42. Legal Registration interface
43. Intelligent cacheing systems
44. Multi client application arbitrator
45. Registrar of private funds transactions
46. Registrar of distribution of public funds transactions
47. Real time transaction processing facilities
48. Reservation systems
49. Authentication services
50. Remote Authentication services
51. Native language Translation services
52. Virtual reality systems
53. Inference engines and assembly systems/information processing and packaging.
54. Inventory management systems
55. Customer tracking systems/mobility management
56. Hosting systems for NCs
54. Polling systems
55. Product and Services catalog systems, as in rating services
56. Network element and path integrity systems
57. Smart card dialog systems
58. Hosting services
These can be used to verify opportunities, or to identify them....or to get a better
idea of what is
needed in an opportunity...
This closes the summary of opportunities in the New Economy....although brief, it
should give the reader a lot of ideas and a better sense of where to focus on venture
proposals...For more detailed elaboration, contact me personally.
If you find this interesting, follow up with an e-Mail.
Harry Nygaard