Telephony

InFocus Story       April 3, 2000


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Hosting in the "e" generation

The Internet explosion has made the technologies that enable
e-commerce and e-customer care ideal revenue generators. 
But before jumping into the Web hosting business, service providers
must evaluate the feasibility of offering e-care solutions

STEPHEN DELLUTRI

One of the main motivators for any organization’s foray into eCommerce is to provide their customers with the ability to serve themselves as much as possible. Another is for the "little guy" to look and act like a "big guy" in terms of presence and ability to handle customer needs.

As commerce on the Internet becomes more commonplace, and more and more competitors spring up every morning, even the early adopters are finding that self-service alone is just not enough to satisfy all their customers. Additionally, they are learning that price alone is a poor differentiator when there is always someone out there on the web willing to sell the same item or service for less, even if it means taking a loss. And, at just one click away, those competitors have never been easier for your customers to access.

As website developers search for ways to attract people to their sites, many are missing a crucial element for getting people to stay–personal interaction. Savvy companies are beginning to offer both self-service and personal interaction over the Internet. By allowing them to find and access what they need, these organizations allow their customers to meet their own needs when possible, and receive more personalized service when that is what’s required. This allows businesses to offer the best overall experience, which leads to customer satisfaction, customer loyalty and success. By empowering businesses to provide these services, web enabling the call center has gone from sensible to essential.

Telcos,  Internet service providers (ISPs) and application service providers (ASPs), must constantly searching for value added services to license to or host for their customers. These are usually high-end technologies that would be prohibitively expensive for small to mid-sized operations to purchase, implement, staff or maintain. The Internet explosion has made the technologies that enable eCommerce and eCustomer Care ideal revenue generators.

eCare technologies can be licensed to hosted customers in a variety of ways:

  • One-time charge
  • Set annual, quarterly or monthly fee
  • Per-seat fee
  • Per-call or even per-minute-of-use fee
  • Percentage of each transaction
  • Sliding scale of a smaller cost-per-call depending on how many calls there are within a given time period

All of which can be implemented with or without an additional set-up charge.

In addition, there are complementary tools, accessories and services that can be sold individually or bundled as special service packages for customers of a certain size.

A small to mid-sized company with a desire to make a splash is faced with certain specific difficulties, including scarcity of human resources, technical expertise and time to handle all the various aspects of launching and maintaining a successful eCommerce site. These firms need help to make themselves appear larger, more established, more capable and more in control. That’s where a service provider can be an invaluable resource. A relationship with an ISP, ASP or network operator provides access to the resources, infrastructure, technology, even staff, required for new or smaller companies to compete with the "big boys" on a level playing field.

Many ISPs, ASPs and telcos already offer an easy mechanism for display of their customer’s products and/or services by providing website design and development, email, voice mail, accounts processing, Internet access, dial tone and more. Hosted eCommerce and online customer care are the next logical additions to the array of services and technologies available to those same customers.

Things to check out before adding eCare technology to the hosting options of an ISP, ASP or telco:

  1. How easy is it going to be to get this service up and running so it is available for sale to customers? How long will it take and how much will it cost, not only in hard and software and outside professional services, but also in internal human resources?
  2. How much can be charged to license or host this service? How long will it take before it becomes a profit center?
  3. How easy is it going to be to integrate this new technology with current offerings? How will it interact with corporate back end (billing, CRM, knowledge base) applications? How will it interact with front-end (website, IVR) operations?
  4. How viable is the manufacturer? How long have they been in business? How many telco, ISP or ASP customers do they have? How happy are their current customers?
  5. How reliable is the platform? How many other companies are selling it as a hosted or licensed service, and how is it performing for them?
  6. How difficult is it going to be to maintain? What level of technical expertise will be required of internal implementation and support staff? What type of maintenance agreement is available?
  7. How scalable is the technology? How easily can it accommodate growth or other changes in the market or business environment?
  8. How easily can it accommodate future technologies? What happens when it’s time to incorporate new developments in broadband, wireless, mobile, on-demand or other services?
  9. Does the system support features such as localization, simultaneous multi-language options, management system integration, customization, branding and locale specific settings?
  10. What supplementary services are already available which can be bundled with the new eCommerce/eCare offering? What services are already offered that will be accentuated or improved by adding this new one?

As a small to mid-sized company considering becoming or already the customer of an ISP, ASP or telco there are a number of advantages to be gained. Whether they have a sophisticated web presence and want to add eCommerce and eCare to their established Internet offerings, or they are just entering the eArena for the first time, there are a number of considerations. Generally, their size precludes them from purchasing eCare technology and staffing a full-fledged call center on their own, so they turn to a service provider for help.

Things to check out before signing on for eCare as a hosted service:

  1. How flexible is the licensing arrangement? How will changes in the market or a specific business be handled? How quickly can the service provider make changes?
  2. Can the system grow dynamically as business needs change? What about adding staff in one location? What about adding another location? What about deciding bring eCare Customer Service Representatives in-house?
  3. How much control will the business have over the configuration and use of the system itself? Will customer interaction flow, customer security and other issues be tailored to the individual needs of a specific business?
  4. How easy will it be to add new agents, add or change skills or make other alterations? Can the customer do it himself or herself, or does the service provider have to do it? What are the applicable costs in time and money?
  5. How easily will this new technology integrate with current back end (order fulfillment, accounting) or front end systems?
  6. How reliable is the service provider? Is there a past history of working with them? Do they have other customers with similar needs or requirements? Are references available to talk?
  7. What forms of communication will be supported? Does the technology do everything required? If a firm only wants some of the technology’s capabilities now, what is involved (in terms of time and money) in expanding in the future?
  8. How much technical expertise will be required of internal staff? What equipment or materials will they need to have on hand? What will they need to know how to do?

With the right combination of tools, technologies and services, any company can make it in the Internet economy. Service providers who offer these essential eCare options allow their customers to leverage their own products and services with the personalized service they would be unable to provide on their own, making web-enabled customer care a win-win situation.

A Call to Action

The table below offers some basic points to remember to be successful in eBusiness:

Service Provider

End User

Offer desirable/differentiating services to customers.

Find service providers to help you expand your eBusiness presence.

Team up with technology companies that focus on the service providers' specific needs  

Focus on your core business competencies and utilize outsourced services for the rest.

A company that keeps these points in mind, and gets the answers to the questions outlined earlier before making any major commitments, will be well on the way to offering the eCare that is essential to eBusiness success.
Stephen Dellutri is the CTO of Long Island, N.Y.-based CosmoCom he can be reached at sdellutri@cosmocom.com.

Visit the CosmoCom website.

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From Our Archives

December 13, 1999 Telephony
Break the OSS logjam
By using an enterprise application integration model, service providers can give customers the online care and support they expect
JACK CODDE

September 27, 1999 Telephony
He who hesitates
NewSouth races with itself to gain dominance
TIM MCELLIGOTT

July 28, 1997 Telephony
AN E-EXPLOSION
IBM targets ISPs with enhanced e-care and e-commerce solutions
SANDRA GUY

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On the Net

eCommerce Info Center

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From Amazon.com

Enterprise E-Commerce
by Peter Fingar, Harsha Kumar and Tarun Sharma
$20.97
Hardcover
- 360 pages 
Order this book.

Complete Idiot's Guide to e-Commerce (Complete Idiot's Guide)
by Robert S. Smith, Mark Speaker, Mark Thompson and Rob Smith
$15.16
Paperback - 384 pages 
Order this book.

Exploring E-Commerce, Global E-Business and E-Society
by Craig Fellenstein and Ron Wood
$31.99
Paperback - 269 pages 
Order this book.

The Business of E-Commerce : From Corporate Strategy to Technology (Breakthroughs in Application Development)
by Paul Richard May
$27.96
Paperback  
Order this book.

E- Commerce:
Business on the Internet (Computer Applications Series)

by Bruce J. McLaren and Constance H. McLaren
$34.95
Paperback  
Order this book.

E-Commerce : Implementing Global Marketing Strategies
by Bohdan O. Szuprowicz
$285.00
Paperback - 225 pages
Order this book.

E-Commerce Made E-Z Guide
by Paul Galloway
$15.26
Paperback  
Order this book.

The E-Commerce Question and Answer Book: 
A Survival Guide for Business Managers

by Anita Rosen
$16.99
Paperback - 224 pages
Order this book.

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Related Conferences

May 3-5 Tel e.Commerce
Geneva, Switzerland, Intercontinental Hotel
44 (0)207 915 5055
44 (0)207 915 5056 Fax
tel-ecom@iir-conferences.com
http://www.tel-ecommerce.com/

May 8-9 Wireless E-Commerce Summit
San Jose, CA, Doubletree
312-674-4702
http://www.acius.net/

May 9 e-Networks
Communications Strategies for the e-Business Economy
New York City, Sheraton New York
212.512.4630
enetworks@businessweek.com
www.conferences.businessweek.com/2000/enetworks/

Visit the Industry Events page.

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