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Michael McDonnell
Winterstorm Solutions
michael@winterstorm.ca
http://syntheticlibrarian.com/
2007-10-30
 

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4
S Charitable Giving System ($X,000,000+)

4Skibanff.com ($X00,000)
4ernard Callebaut Chocolate e-store ($X0,000)
4
-commerce infrastructure at
S ($X0,000)
4Mortgage Application for many Credit nions

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1 snline Stores

2 Advertising Networks

3 Social Networks
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  | 1 4 ist of Products
4 Descriptions
4 Prices
4 sptions, size, etc.
" 4 Pictures


 


  2 4 A temporary list of
item to be
purchased


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3

! | 4 illing Info
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 4 Shipping Cost
4 ecord srder
Process
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m http://chapters.ca/
m Site sells books
m he website has an extensive catalogue
m IG Database
m Probably uses software called ³endeca´ (very popular
for high-end retail and large university libraries)
m All ³e-commerce´ is handled ³on-site´
m Shopping cart
m Checkout
m Payment processing (with the exception of payment
clearing)

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m http://www.bubblehut.ca
m Site sells soaps and candles
m he website is just a catalogue
m No database at all
m Just ³flat´ files stored on the web server
m All ³e-commerce´ is handled by the 3rd party
m Shopping cart
m Checkout
m Payment processing
m Paypal never tells bubblehut your CC info
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Charge ! | Pay the
Credit Card ' |  Merchant

xample: http://www.beanstream.com/
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Charge Pay the

Credit Card Merchant

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(
 
 
 A typical plastic card with
an embedded computer
chip and microcomputer.
m
nables encryption
of confidential
information and
personalization of
usage limits.

 A card reader reads the

encrypted data, and
password authentication
is used to verify users.
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1. Computers & Software 1. Food

2. ravel 2. Cars & Car Parts
3. Gift Cards 3. Pet Supplies
4. oys 4. Appliances and tools
5. Videogames 5. Health & eauty Products
== ³Commodity´ Items == ³High Touch´ Items



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1. Commodity-like   |
2. Mass-customizable 4 ickets (travel, events)
3. Delivered by download 4 Music, Images, Video
4. No need for intermediary 4 ooks, News, other info.
5. Global in reach 4 Software
Source: Shop.org; Forrester esearch |
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m snline stores are now common
m Internet used to increase sales
m not just to facilitate sales

m Advertising is now big business

m S$7.9 IIsN in 1st Q 2006
m 37% higher than 1st Q 2005

m Web Analytics is growing

m Analyze web data to convert visitors into
buyers
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' |%&
4 Pay-per-click 4 argeted by keyword
' Price set by bid ' Select keywords
' Pay when user clicks ' Set maximum price for
add to appear with that
4 Ads appear on keyword
' Search results
' elated Website
4 Ad Position
' sther places ' Determine by
competition based on
bids
http://adwords.google.com/
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4 Display Ads 4 argeted by keyword
' Get paid! ' Ad keywords match
content of your
4 Pay-per-click webpage
' Paid when user clicks ' Ad are relevant to your
audience
4 Pay-per-impression
' Paid when is displayed 4 Ad Appearance
1000 times ' You determine size,
and appearance of
ads
http://www.google.com/adsense/
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m Important Cliches
m he ipping Point (viral marketing)
m he ong ail (social networks)
m he Market as ³conversation´
m
xamples
m Amazon
m
-bay
m ³Professional´ loggers
m My Space / Facebook

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./"|
Customers
distribute
the ads

http://www.youtube.com/watch?v=zu5d4QCnY
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% 0
m ³user generated content´
m eviews
m atings
m uying Patterns
m ³People who bought this book also bought«´

m snline ookstore or snline Community?

m More participation = More value

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m Customer-to-Customer (C2C) Sales

m Customer Participation $ the business

m eputation atings
m Payment Processing

m More participation = More value

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m F

Content
m PAID for Advertisements

m Goal: attract an %//,/$,

m Goal: find an %1$,

m Audience Participation
m uilds CsMMNI Y

m More participation = More value (to community)

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4 Fiction 4 logs
' ainbow¶s
nd by Verner ' Seth Godin
Vinge ' Micropersuasion
' Pattern ecognition by ' Charlene i (Forrester
William Gibson esearch)
4 Non-fiction ' Many-to-many
' he ipping Point by ' Apophenia (Web 2.0
Malcolm Gladwell section)
' he ong ail by Chris
Anderson
4 Articles
4 Makin¶ Money!
' Viral Marketing (Jurvetson
' AdWords (Pay for Ads)
1997)
' AdSense (Get Paid for
Ads) ' What is Web 2.0 (s¶eilly
2005)

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4

michael@winterstorm.ca
http://syntheticlibrarian.com/

I would be happy to answer your

questions you have now,
or by email later.
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 ))$
m All slides after this one are old slides deleted
from the presentation but preserved for
reference.

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m Internet used to conduct retail sales (2C)

m A bit of history:
m Problem: No Security = No Sales
m Solution:
ncryption and Digital Signatures
m SS : Secure Socket ayer
m H PS = H P + SS (Security)

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m
ncryption
rowser outer outer outer
m Hackers
³sniff´ and
capture data
m
ncrypted outer outer Hacker outer

data can be
captured, but
not decrypted Sniffer
Server

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m Authentication
rowser outer outer outer
m Hackers
reroute
connections
m Server ³key´ outer outer Hacker outer
cannot be
faked
m Fake server
cannot pretend Server
FAK

Server
to be real one

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m http://highered.mcgraw-
hill.com/sites/007305223x/instructor_view0/vi
deos.htm#

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&|"#-
m Collaboration and Participation
m ead+WI
vs ead-sNY
m
xamples
m Flickr
m http://flickr.com/
m Del.ico.us
m http://del.ico.us/
m AskMetaFilter
m http://ask.metafilter.com

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m ³Social Networks´
m PAID for Advertisements
m PAID for Customer Profile Information??

m Goal: develop a ,/&2:

m Audience Participation
m eveals ID
N I Y
m uilds CsMMNI Y

m More participation = More value (to business)

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