How to Start an Online Clothing Store in 12 Steps
This article is meant to be a very rough outline in the process of starting up an e-commerce based clothing store or boutique. In the high-paced and competitive world of fashion retail setting up your store is just the first step and quite honestly has little bearing on how successful your store will actually be. For example, Bluefly.com has an estimated monthly traffic of 840K, but since going public in 1998 has never made a single year of profit. As of December 31, 2009, Bluefly has an accumulated deficit of $147,468,000. Your guess on how they remain in business is as good as mine, but think of it this way. Even if you only make $1.00 of profit your first year of business, then you are technically doing better than Bluefly.
Please note, many of these steps can be done concurrently. For example, while you are filing your legal forms, you can work on your web design. This is especially true if you are depending on a third-party to design and set-up your website. They may work on a longer time frame than you initially anticipated. I do highly suggest that you just focus on the business plan initially. For example, if you decide that you are going to design your website with a specific concept while you write your business plan, then you just might find after researching that your concept is not what you’re going to move forward with. In this case, you probably spent 40-60 hours on non-productive output.
1. Write a business plan.
To be honest with you, when my girlfriend and I launched our website, we did not have a business plan, but we did write one eventually. The simple fact is that if you are planning for success, then you must write a business plan sooner or later. In business school, you write it sooner than later. The business plan is important because it forces you to do research about the industry, your competitors, and your resources. Additionally, it forces you to think deeply about how you are going to succeed in this highly competitive industry. If you think that you are going to be just like Modcloth, then why would you expect to be successful compared to Modcloth when they are working with millions of dollars of venture capitalist funds for a workforce, marketing, inventory, etc. I don’t have an answer for you, but my point is that you have to come up with a plan before investing your life’s savings into this new venture. Also, the business plan is important because it also forces you to estimate how much money you will need and where that many is coming from. The reality is that unless you have real background in finance, you will not be able to build a 5-10 year projected Discounted Cash Flow Model and figure out your WACC, but having some kind of rough idea of your cash flow is better than nothing.
You should also include a plan on how you are going to initially set-up your website. For example, using a subscription-based shopping cart will change your budget than if you decide to use an open-source shopping cart. Also, you should also do your initial research on web hosting companies since they can range from $10/month to over $300/month. My only suggestion is that you get the fastest and most reliable that your budget will allow. Please note, that all I’m suggesting is that you plan what you are going to do as far as web design and hosting is concerned, not that you go out and pay for these services right now. The only expense that you may want to consider at this moment is that for registering a domain name. That’s because they are relatively inexpensive to register and you don’t want to possibly miss out on registering your wanted domain.
You should come up with a budget and plan for marketing, public relations, and search engine optimization. These will most likely be your largest expense heading into the future. Remember, buying inventory is not an expense, it is an asset.
Last, but not least, you also want to plan on order fulfillment. This is just a fancy way of saying how you are going to pack and send your product, as well as what return procedure and policy you will have in place. Will you use USPS, UPS, FedEx, or DHL? Will you have free shipping, returns, and/or exchanges? These are all things that should be planned for, though will change over time.
2. Apply for a Employer Identification Number with the IRS
Once again, if you are planning for success in the future, then you are going to have to run your business legally. You will need an EIN to open a bank account, apply for a business license, and get a seller’s permit. Just search “EIN” in the google search engine and the IRS website should be the first result. When applying for your EIN, you will need to know the legal structure of your business. For example, if your business is going to be a one man or woman show, then you are going to apply as a sole proprietor. If it turns out that you and your mom are going to run the business, then you may choose partnership or decide to incorporate.
Pick your fictitious business name, “Doing Business As,” and file it with your county clerk
One of the more exciting step in setting up your business will always be picking a name. My girlfriend and chose T.I.L. Darling because before we were officially a couple, she would tell me that in Thailand, her home country, that she and I could never go out alone as even friends. I told her, “This is London, Darling.” So, I guess our business name should technically be T.I.L., Darling, to be more grammatically correct. Once you have your fictitious business name, you need to make a pretty good attempt to make sure no one else is using that same name. Otherwise, years down the line when you are making money, you can expect a letter from a lawyer saying how they are going to sue the designer pants off of you.
If your county registrar/clerk has a website with downloadable forms, then search for the DBA filing form, fill it out, and bring it to the county clerk. Otherwise, you will just have to do everything in person. There, you will probably have your first business expense with the filing fee. Your second expense will be the requirement that you advertise your new business name in an approved newspaper or public publication so that if anyone has a problem with your DBA then they can step forward. The county clerk will be able to point you in the right direction for this step.
3. Open a business bank account
Again, planning for future success, you will want to open up a separate bank account for your business. This way, you can track and easily separate business expenses from your personal expenses, write checks or have transactions under your business name, and just generally feel like a real business.
4. Start designing and setting up your website
There are actually a few methods of going forward with your website. I will explore a few options starting from the most costly to the least costly. Even though I would have to question whether or not running an online business if for you, but if you have extremely limited experience with web design or are just not internet savvy, then you may need to do everything third-party. If you realize that you’re going to need someone to design your website, initially set-up your domain and site, then you will probably need to find some kind of subscription based shopping cart. For example, if you have money to spend, then search “boutiquecommerce” in the google search engine. This company will do just about everything for you, from web design, domain registration, web hosting, to ongoing support. There are many third-party shopping carts fitting almost any budget. To be honest, I have no experience with any paid or subscription based shopping cart and so I will limit any opinion I have on them.
Another alternative is to buy a website template designed on top of an open-source (free) shopping-cart platform. Search “templatemonster” in the Google search engine. Filter your search to include E-Commerce templates and choose “fashion” as your category, though you can customize any template to your needs in reality.
On a side note, before you purchase your template, you should set-up your server. During your business plan research, you should have figured out what web host fits best for you, but now is the time to actually spend some money because you will not be able to test your template unless you have a server to upload it to. This also means that if you haven’t done so already, then you will have to finally register your domain name, which is something you should have also figured out in your business plan. Most web hosts will actually register your domain for free, but feel free to use a service, such as godaddy, and you’ll need to change the namerservers to point to your web host.
Once you have your template and web host, then you need to upload your template and start customizing it. You can either use a “template tuning” service or if you have enough html, php, and photoshop experience, then you can do it yourself. Unfortunately, this step can be pretty difficult even for somewhat internet savvy users because this is where you will need to learn a little bit about setting up a database, setting up a database user, and how to use an FTP program to upload your site. That’s why some may opt to use a third-party shopping cart, but this option is by far the most flexible and cheapest if you have the time and are willing to learn.
You will also need to figure out how you will accept payment on your website. If you want to accept credit cards, which you should, then you will need a payment gateway. The most popular would be PayPal Pro and Authorize.net. You will need to apply for an account.
Of course, there is the ultimate DYI approach, where you can not only design your own website, but also code your own shopping cart. If this is the case, then I highly doubt you need to read this section of my tutorial.
5. Make Business Cards
Yes, I actually made this an individual step because you will need a business card to register for trade shows, as well as deal with suppliers. Since you are also working on your website design, it is also more efficient to work on a business card design. Additionally, you need some lead time because printers will charge you extra to expedite printing and shipping. So, if you plan ahead, you can save quite a bit of money.
6. Apply for a business license in your city
Once again, if your city has website dedicated to business, then you should be able to download an application for a business license. In some cities, you can even apply for a home-based business license. Of course, only fill out a home-based business license if that is your case. Bring or even possibly mail your completed application and filing fee to the appropriate location. The reason I put this step after designing your website is because the business license fee is a yearly fee and so why pay when you are not even close to launching your website.
7. Apply for a Seller’s Permit
At this point, you should be fairly proficient at filing out forms. The last application you should have to file is for your seller’s permit, sometimes mistakenly called a resale license. The seller’s permit will allow you to buy from your wholesalers without paying sales tax, but it also requires you to pay the sales tax on any items sold, within your state, every quarter. Of course, in modern commerce, you are allowed to collect the sales tax from your customers.
8. Figure out how you are going to display your products
Before you actually source your products, I believe it is wise to first figure out how you are going to display your products on your website. Are you going to use a mannequin, model, or just lay it flat. Will you outsource your product photography or do it right in your bedroom, which is how we first started. If you are going to do it yourself, then you still need to make sure it fits your budget and business plan as far as purchasing equipment. If you are going to need equipment, then now is the time to either jump online or go out and start making a real investment in your business.
9. Plan your product mix and find suppliers
While you are figuring out how you will ultimate display your products, you will want to start researching where you will buy your products. If you haven’t done so, then you will want to start thinking more about your product mix. Of course, it needs to fit perfectly with your business plan, concept, and budget you already established in step 1. Fashion buying is another topic completely and I highly suggest you read up on it if you can.
After you have some kind of buying plan, it’s time to find suppliers. If you are lucky, then you will be able to catch the MAGIC Marketplace trade show in Las Vegas. They have vendors for vintage inspired clothing, juniors clothing, indie clothing, etc. It is essentially the largest fashion trade show in the USA and maybe the world. If you cannot find suppliers at MAGIC, then I would honestly be surprised. If you cannot wait for the bi-annual trade show, then you are most likely going to need to take a trip to the Los Angeles Fashion District. If you are looking for the glamorous world of designer labels, then you will be spending your time at “The Intersection.” At this intersection you will find the California Market Center, Cooper Design Space, Gerry Building, and The New Mart. Here you can find brands such as A.B.S. By Allen Schwartz, BCBG, and Betsey Johnson. If you are in this market, then be sure to bring copies of your business license, business card, and seller’s license. Also, as an online business, be prepared to be rejected by many showrooms. If you’re like me though, then it should only inspire you to be more successful so that when the time comes you can reject them.
If your price point is a lot lower, then you are going to really want to spend time around the San Pedro Mart area. You will probably find that 80-90% of these wholesalers are not right for your target market, but that only means that you should find 10%-20% that is right and will be able to focus on building those relationships into the future.
Of course, you can always turn to the internet, registering with sites like fashiongo and lashowroom. Additionally, you can contact individual brand sales reps and they should send you line sheets and look books. In fact, this is how most business will be later in the future, but I suggest you visit trade shows and marts to get your feet a little wet.
10. Start product photography and adding content to your website
Since you should have planned earlier for product photography, this step should be self explanatory. You want to add the products to your website and get it ready for a more official launch.
11. Start your marketing campaign, Search Engine Optimization campaign, and PR campaign
Again, these campaigns should have already been planned in the first step. This step is pretty much a hundred different subjects on its own and so I will not really dive to deep into it. The most rudimentary start would be to submit your site to search engines, such as Google and Yahoo!, sign up for Google AdWords, and start a Facebook and Twitter account. There is probably a good chance that will have to depend on paid advertising to get decent traffic at the beginning, but I highly suggest you plan and budget appropriately.
It might take one day or a whole month, but you’re going to get your first order and at that point you can finally say you really set-up your online clothing store.
12. Keep learning as much as you can
Like I said, setting up an online clothing store is just the first step. In reality, you are going to have to learn as much as you can about fashion buying, merchandising, marketing, search engine optimization, html, php, ajax, javascript, analytics, etc.
What’s in a PAC File?
You’ve been into the LAN settings of your browser many times and you probably wondered what the automatic configuration script is. That script is basically a file stored as a PAC file. A PAC file instructs your browser how to connect to the different sites in the internet.
This PAC file is basically a text file which has some JavaScript codes in it. It is commonly called proxy.pac, but it can be named differently. For most of the home users, this script is not needed since they are connected to the internet directly. But if you’re using a number of proxies, and each proxy is dedicated to some sites, you will need to use this file.
A very basic PAC file contains a single function defining the instruction. Without being too technical, that function basically finds the appropriate proxy for a particular URL or website request. A particular return value of that function can be “PROXY myProxy.com:8080; DIRECT.” This return value states that all requested URLs will go through myProxy.com server using the port 8080. And if that request fails, the request will bypass the proxy and go direct. Let’s say your proxy for the internet is myProxy.com and uses port 8080. When you type a website in your browser, the browser will try to check the script first. Since the script has this value, all your website requests will go through the proxy. If your request can’t be found by that proxy, then the request will go directly to the internet server, as defined by your provider.
This PAC file can reside anywhere in your local drive. But for organizational purpose and correctness, this file should be in this folder, C:\Windows\system32\drivers\etc. This folder is reserved for system files. This PAC file should be placed there since it is a system file.
To use this file, open your browser and go to the LAN settings. From the Tools menu of your browser, select Internet Options…. Go to the Connections tab in the popup window and locate the LAN settings at the bottom. Click the LAN settings button and on the top of another popup window is the automatic configuration portion. Check the “Use automatic configuration script” then specify the address. You should use “file://C:/Windows/system32/drivers/etc/proxy.pac” as the address. This value assumes that your script is named proxy.pac and you have your windows installed at the C drive.
A PAC file is basically another way of using proxies. It can be as simple as having one function or as complex as having multiple functions.
Google Redirect Virus – Stop the Google Search Redirects!
Are your Google searches redirected? It is aggravating to Google something and get jumped to a completely different page. Even worse when the page is loaded with pornography, pop-ups, and threatening messages. What you’re dealing with is a trojan virus that is spreading at a menacing pace. If you don’t get rid of the Google search redirect issue, then you’re at risk of receiving terrible spyware and virus infections which can corrupt your personal files and at worst, steal your credit card number!
The Google redirect is programmed by sneaky coders that could be hiding anywhere in the world who throw you around to the pages that they want, which are usually loaded with phony software or links to adult websites, all hoping to extract your credit card information or infect your computer further. Certain situations can seem unbeatable, such as a website that blasts thousands of pop-ups until you are forced to shut down any way you can. The more you have to shut down your computer in frantic situations, the worse it is for your hardware, which can eventually lead to fan problems, motherboard problems, and hard drive failure.
The good news straight off the bat is that if you’ve got the Google redirect virus, it can be removed. Either manually or automatically. Before we begin, is your computer showing any other signs of infection? For example, is your system running slower than usual? Are there strange new backgrounds or icons on your desktop? Are you getting bombarded with strange popups? If your computer seems to be running strange, there’s a high probability that you’re infected with something nasty. What we are most fearful of right now is that you may be infected with a keylogger virus, which will record everything you type and can transmit secure information to thieves anywhere in the world.
So How Do We Remove It?
Manual Removal: The first way we can remove the Google redirect virus is by doing so manually. This is no easy task, unfortunately. You will have to hack into your Windows/System32 folder and adjust your regedit.exe file. You will have to look into your registry folder under the HKEY_LOCAL_MACHINE drivers folder and adjust your entries with ‘aux’ in the filename. You will have to scan through your program files with hidden files displayed and inspect any possible strange looking exe files.
Due to the complexity of manual removal, I only recommend that absolute experts (think IT technicians) attempt to remove these kinds of viruses manually. It is just too easy to adjust the wrong file and end up with a system in worse shape than before.
Thank goodness for Automatic Removal.
Automatic Removal: This is why I tell everyone, even the experts, to use an automatic removal tool. Not only will it find the Google redirect virus but it will also find whatever other spyware or viruses are hiding in your system. On top of that it will protect you against all future viruses and provide you with customer support whenever you have an issue again. (Depending on which product you use.) Automatic removal is the way to go if you value your time, money, safety, and peace of mind.
SharePoint Skills Profile
Introduction
Many organisations roll-out SharePoint without considering the resources needed to own and manage SharePoint, especially the human resources. The initial focus is often placed on the technical side of the development and the initial go-live, ongoing management of the site is given little thought. One area that is often given the least resources to is training, which is more often than not a mistake. Without adequate training for all users concerned the SharePoint deployment will fail.
This document seeks to detail the five skilled separate concerns needed to manage and leverage SharePoint and the training required for each.
Although this article details these concerns separately this doesn’t mean that they cannot be performed by the same person. The only caveat to that is that the main SharePoint owner should never be in IT – this is explained in a separate document that is available titled Seven Pillars of SharePoint.
It should also be noted that the specifications of concern is not absolute, and as every organization is different so are the responsibilities allocated to a skill. These responsibilities should be tuned to suit the internal layout of your organization and the skills you have in-house. This document will guide you through identifying the skilled areas and should help you to choose the moat appropriate member of staff to fulfil each role.
Skills Required
Once SharePoint has been deployed in your organization there are several skills needed to maintain the system and to develop it in line with your corporate strategy. These skills are best viewed as separate concerns, and if possible best serviced by different people. Obviously this is not always the case, but by analysing the skills matrix as if it were separate people it is much easier to understand.
There are four main players in the world of SharePoint – SharePoint System Administrator, Super User, SharePoint Designer and Web Developer. These terms will be referred to continually throughout this document.
We have chosen to omit the fifth player from this diagram -the End User. End Users contribute to SharePoint but are not required for developing the system; we will discuss End Users at the end of this document.
Skill Area 1 – SharePoint System Administrator
Perhaps one of the most misunderstood skills in SharePoint is that of the System Administrator. Many people confuse the System Administrator with a concept referred to as a SharePoint Administrator (we refer to this role as the Super User). Instead of explaining the differences between the two roles I’ll explain the function of the SharePoint System Administrator in detail in this section and the Super User in detail further on in this document.
The SharePoint System Administrator is concerned primarily with the back-end functions of SharePoint focusing on how it integrates with other server applications.
Responsibilities
Selecting the correct version of SharePoint.
Specifying the most suitable set up for anticipated load.
Deploying SharePoint correctly.
Configuring email (incoming).
Configuring email (outgoing).
Ensuring Anti-virus is operable.
Configuring start-up security.
Configuring shared services.
Configuring search.
Backup.
Restore.
Disaster Recovery.
Other duties focusing on the Central Administration Page
Skills
Anybody carrying out this function should have a minimum of two years working as a system administrator on Windows Server, SQL, and Exchange. They should be fully conversant with Domain Name Systems (DNS) and Active Directory.
Training As a bolt-on to existing skills as listed above the System Administrator would benefit from a 5 day SharePoint Administrators course. Make sure this is a System Administrator course not a SharePoint Administrator course!
Work Load
It is anticipated that once the SharePoint system is in and robust the additional burden on the administrator will be an additional 1% of their existing workload.
Skill Area 2 – Super User
This individual has the most important function within SharePoint, they are responsible for configuring SharePoint to match 70% of the organizations bespoke needs. This is the role that is sometimes referred to as SharePoint Administrator, as they administer the SharePoint front-end environment. Once the System Administrator has installed SharePoint and confirmed that it has been robustly installed the Super User takes over.
This role is non-technical (meaning no knowledge of code, or computer systems is required) and we strongly recommended that this role is given to someone outside of IT. This is because the focus of this role should be on the I (information) and not on the T (technology). In our experience a member of the IT team will focus on the technology because this is what they know. This role is suited to a Business Analyst, as they have the skills to analyse problems and find solutions most suited to the current organizational strategy. The Super User uses the out-of-the-box SharePoint features available to meet the requirements of the business. They will focus on using the Site Actions button to deliver the needs of the business.
Responsibilities
Managing site collections.
Configuring security at site level.
Creating and owning sub-sites.
Creating lists, blogs, wiki’s etc.
Creating and configuring site features.
Mapping business issues to SharePoint functions.
All configurations under the site actions button.
Creating site level policies.
Skills
This individual must be a good communicator at all levels and have excellent presentation skills. They need to be able to understand the business and analyse business problems. The Super User must have a solid understanding of how SharePoint can be configured out-of-the -box. The Super User must have excellent business analyst skills and needs to be able to map business problems onto SharePoint functionality.
Training
This user will need 5 days Super User training course and a 3 day End User training course. This will give them a full understanding of the out-of-the-box capabilities of SharePoint.
Work Load
The Super User can expect to have 100% of their time dedicated to working with SharePoint sites. There time will be split between developing new uses of SharePoint and monitoring and maintain existing SharePoint sites.
Skill Area 3 – SharePoint Designer
A further 20% of the organizations bespoke needs can be customized by the SharePoint Designer. The customisations performed by this individual are changes that cannot be done through the SharePoint user interface i.e. the site actions button. Once the Super User has exhausted all possibilities through the site actions button the SharePoint Designer comes in.
The three main areas SharePoint designer is used for is branding, creating workflows and connecting to external data sources. This document will split the SharePoint Designer skill set into these three different work streams, to clarify the different skills needed for each. This does not mean that three different people have to commit to each area in fact one person could manage all three strands.
SharePoint Designer (Banding)
This person will be responsible for managing the look and feel of the SharePoint site, this will involve creating page layouts, making changes to the master pages, and responsibility for the aesthetics of the site. This person should have knowledge of accessibility standards when designing to ensure the design is as inclusive as possible as well as being pleasing to the eye.
Responsibilities
Creating page layouts.
Editing the master page.
Giving guidance on design best practice.
Skills
The person performing this function needs to have a thorough understanding of the web and preferably come from a web design background. Knowledge of Cascading Style Sheets (CSS) and HTML is very desirable. As mentioned above knowledge of accessibility standards is also desirable.
Training
This user will need a 5 day SharePoint Designer course, preferably aimed at web and graphic designers.
Work Load
The SharePoint Designer usually has a 100% time allocation at the beginning of a deployment and thereafter a reducing amount of commitment. The work load typically consists of smaller projects delegated to them by the strategy team.
SharePoint Designer (Workflow)
Workflow is an important part of any SharePoint deployment, SharePoint designer has extremely powerful capabilities for developing bespoke workflow. The person responsible for this will work with the Super User to examine business processes and translate them into SharePoint designer workflows.
Responsibilities
Examining user requirements.
Designing workflows and building them.
Testing and evaluating existing workflow.
Skills
This person needs to have a broad understanding of current business processes and analytical skills. Experience of previous work in business processing mapping is desirable.
Training
This person will need a 5 day SharePoint Designer course.
Workload
The SharePoint Designer usually has a 100% time allocation at the beginning of a deployment and thereafter a reducing amount of commitment. The work load typically consists of smaller projects delegated to them by the strategy team.
SharePoint Designer (Database Access)
Businesses will have information and data stored in multiple storage sites across multiple locations. One good point about SharePoint is that you can access information held in other locations through SharePoint. SharePoint designer can be used to create access to this information so it can be used again and again.
Responsibilities
Creating data access modules. Ensuring data protection laws are upheld.
Skills
The person in this role will need to have an understanding of data and a technology named ActiveX Data Objects (ADO). Previous experience of writing databases is an advantage. Knowledge of the Data Protection Act is also desirable.
Training
This person will need a 5 day SharePoint designer course.
Workload
The SharePoint Designer usually has a 100% time allocation at the beginning of a deployment and thereafter a reducing amount of commitment. The work load typically consists of smaller projects delegated to them by the strategy team.
Skill Area 4 – Web (.NET) Developer
The remaining 10% of an organization’s bespoke SharePoint needs can be achieved by calling on the services of a Web (.NET) Developer. This person should be a last resort when it comes to SharePoint development, SharePoint works best when the out-of-the-box features are leveraged fully.
This individual will be able to carry out deep customization and provides the ability to achieve very tight integration between SharePoint and legacy systems. Custom web parts and complicated workflow processes can be designed b a Web (.NET) Developer. A Web Developer would only be called when both the Super User and the SharePoint Designer have exhausted all other options.
Responsibilities
Developing solutions / features within best practice guidelines.
Working with and leveraging the object model.
Working with and leveraging SharePoint web services.
Creating web parts.
Creating user controls.
Implementing events.
Developing complex asynchronous workflows.
Deploying solutions and features with best practice.
Working with enhanced security.
Creating code in keeping with best practice.
Skills
The Web (.NET) Developer will need to have a minimum of 3 years.NET development experience. They must have experience of developing for the browser and have been working with ASP.NET 2 for at least 12 months.
Their core skills will need to be:
Understanding the SharePoint object model, and
Working with workflows
Training
This user will need a 5 day SharePoint Developer course.
Work Load
The Web Developers work load will be very dependent upon the needs of the business and specifically the level of integrating with legacy systems.
Once again, in the initially stages of deployment the Web Developer will be heavily utilized and after a period will have less demands made on their time. Web Developers will be called on an ad-hoc basis to complete project
Skill Area 5 – End User
Last but not least, the End User will also need some SharePoint skills. Although the skills required are minimal, End Users will still require training to build their confidence and acceptance of the site. When End Users are given proper training and told explicitly what is expected of them when using the site the more likely it is to be a success. The general rule for training End User with SharePoint is to focus on small skills based learning packages and make sure users are comfortable with them. It is always best to train in fewer areas well than cover lots of topics without users really understanding.
Responsibilities
Navigate through the site and find content.
Organise themselves with alerts and RSS feeds to keep updated.
File documents in the appropriate place.
File documents with the appropriate metadata for searching.
Skills
End Users do not need any specific skills and providing that they have had some exposure to the internet they will be capable of working with SharePoint.
The training provision is mainly to build confidence initially and acceptance of the site.
Training
End Users require a 1 day session as close to go-live as is possible. This session should focus on the tasks they are going to complete on a day to day basis.
Work Load
The End User can expect to interact with the SharePoint site 100% of the time on an ongoing basis. This of course will very much depend on the tasks required to be performed by the End User can the function of the site. End Users make up the majority of SharePoint users.
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The History of CRM — Moving Beyond the Customer Database
Customer Relationship Management (CRM) is one of those magnificent concepts
that swept the business world in the 1990′s with the promise of forever changing
the way businesses small and large interacted with their customer bases. In the
short term, however, it proved to be an unwieldy process that was better in
theory than in practice for a variety of reasons. First among these was that it
was simply so difficult and expensive to track and keep the high volume of
records needed accurately and constantly update them.
In the last several years, however, newer software systems and advanced
tracking features have vastly improved CRM capabilities and the real promise of
CRM is becoming a reality. As the price of newer, more customizable Internet
solutions have hit the marketplace; competition has driven the prices down so
that even relatively small businesses are reaping the benefits of some custom
CRM programs.
In the beginning…
The 1980′s saw the emergence of database marketing, which was simply a catch
phrase to define the practice of setting up customer service groups to speak
individually to all of a company’s customers.
In the case of larger, key clients it was a valuable tool for keeping the
lines of communication open and tailoring service to the clients needs. In the
case of smaller clients, however, it tended to provide repetitive, survey-like
information that cluttered databases and didn’t provide much insight. As
companies began tracking database information, they realized that the bare bones
were all that was needed in most cases: what they buy regularly, what they
spend, what they do.
Advances in the 1990′s
In the 1990′s companies began to improve on Customer Relationship Management
by making it more of a two-way street. Instead of simply gathering data for
their own use, they began giving back to their customers not only in terms of
the obvious goal of improved customer service, but in incentives, gifts and
other perks for customer loyalty.
This was the beginning of the now familiar frequent flyer programs, bonus
points on credit cards and a host of other resources that are based on CRM
tracking of customer activity and spending patterns. CRM was now being used as a
way to increase sales passively as well as through active improvement of
customer service.
True CRM comes of age
Real Customer Relationship Management as it’s thought of today really began
in earnest in the early years of this century. As software companies began
releasing newer, more advanced solutions that were customizable across
industries, it became feasible to really use the information in a dynamic way.
Instead of feeding information into a static database for future reference,
CRM became a way to continuously update understanding of customer needs and
behavior. Branching of information, sub-folders, and custom tailored features
enabled companies to break down information into smaller subsets so that they
could evaluate not only concrete statistics, but information on the motivation
and reactions of customers.
The Internet provided a huge boon to the development of these huge databases
by enabling offsite information storage. Where before companies had difficulty
supporting the enormous amounts of information, the Internet provided new
possibilities and CRM took off as providers began moving toward Internet
solutions.
With the increased fluidity of these programs came a less rigid relationship
between sales, customer service and marketing. CRM enabled the development of
new strategies for more cooperative work between these different divisions
through shared information and understanding, leading to increased customer
satisfaction from order to end product.
Today, CRM is still utilized most frequently by companies that rely heavily
on two distinct features: customer service or technology. The three sectors of
business that rely most heavily on CRM — and use it to great advantage — are
financial services, a variety of high tech corporations and the
telecommunications industry.
The financial services industry in particular tracks the level of client
satisfaction and what customers are looking for in terms of changes and
personalized features. They also track changes in investment habits and spending
patterns as the economy shifts. Software specific to the industry can give
financial service providers truly impressive feedback in these areas.
Who’s in the CRM game?
About 50% of the CRM market is currently divided between five major players
in the industry: PeopleSoft, Oracle, SAP, Siebel and relative newcomer
Telemation, based on Linux and developed by an old standard, Database Solutions,
Inc.
The other half of the market falls to a variety of other players, although
Microsoft’s new emergence in the CRM market may cause a shift soon. Whether
Microsoft can capture a share of the market remains to be seen. However, their
brand-name familiarity may give them an edge with small businesses considering a
first-time CRM package.
PeopleSoft was founded in the mid-1980′s by Ken Morris and Dave
Duffield as a client-server based human resources application. In 1998,
PeopleSoft had evolved into a purely Internet based system, PeopleSoft 8.
There’s no client software to maintain and it supports over 150 applications.
PeopleSoft 8 is the brainchild of over 2,000 dedicated developers and $500
million in research and development.
PeopleSoft branched out from their original human resources platform in the
1990′s and now supports everything from customer service to supply chain
management. Its user-friendly system required minimal training is relatively
inexpensive to deploy. .
One of PeopleSoft’s major contributions to CRM was their detailed analytic
program that identifies and ranks the importance of customers based on numerous
criteria, including amount of purchase, cost of supplying them, and frequency of
service.
Oracle built a solid base of high-end customers in the late 1980′s,
then burst into national attention around 1990 when, under Tom Siebel, the
company aggressively marketed a small-to-medium business CRM solution.
Unfortunately they couldn’t follow up themselves on the incredible sales they
garnered and ran into a few years of real problems.
Oracle landed on its feet after a restructuring and their own refocusing on
customer needs and by the mid-1990′s the company was once again a leader in CRM
technologies. They continue to be one of the leaders in the enterprise
marketplace with the Oracle Customer Data Management System.
Telemation’s CRM solution is flexible and user-friendly, with a
toolkit that makes changing features and settings relatively easy. The system
also provides a quick learning environment that newcomers will appreciate. Its
uniqueness lies in that, although compatible with Windows, it was developed as a
Linux program. Will Linux be the wave of the future? We don’t know, but if it
is, Telemation’s ahead of the game.
The last few years…
In 2002, Oracle released their Global CRM in 90 Days package that promised
quick implementation of CRM throughout company offices. Offered with the package
was a set fee service for set-up and training for core business needs. .
Also in 2002 (a stellar year for CRM), SAP America’s mySAP began using a
“middleware” hub that was capable of connecting SAP systems to externals and
front and back office systems for a unified operation that links partners,
employees, process and technologies in a closed-loop function.
Siebel
consistently based its business primarily on enterprise size businesses willing
to invest millions in CRM systems, which worked for them to the tune of $2.1
billion in 2001. However, in 2002 and 2003 revenues slipped as several smaller
CRM firms joined the fray as ASP’s (Application Service Providers). These
companies, including UpShot, NetSuite and SalesNet, offered businesses CRM-style
tracking and data management without the high cost of traditional CRM start-up.
In October of 2003, Siebel launched CRM OnDemand in collaboration with IBM.
Their entry into the hosted, monthly CRM solution niche hit the marketplace with
gale force. To some of the monthly ASP’s it was a call to arms, to others it was
a sign of Siebel’s increasing confusion over brand identity and increasing loss
of market share. In a stroke of genius, Siebel acquired UpShot a few months
later to get them started and smooth their transition into the ASP market. It
was a successful move.
With Microsoft now in the game, it’s too soon to tell
what the results will be, but it seems likely that they may get some share of
small businesses that tend to buy based on familiarity and usability. ASP’s will
continue to grow in popularity as well, especially with mid-sized businesses, so
companies like NetSuite, SalesNet and Siebel’s OnDemand will thrive. CRM on the
web has come of age!
This article on the “The History of CRM” reprinted with
permission.
Copyright © 2004-2005 Evaluseek Publishing.
Dedicated Micros DV-IP Professional Digital Video Recorders
Dedicated Micros was founded in 1982, in Manchester, England. Since then, they have become one of the leading manufacturers in video surveillance equipment. The company is renowned for the design and manufacture of robust camera and recording equipment to meet the demands of continuous 24-hour security video surveillance. Dedicated Micros might be most well known for their superior lineup of digital video recorders.
DV-IP is a line of four professional digital video recorders. The DV-IP Express is new to the lineup and is designed for small to medium size security applications. Its compact size is ideal for desktop of shelf placement. It features 30 PPS per video channel and options of either, 8, 12, or 16 channels.
The DV-IP ATM is a compact, full featured professional network video server that is designed specifically for the financial market for placement in confined areas such as ATM kiosks. These DVRs offer 4 video channels and up to 600GB of internal storage.
The Hybrid DV-IP HD is the first in a series of Dedicated Micros products offering High Definition recording and playback. It comes with 2 HDMi outputs for high resolution recording, and an 8 Channel Video Server with High Definition (HD) monitor output.
Last in this line is the DV-IP Server. The DV-IP Server is a high performance Hybrid video server designed for professional surveillance applications. The DV-IP Server contains a host of new features and capabilities and also includes all the features you would expect from a Dedicated Micros DVR.
All four of these DVRs feature NetVu Connected, which ensures interoperability of all Dedicated Micros NetVu Connected products and third-party integration products. MultiMode Recording which allows for dynamically switchable resolution, record rate and compression per camera (MPEG-4 & JPEG). TransCoding maximizes data transmission over available bandwidth for efficient remote viewing.
What Are The Benefits of Dedicated Servers?
Having a website for your small business is a critical way to build a customer base and earn income. Many businesses are entirely virtual, using only e-commerce as their way of functioning. If you have chosen to start a business website you must decide if you want to use shared hosting, or spend the extra money and get a dedicated server. Having a dedicated server can greatly improve the function and success of your business, providing many useful benefits over shared hosting.
Security
A shared web hosting server is just that, shared. There are many other users keeping their sites on the same server as yours, which opens up the possibility of compromise. Though shared hosts are considered secure, having your own server maximizes the security of both your information and that of your customers. Especially if your site is intended for e-commerce that involves customers inputting personal and sensitive information, having a secure site is critical. A dedicated server means that your personal information will be accessible only to you, and that the information of your customers will be securely kept within your server.
Speed
A server that is being shared must divide up its processing function among all of the sites that it is supporting. If some sites are very large, or maintain a lot of traffic, it can greatly slow down the function of the server. In especially bad instances, the server can actually crash. A crash will result in all of the websites sharing the server experiencing downtime or reduced activity. Even a few minutes of downtime can result in losing customers, sales and reputability. This is not an option for small businesses wanting to grow their reputation and loyalty. Having a dedicated server means that that server is responsible only for supporting your site or sites. This opens up a tremendous amount of memory and operation space so you will know that you site can support whatever traffic and activity it receives.
Control
Using a shared server means that you must adhere to the guidelines of that server. You must stay within certain memory and operation limitations, as well as using only that server‘s operating system options. Having your own dedicated server means greater control. You can grow your sites, or open more sites, whenever you need to, as well as supporting these sites however you wish.
Choosing a dedicated server over a shared web hosting service may cost more initially, but it could mean huge differences in success and revenue. Better control over your site means that you can modify your web presence whenever you wish, improving its appearance and functionality to optimize traffic and sales. Greater speed means that your site’s operation will be done smoothly, and that the traffic of others’ sites will not cause downtime for yours. Having a dedicated server can also represent more security, which is very important when maintaining a site that uses personal information or e-commerce capabilities.
The Advantages of a Dedicated Server
Similarly to the way you save documents and files on the hard drive of your computer or burn it onto a CD, the data that is the source for your website needs a place to be stored.
The difference between the information stored on your computer and the information stored on a server is this: a server is designed with the technology that permits it to transmit the data to the internet, so that your website shows up when someone views it via their web browser. That is the purpose of a web host – it is the link between your website and the internet.
There are several important advantages to having a dedicated server. You will need this service if you have a very large website with plenty of traffic. It will support large database applications and streaming media. Businesses that use webcast radio or TV need to have this technology.
If you are looking for super high speed bandwidth this will provide the power you require. Many users that have relied on shared hosting have discovered that the consistency of the service varies because of the number of other users on the same server. Using a dedicated service means that you have all the bandwidth to yourself which automatically raises the level of reliability significantly.
Security is another issue that can frustrate users on a shared service, but with a dedicated host you have control over the security measures that are installed, so you can insist they meet your demand. You will also have complete control over all the websites on your server. You will also experience the cost per website decreasing when you can host them all on the same server.
Something else you may need to consider is your need to add POP3 accounts and FTP accounts. A shared host will typically charge more money for these additions, but with a dedicated server you can make these add-ons at no extra charge. And last, but not least, if your website is achieving a very high volume of traffic throughout the day, you will notice a dramatic improvement in your websites performance once you transfer your site from a shared hosting service
How to Trim Your Hardware Costs With Server Virtualization
When you run a business, you have many important costs to contend with. Some of the most significant costs associated with your business are in the technology arena, and trimming those costs can trim your company budget and give you more money to invest back in your company and its operations.
For every server you buy to put in your company, you have a number of important fixed costs. Every server you install needs additional storage space, as well as people to maintain, optimize and troubleshoot it. You also need the space to keep that server, whether it is a dedicated server room or another secure location. You also need plenty of air conditioning service to keep those servers cool, since computer hardware generates a great deal of heat when it is running.
All those costs add up quickly, and that can reduce the competitiveness and efficiency of your operation. Worse yet, only a small amount of the resources available on each of those servers is actually in use by the processes it runs, meaning that as much as 90% of the money you spend on that expensive hardware could be wasted.
Fortunately, there is now a better way to deal with your hardware and your server needs. It is called server virtualization, and many companies are already using it to lower their costs and increase the efficiency of their systems. With a regular server, you can only run one application on each piece of hardware. But with server virtualization you can run three, four, five or more servers on the same physical box. It is easy to see how server virtualization can cut your hardware costs, and why so many smart companies are using it to reduce the number of resources they need to run their operations.
When it comes to the cost savings associated with server virtualization, the hardware costs themselves are only the tip of the iceberg. Although the cost of buying the physical server is important, server costs have fallen in recent years, and they are expected to continue falling for the foreseeable future. The real cost savings associated with virtualization has to do with the infrastructure and the talent you need to run each of those servers.
Having more servers means needing more personnel to troubleshoot and administer them. IT talent does not come cheap, whether you used outsourced third party services or in house staff. You have not just the cost of the salaries but the cost of benefits to deal with as well. Using virtual server technology can reduce the number of servers you need by up to 80%, and that in turn reduces the staff you need to maintain them.
Fewer servers also mean less space, allowing you to make the most of your existing server room and avoid costly and risky moves. You can also save money on air conditioning costs by implementing a virtual server solution, and that can in turn help your company save money while going green. Green technology is important, and there is nothing greener than one server doing the job that five used to do.
So if you are looking for a way to save money and help your bottom line, give server virtualization a look. Many smart companies are already using this technology, and your company can benefit as well.
Free Web Mail Servers
Web mail is an Internet application that allows you to read and compose e-mail using a web browser. Prior to web mail, it was necessary to install an e-mail client such as Eudora or Microsoft Outlook to send and received e-mail. This restricted a person from accessing e-mail if he was traveling or was away from the computer on which the e-mail client was installed. Web mail made it easy for anyone to open an e-mail account and access it from any computer, from any part of the world.
The first web mail service was Hotmail. It was created in 1995 by Sabeer Bhatia and Jack Smith. Hotmail quickly became popular and was later acquired by Microsoft, who re-branded it as MSN Hotmail. Today web mail is offered for free by several Internet companies including Yahoo and Google. Most of these companies recover the cost through some sort of advertising. It is also offered by most ISPs to help their customers access their e-mails remotely.
To provide web mail access, a special software application known as web mail server is required. A web mail server acts as an interface between the web browser and e-mail server. Web mail software allows you to create your own web mail server, and is easily available. Some examples include open source software such as Squirrelmail and Horde IMP.
These web mail servers provide all the regular e-mail features such as ability to access e-mails using a web browser from any computer, composition of e-mails, deleting e-mails, creation of folders, trash folder, address book, spell check and anti-spam filtering.
Some commercial mail servers, including Microsoft Exchange, Kerio MailServer and Atmail, contain built-in webmail interfaces.
The disadvantages of web mail are that the e-mails are not stored on your local hard drive and you cannot access them if you are not connected to the Internet. It is also difficult to edit the e-mails offline unless you copy and paste the e-mails to a word processing application.
However, considering that the advantages clearly outnumber the disadvantages, free web mail servers can be of great help.