Internet for Business

1. Internet for Business Making Money on the Web A specialized workshop for Executives and Entrepreneurs

2. Presented by Jacques Rostenne President PERWIT International Ottawa, Canada Produced by Jacques Rostenne, Jeffrey Fine and Judith Stern

3. $ 320 billion From humble beginnings… 700 million users E-commerce The Internet 1969 1996 2002

4. What kind of businesses run on the net?

5. E-retail • Worldwide E-retail was about US$ 8 billion in 1998. Expected to be US$ 320 billion by 2002 • Amazon.com • Dell • Apple • Keys to E-retail: Exposure , credibility, on-line transaction and next day delivery

6. E-retail- Buying books

7. E-procurement • One of the fastest areas of e-business. Companies, governments and NGO’s post their requirements on the net and suppliers provide quotes by e-mail • Big companies such as Ford, GM and others are finding this a real cost saver. • Some attempts in Africa, no rousing success so far.

8. Business to business

9. E-banking • Highly dependent on individual access to phone and Internet; requires volume and significant average transactions. • There may be an opportunity to service the Diaspora and the local expat markets • Check your account balance • Pay bills • Transfer funds • Get a loan • Get a mortgage

10. Getting a loan on-line

11. E-travel • Several hotels and safaris are already on-line, but the Net can do much more • Check routing and schedules • Make reservations • Purchase a ticket (virtual or otherwise) • Pay on line • Check your frequent flier points • Take advantage of last minute offers • Buy tickets at virtual auctions

12. E-zines and E-papers • These started as the electronic version of regular magazines, some now only exist on the net. • cheap to produce • cost nothing to distribute • can publish on a moment’s notice • carry advertisements • can target ads to specific on line reader (cookies) • There are real opportunities here to create strong local “Portal” sites

13. E-zines and E-papers - some links

14. E-radios &TVs • Also started as regular radio and TV station relayed through the net • time shift • different audiences • different content • different advertisers • More and more they are specific to the Net (even if they use material from the other) • There are opportunities here to create local “Portal” sites • Bandwidth may be a problem

15. The new portals

16. E-gambling • Also known as “E-fleecing”. You deposit a sum of money (via credit card) into the account of a Caribbean based casino. Then you bet on casino type games such as black jack, roulette, etc. Since you cannot see the actual dealer or roulette (there is none), and since the computer can generate results separately for each sucker, ...

17. There is one born every minute!

18. E-auctions • There are several types • a product is offered to the highest bidder, or • reverse auction: you state how much you are willing to pay ( for example for an air ticket) and airlines make you offers. • E-auctions are a combination of E-retail commerce and entertainment.

19. What can we do, right now, right here in Africa! • Where is the market? • Where is the money ? • Where is the willingness to purchase from the net? • Who has the tools to purchase on-line? • The local market is not attractive! • Lets focus on export! • There are four basic export markets, lets look at them

20. 1-The overseas (NA/EU) consumer market! • Do you have the products? the services? • Can you get them there? • (Or bring the consumer here : Tourism) • Are you competitive?

21. If you have an export product for the general consumer market • What can the Web do for you? • It can create awareness (Banners, E-zines, E-publications, etc.) • It can connect you with interested people (search engines, e-mail, etc.) • It can provide a wealth of information to prospective buyers (websites)

22. It can help prospective clients compare your products with competitors (website links) • Clients can order on-line • Clients can pay on-line (by credit card) • You still have to ship and deliver.

23. If you have a service for the consumer market • You can deliver it on the net • You can do it all on the net! • But, getting exposure and acceptance is not easy. • You will need: • A lot of specific business knowledge • A lot of web design and web management expertise • A lot of connectivity and bandwidth , and • Probably a fair amount of start up capital

24. Is anybody doing it successfully ? • Not too many • Some coop ventures are trying. • Some are doing it smartly • Unless you have a very special product or service (such as tourism) and you already have a strong market overseas, we do not recommend it!

25. Tourism is different • We bring the consumer to the product • What can the Web do for your tourism business? • It can create awareness (Banners, E-zines, E-publications, etc.) • It can connect you with interested people (search engines, etc.) • It can provide information to prospective visitors (websites) • It can show and promote your facilities (Webcam, video, sound) • It can help prospective visitors make-up their minds • Tourists can reserve on-line • Visitors can pre-pay or leave a deposit, or a guarantee

26. Any local success stories? • Some basic sites • No (known to us) examples of full use of capabilities

27. 2-The Diaspora market • There are actually three ways to look at it: • Home to diaspora • Diaspora to diaspora • Diaspora to home • What can you offer them (goods, services)? • Can you get it there? • Can they afford it?

28. The diaspora, a receptive market • Diaspora client are more tolerant • Willing to pay a bit more, • Willing to wait longer • Willing to accept less than perfection • They are overseas consumers, but better.

29. Do you have something for the Diaspora? • News & Information (newspapers, radio, TV ) • Food, other specialty items • Travel (deals on tickets, events ) • Banking ( fund transfers, savings, etc.) • Real estate ( investments) • Legal and professional services ( accounting) groups , e.g. overseas students; overseas professionals, etc.

30. Traditional medicine • Matchmaking • Advertising for overseas businesses also focused on Diaspora markets: • London , Washington, etc. • Specialized discussion groups , e.g. overseas students; overseas professionals, etc.

31. Anybody doing it successfully? • In a very limited way • We will be supporting two home to diaspora portals. • Almost nothing in the diaspora to diaspora or diaspora to home country area (all of which can actually be run from home)

32. 3-The offline Teleservices market • The overseas market for business to business offline Teleservices • If you have the specific service expertise • Africa has definite competitive advantages • You can get it there • They can pay • They are willing to buy • Can you deliver: on time, on specs, all the time?

33. What role does the Net play? • In offline teleservices, the net is only used to communicate and send text back and forth. • You need to be online only infrequently • You need little bandwidth • No expensive equipment, no fancy offices • A lot of the staff can work at home • Its business to business, payment is by traditional means

34. Is anybody making money at it? • Yes, but not from Sub Saharan Africa (or at least not yet!) • We will be supporting a variety of Teleservices: • Digital mapping • Accounting data entry • Business Safaris services

35. Some examples of African based Teleservices

36. E-Transcription (manuscripts) • Company A • Receive (scanned) manuscripts over the net • Split it into sections • Parallel imputing (redundant entry) • Full formatting • Electronic document returned within 24 hours or less

37. Rates vary, US$ 1.00 to US$ 3.00 per page • One experienced operator can do up to six pages per hour • May require full redundant entry and quality control • Must partner with an established local company which will interface with local clients • Quality and consistency are paramount

38. E-editing • African group of legal professionals trained in the French (Napoleonic) legal system. • Receive daily, via net (scanned ) judgements issued by the Quebec courts ( in French) • Documents are summarized for publication • Overnight service • No details on rates (said to be excellent) • Need a formal contract with a local provider of such services • Need professional training and expertise

39. E-architectural support services • Company B receives electronic cad-cam files from Europe over the net • The European architects do the design, the West Africans do the detail work • Employs draftsmen and architects • Need powerful computers and software • Need training and experience • Multiple shift work • Well paid

40. E-Transcription (audio/video files) • Tests with African company • Receive audio tapes over the net • Split into sections • Parallel inputing (redundant entry) • Full formatting • Electronic document returned within 24 hours or less

41. 1hour tape = +/- 5 to 6 typed pages • US going rate is US$ 60 to 100 per hour! • Must partner with an established local company which will interface with local clients • Quality and consistency are paramount

42. E-Translation • African companies and Perwit itself • Receive (scanned)documents over the net • Split it into sections • Quality control, revisions, • Full formatting • Depending on size of document, electronic document returned within 24 hours or less.

43. English to French : per word rate is approximately US 10 to 15 cents. • Experienced translator can do 300 to 400 words per hour (especially using new softwares such as Dragon Dictate or Via voice and specialized “Termium”) • Must partner with an established local company which will interface with local clients • Quality , speed and consistency are paramount

44. E-Accounting • New opportunity • Accounting data entry and statement preparation • Receive (scanned) documents over the net • Post to ledger, prepare statements • New market • Requires experienced operators • Speed, consistency, productivity, quality and price

45. Lets take the accounting example • The work to be done • The people to do it • The facilities and hardware • The software • The connectivity • Performance criteria • Volume of business • Twinning • Mentoring

46. The work to be done • Read, interpret (all entries pre-coded) • Cheque stubs • Deposit books • Sales invoices (accounts receivables) • Bank statements • Supplier invoices (accounts payable) • Payroll data sheets

47. The people to do it • Able to read and write English • Introductory level Accounting training/experience • Computer skills - data entry proficiency • Basic personal skills - accuracy, organized, conscientious • Basic mathematical skills • Accounting software experience • -e.g. Quickbooks Pro V 6.0

48. The facilities and hardware • Reasonably secure facilities (data confidentiality) • Secure, surge protected power source • A good Internet server • A good back-up system • A good local Ethernet LAN • Pentium computers ( but not necessarily last model) • Phone and fax connection • Desk, chairs etc.

49. The software • Basic internet package (browser, FTP, e-mail, ICQ, Internet Telephony) • Specialized Accounting software ( depending on client) • MS Office or similar

50. The connectivity • Good, reliable, but • No need for high bandwidth Internet connection • No need to be online all the time. • Preferably, some redundancy