The Information Yellow Brick Road

The Day-to-Day Realities of Doing
Follow the Yellow Brick Information Superhighway
Business on the Web
Pay No Attention to the Man

Behind the Curtain
Navigating The Yellow Brick Information Superhighway
Gary Green
Author of the upcoming book by the same title
Co-founder of 4Dshopping.com
Founder e-shortcut.com
“Super Affiliate” LinkShare.com
Former Director of Internet Business, Smith-Gardner & Associates
©1999 Gary Green 1
Imagine how
different Radio
would have
been if Marconi
had controlled
content and
how we surfed
channels…
Bored Yet?
©1999 Gary Green 2
We Might Have Heard:
.- / ..-. .. .-. . -.-- / .... --- .-. ... . /

.-- .. -
.... - .... . / ... .--. . . -.. / --- ..-. /
.-.. .. -
-. .... - .-.-.- / - .... ..- -. -.. . .-. .. -. -
-. / .... --- --- ..-. / -... . .- - ... .-.-.- /
.- -.
-.. / .- / .... . .- .-. - -.-- /
.-..-. .... .. -....- -
.-- --- / ... .. .-.. ...- . .-. .-..-. .-.-.- /
.-. . - ..
- .-. -. / .-- .. - .... / ..- ... / -. --- .-- /
- ---
/ - .... . / - .... .-. .. .-.. .-.. .. -. --. /
-.. .- -
.-- ... / --- ..-. /
-.-- . ... - . .-. -.-- . .- .-. /
- .... . / .-.. --- -. . / .-. .- -. --. . .-. /
.-. ..
-.. . ... / .- --. .- .. -. .-.-.-
©1999 Gary Green 3

Instead of hearing:
“A fiery horse with the speed of light. A

cloud of dust; and a hearty "Hi-yo Silver".
Return with us now to the thrilling days of
yesteryear; the Lone Ranger rides again.”
And who knows

when or IF
television would
have come
along?
©1999 Gary Green 4

Marconi-like nerds
have created the
rules and format

for web content…
©1999 Gary Green 5

..ignoring the expertise of
the greatest merchandisers

and marketers in the history
of the world…
American
Retailer
©1999 Gary Green 6
And you wonder
WHY?
•Only 1% of retail sales come

from the internet; while more
than 19% come from catalogs
(Forrester Research & eMarketer compared to Goldman Sachs retail market)
©1999 Gary Green 7

And you wonder
WHY?
• Yet 34% of the US homes

have internet access (Neilson Media Research 1999)
©1999 Gary Green 8

http://www.???
or
..-. .. .-. . -.-- / .... --- .-.
The techno-nerds make
consumers learn new rules and
we ignore the experience of
merchandisers…
…Just as if you’d been required

to learn morse code to listen to
©1999 Gary Green 9
Million
Have beenofspent on shelf-
Dollars
s
planning, product placement,
floor layout; and consumer
behavior tracking…
©1999 Gary Green 10
links; http; www; cookies; ssl;
server
But with the

side includes; java; click here;
scroll
new on line
down; boolean; search engine;
submit;
rules these
tcp/ip; asp; html; home page;
browser;
investments
bookmark; links; http; www;
cookies;
are…
ssl; server side includes; java;
click
©1999 Gary Green

12
links; http; www; cookies; ssl;
server
side includes; java; click here;

scroll
Ignored.
down; boolean; search engine;
submit;
tcp/ip; asp; html; home page;
browser;
bookmark; links; http; www;
cookies;
ssl; server side includes; java;
click
And the new Marconi’s
say “on the Information

Superhighway…
…those rules just don’t work.”

The
©1999 Gary Green

Information
Superhighway
15
…is really
more of an
Information
Yellow Brick
Road

Dazzling
storefronts
that truly do
rival the
Emerald City
of Oz.
And as you enter any one of these stores you are even further
courted, polished, and enticed as you move toward the great
and powerful wizard known as shopping.
But They Are Just Hollow Storefronts

The 1998
Christmas Roller
Blade Skate
Method

“I sell a $7.50 product on line, and in
labor, split cases, inventory

maintenance and tracking, it costs me
$15 to process the order…and that is
before shipping,”
1sy 2sy Orders

The Computer Store Model
• “in stock” items were NOT;

• the website is updated only weekly;
• a phone to get a ship tracking number…. caller
was put on hold for more than an hour only to
discover that the item had not been shipped
• “Even in those transactions which went relatively
smoothly, delays in receiving the merchandise
were quite common. Mis-shipments and price
mix-ups were common place.”
Interworld Magazine, Jan.

©1999 Gary Green 1999, writing about 21
Other typical infrastructures:
• The every-Thursday fax to the

warehouse;
• The “we don’t support that platform”;
• The “Our systems crashes at 30,000
orders”;
• The “backorders-what’s that?”

June 1999 Study by Indiana
University and KPMG

determined that consumers
feel:
Current shopping on line is

difficult to navigate (drill-
down shopping loses many
consumers…even the hard-
core web surfers)

But the number one issue cited
by KPMG & a LinkShare May

1999 Study, and the July 12,
1999 Wall Street Journal was:
Lack of store information

causing poor customer
service.

Pay No Attention To That

Man Behind The Curtain

Where are the ruby
slippers…
…the magic that WILL make it all

work; that will make all the glitter
and hype real?

The Nine Areas:
1. Customer Personalization &

Merchandising;
2. An Order Taking & Shopping Cart
system;
3. Methodologies for Automated
Payment & Security;
4. Order Management;
5. Warehousing (pick-pack-ship)

The Nine Areas:
6. Customer Service;
7. Inventory Accounting real time with
each transaction;
8. System Interoperability;
9. Business processes and marketing
the site.

Enterprise Full
I-commerce Solution
…without the kludge of piece-meal patches.

Customer
Per sonalization &
Merchandising

Dynamic Page Routing
Shows different looking pages…even different
catalogs & prices…based on how the customer
gets to the web site:
actual WebOrder™ site:

www.journeyed.com
linking from Dell
Computers & from Yahoo

Not Just A Different

Looking Page…
….but a different OFFER!

Dell Computers &

Journey Education

©1999 Gary Green

Alone
Journey Stand
34
©1999 Gary Green

U of Florida
35
©1999 Gary Green

USC
36
©1999 Gary Green

Journey home
37
©1999 Gary Green

RFM
Data
38
Model
©1999 Gary Green

Personal Shopper
39
©1999 Gary Green

Birthday Module
40
Campaign Management
Through Data Marts
ODBC Compliant Data Marts containing

Warehoused summarized data
Required for industry standard and customized reporting
Advertising Customer Daily/Weekly/M

Merchandise Lifetime onthly
Response
Performance RFM/Source Productivity
Analysis
Analysis Analysis Analysis
(RFM)

©1999 Gary Green

Campaign
Analytical Tools
42
Or der Taking &

Shopping Car t
System

Multi-company & Multi
Divisional

Keyword searches, Category
Search searches, Sounds-like, full words or
Engine… partial word searches,all with sub-

second response time ...

©1999 Gary Green

Big words
46
Product Categories
Sub Categories

©1999 Gary Green

Gemplers
48
Dynamically Created Product
Pages From One Data Source

On the Fly Pricing and
Product Changes
Changing
the price
requires no
web design.
Simply type
the new
price in the
“Item
Master” and
the web
page
redesigns
itself.

Availability Flags
(Including Expected Inventory Dates)

©1999 Gary Green

In stock?
52
©1999 Gary Green

…Maybe/Maybe Not
53
©1999 Gary Green

…or did we lie?
54
©1999 Gary Green

…or did we lie?
55
©1999 Gary Green

…or is it in code?
56
Dynamic On-the-fly
Style Matrix

Kits
(the Ability to Bundle Individual but
Related Products Into One SKU)

Up-sell and Cross-sell
Tied to Products

©1999 Gary Green

Coldwater Creek
60
Discounts, Coupons, &
Price Breaks

Automated Sale
Pricing Periods
November 1st
Web page
November 2nd
Web page
Automatically Populate
Order Form
For Returning
Customers

Order Recap
(and changes)
Before Processing

Instant Order Number
& True Confirmation
+ email
confirmations
Customer Service Phone Operators Can Real Time Review Order

©1999 Gary Green

1
2
Confirmed Before You Order?
66
©1999 Gary Green

Payment & Security
67
TRANSACTION
MODEL
vs.
Client Server

In a true client-server
model, the “client”

computer is always
connected to the
“server”.
The server
knows who and
where the client
is.

Despite the hype…the Internet is NOT a
client server model of computing…

•Once a web page has loaded, the
client connection to the server has
ended.
•The server can even be unplugged
and the page will still be on the
“client” machine.

Rather, the Internet is a
TRANSACTION model:
both the connection and the

data passed depend on a
single one-way sending of
information…transactions

…to compensate, the
web creates software
devices to “fake” the

client relationship.
•Cookies
•Session Ids
•User names
•Mini-programs (java applets,
server-side includes, etc.)

©1999 Gary Green

Cookies
73
Company that
planted cookie Typical Cookie
(Amazon.com)
x-mainEm520rtC2lzqimMpKai4WG?
2F6Tmp1rMamazon.com/02916341376319612691858866624292719
81*ubid-main002-8774971-
9123642amazon.com/0291634137631961269185886662429271981
*session-id-
time932025600amazon.com/0156696576292819443155777600292
80650*session-id002-7741812-
5659027amazon.com/015669657629281944315637760029280650*
Session ID to
artificially
maintain “spying” information to see
client/server if customer goes to
environment competitor’s auction site
(Ubid)

Commercial
Anti-Cookie Software

Highly Secure
“Brownie”
Shopping Cart
Technology
…no cookies or other customer security risks

The Same Transaction
Model Follows For

Data Base Calls…

In the client-server model a
“relational” table must

open for each database
item from which
information is needed
For example, to
perform the
TRANSACTION of
doing an RFM upsell
based on customer,
order, order details,
categories of purchase
and products…

Only one database is opened…

but five (or more) tables must
be scanned for data

But to create the same page in

a TRANSACTIONAL data
base…
Multiple tables are

NOT uses; rather
transactions occur
in a specified
order.

This allows much faster and

clearly more efficient creation
of data-driven pages…
Allowing such fast and

secure payment processes
such as:

©1999 Gary Green

Dynamic Tax Tables
82
©1999 Gary Green

Tax Calculations…
83
©1999 Gary Green

vs. more customer work
84
©1999 Gary Green

Offer-driven
Payment Method
85
Payment Method
Flexibility
•Split Pay Methods

•Multi-currency
•Multi-Lingual
•Open Account
•P.O.
•Traditional Paper Checks (guaranteed through 3 rd
party)
Installment Billing To
Credit Card

Money Saving
Pre-authorization
Screening Of Credit Cards
•Check-digit routine for credit card
numbers
•Redline controls
•Charge amount controls
•Number of orders controls
•Credit card frequency controls
…more

©1999 Gary Green

SSL & Encryption Protocols
89
©1999 Gary Green

Order Management
90
©1999 Gary Green

How Do I Order?
91
©1999 Gary Green

How Do I Order?
92
Take You Back To The
Same Page!

Create Product
Definitions (types)
•Regular Active
•New
•Continuity (timed shipments)
•To Be Cancelled
•Cancelled-Refund Prepaid
•Gift Certificates
•Always Drop Ship
•Optional Drop Ship
•Communicate Information
•Gift Product
•Customized/Personalized
•Kits, groups
•…many more

Backorder
Processing & FTC
Notices
•Same rules for catalog orders apply to Internet
orders…and same PENALTIES for failing to
comply.
•Software should generate automated FTC

notices based on real time inventory analysis.
•Software should have built-in Backorder

Processing Logic

Flexible Order
Processing Options
Process by:
•State
•City
•Warehouse Locations
•Single orders
•Special Requirements (Holiday
Orders Only, for example)
…many other flexible options

using your own rules for
customization.
Real Time Order Bar
Graph Analysis
(Orders Per Hour)

©1999 Gary Green

Shipping
Warehousing &
98
Dynamic Shipping
Methods
By Offer…or

ITEM-BASED
Dynamic Shipping
Methods

©1999 Gary Green

Dynamic
Shipping Tables
101
©1999 Gary Green

Compute Shipping On The Fly…
102
…vs. make the customer work more

©1999 Gary Green

Order
Comments
104
A reporting
system at every
step

Inventory Decision Support
•A system should have the ability to create curves

from past on-line offer history (catalogs)
•From item, style, category, and offer
•Link current on-line offer to past offer(s)
•Project all current web offer sales simultaneously
•Overlay demand, receipts, and returns
•Automated alert of overstock (and

ability to quickly promote overstocks)
•Item exception reporting

©1999 Gary Green

Customer Service
107
©1999 Gary Green

Tough Luck…
108
©1999 Gary Green

You Can Contact Us
109
You CAN bother us…
but please follow three
pages of rules if you do.

…or you can use

your computer to
talk to customer
service… in
person!

But what
information is
available once
you DO contact
the company
?

On-line Order Status
& History
1. Complete Customer Order History

2. Real Time Status of Outstanding Order(s)
3. Ability to repeat past orders (at current offer price)

Checked for 11 hours
after order was
placed…
both on line
and via
telephone

©1999 Gary Green

Order Status
115
©1999 Gary Green

History
Complete Order
116
©1999 Gary Green

Real Time Details
117
©1999 Gary Green

Automated
Ship Tracking
118
Timed Shopping Cart
Saves
Options:
1. Abandon Cart
2. Complete Order
3. Save Cart until future return to site

All Software
Should Provide An
Automated Order
Confirmation
E-mail

As Well As An Automated
Order Ship Confirmation
E-mail

©1999 Gary Green

E-mail
Automated Up-sell
122
Broadcast E-mails
You should have the ability to automatically e-mail

groups of customers based on like characteristics (such
as all customers who shopped on a certain date, or all
purchasers of a certain product, or all customers within
a certain state or zip code, etc.).
There should be no limit to the number of automated or
differently-grouped e-mails you can target to your
customers.

©1999 Gary Green

Reporting
Customer Service
124
©1999 Gary Green

Reporting
Accounting &
125
©1999 Gary Green

Analysis
Financial Control &
126
Product Purchasing Analysis & Forecasting
•Historical Forecasting:
Ability to analyze optimum inventory levels
based on previous demand history.
•Projection Forecasting:
Ability to project future inventory needs on
customer base and customer growth rate
(rather than inventory analysis).

Integrated Purchasing
•Vendor Analysis:Ability to analyzes purchasing history

through multiple vendors per product and determines
optimal vendor.
•Item Analysis:Ability to analyze trends, category

analysis, vendor sales, net available, and recommends
orders.
• P.O. Analysis:Ability to recommend

purchasing based on P.O. history.
•Real time purchasing

requests:
Ability to automatically
requisition products when
inventory falls below minimal
levels.

Accounting Reporting
Should Be A Basic Part Of

Your Web Plan
Example: Cash In Barometer

©1999 Gary Green

System
Interoperability
130
You MUST Insist on An Open API & SDK
•ODBC Compliant
•API and Software Developers Kit
•Built-in support for legacy databases, Oracle, etc
•Java Virtual Machine and JDK
•Works with Microsoft ASP
•Transaction Server based
solutions
•Pre-designed for IA-64
•Designed for Y2K (not
converted to)

One Example of
Totally Open
Data Exchange
XML standard (eXtensible Markup Language)
to allow any platform to access the data
End User On Web XML broker

(Unix, Solaris, Linux, NT etc.)
Web Server
Array
Powerful Transaction
©1999 Gary Green Server Backend 132
Experience
(vs. Internet Fly-By-Nighters)

©1999 Gary Green

delias
134
©1999 Gary Green

Hickory Farms
135
©1999 Gary Green

Official Fan Club
136
©1999 Gary Green

That Pet Place
137
©1999 Gary Green

Wine Enthusiast
138
©1999 Gary Green

uBid
139
©1999 Gary Green

Outpost.com
140
©1999 Gary Green

Lands End
141
The Outside Is Not
Important…To Have A
HEART you have to

look at what is INSIDE

©1999 Gary Green

No More Hollow Storefronts!
143
For a copy of this
presentation…
www.garygreen.co
m
Click on TECHNOLOGY
button and then look
under SLIDESHOWS on the
page that comes up
or e-mail:
g-2@garygreen.com

The Information Yellow Brick Road

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The Day-to-Day Realities of Doing

Follow the Yellow Brick Information Superhighway

Business on the Web

Pay No Attention to the Man

.- / ..-. .. .-. . -.-- / .... --- .-. ... . /

©1999 Gary Green 3

“A fiery horse with the speed of light. A

And who knows

©1999 Gary Green 4

rules and format

©1999 Gary Green 5

the greatest merchandisers

•Only 1% of retail sales come

©1999 Gary Green 7

• Yet 34% of the US homes

©1999 Gary Green 8

…Just as if you’d been required

But with the

©1999 Gary Green

side includes; java; click here;

say “on the Information

…those rules just don’t work.”

©1999 Gary Green 14

©1999 Gary Green

©1999 Gary Green 16

©1999 Gary Green 18

©1999 Gary Green 19

labor, split cases, inventory

1sy 2sy Orders

©1999 Gary Green 20

• “in stock” items were NOT;

Interworld Magazine, Jan.

• The every-Thursday fax to the

©1999 Gary Green 22

University and KPMG

Current shopping on line is

©1999 Gary Green 23

by KPMG & a LinkShare May

Lack of store information

©1999 Gary Green 24

Pay No Attention To That

©1999 Gary Green 25

…the magic that WILL make it all

©1999 Gary Green 26

1. Customer Personalization &

©1999 Gary Green 27

©1999 Gary Green 28

…without the kludge of piece-meal patches.

©1999 Gary Green 30

actual WebOrder™ site:

©1999 Gary Green 31

Not Just A Different

….but a different OFFER!

©1999 Gary Green 32

Dell Computers &

©1999 Gary Green 33

©1999 Gary Green

©1999 Gary Green

©1999 Gary Green

©1999 Gary Green

©1999 Gary Green

©1999 Gary Green

©1999 Gary Green

ODBC Compliant Data Marts containing