eCommerce Project
The Team
• Project Sponsors:
– Shelagh Holm, Director of Administrative Information
Systems
– Ron Ritter, Assoc Director and Treasurer, Financial
Services
• Team Lead:
– Stuart McFarlane, I.T. Manager, Financial Services
• Development Company:
– Bits in Glass
• Hosting Company
– IBM
What is eCommerce?
• Commerce is the sale or purchase of goods and services.
• eCommerce is commerce that is transacted electronically
for example, over a website.
Why eCommerce?
• Lower transaction costs - if an eCommerce site is
implemented well, the web can significantly lower both
order-taking costs up front and customer service costs
after the sale by automating processes.
• Integration with business applications - A Web site that
is well-integrated with business applications can offer
customers more information than previously available.
For example, real time account balances.
• Improved customer interactions - With automated tools
it is possible to interact with a customer in richer ways at
virtually no cost. For example, the customer might get
an email when the order is confirmed and after the order
arrives.
• Improved customer service helps promote the
universities vision to be "indisputably recognized...
nationally and internationally, as one of Canada's finest
universities, and amongst a handful of the world's best."
Background
• Financial Services manages a secure web based
eCommerce system that handles credit card transactions
for student fee payments.
• Integrated with Moneris - credit card clearing house for
Bank of Montreal and the Royal Bank of Canada.
• Improved Service - Students that once lined up for hours
now could pay through the Internet.
• Been in effect for the last 3 years and is now handling
over $60 Million dollars on an annual basis.
• Currently hosted by the Office of the Registrar.
• Development by an independent consulting firm, Bits in
Glass.
Proposal to Expand
• There are several campus applications that either accept
credit card payments through the web or that have plans
to collect credit card payments through the web.
• Financial Services had received a number of queries and
was asked to report to the Funding Solutions Task Force
about the practicality of extending their application to
provide web payment services for other applications.
• During the summer of 2004 the proposal was approved.
Current Status
• Financial Services has been working very closely with
Bits in Glass on the first phases of the project, which
include:
– System enhancements to ensure that the system
passes the new audit requirements
– Changing system to accommodate multiple
integration points with many campus applications
– Migration of the application to the new service
provider - IBM.
• To enhance the supportability of the application, some of
the code is being ported or migrated to the newer
versions of software that are compatible with our
PeopleSoft systems. (Weblogic, Crystal Reports)
Reasons For Centralizing
eCommerce
• Security – We can ensure that everyone meets the credit
card audit requirements.
• Reduced audit costs – Starting spring of 2005 anyone
conducting commerce on the internet must complete a
yearly audit. Audits start at $2500 Canadian.
• Economies of Scale – by building it once centrally each
area doesn’t have to reinvent the wheel.
• Automation - automatically move funds to the correct
speed code and account on a daily basis.
• Common reports – makes for easier reconciliation.
• AMEX – will now be rolled out at low discount rate.
Basic Flow Diagram
eCommerce Web
Application
(Department
Supplied)
Customer
Secure
Communication
Ecommerce
Plug-in
(Financial
Services
Supplied)
Initial release:
Java, .NET
Secure Communication
Payment Gateway
Online Reports
Secure Communication
PeopleSoft
Moneris
Conference App (Online Store)
• The ability to setup conferences or online stores in a
simple and quick method.
• The ability to update products and prices in a product
catalog.
• Date activated pricing - for example, early bird price VS
regular price.
• Different products can be linked to different speedcodes
and accounts.
Timelines
• Financial Services upgrade and migration to IBM to be
complete by March 1st 2005.
• Housing and Food to go live April 7th 2005
• Faculty of Extension to go live May 7th 2005
• Conference services to be available May/June 2005
• Open to the rest of Campus June 2005
Pricing
Cost per Transaction Structure
Annual Software Support Costs
•
•
•
•
•
Cost per transaction of 80
cents.
Transaction cost to be
reviewed and adjusted on
an annual basis
Conference services (Online
store) setup cost $300
The usual credit card
discount rates apply – same
as point of sale terminals.
(Visa, MC Amex)
Additional cost for any new
development required by a
department
$ 7,200
Annual IBM Hosting Costs
12,300
Annual Audit Costs
2,500
Estimated Annual Upgrade Costs
5,000
Total Annual Recoverable Costs
$ 27,000
Housing & Food Service Volume
5,000
Parking Services Volume
5,000
Faculty of Extension Volume
10,000
Facilities Management Volume
2,000
One Card Office Volume
5,000
Development Office Volume
5,000
Conferences and Others
3,000
Total Estimated Annual Volume
35,000
Estimated Transaction Fee
$
0.77
Proposed Transaction Fee
$
0.80
Questions?
• Stuart McFarlane
492-3000 x2233
[email protected]
• Shelagh Hohm
492-9309
[email protected]
• Ron Ritter
492-3000 x2268
[email protected]