Tag: internet

Fiddling the prices

Has the Internet’s promise of transparency failed as online retailers vary prices.

Discriminatory pricing is nothing new, a good salesperson or market stallholder can quickly sum up a punter’s ability or willingness to pay and offer the price which will get a sale.

Anybody who’s travelled in countries like Thailand or China is used to Gwailos and Farang prices being substantially higher even for official charges like entrance fees to national parks and museums.

The Internet takes the opportunity for discriminatory pricing even further arming online stores armed with a huge amount of customer information which allows them to set prices according to what the algorithm thinks will be the best deal for the seller.

Recently researchers found that the Orbitz website would offer cheaper deals for people searching for fares on mobile phones and prices would vary depending of which brand of smartphone people would use.

Writers for the Wall Street Journal did an experiment with buying staplers and found the same thing.

Interestingly, one of the factors Staples’ seems to take into account is the distance customers live from a competitors’s store – the closer you live to the competition, the lower the price offered.

There’s also other factors at play; sometimes you don’t want a customer, or you don’t want to sell a particular product and it’s easy to guess the formulas used by Staples and other big retailers do the same thing.

One of the great promises of the internet was that customers’ access to information would usher in a new era of transparency. In this case it seems the opposite is happening.

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Did online democracy ever exist?

The idea of democracy in an online world dominated by private interests is a misnomer.

“Democracy is dead” proclaim online pundits as Facebook closes down their corporate governance feedback pages.

The question though is whether democracy really exists online; the internet is largely a privately run operation which makes the hysteria about the International Telecommunication Union’s attempts to impose standards on the web all the so more fascinating.

As a consequence of almost every internet service being run by private organisations, rights and concepts like “democracy” are pretty well irrelevant and have been since the first connection to ARPANET.

When we use services like Facebook, or even our internet provider’s email account, we are only being allowed to do so within the companies’ interpretation of their terms and conditions.

Often those interpretations are wrong or bizarre as we see with Facebook’s War on Nipples and often the results of misinterpretation are costly for businesses.

But we have little recourse as these sites are private property and the owners can do pretty well what they like within the law.

Just a like a shopping mall, if the managements of Amazon, Google or Facebook want you to leave their service then you have no choice but to do so.

We can squeal about rights online, but in reality we have few.

That’s something we should keep in mind when investing our time or business capital into any particular platform.

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Repelling the online break and enter merchants

Romanian crime gangs have broken into business systems in Australia and the US, how can you stop them from stealing your customers’ credit card data?

Last week’s bust of a gang of credit card thieves by the Australian Federal Police is a warning to businesses on the need to take computer security seriously.

In Australia a Romanian crime gang targeted small retail businesses’ computer system and stole customers’ credit card details. They would then use the data to create fake credit cards.

A year ago US Authorities broke up a similar gang who had targeted Subway computer franchises which netted the gang over $10 million before they were caught.

In both cases the gangs used remote access software that was included with their victim’s Point Of Sale (POS) equipment. Once logged into the target’s computers, the bad guys were able to install key logging and monitoring software so they could steal credit card details as they were entered into the system.

There’s a number of lessons in both the Australian and US experiences for big and small business on securing systems safely.

Use secure passwords

It’s almost boring to say this, but you need strong passwords for your systems and networks. Make sure you change all default passwords on the systems so they aren’t easily guessed or broken into.

Secure your systems

The Subway hack happened because of sloppy security, you can harden your systems by following good practices such as updating your systems, having malware protection and proper access policies.

Both the Australian and US incidents happened on Windows computers. The crooks were able to get into the computers and then install software because the victims were running in Administrator mode which allows anybody on the computer to control the system.

Daily use should be in limited user mode which stops people from installing software or changing system settings andAdministrator accounts should only be used for system maintenance and have very strong passwords which are different to the normal limited user profile.

Turn off remote access

Another common factor in the US and Australian incidents is the use of remote access software so technicians can check things and managers can login in from home and other sites.

Unless these are properly set up they are a serious security risk. Unless you or your supplier knows exactly what they are doing, these can open a door from the public Internet straight into your system.

Do not use them unless you are 100% confident in yours, or your suppliers’, ability to run these properly.

Comply with standards

Another factor in these incidents is that systems haven’t complied with the PCI-DSS security standards for card payments. Again if you don’t understand these – and they are complex – find a POS vendor or payments processor who does.

Basically, the standard requires that customers’ card details are not stored on your systems and that devices for processing payments are kept separate from other equipment in your shop or office. Following these basic rules would avoid many of the problems.

Consider cloud services

Many of the problems businesses confront with security is because they don’t have the skills or resources to deal with the ever evolving security threats.

Moving POS systems and other business critical functions onto cloud services addresses many of these issues so it is worthwhile considering ditching expensive, unreliable and sometimes insecure server or desktop based systems and move to cloud services that use tablet computers or smartphones.

Whichever choice you make, it’s important to be engaging suppliers and consultants you can trust because if your customers can’t trust you with their details, then you are out of business.

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Protecting yourself on Facebook

A follow up to listeners’ questions from December’s 702 Sydney morning program

One of the topics we looked at in yesterday’s ABC 702 Morning show was how to protect yourself on Facebook.

We had a number of callers struggling with controlling spam and scams that seem to be coming from their Facebook details. To fix this, you need to lock your personal details so they can’t be seen by the public.

The detailed instructions on how to lockdown your Facebook page are available on the Netsmarts website.

Our next ABC Mornings spot will probably be in late January. We’ll let you know when it’s approaching.

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What would you do if the computer screen went dark?

Warrnambool’s phone problems remind businesses of the importance of continuity planning

What would you do if the computer went dark? originally appeared in Smart Company on November 29, 2012.

One of the truisms of business is the more ways customers can pay; the more likely you are to make the sale.

This is particularly true when something goes wrong – the customer hasn’t any cash, the till is jammed or the EFTPOS system is down.

Exactly this happened to thousands of businesses across south-west Victoria last week when a fire burned down the Warrnambool telephone exchange.

Unfortunately for the people and businesses of the surrounding region, much of the telephone, internet and Telstra’s mobile network runs through the burned out telephone exchange, sending the district back into the pre-telephone days.

This presented real problems as customers couldn’t use EFTPOS or get cash out of ATMs, while businesses struggled to get payrolls done or place orders with suppliers who couldn’t comprehend that it wasn’t possible to place orders over the net or by fax.

A hundred kilometres north of Warrnambool in the Grampians town of Dunkeld, a cafe worker told the ABC, “suppliers say ‘send a fax’ and you’re like ‘we can’t’ and they’re like ‘oh, we don’t want to handwrite it’.”

Those suppliers are a good example of not having the systems or staff in place to deal with ‘out of the box’ situations.

Unexpected events like the phone network being down for a week, major floods, devastating bushfires or zombie invasions will test businesses and it’s why having a real Business Continuity Plan (BCP) is important for business.

A workable BCP is one that identifies all the critical failure points for the business such as not having the internet for a week, a flooded office or, as happened to one of my clients, their entire building collapsing into the construction site next door.

The various state business agencies have guides on what to consider in a Business Continuity Plan including a good one from the South Australian government.

Regardless of how comprehensive a plan your business has, the most important part is going to be your people. If your organisation is staffed or managed by people who like to say “computer says no,” then they are going to be particularly useless when the computer is stone dead.

As the Warrnambool outage shows, unexpected business disruptions can come from anywhere, so flexible thinking and initiative is what matters in a crisis. It’s something worth thinking about with your staff and systems.

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Trapped in a walled garden

Can social media services like facebook stay relevant as they manage content?

Following up on last week’s criticism of Facebook, US entrepreneur Mark Cuban clarified his position about the social network.

Central to Mark’s criticism are three points about Facebook’s business model; that it is a time waster, it takes control away from users and it doesn’t succeed in connecting people to information and friends.

All of this is true, and these features are key to the walled garden model that all of the internet empires want to build.

Central to this strategy is the “time on site” metric and so far Facebook beats all comers, with a huge 400 minutes per month per user.

Users who spend a long time on a website are more valuable than those who don’t hang around and Facebook’s success has been in capturing the attention of their members and locking them into their platform.

The willingness of other websites, particularly media companies, to lock themselves into Facebook’s platform has puzzled many observers as they are giving their customers away to the social media service.

How willing internet users are in hanging around Facebook’s, or Amazon’s, Google’s and Apple’s, walled gardens remains to be seen; it depends upon how compelling the content and value is.

If Mark Cuban’s right, viewers’ eyeballs and advertising dollars may start moving away from Facebook when people realise they are missing out on relevant information.

The real value in media organisations, whether we talk about old media such as newspapers or new media like social platforms, is in presenting relevant information to visitors and readers. As the many news organisations are learning, when you stop being relevant then people stop paying attention.

Being relevant is the great challenge for Facebook, newspapers and all media organisations.

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What is an Internet company?

Does having a website make a company an internet business?

Deloitte’s 2012 fast 50 list of Australia’s fastest growing technology companies announced last week is an impressive list of diverse businesses ranging from online retailers to technology support firms, but it raises the question of what exactly is a ‘technology’ or ‘internet’ company.

A quick look at the top twenty illustrates how broad the “internet” category is, with eleven coming under the classification;

. 1 brandsExclusive (Australia) Pty Ltd 1335.1% Internet
. 2 Australian Renewable Fuels Ltd 1235.7% Life Sciences
. 3 SolveIT Software Pty Ltd 678.9% Software
. 4 Kogan Technologies Pty Ltd 515.6% Internet
. 5 Neon Stingray Pty Ltd 467.7% Internet
. 6 Infoready Pty Ltd 418.1% Software
. 7 SMS Central Australia Pty Ltd 371.6% Communications
. 8 Cohort Digital Pty Ltd 295.6% Internet
. 9 Redbubble Pty Ltd 275% Internet
. 10 astutepayroll.com 256.7% Software
. 11 SurfStitch Pty Ltd 252.7% Internet
. 12 BizCover Pty Ltd 249.9% Internet
. 13 Appen Holdings Pty Ltd 225.5% Communications
. 14 MyNetFone Pty Ltd 216.7% Communications
. 15 Appliances Online 206.2% Internet
. 16 Time Telecom Pty Ltd (Smart Business Telecom) 205.6% Communications
. 17 BigAir Group Ltd 202.2% Communications
. 18 Observatory Crest Australia Pty Ltd 198.1% Software
. 19 Tom Waterhouse Pty Ltd 196% Internet
. 20 Bulletproof Networks Pty Ltd 178.4% Internet

Included among those eleven ‘internet’ companies is the winner, Brands Direct, along with Redbubble, Appliances Online and Tom Waterhouse.

Tom Waterhouse is an online bookmaker, Appliances Online is a whitegoods retailer, Red Bubble is a design marketplace and Brands Direct is a fashion retailer.

While the internet is the core distribution channel for all of these companies, they are not ‘internet’ companies – they are retailers, marketplaces and bookmakers. The web is important, but it isn’t their business.

Calling them “internet companies” in many ways misses the point of just how ubiquitous the net has become to business operations. It also risks double counting as Appliances Online’s staff are counted both as retail and internet employees – something government agencies are notorious for.

We’d understand a lot more about the web’s reach if we didn’t label these fast growth businesses with the somewhat meaningless term of “internet companies”.

None of this detracts from the achievements of these businesses, their managers and proprietors. These companies are on track to being the leaders of the future.

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