Introduction
The technological landscape of the banking industry has been ever changing over the past two and a half decades. Banks have transformed from institutions that used computers for mere efficiency and convenience into corporate conglomerates that are totally dependant upon computers and banking software. Banks around the world are dependent upon banking software at all levels of business; from the highest level of management proper down to meeting consumer needs.
There is no question that information technology and the consistent creation of better, more efficient software has played a key role in the explosive growth of the banking industry worldwide. Electronic banking allows member to do their banking transactions without visiting a branch. Banks, credit unions, and investment centers have all introduced their own e-banking system in order to stay competitive. The convenience that electronic banking presents is tantalizing to customers and strengthens the relationships to the company providing the service.
E-Banking can provide many risks as well as benefits to the banker. The risks associated with e-banking can destroy the reputation of a bank, thus leading to the loss of business. Do these risks outweigh the benefits? Or is the opposite true? E-banking can save an enormous amount of money and encourage a customer to “stick” with the bank. A bank must weigh these options before deciding what is right for the institution. Banking Information Technology poses both benefits and risks for consumers. Customers have the option to pick, choose and refuse the many financial institutions that are out here today. Customers hold privacy with great value and convenience with high standards.
Banking Software IT
Banking software and information technology are some of the core components of the unusual day banking industry. The use of online banking has transformed the landscape of the banking industry so much that there are basically three types of banking institutions recognized in the industry today, and each bank will generally topple into one of these categories.
The first type of bank that a customer can go to is a traditional “brick and mortar” institution has a building and personal service representatives, but doesn’t offer Internet banking services. These are usually smaller, community institutions; located in rural areas, which have a loyal, community customer base that does not depend upon online banking to fulfill their banking needs.
The second type of banking institute available is a “brick and click” financial institution that has a physical structure, and also offers Internet banking services, which is the most common type of bank found today. Finally, the consumer may choose a “virtual” bank or financial institution that has no public building and is only accessible online (Federal Reserve Bank, 2006).
There are many things that banks must think when choosing the software that will ultimately become the institution’s core infrastructure. The bank not only has to consider customer needs and desires, but it must also assess its own IT needs, and employee needs, as well as security and privacy issues. As many options as there are available in banking software today, banks can customize their banking software to fit their IT needs regardless of how great or small.
According to Grant Bowman, Branch Manager and Assistant-Vice President of Retail Banking for Scamper Bank, one of the top three banks in the nation, everything that the bank does short of assert customer contact is dependant upon its banking software (Bowman, 2006). The banking software that Move Bank uses for its IT infrastructure has many capabilities. The software offers bank management on-hand human resource databases, time management capabilities, and network email/inner office communications that are necessary for interaction with other branches, and upper management. The software offers personal bankers sales opportunities through customer databases and cross-referenced account and product information that allow the personal bankers to quickly gauge a customers lending, investment, or myth needs. This software also provides management and personal bankers with external links to outside financial institutions that allow them to assess CD, bond, and interest rates for competitive pricing.
Finally, the banking software used by Chase Bank allows its tellers to work quickly and efficiently to relieve customers in a timely manner. Customer accounts are quickly accessible with minimal customer information input, and the expend of scanners for all checks and deposits offer fleet problem resolution for the tellers and customers (Bowman, 2006).
The turnaround time for information availability, combined with the banking options that an institution’s banking software will allow its customers, can either encourage or encumber the bank’s service relationship with its customers. With the current “real-time” mindset of American consumers, there are certain options that most customers are seeking from their banking institution’s banking software, as well as their online software. Mr. Bowman stated that most of the customers in his market are looking for Chase Banks software to provide them with access to instant “real-time” account transactions either through tellers or online; 24-hour instant access to their money through ATMs; and capabilities to transfer funds from account to account, or from their account to a vendor through Online Billpay at anytime.
Customer’s also want to know that personal bankers are aware of their financial needs in order to assess whether or not they are currently in the narrative, loan, or investment that is going to be the most sterling for them. Finally, and probably most importantly, customers want to know that their financial information, whether in-house or online, is private and secure at all times (Bowman, 2006).
When taking the privacy and security issues of banking software into consideration, one does not have to look far to find evidence that this is a major concern to banking customers, managers, and even federal banking regulators. In 2004, research found that nearly two million Americans had their checking accounts raided by criminals in a 12 month period. Consumers reported an average loss per incident of $1,200, pushing total losses higher than $2 billion for the year (Sullivan, 2004). The vulnerable combination of internet banking, networks used by banks to communicate within their organization, and the lure of untold millions available for pilfering to extremely intelligent and persistent high-tech thieves has left banks worldwide with a feeling of being under constant siege. Although banks are very tight-lipped regarding their security issues, reports show that even the largest banks are constant targets.
In May of 2004, Citibank reportedly overtook eBay as the most celebrated target for phishing attacks. Phishing is an e-mail, which attempts to steal consumers’ user names and passwords by imitating e-mails from legitimate financial institutions. Citibank faced an average of 16 attacks per day, and 475 separate phishing attacks during April, an increase of nearly 400 percent from March (Sullivan, 2004). Citibank has even gone so far as to post the following ten “Phishing Protection Tips” in order to educate their customers (Phishing Fraud Alert, 2004):
• Never click on Hyperlinks within emails, instead, copy and paste them into your browser
• Use SPAM Filter Software
• Use Anti-Virus Software
• Exercise a Personal Firewall
• Support Software Updated (operating systems and web browsers)
• Always look for “https://” and padlock on web sites that require personal information
• Hold your computer clean from Spyware
• Educate Yourself of fraudulent activity on the Internet
• Check & monitor your credit report
• Seek Advice – if you are unsure, ask: scams@fraudwatchinternational.com
According to the Federal Deposit Insurance Corporation, financial modernization and the growth of electronic commerce continues to heighten public interest in maintaining the privacy of consumer personal information in both the physical and virtual environments. Because the business of banking relies upon customers’ willingness to disclose confidential personal information, the FDIC encourages every financial institution to achieve and follow a privacy policy that addresses what are generally referred to as pleasing information practice principles, which have been articulated by a variety of governmental and intergovernmental entities (FDIC, 1999).
Five core principles advocated by the Federal Trade Commission (FTC) are: notice to consumers about information practices; choice for consumers about how personal information may be used; access for consumers to personal information and the ability to correct errors; security and integrity of consumer data; and enforcement and consumer redress (FDIC, 1999). The endless information that is available on this topic is a clear indicator of the impact that IT and banking software capabilities have on individual and commercial consumers alike. As technology continues to arrive, it is imperative that the banking institutions that will handle money and financial data for today’s consumers have the most advanced, innovative software that will not only provide customer convenience and market competitiveness, but will also provide cutting-edge security for those that it serves.
E-banking
“Electronic banking, also known as e-banking, is an umbrella term for the process by which a customer may perform banking transactions electronically without visiting a brick-and-mortar institution.”(Insley, 2003). Electronic banking is often called e-banking, and is used interchangeably with PC banking, internet banking, and home banking. Companies will often utilize their own term for the same concept. For instance, Chartway Federal Credit Union utilizes the term “ebranch” to describe their electronic banking tool. Electronic services are becoming an essential tool for financial institutions from banks, to investment centers.
E-banking allows customers to perform many different transactions without entering a branch. According to Chartway’s home page, customers are able to view current and available account balances, and account transactions. Customers may also transfer between accounts, set up recurring and future dated transfers. Recently Chartway added the ability to view Chartway credit card transactions, and customers may transfer funds to pay their credit card. Customers may also request new sub accounts or open up whole new accounts. Chartway has also introduced a new feature which allows customers to apply for loans online, which will be reviewed by loan processors and credit officers. Often, loan decision may be given to the customer on the same day. This is very convenient for those customers who are just unable to bank during banking hours. Statements may be viewed online and customers have the option to only receive their statements electronically. Chartway calls this feature “e-statements.”
Accessing Chartway’s e-banking tool is free to all of its customers. The company’s major electronic banking feature is their Bill Payer program, which allows customers to set up electronic payments to different companies. Bill Payer is free to customers if they pay three bills or more a month, and enroll into their estatement program. If they do not meet those two features, there is a $4.95 a month service charge. Bank of America has the same online bill paying services, and does not charge a fee, but other fees for services may apply. As many banking customers discover all of the features that online banking offers, Chartway may have to consider making this feature free in order to stay competitive.
“The bank branch remains the most important channel in terms of revenue generation” (US Banking, 2005). Many customers prefer making major financial decisions with bank associates. Call centers, and automated teller machines are also being utilized for banking transactions. However, electronic banking is viewed as a sophisticated tool for customers, and a must have commodity for banks. As dotcom hustle dissipates, the Internet is re-emerging as the priority channel for technology investments and banks are entering an e-banking technology renewal cycle, which includes functionality and usability of websites and enhancing integration with other channels (Spotlight Returns, 2005).
E-banking may display banks with the opportunity to strengthen their relationships with customers. As more and more customers enroll in online banking services, banks are presented with the opportunity to cross-sell and up-sell to further increase fee revenue (Danglemaieur, 2005). Electronic banking may improve new account growth, revenue growth and customer retention. E-banking is considered to be the technology solution for some of the top business challenges including those previously discussed, and expanding up/down the market, and cost reduction (Danglemaieur, 2005).
Many customers enjoy online banking for its convenience. Customers can luxuriate in the convenience of e-banking anytime and anywhere. With remark deposit and bank-to-bank electronic funds transfers, e-banking may be the only tool that customers need to do their transactions. As technological advances increase, the banking industries and other financial industries may continue to make strides to improve the services that are provided to customers.
Bank’s Benefits and Risks
As online banking can be risky for the customer to use, is it just as risky for the banker. As mentioned earlier in the paper, phishing is one of the newest forms of Internet fraud and has become very sophisticated in the past few years. Many of these phishing scams involve emails being sent to victims containing link to their bank’s “website”. The website is usually very well designed and is easily mistaken for the real thing. Unfortunately, even if the victim does not give out the personal information being requested, these websites often fill a type of virus known as a Trojan horse virus.
The Trojan horse virus collects your personal information while you access other websites requesting passwords and then records those pins and passwords. Joe Lopez, a Miami business man, is actually suing Bank of America because this type of virus allowed a criminal to wire over $90,000 from his chronicle to a bank in Riga, Latvia. The bank contends that it was his personal computer that became infected with a Trojan virus but Lopez states that he should have been notified that such a large transaction was being made, especially since that is a country that has a high rate of cyber crime (Accountingweb.com, 2005).
It is important to discuss these types of activities because they can be detrimental to the reputation of a bank. Some of the ways in which e-banking can influence an institution’s reputation include:
• Loss of trust due to unauthorized activity on customer accounts,
• Disclosure or theft of confidential customer information to unauthorized parties (e.g., hackers),
• Failure to suppose on marketing claims,
• Failure to provide reliable service due to the frequency or duration of service disruptions,
• Customer complaints about the anxiety in using e-banking services and the inability of the institution’s support desk to decide problems,
• Confusion between services provided by the financial institution and services provided by other businesses linked from the website (FFIEC, 2003).
Online banking saves the institution a significant amount of money “studies have shown that online banking customers are more profitable than offline customers—they make fewer customer service calls and are less likely to switch banks” (Winstead, 2005). Winstead (2005) also tells us that “if you’re a bank, you don’t build money on customers who just check their anecdote balance online; the big bucks approach from other services.” It is also important to label that “as Internet users bag more experience online, they are more likely to perform activities that involve money, such as paying bills, making online purchases and travel reservations, and participating in online auctions (Winstead, 2005). Most of these services contain fees that the bank would not normally see from a customer who does all of their banking in person.
With emerging scams, the fear of security risks grows. Although online banking could be coined as the fasting growing type of online activity, there is unexcited room for growth, which, as described above, is a revenue generator.
There is a clear distinction between the age groups of those doing their banking online. A study done by Yahoo found a “substantial difference in Internet usage patterns between users under 40 years old and those over 40. 72 percent of the younger group checked their balances online versus only 37 percent of the older consumers” (Kelley, 2005). The older generation seems to be more leery of doing transactions online for apprehension of security risks.
There are some other risks that the bank may incur as well. The Federal Financial Institutions Examination Council (2003) gives some examples:
Transaction/Operations risk – Wireless services create a heightened level of potential operations risk due to limitations in wireless technology. Security solutions that work in wired networks must be modified for application in a wireless environment. The transfer of information from a wired to a wireless environment can create additional risks to the integrity and confidentiality of the information exchanged.
Strategic risk – Financial institutions considering wireless services should carefully evaluate the significant strategic risks posed by this service delivery channel. Standards for wireless communication are still evolving, creating considerable uncertainty regarding the scalability of existing wireless products. Financial institutions should exercise extra diligence in preparing and evaluating the cost-effectiveness of investments in wireless technology or in decisions committing the institution to a particular wireless solution, vendor or third-party service provider (FFIEC, 2003).
For the time being, banks are not responsible for the loss incurred because of a customer’s PC. This is probably one of the reasons customers are reluctant to use online banking services. Avivah Litan, a member of the Gartner research team does provide some recommendations for those involved in online banking:
• Banks: Strengthen access controls (beyond just using passwords) and distribute third party “anti-malware” protection for user desktops to help maintain online-banking sessions as safe as possible. Clearly warn customers that, in some cases, they are liable for online-banking losses resulting from the theft of passwords or other credentials.
• Regulators: Develop unusual laws to better protect small-business and other banking customers against theft resulting from criminals hijacking credentials from PCs or online communications (Litan, 2005).
Consumer’s Benefits & Risks
According to the Organization for Consumer Privacy (2001) “The Graham-Leach-Bliley Act regulates the sharing of personal information about individuals who gather financial products or services from financial institutions. It attempts to inform individuals about the privacy policies and practices of financial institutions, so that consumers can employ that information to make choices about financial institutions with whom they wish to do business. The law gives consumers limited control – via opt-out – over how financial institutions expend and portion the consumers personal information” (Consumer Privacy Guide, 1). Under this act, consumers’ information is federal regulated to keep financial institutions from marketing and selling sensitive information to third parties. This is important because it ensures that privacy provisions won’t be violated from the consumer’s point of thought. Anacomp, a multi-vendor who specializes in services and support, gives a few examples of how they protect their consumers from leaking out sensitive information. Anacomp (2006) states the following examples by “using a companies’ existing level of automation together with Internet or intranet retrieval:
• E-mails are captured and stored in an unalterable version to meet compliance regulations.
• Access to sensitive corporate e-mail is restricted to small sets of highly obtain users.
Leveraging the header information, a relational index capability is created, allowing research folders to be formed.
• Anacomp uses industry-standard Internet protocols, allowing e-mail attachments to be displayed in primary applications (such as Microsoft Word or Excel).
• E-mail documents are saved in a secure environment with redundant backup and pain recovery options.
• E-mail archive will be available to authorized users via standard Web browsers” (Anacomp, 2006).
When it comes to online banking, having financial information readily available at a consumer’s fingertips, 24 hours a day, 7 days a week, is very convenient. According to Kim Komando with Microsoft Little Business Center, “online banking has been one of the brightest online inventions. With a few clicks, people can pay their bills, check their balances and see what has cleared” (Komando, 1). Larry Freed (2006) agrees with Komando and states that “customers are increasingly satisfied with online banking, which is wonderful news for banks seeking increased loyalty and fraction of wallet. Findings of the second Forbes.com/ ForeSee Results online banking study include:
Satisfaction with online banking is 5.5% higher than it was last year, surpassing satisfaction with the overall banking experience, as recently reported by the American Customer Satisfaction Index
Online bankers who are highly contented are nearly 40% more likely to purchase additional products and services from their bank (Freed, pp. 2-4).
Converting online bankers to online bill payers is a huge opportunity, as customers who pay bills online are 17% more likely to rob products and services from their bank and 34% more likely to recommend their bank’s website
Credit unions outperform substantial banks and community banks when it comes to satisfying online bankers. (Freed, pp. 2-4)
The automated teller machine, or also known as the ATM, is “a machine at the bank branch or other location which enables a customer to perform basic banking activities even when the bank is closed” (Investor Words, 1). According to Citibank, “It’s been 25 years since ATMs were introduced, and consumers have embraced the idea of ‘remote access’ to their accounts for deposits and cash withdrawals, and the convenience it affords. The electronic banking center represents the next technological wave in which far more products and services are available…” (Citibank, 1).
The advanced ATM’s will be incorporated with the web browsers that are known today as Microsoft Internet Explorer or Netscape Navigator. Michael North and Paul Kennedy of Banking Information Technology Secretariat states that “the advanced ATM will also be a multimedia ATM, using shapely, natural motion video and stereo sound in multiple languages, smooth dimensional animation. It will be capable of live video teleconferencing with a remote teller at a video call center, using eyes and ears in a video camera. It will be able to scan, compress and transmit signed documents, printing MICR-encoded checks, send and receive email, read barcodes and smartcards, capture biometrics such as fingerprints and iris images, and print exact, full-size copies of any document. All of these features are available now on commercially-available products” (North & Kennedy, 1).
The new features of the advanced ATM will allow customers not only to do monetary deposits into their accounts, but customers will also learn about different kinds of IRA’s, the best suitable savings view and other e-commerce solutions that banks have to offer. People use ATM’s for economics, flexibility, convenience and acceptance. Wells Fargo explains that “this is a whole current reach to ATM software architecture…a greater ability to accommodate unique technologies. And because software applications are independent of the delivery channel, they can be leveraged across multiple channels, including information kiosks, telephone banking, personal computer banking and web sites” (Wells Fargo, 1).
Ethics in Banking IT
Information has no ethics and does not care how it is used (Haag, 2006, p. 236). This premise makes many banking customers cautious about e-banking, and as a result the banking industry has gone to great lengths developing ethical e-banking practices. “Electronic banking (e-banking) is defined as the automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels. E-banking includes the systems that enable customers, individuals or businesses, to access accounts, transact business, or obtain information on products and services through a public or private network, including the Internet” (Bahamas, 2005). In this section we will explore the ethical responsibilities of financial institutions that provide e-banking services to customers.
Before thoroughly analyzing the ethical responsibilities of e-bankers it is important to identify the associated IT risks to the customer and the bank. Transaction, compliance, and information security risks are the three major risks of online banking. Transaction risks are those risks resulting from fraud, processing errors, negligence, or the inability to maintain expected level of service. These sorts of risks are higher for new online services or when unusual systems must become interoperable with legacy systems (Ramakrishnan, 2001).
Risks associated with banking policies and transactions that are not compliant with laws, regulations, and ethical standards are considered compliance risks. One of the most recent Acts requiring all financial institutions to be compliant is the earlier mentioned Gramm-Leach Bliley Act. This Act requires the safeguarding of customer information, and those institutions who fail to be in compliance after July 2001 face hefty fines (Secure Computing, n.d.). Other recent regulations include the Electronic Funds Transfer Act and the Truth-in-Lending Act.
Another risk important to customers and bankers are information risks. These risks result from inadequate security processes (Bahamas, 2005). Online banking services that are vulnerable to hackers, viruses, or data theft and they put customers and the financial institution at tremendous risk. This risk can be the most damaging to customers and banks. Viruses may disable online services or internal electronic banking transactions affecting many simultaneously. Hackers and data theft normally seek customer’s personal information to commit fraud and potentially ruin the financial standing of many.
After identifying many of the risks associated with e-banking it is determined that the financial institutions carry the ethical burden of ensuring that strategies are developed which outline the policies, practices, and procedures that address these risks. Most institutions publish ethical computer use standards and information privacy policies to educate employees and inform customers (Haag, 2006, p. 238). Due to the unique risks of online banking many banks require senior management input when developing ethical standards and practices for this form of banking (Ramakrishnan, 2001). This involvement more closely aligns strategic objectives, ethical standards, and IT operations. Bank websites have become an effective means of communicating the policies and procedures to customers.
The final section to understanding ethics in e-banking is identifying what type of security measures can be implemented to actively mitigate the risks. In order to maintain the trust of customers most financial institutions mitigate transaction risk by preparing contingency arrangements and aggressive training programs to maintain skilled staff. These practices ensure customers will continue to receive expected services in spite of system failures, processing mistakes, or isolated cases of fraud (Bahamas, 2005).
Periodic moral audits of published standards and practices reinforce proper activities and reduce compliance risk. Financial institutions publish disclosure statements and transaction practices for customers review and to demonstrate an effort to maintain compliance with required laws and regulations (Chicago, 2006). Banks commit a large amount of resources to sever the risk of unauthorized access to information. Online banking requires customers to provide usernames and passwords before access is granted to services or sage information. In fact, most require bank employees to also provide authentication before gaining access to the bank’s IT network. Authentication is a simple yet effective means of protecting sensitive bank and customer information. Data encryptions during electronic banking transactions also protect customers and banks from hackers and data theft. Separation of bank employee duties is another technique used to prevent fraud and protect information (Bahamas, 2005).
Banks and other financial institutions are built on trust and as a result customers have always expected the highest ethical standards from these organizations. With this trust comes noteworthy responsibility. Banks handle and execute sensitive customer information and activities everyday and must maintain high standards of conduct to remain successful. To maintain such standards banks and customers must realize the risks associated with online banking and methods to reduce such risk.
Managing Information Technology
Managing information technology in banking is a subdivision of management information systems and computer science. Many banks and financial institutions are incorporating information technology into routine bank transactions. Banking customers have been inundated with on-line banking, telephone banking, and Automated Teller Machines (ATMs). The importance of security with monetary information is a significant part of the managing of information technology in banking.
Direct deposit was the initial entrance of electronic banking into the banking community. In the past the main problem in banking was the amount of paper and cash which was clogging up the economy. This was caused by employees being paid in cash or by check. All this moving of money and checks was proving to be extremely expensive as well as a security risk. BACS (Bankers Automated Clearing System) has proved to be very successful in all business sectors. After implementation all wages could be paid directly into the workers bank accounts on time and be ready to withdraw as cash straight away. This reduced the amount of paper work and transfers needed (Information technology and banking, p. 10).
Customers can easily access their jabber deposits. The US government has also used this electronic banking feature to eliminate a significant amount of paperwork with welfare and social security payments.
“A main benefit has been the increased accessibility to branches,” (Information technology and banking, p. 5). A convenience for the customer is the selling point of information technology for the banking community. E-Banking, bill paying, credit card payments, telegraphic transfers, and the easy access to check your account balances or checks that have cleared are all important faucets of online banking. The twenty-four hour banking concept was introduced with the Automatic Teller Machine (ATM). Gone are days where you have to take time off of work to procure your banking done efficiently.
“The challenge is managing the information we have and reducing the necessity of entering the same information numerous times and running the risk of making a mistake,” (Petty, 2001, p. 1). Accurate information at the fingertips of the bank’s employees can make a significant change in routine transactions. Many banks and financial institutions have interactive Web sites with posted rates. “It’s absolutely critical that the information available to our members (customers) is factual and consistent,” (Petty, 2001, p. 1). Investments are the money making backbone of the banking system. It is distinguished that the information technology be both efficient and lawful.
“IT has increased the financial control and has made collation of information remarkable easier,” (Information technology and banking, p. 3). Banks can now use programs specifically designed to meet their financial reporting needs. “Banks are linked via a wide area network (WAN) and the files are sent down the lines as text files,” (Information technology and banking, p. 3). Reports are required in all levels of banking information technology. Software adapted to meeting the needs of the intricate details required to meet each level of managements needs in producing the required reports. Spreadsheets, control analysis, and customer relationship management are unbiased a few of the controls provided by information technology.
Banking management has also benefited from information technology in many ways. Another advantage is the amount of information that these systems have made available to management. Management can now see which branches are sending money, which are making errors and the amount of money each branch is making. The computerized systems enable the managers to identify large bodies of transactions coming from branches and locate the selling opportunities for different products. They are looking for marketing opportunities in order to increase profits and publicity (Information technology and banking, p. 7).
Management teams have many detailed reports and responsibilities for keeping the profits up to justify keeping their branch open.
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Web hosting can be tough industry, not only because of competition but also because of constant demand from customers. When a web hosting company decides to open up shop, they must be ready for anything including a grumpy customer, or a client who may want the world for less than one dollar a month. In web hosting, salubrious customer service is a must as well as uptime and reliability.
A well written Terms of Services document should be available to clients at any time, and publicly linked on web hosting company’s website. This document should always be revised and approved by a legal professional, or an attorney familiar with the industry. Terms of Services protect both web hosts and customers, but terms should always be indicated that a web host has the discretion to refuse services or to remove a customer at any time.
So why would a web host feel the need to capture a customer? There are several reasons, but the main one is preserving the integrity of your web hosting brand. Web hosting company should also provide a marvelous, and secure environment to all customers. It however has nothing to do with money, same service and quality of help should be rendered to every client, regardless of how much they pay. Sometimes, certain customers become more trouble than they are worth and that is when it is time to politely ask them to take their web hosting business elsewhere.
Employee abuse should never be tolerated. A customer submitting threatening, abusive or insulting helpdesk tickets to abet staff should be warned. If hostility ensues, practice zero tolerance policy and ask that customer to have their data off your web server within 24 hours.
Sometimes, customers feel the need to be vile towards the very same people who are trying to encourage them. Call it human nature, but paying someone does not give them the right to belittle or insult that person.
Customers posing a security risk to web server or other customers should be removed. Web hosting clients enjoy the freedom of uploading almost anything to their website, and also installing scripts that add extra features to their website. While this behavior is encouraged, it should also be done in a secure manner.
Customers should be given a list of scripts that are not popular for installation on your web server. Violators of this rule should be warned, and removed if offenses are repeated. Customers not properly maintaining approved scripts should be warned and removed. An outdated script, or even improperly installed script can cause havoc on a web server. Any customer found to be in violation should be warned or removed if security risks are found.
A web hosting company spends resources, as in time and money, to properly beget, procure and update a web server. Allowing customers to run insecure scripts, pose risk to security of the web server or put other customer data in harm’s way is not only stupid but it also wastes web hosting company’s resources.
Customers using up too many web server resources. This particular disclose has two sides; web hosting companies offering resources they cannot provide and customers abusing server resources.
The first speak is web hosting companies providing unlimited packages or purposely overselling to appear cheaper and more engrossing than their competition. If you as a web host find a customer who is using too much bandwidth or CPU usage on a package that is oversold or impossible to provide then you only have yourself to blame. In fact, do not prefer the customer but remove yourself for poor business practice.
Customers can use too many server resources by having an outdated script, a poorly written script or be taking part in some sort of suspicious activity. In some cases, a customers can be completely innocent and a victim of a cyber attack. Always have a qualified server administrator determine what could be causing problems. A customer found to be causing server problems on purpose, or using any script that could be eating up server resources should be warned and removed if necessary. Web hosting customers with large websites, or sites that inquire of MySQL and bandwidth resources more than usual can be moved to dedicated web servers at additional cost.
In the end, being a web host is not easy but it can be rewarding. As with any business, challenges come up with products, equipment or customers. Always take honest action to protect the brand, integrity of business and take good care of your employees. In some cases, although rare, a web hosting client can pose difficulty to other customers or be a security risk to your web server. In those cases, it is better to remove a customer than have them ruin everybody else’s day.
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Content delivery networks have become very popular in speeding up Web-page load times. The increase in popularity is the result of how a CDN is able to load data based on the proximity of a server to the browser client. In other words, a CDN will chose to load a picture from a web server that is closer to where you are when you load the webpage. CDN’s are able to deliver data at a faster speed because of this proximity-decision capability. This type of architecture also reduces the load on each server because it prevents all requests from going to one central server.
As CDN demand increases, so does the supply. Below are listed five of the most popular CDNs available.
Amazon CloudFront
Amazon Web Services is one of the most trusted names in online products and services, offering a number of web services from storage to content delivery. Its CDN service, CloudFront, is a full-featured business solution offering a like a flash, reliable, and cost-effective web service. CloudFront uses a simple price model that allows you to pay for only what you utilize. Its servers are located in multiple locations throughout the world, including the United States, Asia, and Europe.
http://aws.amazon.com/cloudfront/
Limelight Networks
Limelight Networks has some of the largest companies in the world as customers. Companies such as Disney, Activision, and Sony’s PlayStation Network all proclaim the quality service offered by Limelight Networks. There are many different services offered from general direct delivery to HD video streaming. There are servers located in the United States, Europe, and Asia providing global access at very high speeds. Pricing is available on a per-customer basis.
http://www.limelightnetworks.com/
Akamai Technologies
Akamai Technologies offers a range of products from web site performance to media and software delivery. They assist customers like Fox Sports, Adobe, and Nintendo through a global network of 56,000 servers hosted in 70 countries around the world (Akamai.com). Pricing is handled on a per-customer basis.
EdgeCast Networks
EdgeCast Networks is growing quickly in popularity after being founded in 2006 and winning third space in a survey by Yankee Group in 2009 (Hosted VoIP). EdgeCast’s network spans multiple continents with servers in the United States, Europe, and Asia. They offer multiple solutions including music, video, and content delivery as well as live streaming. Pricing is based on a per-customer consultation.
Level 3 Communications
Level 3 Communications is one of the most highly developed internet service providers, claiming one of the largest internet backbones available. With this size infrastructure, Level 3 is able to offer sing delivery services with very reliable results. Some of the services available are media delivery and streaming, fiber video service, and file caching and downloading. Level 3 Communications has provided services to Adobe, World Cyber Games, and Mountain Sports International. Pricing is available on a per-customer basis through a consultation.http://www.level3.com/
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Filed under Customer Support Asp by on Jan 23rd, 2012. Comment.
CRM stands for customer relationship management. Thus, CRM software means a software that can be used to fill and manage the relationships with customers. In today’s competitive business world, it is essential for any business to keep track of the relations with customers. Most businesses think that they need to have certain number of customers before they go for using any software to aid in managing customer relations. This is not true. You can improve your business by using CRM software no matter what the size of your customer tainted is.
As we all know, human error creeps in if you are not using software to manage the large amount of information that you need with every customer. However, by using CRM software you can have all the crucial facts and information about all your customers stored in a readily accessible database. The advantage of such database is that any employee with just a click of a button can retrieve the information. The information is also accessible without the use of a lot of papers and files. More than one employee can view the data at a time, which enables fast and accurate delivery of services to the customer. In any business, the communication between the employees and the customers is extremely important. With the CRM software, you can even automate this communication and enhance the quality and timeliness of the communication. When there is a new customer to the business it is automatically recorded in the system and whatever interaction is done with the customer is recorded from the inaugurate. This helps the employees to understand the customers’ business needs.
There are several components enthusiastic in the CRM software such as sales, customer befriend, customer information management etc. Every department of your business will have access to the customers’ required information and can work in harmony with other departments. For example, the customer befriend department can record a customer problem and the same can be viewed by any department to take action accordingly. The ultimate goal behind any CRM software is to improvise the profits of the company by enhancing the customer relationships by serving the customers more efficiently. The CRM software keeps track of all the necessary processes concerning a customer. What more, the over all cost involved in customer relationship management is reduced drastically with the use of CRM software.
There are many types of CRM software each catering to different kinds of businesses. There are standalone CRM software and web-based CRM software. With the web-based CRM software, you can access the data of your customers even on the go and with greater security. Because the information of customers is located in a central database, which is secured, and only the personal that are eligible given access to the web-based CRM software. Moreover, the only piece of software that needs to run on the destroy machine is the browser and a connection to the Internet or intranet of the VPN connection for the company depending upon how the CRM software is deployed. While choosing the CRM software it is also essential to consider whether to buy an already developed CRM software package or to outsource the development of the software tailored to your business needs. In addition, if you are planning on using an already developed solution for CRM software it is always advisable to see if the software provides any free trial to try it out before going ahead and buying. Most of the web-based CRM softwares usually provide a free trial. Moreover, if time is not a constraint it is always recommended to outsource the development of your own customized CRM software solution.
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Filed under Customer Support Asp by on Jan 22nd, 2012. Comment.
In the beginning, there was life. It consisted of man, of animal, and of plant, intertwining them in a world which protected their offspring, nourished their habitats, helped them thrive, and sustained their future. Each animal had his place, each plant had its purpose, and each man had his sense of belonging within the system. Everything was in the right place, in the right number, at the right time. Early man lived in a world we would call uncivilized, unkempt, unrefined, even barbaric; yet he fit within this natural balance of life in perfect symphonic harmony. He was suited for the system, and he didn’t argue his place within it.
However, as civilizations arose, prospered, and withered away, the foundation of societal structure evolved and was refined from generation to generation. Man was beginning to surpass the animal in psychological ways unparalleled in history; he began to understand not only his existence but also to question his knowledge and his natural surroundings. The Egyptians, the Greeks, and the Romans each surpassed the other in war, power, knowledge, social order, and command over the environment, leading man further and further from a world urge by nature and the laws of the animal hierarchy to a world strictly ruled by man alone. In the 19th century, the stirrings of the Industrial Revolution catapulted society into a blossoming era of rapid transition and burgeoning technology, finally severing the last ties between man and nature. Man stopped realizing that he, too, was part of the unique and beautiful system of earth, and found himself in a fabricated industrial world of his own making.
From a simple time when man carted his own dinner to the table to the “machine age” which launched mankind into a world where perfect saran-wrapped steaks appear magically on the shelf at the grocery store, how did we ever survive this transformation in so short a time? And more importantly, why did it happen?
It is a psychologically-based claim that humans imitate their surroundings; they, like other animals, acquire language, understand reality, and grow from a frame of reference built upon sheer imitation. The business world, a world built by man alone, is no exception. The current corporate world, which is essentially a carefully-planned and executed evolution of the basics of our natural ecosystem, has led our world from a slowly changing and expanding structure to that of one now desperately in need of a new world balance – that of organized and administrable supply chain management. As today’s specialists in the oil and gas industry, it is imperative that we learn and understand the art of supply chain management, the glowing web of processes from our natural untapped resources to the fuel that ultimately powers our automobiles. In our intertwined global economy, where the United States alone consumes eighteen million barrels of petroleum nearly every day, it is not only imperative, it is crucial to our survival.
According to supply chain architect Bernard Teiling of Nestle SA in Switzerland, supply chain management, which surfaced in the early 1990s, is nothing more than “managing the flow of goods, services and information between suppliers, manufacturers, wholesalers, distributors, stores, consumers, and end users.” It was a dramatic wreck with the customary approach which had embraced the idea of separate areas functioning independently of each other; realizing that integration led to profit, companies began to foresee increased efficiency and reduced costs. However, one must buy into consideration the widespread frenetic activities within the oil and gas industry, including the increasing need for global place of new wells, to the extraction of obscene, to use of foreign-based shippers, to the men and women overseeing complex logistics, and to the local tanker crews hauling product to their respective destinations. Our community of interaction is truly a network that extends worldwide. Collaboration, in this sense, is the foundation of communication.
To better understand the skeleton beneath the skin of supply chain, it’s necessary to underpin its initial influence within this ‘new business environment’. Almost 40 years ago, scientist Garrett Hardin composed an essay for Science magazine, penning the phenomenon “tragedy of the commons” and forever changed the face of resource management. He defined the modern tragedy as the “remorseless working of things,” as the “outcome of individual interactions within a complex system.” In this vein, he suggested that supply problems stem from a simple misinterpretation of the “commons,” or the manner in which expected optimal solutions and logistics undermine the importance of retaining and properly managing our earth’s natural resources. He used the common metaphor of overfishing to emphasize: There are only so many fish in our lakes and rivers, he wrote. If we fished the entirety of the fish from their natural habitat, not only would the ecosystem die from imbalance, but the lack of fish would indirectly cause the destruction and eventual extinction of their predators, and an overpopulation of their prey. The earth did not allow for this disproportion.
In this same way, it is this delicate balance, this acute attention to detail and nature at its finest, which is supply chain at its best. Humans rely on unassailable consistency. So how is this not the same as maintaining a service dwelling with an appropriate level of premium unleaded, implementing a logical transit of product network, forecasting a drop in pricing while closely monitoring international relations, or managing our environment and not incidentally pumping out the entire world’s stock of fossil fuels with lack of recourse?
We must nurture and insure the continued preservation of our resources while maintaining growth of our companies. Knowing this, the entire chain must evolve as one entity; as one living, breathing creature inside a harmonic ecosystem—because if not, adding, deleting, or altering even the most limited element could result in a complete supply chain breakdown.
CIO Magazine’s website, a leading source of current business trends for Chief Information Officers, cites the five simple components to effective supply chain for any industry in a clear, direct manner: The first, strategizing and planning, deals with managing the resources and developing a set of matrices to maximize customer quiz. The second, which deals with delegating suppliers, pricing goods, and scheduling deliveries, assists in putting together the processes for inventory and elementary logistics. Third, scheduling production activities, includes the testing and packaging of the product and measuring its quality levels efficiently and effectively. Delivering is fourth, and fifth comprises the customer service aspect, coordinating networks, and dealing with defective products and returns. These components, which are simply defined in a linear model, are, in fact, anything but linear: One must hold into consideration that outside of this plan comes the critical and most integral part—reality.
The nature of reality is chaos—both unorganized and organized chaos. If a man-made supply chain could be implemented without reality affecting its outcome, the results would be predicable and controllable; however, life is not linear and neither is business. The oil and gas industry faces problematic outcomes such as overcoming catastrophic disruptions due to such things as oilfield fires, shipping delays and transport miscues and warehousing accidents let alone situations as demanding and ever-pressing as monitoring the depletion of our fossil fuels. Now, as an international reality, oil and gas companies we are faced with the added pressures of developing long term relationships with suppliers abroad, involving these suppliers in key decisions and proposals for improvement, and collaborating with them to achieve mutual respect and a positive industry image. It is well-known that the American economy would surely suffer without the steady stream of crude oil being delivered to its ports on a daily basis, and that an increasing reliance on imports has led to an increasing reliance on foreign companies and their governments.
Utterances like on-time maintenance, continual efficiency upgrades, new federal standards and refinery mandates, changing health codes, fuel transportation down-time, diminishing supply and rising request are commonplace within the industry, yet the nagging question still remains: despite all the publicity about supply chain management, how do we optimize its inherent benefits and understand its position within the world’s order while simultaneously dealing with its incalculable number of setbacks?
As a business from whose hands transform the world’s precious raw materials into marketable products, we must learn that a spot of morals and a code of conduct are vital in order to prevent chaos or breakdown. Andy Anderson, Business Support Manager for Subsurface Systems, puts this theory into practice in his case study entitled “Supply Chain Management: the Future of Procurement or the Latest Passing Trend.” He states that “despite all the hype, not everybody within the industry is completely aware of what SCM [Supply Chain Management] involves and what it means to them. ” He expresses this idea by citing Expro Group’s oil service product line overhaul as an example—as they found themselves flailing within the system, the first step to re-evaluating their SCM program was to determine their position within the system. They discovered that without an efficient internal supply chain system, an external one would have no chance for survival.
They analyzed their management, mix of providers, long-term commitments to their suppliers, service delivery time, client satisfaction, and eventually formatted a strategic plan. Throughout their research, they discovered that although the logistics and planning were important, it was a lack of communication and thought between all parts of the system that were truly the valuable problems: “everybody involved needed to understand the entire process that was taking place, from procurement of raw materials to its installation offshore.” One year later, after extensive measures were taken to ensure better communication between both employees and partners, the results were extraordinary. Expro Group has seen real cost savings, set against rising raw material costs, reduced stock levels, a reduced vendor base, and an unsurpassed relationship with their suppliers and collaborators. Is supply chain management impartial a fashionable business trend? According to Anderson, it looks like SCM is not only a permanent style, but also a staple outfit for any business wardrobe.
Supply Chain Management Review conducted a comprehensive survey during the summer of 2003 in order to determine whether the new management techniques were truly trustworthy or simply just a novel view to veil an old problem. Although they knew the widespread importance of implementing a revised system, they wanted to know how remarkable progress companies have actually made in advancing their supply chain capabilities. Using oil and gas as one of the industries, they analyzed the responses of 142 companies and their region within a five-tier evolutionary system to a perfect corporation. These five tiers are:
1. Integrating a plan,
2. Outsourcing tasks better expedient to other providers,
3. Collaborating spending decisions,
4. Enhancing global communication between partners, and
5. Establishing a station of dominance within the industry .
It appeared to SCMR that although only a very dinky number of leading corporations have actually reached step five (most reside comfortably near steps two and three), it is not impossible, nor detrimental, to aim for perfection. The major cost components—logistics and warehousing, purchasing and sourcing, and inventory and material management—represent only a allotment of revenue costs, and therefore, the success is truly from within. Compared to the evolutionary hierarchy, the similarities are endless: establishing a plan for survival, finding food and companionship, enhancing communication, and creating a status of dominance within the species—it is cutthroat, yet strategically organized animal competition in a business atmosphere.
It is obvious that we no longer live in a time where man can survive without opinion and harnessing his environment for the long-term. We live in an dangerous, unstable, and unpredictable world. We exist on an ever-shrinking planet connected by a delicate string of uncontrollable and controllable processes. From supplier to customer, from tanker of crude to our unquenchable thirst for Sport Utility Vehicles, we have evolved into a community where everything depends on everything, yet we stay frighteningly close to our conventional origins.
In a world where communication breakdown can and does lead to chaos, where one mistake can result in dire consequences, it is crucial to master the complexity of supply chain management. Any business, however small, that can demonstrate improvement in their supply chain will be stronger, more competitive, and more first-rate, and as we know from the origins of man and the nature of species, it is the strong who survive.
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Filed under Customer Support Asp by on Dec 19th, 2011. Comment.