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Vast electronic commerce net is cas... Intel processor sets a new speed record ... |
Vast electronic commerce net is cast
INFORMATION SYSTEMS
ELECTRONIC commerce on SA's first virtual private network (VPN) - a joint venture linking the computer networks of Old Mutual, Dimension Data, Nedbank and Wooltru - is beginning to take shape. The VPN venture, named Linx and headed by former Didata executive Peter Hird, has taken its first steps into the arena of e-commerce by forming three subsidiary companies tasked with developing the vision over the next two years - OmniLink, the technical arm of the VPN, LoyalLink, an electronic commerce and customer loyalty venture, and CustomLink, which will offer data warehousing and analysis to the business partners. The most ambitious project on the VPN is Linx's plans to create SA's first integrated loyalty programme, through LoyalLink. "In effect what Linx is planning is to extend single-brand loyalty cards, such as the Edgars card, to its four business partners and beyond," says Hird. The four partners span numerous subsidiaries such as CNA, Syfrets, Commercial Union and Internet Solution, which extends the range of the loyalty programme. Laura Steins, who heads Loyal Link, says the group is also finalising plans to expand into areas such as travel agencies, airlines, petrol stations, health care facilities and food outlets. "In effect this is one unified SA frequent shopper programme which, for example, could allow frequent Wooltru shoppers to get a discounted holiday," says Steins. She adds that "immediate reward redemption" will be integral to the programme. "Once you've booked your flight you should immediately redeem your free meal at a participating restaurant." Steins expects the programme to be in place when all the partners have signed next year. The VPN infrastructure would allow consumers access to a "virtual mall", although the timeframe for implementation is significantly longer than for the loyalty programme. However, once again the convenience of cross-shopping, without leaving home, is likely to convince customers to participate. A second aspect to LoyalLink is the business-to-business aspect of e-commerce such as supply-chain management. Suppliers can be notified immediately orders are received. On top of LoyalLink sits CustomLink. The company will be responsible for evaluating the data on the VPN, such as customers' transaction habits. This information can easily be "mined" to allow partners to target marketing campaigns at individual shoppers. The third leg of Linx, Omnilink, is fully in place. It is responsible for VPN's infrastructure and has so far linked 200 ports among the four companies to the network. Omnilink MD Etienne Reyneke says 1 000 ports should be linked by year-end with an eventual total of 2 000. The ports span numerous PC's linking corporations and customers around the country. Linx's four shareholders are gradually integrating their networks to the VPN, thus saving significant costs in technology investment and IT skills. Reyneke says: "The VPN network can connect all aspects of a corporate business from small remote offices to the main corporate headquarter." The control centre, located at Didata's head office in Bryanston, resembles the cockpit of the Starship Enterprise, with layers of PC's controlling the countrywide network. Modelled on the Rescue 911 centre in Las Vegas, Reyneke says the control centre will iron out 98% of network problems. Beyond the infrastructure and business-to-business communications, the VPN will prove extremely profitable for retailers and merchants as it allows for quicker point-of-sale authorisation than current options.
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