Increase Ecommerce Revenues with Software Technology!
Technology has not only made our lives simpler,
if your a business owner of an eCommerce business
or searching for an eCommerce Business for Sale,
you can find ways to increase your revenue today,
with certain software integration!
This article will touch on how technologies have not only revolutionized
certain industries, but have also
increased eCommerce revenues as a result.
The Business of E-commerce
The business of e-commerce can be found in a multitude of industries,
- and insurance
This explains why many eCommerce entrepreneurs are maximizing their bottom line!
However, before we can touch on the current software technologies, lets take a look back
into history, when the Internet was first created.
Look for common parallels between the two.
This examination will show that without
the past creation of the Internet, the current
technology platform today would not exist.
Internet Protocols – Future and Present!
This act was the reason for the creation of the Advanced Research Projects Agency or ARPAnet in the 1970’s.
Within the next few years, Vinton Cerf and his colleagues from Stanford University
began to put together the protocols that would eventually
be used to send information via the Internet.
Over the next 30 years, these protocols along
with other research from many different
companies and people, developed packet
switching technologies and transmission protocols.
E commerce Business Wanted? – Technological Development
This development is which created the Internet that we use today.
So, Cerf’s early research on protocols earned him the title, “Father of the Internet.”
This title was also shared with co inventor, Bob Kahn.
There was a main hub where a lot of these sites were
developed and created over the Internet.
This site or academic intuition, was none other than, Stanford University.
Vinton Cerf and his colleagues were responsible for
collecting data and research material that
led to the communication protocols that are vital for the
transmission of information across the internet.
Who knew this contribution could have led to the
innovation of a lifetime to say the least.
Expansion and Growth
These contributions have served his respected title for many years.
Over the next 30 years Cerfs findings were expanded through
several corporations and individuals.
This allowed the Internet to function as it presently does through
this system of ARPAnet.
This system network that was created by ARPAnet soon caught the
attention of other agencies in the United States. They were very interested
in the transmission and sharing of information.
The government understood this process of sharing communication
can be very beneficial for their own interest.
The Internet took on another formation from this point.
Its formation took place during the 1980’s.
Past and Present Influences
The National Science Foundation designed and expanded on this system already.
It was created to form the Internet how we know it today.
A group of scientists in the European Laboratory OF Particle Physics were the ones to
name this new development of the Internet as the World Wide WEB.
What a development this was, as you can imagine. As you can see, there has been
many leaps and bounds when it comes to the progress of the Internet.
There are many stages that the process must go through. It is no different than
any other stage of development within a company.
You must lay out the details of the plan, and have it stiffed through for
errors to improve its quality and outcome.
Insurance Gatekeeper and Protocol
It is no different than an insurance auditor or
insurance underwriter for example.
They are responsible to ensure that only quality
risks are approved for coverage.
They are like the “insurance quality gatekeepers”.
This is very beneficial for the
reduction of general insurance errors and omissions.
So, as you can see, similarities exist within both approaches.
Through this systematic approach overview
as taken throughout the internet
history timeline, new stages appear,
thus more learning opportunities.
This was because, every stage was a new beginning.
When you’re working with
ground breaking information and communication methods or ideas,
every step is a learning opportunity.
Internet’s Progression and Layers of Transmission
The internet’s progress has shaped and morphed into so many
layers just over the past 5 years, let alone decade.
Just think about the telecommunications industry alone, and how it has
been affected by the internet’s progress.
You need to look no further than your smart phone.
Just the new language creation and term “smart phone” alone,
is illustration to show you the power of the internet.
The onset of mobile technology and smart phones have changed
the use of internet searching to a whole new level as well.
This is because now consumers, for a lack of a better word, can now go to a
“whole new buying channel”. This channel happens to be on
the online marketplace served over the internet.
With consumers, now becoming engaged and vital in the buying process,
whole new platforms and ways of interacting with users has changed.
This could not be made possible if it were not for online
marketplace or an ecommerce industry.
The online insurance marketplace or ecommerce industry took flight
from these past actions with the enhancement
of online sharing methods as you can imagine.
The Effects: Insurance Industry and Ecommerce
So, what exactly is electronic commerce?
It is defined according to the World Economic Forum,
the use of technology with the business operation.
The business operation would be considered
where the inter and intra company
workflows and communication flows are
streamlines to both individuals and workers.
Insurance Transactions and Ecommerce
This integration of electronic commerce, helps for the exchange of
information and ultimately help a conduct a business.
There are many insurance companies
that are currently using electronic commerce.
They use this technology to restructure their current business operations.
This in return will help to resolve the following:
- Streamline Processes
- Reduce Operation Costs
- Improve overall sales and improved service expectations,
- Reach new industry markets,
- Exchange and distribute information, which depends on the industry (For Example, General insurance).
Technology Industry Disagreements
Not all industries have embraced this technology like some.
For example, there are specific industries, like, retail, banking and travel that have
taken the advancements in technology and created great steps in their industry.
These steps have also in turn, made them possible
for many, in the electronic commerce field.
These steps made, have helped to shed light for others. This is because it paves
out the way for more to follow. It provides a blueprint
for an execution plan and not just talk.
Action always speaks louder than words,
rather it be administrative action
or in this example, practical and innovative action.
Some insurance agencies, have revamped their
operations with this technology.
But, overall in the insurance industry,
it has been a slow transition to adopt these changes.
Insurance Industry and The Technology Adoption
There are many reasons for this slow adoption of technological advancements in the insurance industry.
This is because the insurers in this industry, must select which applications to implement.
Meaning, they will weigh the cost and benefits of certain electronic applications.
This is because, what advancements in technology or application,
may not always apply to smoothly integrate in the insurance carrier.
This could be an insurance program, rater or software. It could have
online compatibility platform issues, or just limited access
due to legality and privacy issues, as an example.
Survival of the Future
The bottom line is, information is the lifeblood of the insurance industry.
This is information needs to be exchanged through a communication channel.
The ISO, believes that the survival and success of brokers, agents and insurers’
survival will be through, the technologies presented in eCommerce.
So, how was this bridge created for both worlds to connect.
This bridge would soon come to be because,
of the advent of technologies of Electronic Commerce.
Insurance Technologies of Electronic Commerce
What exactly does technologies of electronic commerce mean, anyways?
To help better understand what this entails, let’s look at EDI.
You will need to look at what EDI is first.
EDI, or Electronic Data Interchange, is the transmission of business insurance between computers of trading partners.
These trading partners can be:
- other entities,
- government agencies
- and individuals.
This is a reliable and efficient way for trading partners to exchange information.
More importantly, this exchanged information would be responsible for the
successful transaction of a business deal. This can work on both a small and large scale.
For example, if you an online user, who is looking for just commercial general liability coverage,
for a trucking operation, then the information exchanged would be just on this commercial package.
The information would go through the same protocol and flow for completion.
This information, big or small, would be submitted to the insurance carrier to bind coverage.
Insurance Transaction – System Downfall
This process sounds simple in terms of point A connecting
to Point B. But, what happens if this efficient process encounters a glitch.
It can happen to any piece of equipment, especially ones that run over the internet.
For example, for the EDI to work efficiently, the system of
computers it runs on, must be able
to accept and transmit communication.
There must be a standard data format for transmission.
Some of these formats can be found as:
- An insurance template,
- rater system,
- or insurance application is a common method
Security of Information?
In addition, there must be a tangible and physical link on a
private or public network where this information is processed.
This information is being transmitted
on the computer systems of the trading partners.
They use a secure line, modem or telephone line to ensure
privacy and prevent possible security breaches.
This form of transmission has led to many positive outcomes
for insurance companies and insurance agencies.
Insurance Exchange System – Benefits of Technology
Some of these benefits have been savings in both, time and money.
The reduction or complete elimination of paper in some
operations, is one noticeable effect.
The insurance exchange system has redefined the processes of:
- Business information exchange
- Communication exchange
- Printing and Handling of Policy Applications
- Customer Engagement and Interaction
- Sales and Service
Processing Procedure Savings
Let’s look at an example how cost reduction is achieved
through this new exchange of
communication and buying.
Internet Case Study
For example, there was a study conducted by IBM in 1996.
The study of the banking process was first observed.
This study shows that a unit cost of processing a
payment over the phone was 54 cents,
to a little over a dollar at the bank and
only 13 cents over the internet.
Keep in mind this study was done back in 1996.
So, the costs may be different in values.
The important thing to remember is not the
exact dollar amount value, but rather,
the money gap from one business source transaction to the other.
So, as you can see, the Internet, is advantageous to the bottom line
in so many ways for a business organization.
Micro-level Technological Advancement
With the advancement of technology, changes can be seen on
both the macro and micro level of the insurance industry.
Before there were any inventory management systems, a
manual and yes very tangible, filing cabinet served the purpose.
This is where agents or insurance company representatives,
would need to physically locate a file for an insured.
Now, this process has been simplified with insurance software technologies
that can manage an entire data base or agency book,
on a customer management system platform.
This platform has not only reduced time management,
but also has increased productivity levels.
It is also responsible for the reduction or complete absence of agency errors.
As most insurance agency owners know, using your errors and
omission coverage is a huge no-no in the industry.
This is because, filling a claim against this type of exposure,
will not only cost you an out of pocket deductible fee, but future increased insurance premiums.
Also, agencies will face difficult times finding insurance coverage with this loss type.
So, you can see how advantageous it is to have such a software
platform for your insurance agency book.
So, not only does EDI integration reduce physical storage for not needing file
cabinets to hold client information,
but also the minimization of agency risk and exposure.
Another positive element of this electronic integration within the insurance
industry is the accessibility to documents and online networks and carriers.
Agency Access Points
Insurance company reps can now have access to
most if not all insurance documents.
Regardless, if these insurance documents are for a
commercial auto insurance policy or a nonstandard auto insurance policy.
The files and documents are accessible with the click of a mouse.
Instead of wasting storage space, shelf life of an actual document,
or having documents get into the wrong hands, is minimized.
Customer Portal Access
This open access is, also provided to the insured in the form of a customer portal.
You might access your insurance policy information in
this manner. You will be provided a link from your insurance carrier.
This link is to login to your insurance carriers’ website, and input your login credentials.
Then you are redirected to a screen where all your policy information is available.
You can retrieve policy documents, such as proof of insurance cards,
or other insurance document, if you need to print, or make action on.
For example, if you need tangible copies, you could request with
most insurance companies, copies to be mailed via U.S.P.S.
However, most users just access their electronic documents and print
out if need be. This reduces mail cost extraordinarily,
and has an overall effect on both the economy and environment.
Faster Processing of Information
Plus, this process is a lot faster than waiting for mail to be delivered
to your residence. You could have the same information in your
sight within seconds, not days or weeks.
The client portal that was used during this process,
would be the new wave of technology.
This technology was not always available, especially in the insurance industry.
Yes, you know, it was a slow industry to transition over to the technology field.
As rapidly as technology has changed, more and more features
are now being included on these portals.
Most of the major insurance carriers, now even have mobile applications
available for your smart phone or other mobile devices.
So, you can now see and understand how technology has
revolutionizes an industry, in this case, the insurance industry!