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Cal Wilson / June 21, 2021

Internet Outages & Your Business, No. 2: A disaster recovery plan is critical for your business’ long term success

No matter how excellent your provider is, things can always go wrong. If an accident, disaster, or cyber event compromises your internet infrastructure, and thus your ability to operate, make sure you have a plan in place.

Part two of Schooley Mitchell’s three part series.

Last week, we explored the internet crash that happened because of cloud company Fastly on June 8th, 2021, impacting many big-name businesses. This week, in the second installment of Schooley Mitchell’s three-part series on internet outages, how they affect your business, and what you can do to minimize the damages, we look at disaster recovery plans.

What is a disaster recovery plan?

Simply put, a disaster recovery plan is a way to be proactive about the things that could go wrong, by describing the process, policies, and procedures for responding to them. This could be anything from a storm that causes a power outage, to a largescale cyber event. These plans lay out the necessary steps to recover or continue your IT infrastructure and should include hardware and software safeguards.

Why should you invest in one?

A disaster recovery plan can be the difference between your business’ ability to resume operations or not. Last week we discussed the disruption of an hour-long global outage, but not all events are so brief. A larger outage could eat into your revenue, reputation, and productivity. It could cost you customers and employees. Doing the work to mitigate these risks is an important part of business leadership.

Likewise, data loss can be devastating for your business operations. If you can coordinate protocols for offsite storage or backup schedules, you can soften the blow of a disastrous event.

So, what steps should you take?

If you don’t have any experience with disaster recovery plans, it can be beneficial to work with professionals who can offer impact analyses and identify potential risks.

However, there are also steps you can internally to help you prepare.

Take a thorough inventory.

Document your telecom operations details. This includes your computers, phone systems, servers, and storage. List the diagnostic tools used to monitor systems. Keep track of the software, cloud services, and web-hosting platforms you rely on to operate.

In other words, know what you need to function, and what alternatives can be employed, in the case of a system failure.

Identify the risks.

It’s important to know what has the potential to affect your organization’s operations. This can include natural disasters, industry-specific risks, or larger external cyber events.

Not everywhere needs to prepare for a flooding event but may have to instead prepare for winter storm damage. Likewise, some industries are going to have different risks than others. Institutions like universities may want to prepare for strain on computer systems during registration and exams periods, for example, while online retailers might experience overwhelming traffic during a sale. Knowing times when you are vulnerable to a potential crash will help you provide better support and backups.

Forbes also suggests mapping the trends impacting your business system. Have you thought more broadly about factors such as your reliance on other companies and hard-to-replicate specialist firms? What happens to your business if a cloud company you work with has an outage? After all, the June 8th Fastly outage shows that a small glitch at a big provider can cause trouble for hundreds, if not thousands, of businesses.

Create a list of circumstances that will invoke your disaster recovery plan and rank their severity.

Spend time on events or conditions that are likely. It can be easy to overwhelm yourself with a list of potential catastrophes, but you want your plan to stick within the realm of probability, not fantasy.

Focus on telecom.

Our telecom systems do so much for our businesses, despite oftentimes being very fragile. One disruption can do a lot of damage. Part of your disaster plan should be focused on assessing your telecom situation.

Some questions you can ask in the case of damage to your telecom system:

  • What cables are still intact?
  • Can rerouting accomplish anything?
  • Can critical segments be remapped?

As previously mentioned, working with a third-party professional to help assess this damage, and the risks to your systems, can go a long way in damage prevention and recovery.

Come up with recovery strategies.

Once you know the risks and what’s at stake, your plan should involve steps towards partial recovery. This could be an alternate site you could operate from during an event, or a scaled-back level of services to be prioritized.

Implement prevention strategies.

You can implement preventative measures to protect your equipment and avoid unnecessary loss. This could include data backups, fire containment doors, generators, or connecting your telephone system to an uninterruptible power supply that would maintain coverage for several hours in the event of an outage. This can also be as simple as strategically planning where tech is placed based on where your building’s sprinklers are located.

Security tech, like higher quality locks and motion sensors, can also be included in this plan.

Build company-wide compliance.

This is not just a senior leadership activity. Part of a disaster recovery plan’s success is in its adoption by each department within your organization. Middle management and employees should be reviewing policies and procedures and making suggestions when appropriate.

Parts of your plan can be delegated to trusted members of your team. Who is responsible for doing a regular inventory? Who is responsible for shutting off computers during a weather event?

Everyone should be on board to keep your operations running in the case of an accident or disaster.

Make preparedness a competitive advantage.

While this investment in preparedness may seem like a lot of extra work, it could potentially give you an advantage over your competitors.

Forbes says you can use disaster recovery to benefit your business, by being more reliable when events swamp other businesses. Maybe aspects of your plan are even the reason a new customer chooses you over a company with less risk mitigation implemented.

In essence, a disaster recovery plan is best business practice.

In conclusion…

Disasters happen. They’re not always avoidable, despite our best efforts. Whether it be a weather event, accident, theft, technical error, or large cyber event, there is a lot you can do in terms of damage prevention and risk mitigation to keep your company online and functional.

Next week.

In Schooley Mitchell’s three-part series on internet outages and your business, we have looked at what happens when the internet crashes, and how to set up a disaster recovery plan. Next week, we will take a look at your role as the employer when a remote or hybrid worker has an outage on their home network.

Related articles:

 

 

Cal Wilson / June 18, 2021

Highlight your business leadership by writing strong testimonials.

Every business owner knows how important a testimonial can be for building credibility and attracting new customers. The written experiences of those who have worked with you carry a lot of weight.

Likewise, a great way to showcase yourself and your business as a community leader is to write meaningful testimonials for other businesses. It shows thoughtfulness and good will, while having the potential to strengthen relationships and invite testimonials of your own.

In this issue of the Pulse, we will be looking at why writing testimonials is an important business practice, and how you can write them with purpose and eloquence.

Why write testimonials?

When a potential customer visits a business’s website, displaying a testimonial can be more impactful than what a business has to say about itself. Other than data and statistics, which provide great concrete evidence about a business, social evidence, like testimonials, is a highly effective way of winning-over new customers.

Sincerity is key.

You don’t want the testimonials you write to come across as formulaic or robotic. Testimonials should have a human voice that readers can relate to.

Start by writing for the businesses of which you are truly a fan. Where will you go out of your way to shop? Which restaurants always have the best service? Where would you want your friends to visit? Focus on the things that make these locations truly stand out for you, and you’ll find writing sincerely comes naturally.

Pay attention to real world examples.

You probably read or hear more testimonials than you realize. Examples of ‘real world’ testimonials include:

  • Grateful emails messages.
  • Social media love and shout-out posts.
  • Handwritten thank you notes.
  • Gushing in-person gratitude.
  • Hearing others have been talking positively about your business through a third party (the grape vine).[EF1]

Pay attention to the honest, off-the-cuff way people express gratitude and satisfaction with service[EF2] . What are some of the best compliments you’ve received, one that made you exceptionally proud of the work you do? This is the kind of language and sentiment you’re looking for.

Furthermore, if you are receiving a lot of these ‘real world’ testimonials, it might be worth making a file of them, and asking the customer or client if you can feature their words on your website or social media – while, of course, thanking them for their kind words.

Keep it short and direct.

If you write an essay, a prospect is less likely to read it. A few short paragraphs is all it takes to drive the point home. Begin with the most poignant statement, so that if that is all that a visitor reads, they will absorb the message.

If you do have a longer testimonial written, consider refining it to only the most impactful points.

Include the relevant information.

Build credibility by including your personal information, such as your name, title, company, and potentially a photo of yourself or your logo, where appropriate for the given platform.

Adding a photo with a human face, preferably a happy one, can have a huge impact on the conversion of a prospect to a customer. In fact, one study found that including the face of a happy customer on a review or testimonial increased conversion rates by 102.5 percent.

In conclusion.

A testimonial can go a long way in helping business owners in your community thrive. Not only that, but a great way to show your leadership and character is by preemptively writing them – generously and sincerely. You may just find that you receive more in return.

Cal Wilson / June 14, 2021

Internet Outages & Your Business, No. 1: What happens when the internet goes out?

On June 8th, 2021, several major websites from some of the world’s biggest companies went offline for about an hour. The outage, linked back to cloud company Fastly, has since shined a light on a critical weakness of global internet infrastructure.

A Three-part Blog Series by Schooley Mitchell.

In the first of Schooley Mitchell’s three-part series on internet outages, how they affect your business, and what you can do to minimize the damages, we look at what happened on June 8th, and what it shows us about our dependency on telecom services.

So, what happens when the internet goes out?

June 8th, 2021.

For an hour on June 8th, technical problems at cloud company Fastly, caused widespread outages around the globe. Major websites such as Amazon, Hulu, The New York Times, The Verge, and CNN, among others, went offline.  Several airports worldwide were also impacted. Social media sites such as Reddit, Pinterest, and Twitch also experienced outages.

Perhaps most concerningly, the government web pages for the United Kingdom were unavailable. Citizens were temporarily unable to book services or find information regarding COVID testing and vaccinations, as an example of the outage’s real-world consequences.

Fastly is a ten year-old San Francisco-based service provider that is very popular with larger companies, such as the aforementioned brands, for helping their websites load faster for consumer traffic by storing larger files like images and videos closer to their end users.

Fastly announced on its website at 09:58 UTC that it was investigating the problem and, an hour later, reported it had identified and applied a fix. At the time, it declined to say what the problem was, leading to much speculation.

Later, Fastly blamed the problem on a software bug that was triggered when a customer changed a setting, revealing how very fragile internet infrastructure can sometimes be.

Although the outage was brief, and the solution quick, the hour of global confusion and dysfunction has highlighted some of the weaknesses in the way businesses operate online.

Are we too vulnerable?

Before the outage, Fastly was not a household name. It’s strange to think one company could bring so many parts of the internet — economic, governmental, and social — to a sudden halt, without being a widely known name. With every aspect of life, from schooling to grocery shopping to even health care, moving online, a vulnerability like this is scary.

As more services move online, a handful of companies are responsible for the backbone infrastructure that keeps those services afloat. An outage like the one caused by Fastly does real-world harm — even if just for an hour.

“We’re seeing more and more being concentrated in fewer and fewer vendors,” Josh Chessman, information technology analyst at Gartner, told The Washington Post in an interview. “Everybody has this perception of the internet as this really robust thing, and it is, until it’s not.”

Essentially, a lack of diversity of ISPs and web-hosting companies is part of the reason behind our vulnerability to big outages like the one on June 8th. This is a perfect example of the importance of competition in the telecom industry.

Can more competition be achieved?

While there is a pressing need for more diversity in our internet infrastructure, the industry is extremely tough to break into.

Services like the ones Fastly provides, for example, are nearly impossible for any new company to replicate. Its business model requires having physical data centers spread across several countries; Fastly has over 50.

More than just a telecom problem.

The caliber of the websites that were impacted by this outage prove that internet outages can happen to anyone.  No matter how good of a provider you are with, accidents and disasters are inevitable.

You might remember events like June 8th in the past. In June 2019, Verizon accidentally routed a large amount of U.S traffic to a single provider in Pennsylvania, bringing down big sites like Amazon and Facebook for many consumers. In July 2020, engineers at Cloudflare made a similar mistake, pushing too much traffic to a single data center in Atlanta, which failed and crashed a swath of busy sites, including the video game League of Legends. In January of 2021, hundreds of thousands of people lost internet connection along the United States’ East coast, when a construction crew hit a Verizon cable in Brooklyn.

The takeaway here is not to despair of a technical issue or damaged cable, but rather to be aware of the risks to your business and make informed risk mitigation plans.

Next week.

Next week, part two of our series on internet outages, we will look at disaster recovery plans, and how implementing one is best practice for your business.

Related articles:

Cal Wilson / June 7, 2021

Should your business be paying for shipping insurance?

If your business ships products across country or overseas, what happens when one of those packages is lost, delayed, or damaged? As the seller, your customers are going to hold you accountable — even if it’s not the fault of your company.

One solution to this concern is shipping insurance. Shipping insurance is a service that holds shippers accountable for and protects your business against lost, stolen, or damaged packages. If an insured package is damaged or does not reach its destination, the retailer is reimbursed the declared value of the items in the package.

Shipping insurance means paying a small upfront fee, for the peace of mind that any mishaps in transit will not reflect poorly on your brand.

Your reputation is on the line.

A 2020 survey from industry expert, Convey, found that 47 percent of respondents said they’re unlikely to shop with a retailer again after a bad shipping experience.

A similar 2016 survey found that, in the case of delayed or damaged product:

  • 53.1 percent of shoppers would expect a free, expedited replacement.
  • 43.9 percent of shoppers would expect a refund or discount on shipping costs.
  • 19.4 percent would expect a coupon discounting their next purchase.

Those numbers have likely shifted somewhat since stay at home orders led to an online retail boom, but the point remains. Your money and your business’s reputation are at stake when it comes to lost, delayed, or damaged shipments.

When do you need shipping insurance?

Shipping insurance isn’t necessary for the average person sending a parcel, unless that parcel is particularly valuable or fragile. However, in a business setting, it really depends on your frequency and volume. The more you ship, the higher the chances are of something going wrong. If your product is especially expensive, the risk increases.

If you’re doing any kind of ecommerce, shipping insurance is a necessary operating cost to protect your revenue and your reputation.

2021 shipping crises are the perfect reason to get shipping insurance.

In 2021, we have already seen one of the best motivators for investing in shipping insurance. In March, the Taiwanese container ship Ever Given became stuck in the Suez Canal, bringing global trade to a screeching halt for many industries. On May 25th, a chemical fire broke out on a container ship off the coast of Sri Lanka.

If you are shipping overseas, or even by land, there is always a possibility of an accident or disaster leading to product destruction or delay. The events of the first half of 2021 might make you pause and consider investing in shipping insurance, or reviewing your existing coverage.

Cost is a consideration.

Across all major carriers, the rates are determined by the value of the shipped item.

ShipBob provides a helpful overview of the price comparisons for UPS, Fedex, and USPS. Both Fedex and UPS offer free coverage for packages up to $100, with rates increasing from there. However, UPS has a $2.70 insurance minimum, so the value of the shipped product must be at least $300 to qualify for UPS shipping insurance.

If you’re using a different provider, be sure to do your research and see what options you can use to your advantage. Likewise, there are third-party shipping insurers that are often less expensive than the shippers themselves.

As with any business expense you take on, do your research and consult with industry experts.

Cal Wilson / June 4, 2021

How to give constructive criticism that will be received and appreciated.

Some people are great at giving constructive criticism, and some are great at receiving it. Like anything else in life, it’s a skill that takes practice and active personal reflection. Meaningful feedback is integral to an employee’s personal development as much as it is to your business’s success. If you find yourself looking for methods to give constructive criticism in a way that will motivate your team, here is one strategy.

What you might be doing now…

Everyone knows the sandwich method. It’s the strategy where you stuff your criticism between two compliments. While this method might feel like it’s taking the potential for conflict out of the equation, it may actually be making your feedback less impactful.

“People still use [the sandwich method] because they’re nervous about being too critical,” said Joy Baldridge, author of the 2019 book The Joy in Business: Innovative Ideas to Find Positivity (and Profit) In Your Daily Work Life, in an interview with Fast Company.

However, it’s not a foolproof method of getting your point across. So what is?

The Velvet Hammer:

Like its name suggests, the velvet hammer method of giving feedback is soft, but direct. It gets right to the matter at hand, without being abrasive.

“The velvet hammer is actually a verbal contract you are creating with another person to better yourself as a leader and better them as team member, colleague, or friend,” Baldridge says.

Sounds great!

Here’s what you do:

These are the steps Baldridge recommends following to deliver effective constructive criticism.

1. Begin the conversation with, “Got a minute? I need your help.”

Your approach should be friendly, not intimidating. Baldridge says that asking for help “is an international surrender of agenda. It’s a disarming way to get attention sincerely and genuinely.”

2. Next, “I noticed that [problem behavior goes here.] (Pause) I was wondering what’s causing this problem (pause), because it cannot continue. What do you suggest we do?”

Baldridge says that asking the employee what actions they suggest is powerful, because people are most persuaded by their own words. Likewise, it is a nonthreatening and open minded approach that still implies value in that employee’s thoughts and feelings. Finally, the word ‘we’ in a problem-solving setting is an important part of showing leadership when managing a team.

Before you try it with your team, here are some things to note:

  • The script is helpful, but you want to sound authentic, not scripted.
  • Baldridge suggests practicing in front of a mirror.
  • Be mindful of your tone. You want to sound like you’re searching for solutions, not delivering a reprimand.

Why does this method work?

Baldridge likens it to telling a friend they have spinach in their teeth.

“If you have spinach in your teeth, do you want to know or not?” She asks. “When something needs to be said, most people in the organization know it. Everyone, that is, except for the person who needs the feedback. It’s like a someone walking around the office with a ‘kick me’ sign on [their] back.”

In her perspective, the velvet hammer method is actually a very compassionate way of giving constructive criticism. 

In conclusion…

The velvet hammer is another tool to add to your leadership toolbox. Remember to be purposeful and confident when giving constructive criticism, and hopefully your team will see the benefit.

Cal Wilson / June 1, 2021

Finding the right internet server for your business

If the last year has seen your company shift to work from home, you might have found the need for a new or improved internet server to help your business thrive remotely. If your current provider isn’t doing the trick, or for whatever reason, you’re in need of new solutions, it’s essential to prioritize a server that will give you the best connectivity 24/7.    

What is a server?    

An internet or web server is a combination of software and, in some cases, hardware that helps with necessary parts of running your business online; such as maintaining your website, supporting your company email, and allowing for file transfer and storage. Server hardware is connected to the internet, and allows for the exchange of data between connected devices, while the software controls how hosted files are accessed. Servers are critical for preventing data loss; something that is otherwise inevitable due to human error and faulty tech.  

There is a big industry debate over on-premises servers versus cloud based solutions. An on-premise server is a physical, on-site server that a provider must maintain. A cloud-based server is a virtual server hosted through cloud computing.  

If you have a website, or use any kind of file share solutions with your employees, chances are that you’re paying for a server, whether that be on-premises or cloud solutions.    

What to consider when paying for an internet server?    

You want a functional host of solutions at a reasonable price. Depending what you’re using the server for, you might want to prioritize some aspects over others. If you’re trying to run a call center remotely, like many businesses are finding themselves doing right now, speed and reliable connectivity are going to be of utmost importance. Knowing what you need is the first important step.    

Location, location, location.    

If you choose a server with poor speed or connectivity, you risk losing existing customers, as well as the opportunity to attain new customers. It can also cause delay in work progress, and overall poor productivity for your staff.  

Connectivity and speed are often dependent on your location, as well as the location of the server itself, if the server is on-premises. When investigating a provider, do some research about the internet connectivity speed in its location of operation.    

Location is especially important when considering whether you want to use a cloud or on-premises solution. On-premises software is installed on your company’s devices and servers, whereas cloud software is hosted on the vendor’s server and accessed via a web browser. The connectivity in your area is going to determine whether or not a cloud solution is even realistic for you.    

Cloud or on-premises?  

There is no shortage of opinions on this question. The truth is either option might work for you, depending on what you need and your preferences.  

In the past few years, cloud has seen increasing popularity, and vendors are beginning to move away from on-premises solutions. Still, on-premises have their benefits. Here is a breakdown of some of the pros and cons of each option.    

The truth is either option might work for you, depending on what you need and your preferences.  

Advantages of cloud hosted solutions include:  

  • Accessibility from anywhere in the world, on any device, with internet connectivity.  
  • No upfront installation costs.  
  • Predictable, regular payments to cover software licensing, support, daily back-ups, and any potential upgrades you might choose.    
  • All the maintenance is taken care of by the cloud service provider, so you do not need to worry about it.    
  • Highly secure.    
  • Can be deployed quickly, over the internet, in a matter of hours or days.  
  • Due to the flexibility of cloud solutions, they can easily scale to meet the changing needs of your business; for example, a period of growth in employees.    
  • You will save on your utility bills, not having to power any hardware onsite.    

Advantages of on-premises solutions include:  

  • Less reliant on your business’s internet quality than cloud solutions.    
  • Despite a pricier upfront investment, on-premises solutions have a lower total cost of ownership over the course of the system’s life cycle.  
  • Because you are paying for the hardware and software installation upfront, you have more control over the configuration, upgrades, and system changes.  

The choice is yours.    

The best solution for your business is going to be dependent on your location, size, budget, and other determinant factors. Explore your options, and find the right fit for your company.    

Cal Wilson / May 21, 2021

Master new skills by adopting a beginner’s mindset

We are never too old or too experienced to learn something new. Often, the thing standing between us and mastering new skills is mindset. One way you can help yourself is by embracing a ‘beginner’s mindset’ approach to learning.  

Children are encouraged by their families and the community at large to try a wide variety of skills. You may have been made to play chess or learn folk dancing in school, even if these skills have never played an important role in your career life. Children can and will pick up new skills quickly and with relative ease, simply for the sake of enriching themselves. How can we, as adults, bring that same capacity to learn into our lives and workplaces? 

Author of Beginners, Tom Vanderbilthas done significant research into learning better as an adult. Inspired by his daughter’s keen ability to pick up a wide array of hobbies, Vanderbilt decided to spend a year pursuing a new range of skills, including singing, drawing, juggling, and even surfing. The point was not to become a pro-surfer or bestselling singer, but rather to fully immerse himself in the pleasure of the learning process. It is this ‘beginner’s mindset’ that takes the pressure off learning and allows you to truly develop quality skills.  

Vanderbilt has laid out some important guidelines for this style of learning that just might help you pick up that new instrument you’ve been meaning to try, or improve a skill you thought you’d lost.  

Learn from your mistakes:  

It may seem obvious, but it is an area where pride or laziness often get in the way. Be deliberate and analytical when training any new skill, and rather than getting frustrated or proud, ask yourself what went wrong and what went right.  

Make sure your practice is varied: 

Change things up from time to time. Don’t keep the variables the same every time. Can you really play the piano if you only know one song? Variance in your practice leads to the brain’s flexibility. It also helps build your resilience to a great array of challenges you may face.  

Teach what you learn: 

Do you remember having to present what you learned in school, or be a ‘peer-teacher?’ There’s a reason for this. We learn better when we know we will have to teach what we have learned to others. The expectation of teaching increases curiosity and retention. Passing on knowledge is rewarding neurologically, as well as emotionally, as many find it one of the most exciting parts of learning.  

Be Open and Vulnerable: 

Part of the reason kids are great learners is because they do not have the same sense of embarrassment or social shame that hinders a lot of adults. Take singing, as an example. Children sing all the time with no mind for who hears them. As an adult with no singing training, it may be nerve wracking to open up and practice with an instructor for the first time. Pushing past these nerves and being vulnerable leaves you receptive to instruction and improvement.  

Applying this to your career life. 

So juggling and surfing might not help you in the business world – or maybe they will, in which case, great! These tips for learning do not just apply to artistic talents of recreational activities. There are lots of situations where this advice can be applied to help you grow your career. 

Maybe you’re stuck on learning a second language to help expand your business, or you’re taking a class on a software that seems above your paygrade. Keeping these ‘beginner’s mindset’ tools in your toolbox can make all the difference.  

More than that, learning new skills keeps your mind sharp! There has been clinical research that shows learning and practicing new skills can offset some of the mental decline associated with aging. 

Cal Wilson / May 17, 2021

Merchants using P2P apps — protect yourself from online fraud.

Just like everything else, merchant services have changed over the course of the pandemic. Your business may be trying to navigate contactless payment options or accepting orders over ecommerce platforms, like Instagram. No matter the situation, it’s important that you protect your business against the risks associated with online payments, so you can focus on optimizing your use of this developing technology.  

Social distancing has really changed the ecommerce landscape. Some businesses find themselves relying on person-to-person, or P2P, payment apps to make transactions online. PayPal, for example, saw an increase of usership from 325 million to 375 million active customers between spring 2020 and spring 2021.  

If your business is making use of these tools, here is some crucial information that just might protect your bottom line.  

Be careful with P2P apps.  

It’s important to recognize that not all P2P apps, like PayPal, Cash App, or Zelle, are built with business protections in mind.  

Although it is easier for the consumer to use an app, in comparison to a credit card, it is often more secure for retailers to accept credit card payments. Credit cards have certain built-in protections that make them less vulnerable to scammers. 

One problem with P2P apps is that money sent cannot always be recovered if, say, the sender no longer wishes to go through with a payment. This makes processes like returns more difficult, but also leaves your customers more susceptible to scams. Let’s say someone is pretending to be your business over social media, and accepts a payment for one of your products; once they make some money, they can delete the account and disappear, with no recourse for you or the victim of the scam.  

On the other side, fraudulent transactions that target the retailer, are very expensive scams. The cost of fraud for merchants is not only the merchandise or the value of the service, but also the labor and resources that go into fulfilling an online order. 

“E-commerce draws a crowd of fraudsters and many merchants that may not have been used to the online sales channel and what it brings with it–the fraud–were unprepared. And I think their eyes were opened [to the fact] that they really need to undertake a dynamic fraud strategy,” said Raymond Pucci, Director of Merchant Services at Mercator Advisory Group, to Payments Journal 

Online fraud is a significant risk.  

Recently, the Ponemon Institute, sponsored by PayPal, did a study called “The Real Cost of Online Fraud”. More than 600 analysts and senior leaders were surveyed regarding their organizations fraud prevention efforts. It came to the following conclusions: 

  • On average, in the United States, organizations lose $4.5 million to fraudulent transactions every year. 
  • Only 51 percent of respondents said their organizations are prioritizing protecting against online payment fraud. 
  • There has been an eleven percent decrease in effectiveness in organizations preventing against online fraud since the outbreak of COVID 19.  
  • Eighty one percent of respondents admitted their organizations are more vulnerable to fraud because of the recent surge in digital transformation.  

This is one of the consequences of sudden, rapid digital transformation.  

Prior to COVID-19, 45 percent of respondents rated their effectiveness as high or very high. Today, only 34 percent of respondents rate their effectiveness as high or very high. Although digital transformation is important to organizations’ ability to support business goals, it challenges their ability to prevent online fraud incidents,” said the study.  

What can you do to prevent online fraud?  

PayPal and the Ponemon Institute suggest that success in preventing against online fraud begins with collaborative relationships between internal fraud and cybersecurity teams. Often, this also includes working with an external fraud prevention partner with a lot of industry experience 

Likewise, when using P2P apps, research what fraud prevention tools each service provides. PayPal recently launched Fraud Protection Advanced: a service specifically for enterprise merchants. Zelle benefits from the security measures provided by the banks it partners with. Each app is different, and requires independent research.  

In short, make sure you have the best team, consider collaborating with third-party experts, and do your research and be selective about which P2P apps you use.  

Cal Wilson / May 10, 2021

Internet in the Age of COVID — Is your service enough?

From working and studying at home to an increase in online shopping, we, as a global community, have never used the internet more. Unfortunately, this has exposed some serious weaknesses in the strength of our networks.  

Even before the COVID-19 pandemic, internet inequity was a pressing issue in North America. Connection to high speed broadband internet has been tied to better health, education, and financial prosperity. In a global crisis where isolation is part of the solution, this is more relevant than ever.  

In the past year, some analytics report a 50 percent increase in internet usage, just in the United States. For many families with two adults working from home, the home internet that had been working fine before COVID-19 is no longer sufficient. Especially if they also have children doing virtual schooling, streaming content, or gaming. The strain of the past year to networks’ infrastructure has meant that providers are having to come up with new solutions.  

Before lockdowns, networks were accustomed to peak activity times, as well as down times, based on typical consumer habits. Your office or institution’s peak times would be the inverse. Offices and institutions, such as universities, can typically support these heavier peak times, because they pay for “enterprise grade” internet broadband service, which utilize higher quality cables and piping than your typical neighborhood.  

As The New York Times explained it in an article last year, “many offices and schools essentially have the equivalent of a big pipe to carry internet traffic, compared with a garden hose for most homes. 

This has created an obvious difficulty for business owners with employees working from home, as well as for employees already struggling with pandemic-related stress.  

In the United States, big carriers like Verizon, Cox, and Charter, among others, have taken measures to meet the increase in demand over the past year. The carriers’ challenge was to make home internet fit the expectations of business services. From upgrading plans, forgiving overages, and promising to improve infrastructure, measures have been taken by all major carriers to adjust to the new reality.  

In Canada, the situation has been similar, impacting rural Canadians most severely. Those working or running businesses out of small towns found they were out of options when it came to trying to adjust virtually. One study done in collaboration with the Canadian Internet Registration Authority (CIRA) and Maclean’s found that “estimates just 46 per cent of rural Canadians have access to internet that meets that minimum standard, compared to 80 per cent for the country as a whole” and “in each of Canada’s 417 municipalities with more than 9,000 people–including the biggest cities, like Toronto–many people live with web connections that aren’t sufficient to work or study from home.” 

This is not just a Canadian problem. In Wisconsin alone, there are roughly 411,000 households without access to broadband speeds.  

Across North America, the answer to the dilemma posed by work from home seems to be improved infrastructure. This infrastructure is already implemented in downtown cores of cities, where multiple people on one residential network can be working or studying simultaneously. Outside of these cores, the current infrastructure can often only support one heavy user.  

The problem has been, as always with connectivity inequity, is that carriers only profit off investing in better infrastructure when there are enough residents in the area to purchase the service. This creates a problem for residents and business owners with employees working from home alike. The pandemic has seen an increasing urgency in adopting internet connectivity into the realm of public infrastructure.  

 

Cal Wilson / April 19, 2021

Is your Business Impacted by the Global Shipping Container Shortage?

You may have seen a meme or two about the Suez Canal recently, but you may not know it was only one part of a global shipping crisis. The international economy is experiencing a shipping container shortage that is impacting businesses big and small.  

As of right now, containers used to ship larger or bulk product are in high demand and low supply, sending delivery speeds and prices skyrocketing. According to German media outlet Deutsche Welle, some manufacturers shipping product out of China have seen an increase by as much as 100 percent from the beginning of 2020 to now 

Not only is there a lack of container availability, but physical space on cargo vessels is also low. This is the result of a stark increase in demand over the past year, paired with an inability of the industry to keep up. Before the pandemic, there was not a financial incentive for shipowners to grow their fleets; now they are struggling to meet the ever-increasing demand. 

COVID-19 disrupted the shipping industry.  

Consumer demands caused by lockdowns across the world reignited the shipping industry in a way it had not seen in over a decade. Likewise, various waves of the virus completely halted production in different regions, at different times. Shipping to and from East Asia in the beginning of 2020, causing a supply-chain imbalance that did not quite recover until August. With new waves of lockdowns, and the Ever Given incident in the Suez Canal, we are again thrown way off track.  

Consumer trends during lockdowns have certainly impacted the shipping industry. The past year has seen less money spent on travel and services, and more spent on appliances, furniture, workout and sport equipment, bicycles, and other luxury items that can be enjoyed from home. These products often involve container shipping, and the increased demand has retailers stocking up warehouses pre-emptively. Fleet owners simply cannot meet these demands.  

Port cities are also struggling to adjust. Balancing the consumer need with the realities of the COVID-19 pandemic proves a challenge for some of the world’s biggest hubs. Los Angeles, for example, requires that inbound ships wait ten days before entering the port — which of course is extended if anyone on the crew becomes sick. These are valuable workers, ships, and containers, spending many business days quarantined. While these measures certainly protect us from spreading the virus, they have also presented a big industry problem.  

How is this impacting your business?  

It may seem like a faraway problem, but really, shipping fee increases are likely costing you. From slower speeds, to increased prices, many retailers and other business owners are feeling the consequences of this imbalance.  

If your business is locked into a long-term shipping contract, that was signed before COVID-19, you’re one of the lucky ones. For many businesses though, old contracts have not been enough to satiate new demands.  

For North American exporters, shipping shortages have been an especially painful part of the pandemic. Farmers who provide staple crops to the rest of the world have found it difficult to get their product off the continent. For example, in 2020, China was the leading buyer of Canadian-grown peas. Now, farmers are finding they do not have access to shipping containers to get their product overseas.  

Whether you rely on importing or exporting goods to maintain your business, chances are you’ve been subjected to the repercussions of the shipping crisis, either in cost or in transport delays.  

A solution in sight?  

Experts predict that the shipping demand is not set to ease up any time soon. Hapag Lloyd, a German-based global shipping giant, ordered six new container ships for its fleet before Christmas 2020, but does not expect to see them delivered until 2023.  

Some industries, such as Canadian farmers, have begun lobbying their governments for some kind of regulation to keep them afloat in the midst of this crisis.