Microsoft Confidential 1 Data Integration Moin Moinuddin Program Manager Microsoft Industry Solutions Architecture Team

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Microsoft Confidential

Data Integration

Moin MoinuddinProgram Manager Microsoft Industry Solutions Architecture Team

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Agenda

Business Challenges

Connected services Framework

Payments

Q&A

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Infrastructure

Application

Data Integration

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Business Challenges

CustomerCustomerDemandsDemands

CompetitionCompetition

GlobalizationGlobalization

RegulationRegulation

TechnologyTechnologyChangeChange

BusinessBusinessResultsResults

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Business Consequences

CustomerCustomerDemandsDemands

CompetitionCompetition

GlobalizationGlobalization

RegulationRegulation

TechnologyTechnologyChangeChange

GreaterGreaterFocusFocus

GreaterGreaterInterdependenceInterdependence

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Connected Systems – The New Application

Single Application

Microsoft Platform Microsoft Platform

Connected Systems

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Connected Systems (Realizing Business Imperatives)

Business Business IntelligenceIntelligence

POSPOS

CustomerCustomerExperienceExperience

BusinessBusinessOperationsOperations

ComplianceCompliance

SupplySupplyChainChain

Enterprise Enterprise collaborationcollaboration

Multi-channel Multi-channel retailingretailing

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Connected Services Framework

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Problem definition

“… I need to bring 50 new services to market in next 12-18 months”

“… I need to be driving $X00 million in revenue from new services in the next two years”

“… it costs me $2 million to launch each service”

“…It takes too much time and energy to bring even a simple service to life”

On line

merchant

Current infrastructure does not have the agility to keep up with business objectives

WirelessOperator

Voice call + SMS

User

Offer to purchase

Online Shopping

Online merchant

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The Solution (Retailer becomes the “Service Aggregator”)

Requires ability to dynamically “connect” disparate services together so they collaborate and can be managed as one

Now, as the aggregator:

Retailer leverages partner product/service, but maintains central position in value chainParticipates in new revenue

streamBetter leverage of existing assets

and customer relationship

On line

merchant

Modifying the previous example…

Revenue Share

WirelessOperator

Voice call + SMSUser

Aggregates all products/services and shopping

Online merchant

User’s preferences, Purchase transaction,Purchase historyConsistent user behavior

Revenue Share

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Putting It All Together

Value lies in assembling combinations of services across all Value lies in assembling combinations of services across all levels…levels…

Partner Partner or Public or Public ServicesServices

Store Store ServicesServices

Back-end Back-end or Corp or Corp ServicesServices

Mobile shopping serviceMobile shopping service

Product catalog service

Product catalog service

Customer management service

Customer management service

Returns processing service

Returns processing service

Service 2

Serv

ice

3

Service 1

Location serviceLocation service

Real time inventory mgmt service

Real time inventory mgmt service

Print servicePrint service

Service 1 Scenario• Customer buys a Dishwasher & requests installation• POS system contacts partner service for installation and

Informs the customer of when and who will install it • POS system also notifies the inventory management

system• Prints the receipt along with the installation appoint and

partner name

Service 2 Scenario• Customer looks up product information using his mobile

device • Central product catalog service provides product

information, in addition informs the customer where is the nearest store with the product

• If customer orders it, then the order is printed in the appropriate store ready for pick up when customer arrives

Service 3 Scenario• Customer returns an item at Chicago store which was

purchased in Seattle• CMS requests the authorization from the returns

processing service (RPS)• RPS requires the barcode from the CMS• Once the bar code info is provided item return is

processed and receipt is printed

Point-of- Service

Point-of- Service

Loyalty

Point Loyalty

Point

Partner installation service

Partner installation service

Store locator service

Store locator service

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Example Scenario: Wireless Consumer ServiceRetail Price Check Service

Billing event notification to billing system

Mail image to price check alias

Web service call to bar code recognition service

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1

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Price-check

Service

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Web service call to amazon.com

SMS book price and rating to user

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5

1

2

3

4

5

Bill

ing

SM

S

MM

S

Bar code Recognition Service

Amazon.com Web Service

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Connects…• New services to existing infrastructure• Services across different networks and devices• Individual (leaf) services

into composite services

A software product and Service-Oriented Architecture (SOA) for creation and management of services across networks and devices

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Microsoft Connected Services FrameworkNew service creation through aggregation

Quickly build or modify services

Dynamically add and remove services during runtime

Collaborate in new ways with partners

New opportunities to leverage existing assets

Maintain primary relationship with subscribers

Service AService B

Service LogicLogic or orchestration to manage interaction between the individual services

Service B

PartnerService

PartnerService

3rd PartyService

3rd PartyService

IndividualServices

NewAggregated

Service

Service A

Billing, etc.

Billing, etc.

Web Service Interface

Through Connected Services Framework, this aggregated service can now be deployed and managed as a single service

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Microsoft Connected Services FrameworkConsists of…

1. A server product to manage common functions of service control and aggregation

2. Common sets of interfaces and software logic for connecting to back end systems

3. Web services API for adding new services

4. SDK and developer environment for building new services

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Mobile Web Services

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Scenario

Programmable service ecosystem enabled by a commercial transaction

Service Provider (ISV)• Focus on service delivery• Outsource billing/authentication

End user• Integrated experience• Enabled by Platform delivered through client apps.

Network Operator• Are trust brokers• Provide authentication• Provide Billing • Provide network services

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Payment Models

Single Payment Service reserves an amount and charges user later

Subscription Payment A regular scheduled payment, driven by service with support for varying price

Payment Federation A service can aggregate payment for smaller companies, enabling the customer to pay a single bill

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Payment Today

Bank

ClientOnline

Merchant

Trust BoundaryMerchant must hold data representing the user and payment details

•May have to make legal assertions (EG purchasing alcohol)

•Store sensitive financial details (credit card information)

•Safeguard personal details against data theft

User must trust the merchant to not misuse payment details

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Single Payment

MWSPayment

Client Dell

Trust BoundaryClient already has Dell identity token

Client attempts to purchase a PC from Dell

Dell doesn’t charge the user until the PC is shipped and built

Dell requests a reserve payment for the PC

The client may interact with the user requesting authorization to proceed

The client encrypts the payment request using the client identity

This payment request is sent to the MWS Payment Provider

This authenticates the request and verifies the account holder has sufficient funds

If successful a Payment Token is issued, the funds are then reserved, guaranteeing payment

The Payment Token is then signed and returned to the client.

The client passes the payment token back to Dell.

Dell verifies the token against the MWS and if successful completes the order.

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Single Payment continued

MWSPayment

Client Dell

Trust BoundaryDell builds the PC to the Client’s specifications and is ready to ship

Dell uses the Reserve Payment Token to request payment from the MWS (note the amount may be different to the reserved amount)

The MWS verifies and returns the payment response

Approved

Dell can now ship the order out to the customer

Rejected or User Interaction Required

Dell chooses what course of action to take

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Payment Federation

MWSPayment

Client BA

Trust Boundary

Avis

Insurance

Trust BoundaryBusiness relationships are complex and difficult to model

•Avis may require payment per BA holiday package sale

•Insurance may provide an annual flat rate with BA

Most flexible model is to allow BA to manage it’s own payment relationships with Avis and Insurance

•To the Client and MWS Payment they are only dealing with BA

•BA deals separately with Avis and Insurance

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MWS Framework

Solution Topology

MWS Server

SMSGateway

Microsoft MWS Servers

Auth/ Identity

Charging / Payment

Vodafone Network Services

RBAProtocols

SQL ServerMOM ServerISA Server

Hello via

SMS!

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RemotingChannel

Application Process MWS Framework

WindowsMedia Player

Client Identity Token Service

(Local STS)

Mobile Network Operator

GSM / SIM Identity Token Service

Service Provider

MSN Music

MWS IdentityToken Service

WS-Trust / WS-Security

SIM Security Token


MWS Security Token

WS

-Trust / W

S-S

ecurity


MWS Identity

MWS UX Process

Authentication /Credentials UX

Secure PaymentProcessing UX

PaymentToken Service

MWS PaymentToken Service


Payment Security Token

Auth

Auth

Payment

Payment

Payment ArchitectureClient to Server

Payment ArchitectureClient to Server

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Goals

Goal is to provide a secure, trusted, Web services-based payment model for server-server and client-server scenarios

Targeted for both consumer-to-business payments, as well as business-to-business payments

Plan is to enable Windows to provide trusted payment capabilities for all applications, not just the browser

Plan is to provide a .NET client and server platform to more broadly enable payment integration into application and services

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Microsoft Points

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What is Microsoft Points?

Microsoft Points:Enables efficient micro-paymentsEnables prepaid purchase for cash based consumers

(kids/teens, Immigrants, emerging and developing markets)Provides a mechanism to acquire and directly reward loyal customers

(direct revenue sharing)Introduces and defines a new impulse purchase user experience on the

webMicrosoft Points is part of the MSN payment strategyPoints does not replace other payment options but adds a new

instrument with very unique characteristics and capabilities to our suite of payment options

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What is Microsoft Points Solving?

Problem:There is no efficient way to sell low priced ($0.05 – 5.00) digital content or

services online today The dominant buyer of these types of goods (music, games, ring tones) buy

with cash and today it is difficult to use cash online Solution:Best solution to this problem is to use a prepaid stored value model Reason/EvidenceStored value has the absolute lowest transaction cost because you are

subtracting from known good funds with no settlement risk More than 70% of cell phones worldwide (of nearly 2B) are sold via prepaid

stored value Prepaid stored value music, and prepaid MMOG cards have also sold well

globallyStarbucks has had huge success with it’s prepaid Duetto card

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Microsoft Payment Gateway

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Microsoft Payment GatewayThe SCG (MSN) payment gateway enables merchants to collect payments

through a variety of payment methods. The gateway acts as a bridge between the merchants and the financial

institutions that process payment transactions. It is a hosted solution onlyV2 is targeted for external partners and customers. First version the payment gateway will support credit card transactions

including real-time authorizations and settlements through Citibank. In the future, the payment gateway will be extended to support other payment

instruments like PayPal, Direct Debit, bank transfer, or Premium SMS. In the future, the payment gateway will also leverage the other SCS services

including financial reporting, tax services, cash reconciliation, chargeback processing, etc.

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Microsoft Payment Gateway

IP

Card Association

Card Association

MicrosoftPayment Gateway

Issuing Bank - 1

Issuing Bank - 2Retailer

Online retailerIP

IP

Windows Payment

API

Windows Payment API

eCheck provider

Gift card provider

Microsoft Points Service

IP

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Microsoft Confidential© 2004 Microsoft Corporation. All rights reserved.This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

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SUPPORTING SLIDES

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What is Microsoft “Menger”It is a payment routing, aggregation and reporting engine.

It supports Value Added Services such as least cost routing, batch processing, Micro-payments, fraud detections, recurring billing, etc.,

MS “Menger” will allow large retailers to have the robust features they need while still working in the plug and play model delivered in the Payment Abstraction Layer

In addition, Menger will provide extensible model for adding additional value added services in addition to the ones which are built in.

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“Menger” Architecture

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Microsoft “Menger” ScenarioRetailer uses Batch Processing of TransactionsRetailer adds a loyalty program to MS “Menger” Retailer uses business rules to keep its business going in case of a payment service outage

Retailer aggregates payments from its remote/mobile outlets

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Mobile/Contact-less Payments

In the US and worldwide there are many contactless payment initiatives including Mastercard’s PayPass, American Express’s ExpressPass, Chase’s Blink, NTT DoCoMo’s Mobile Payments and many others.

Current initiatives have focused mainly on Contact-less cards while a few have included Contact-less mobile phone based solutions.

The main early value driver of contact-less payments is increased speed of transaction over traditional magnetic stripe cards.

While this is a major benefit in certain retail segments, there are many other features that could be implemented when combining contactless payments with a smart payment device like a Windows Mobile Smart Phone.

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Mobile/Contact-less Payments Architecture

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Mobile/Contact-less Payments Scenarios

Consumer able to pay for coffee using mobile phoneCard becomes locked after theftAutomatic Payment Profile. Customer automatically received loyalty points and rebates on their

mobile phone Peer to Peer Payments. Transferring a limited card to another phone

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PAL/Menger Road Map

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Documents

Microsoft Confidential 1 Data Integration Moin Moinuddin Program Manager Microsoft Industry Solutions Architecture Team