Tasland Search

www.taslandsearch.com.au

Tas Land Search has now merged into the Aus Property Search project.

Executive Summary

Tas Land Search Pty Ltd is a Tasmanian company providing mining, landslip and ground water research services for conveyancing solicitors.

Managing Director, Nick Bonner, initially implemented e-commerce when he developed the company's website in July 2001. From the outset Nick's business objective was to provide a fast, efficient and accurate service to solicitors via an online system.

Manual mining searches that once took five days to turnaround are now completed within 24 hours by using Internet resources.  While retaining a manual service for some clients the company's focus is now on Internet based transactions and the development of new online services for other client groups in the geographic information sector.

The online portal (www.taslandsearch.com.au) saved the company and customers significant amounts of time and money. In its first year of operation, Tas Land Search's e-commerce solution provided the company with $75,600 in incremental revenue contributing a total of $71,820 to gross profit in 2001.  The increased speed of request turnaround and convenience of electronic transactions and communications provided a net operating benefit of $71,178.  Establishment costs totalled $22,040.

The Business

Tas Land Search Pty Ltd is a Tasmanian owned and operated company that has been providing conveyancing solicitors with mining, landslip and ground water search details for seven years through GA Bonner Consulting Engineers. Based in Launceston, the company also maintains an office in Hobart and employs three staff, including Managing Director, Nick Bonner.

Getting Started

Building on his early success Nick further enhanced the website in early 2002 to incorporate an online payment facility via the Westpac Payments Gateway (WPG) and Tas Land Search's own online accounting facility.  Nick employed the services of a professional web developer to program the website and work out the details of the WPG with Westpac Technical Services.  Development of the website is continuing with the current focus on improving the online accounting system and encouraging clients to utilise the online payment functionality.

Nick had frequently used e-commerce systems as a customer and was familiar with their operation before developing a system for the Tas Land Search website.  The strategy was implemented in a single stage due to the need for the online payment gateway and back-end accounting system to be developed simultaneously.

In addition to the cost savings achievable by introducing a paperless system, the major motivation behind the website was customer demand and the additional revenue that could be generated through a more convenient and timely service.

E-Sales

The most common business model for e-sales (or the selling of goods over the Internet) is the 'clicks and mortar' model where companies extend their operations to the internet but continue to maintain a physical location.  While Tas Land Search continues to offer paper based services Nick encourages his clients to adopt internet transactions for their businesses and take advantage of the efficiencies of his online facilities.

Transactions that once took five-days to turn around are now completed in 24 hours.  Tas Land Search receives notification of a client request instantly and makes use of Internet resources to perform the client's research.  Research results are emailed directly to the client, saving on time consuming and expensive postal, fax and telephone communication. Because of this speed and efficiency of service the company's main focus is now on Internet based transactions.

Current e-commerce strategy

To use Tas Land Search's online service, the customer (such as a solicitor) must first create an account by registering their business and personal details.  Once the account is created the customer can make requests, view and modify their contact details, and view account details such as opening and closing balances and transaction costs. Transaction histories are comprehensive including requests submitted, details of the party for whom the request is required, and details related to the processing of the results.

When submitting a request, a solicitor first enters 'log in' details and client information, and may select an option to prioritise the urgency of the request according to the property transaction settlement date.  On the same screen there is a form used to provide details of the property for which information is being requested.  Once this is complete the solicitor selects the type of results required, the preferred delivery method (fax or email) and submits the form.

The form is automatically forwarded by email to Tas Land Search where staff perform the search utilising government websites such as the Land Information System Tasmania (LIST).   Once the required information is found and compiled, it is returned to the solicitor by email. The transaction and account details are then reviewed by the solicitor online before being paid via the Westpac Payments Gateway.

Since the company's fundamental service relies on online research, the speed and reliability of the internet connection used is pivotal to maintaining a quick turnaround time.  Therefore, Tas Land Search uses Asymmetric Digital Subscriber Line (ADSL) broadband to enable staff to perform research and download information quickly and reliably.

Revenue and Costs

* Note: Capital Expenditure was amortised over a four-year period

Financial Analysis

In its first year of operation Tas Land Search's e-commerce solution provided the company with $75,600 in incremental revenue contributing a total of $71,820 to gross profit for 2001.  The increased speed of turnaround time for requests and the convenience of electronic transactions and communication provided a net operating benefit of $71,178 after deduction of ongoing costs associated with the system.

Total cost savings attributed to the use of the online system amounted to $12,832.  Moving from a paper based system to an online, automated system saved the company significantly in staff productivity, both in general administration ($4,080) and in communication time ($1,600), enabling Nick to spend more time on marketing and revenue generating activities.  Bill payment transaction and administration costs were also reduced dramatically ($4,100) as were banking costs ($1,600).  Greater accuracy in data handling saved the company an estimated $1,000 in reduction of administrative errors.

The establishment costs involved in developing the e-commerce solution totalled $22,040.  This includes a $10,000 investment in preliminary research conducted by Nick and $5,000 in web development costs.  A further $2,000 was required to integrate the existing database with the new payments system.  Purchase of necessary hardware consisted of a computer ($3,000), a printer ($1,200) and additional cabling for the ADSL broadband connection ($700).

Ongoing costs associated with the system amounted to $13,474 in 2001.  A major portion was the $5,510 allocated to the amortisation of capital expenditure over a period of four years.  The electronic payment subscription fees totalled $1,594 in fixed and variable charges. The ADSL broadband Internet access fee is currently $708 per annum and website hosting fees are $660 per annum.  Telephony charges have fixed and variable components amounting to $540 and $600 respectively.  System maintenance and administration are also ongoing concerns with expenditure of $500 and $100 respectively.

Non-financial Benefits

The major change from a manual, paper based service to an online system has benefited both the company and its clients.  The improved turnaround time enables clients to submit requests and receive results at their desk the following day.

The system also provides clients with a record of the conveyances conducted for them by Tas Land Search in the "Our History" section of the web site in addition to detailed account information at the tip of their fingers.

Challenges

Nick found the biggest hurdle in developing a seamless and efficient transaction process with his clients was the lack of client uptake of available broadband Internet access.  While Tas Land Search has found that the broadband system adds significant value to their business, clients are not taking advantage of the additional bandwidth offered by ADSL and continue to use dial-up connections.  The company has encouraged clients to install broadband connections, which in the future will assist in the speed and type of information Tas Land Search can receive and distribute.

Locating appropriate information technology (IT) skills in the market place was also a challenge.  Tas Land Search's initial database was not constructed properly, so a more experienced and professional IT firm was engaged. Nick's advice to companies wishing to implement e-commerce is to thoroughly research the credentials of the consultant.  He believes that the service is worth what you pay for, and the higher the quality of the implementation, the quicker it will repay the establishment costs.

Future

Tas Land Search is currently redeveloping its website to enhance its accounting functionality and facilitate future initiatives involving broadband technology.  The fully redeveloped website (version three) will be launched on Tuesday, 1 October. 

In addition to encouraging more clients to use the online payment facilities Nick has plans to integrate Tas Land Search's system with the government website and databases to enhance the speed and depth of the research the company can offer.  This will add further value to the service the company can provide for conveyancing solicitors and other client groups in the geographic information sector.