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Internet Systems Prototyping Service1 The Internet Systems Prototyping Service ISPS was developed in order to lower the risks and costs of business online service users. Essentially it is a product testing or proving service through which customers can test a prototype of their requirements so as to ensure it is feasible. ISPS is particularly useful in helping transparency in the process of communincating system requirements to developers. ISPS has a radical impact on the cost of ownership of sophisticated online capabilities because it lowers the risks, ensures a clear and early functional specification of customer requirements so that work on the main system is directed to the implementation of a system which will satisfy customer requirements. ISPS based services are not known to have any time or cost over-runs. Technical aspects ISPS modules are selected on the basis of Critical Functional Analysis (CFA) whereby systems functionality which might represent an implentation and or functional challenge can be separated out and built as a prototype. Financial aspects ISPS is most effective when combined with online applications services because it enables customers to make sophisticated demands in terms of systems functionality and the ISPS service is costed into a futures contract in which the customer pays a low monthly fee for the whole service but which covers the ISPS activity. Innovative impact The innovative impact of the ISPS approach with the CFA and fianncial packaging in support is that online business service can sustain a very high level of affordable inovation so as to respond to specific customer needs. 1: Internet Systems Prototyping Service was developed under the Seel-Telesis® applied R&D programme at the Systems Engineering Economics Lab.