Tài liệu 2. e business and e commerce management dave chaffey

Ben Clegg, Aston Business School ‘This text provides a strong strategic framework to help students understand this fast-moving subject, as well as a useful guide to practical analysis.’ Mette Præst Knudsen, University of Southern Denmark What approach to e-business strategy should you follow? How much do you need to invest in e-business? Which processes should be your priorities? Written in an engaging and informative style, E-Business and E-Commerce Management explores these questions, equipping you with the knowledge and skills to navigate today’s fast-paced world of continuous technological development. In this latest edition of his bestselling text, leading authority Dave Chaffey brings together the latest academic thinking and professional practice. Covering all aspects of e-business including strategy, digital marketing and supply chain management, E-Business and E-Commerce Management gives you the benefit of: • A structured approach to planning, implementing, assessing and improving e-business strategy for all types of organization. The latest on managing e-business security and cutting edge e-marketing • techniques such as social media and search engine optimization. • Case studies of technology leaders such as Dell, Facebook and Google, as well as start-ups and small businesses. • Real-life interviews with professionals who describe their e-business strategies. Dave Chaffey (www.davechaffey.com) is an e-business consultant and visiting lecturer on e-business courses at Warwick University and Cranfield School of Management. Additional learning resources are online at www.pearsoned.co.uk/chaffey An imprint of CVR_CHAFF9601_04_SE_CVR.indd 1 www.pearson-books.com Fourth Edition Chaffey Whether you’re an undergraduate or postgraduate student studying e-business and e-commerce, or a business manager, E-Business and E-Commerce Management is the essential text to help you keep pace with technology, strategy and implementation. E-Business and E-Commerce Management ‘This book keeps getting better and better with every version. It is fast becoming the de facto standard for e-business and e-commerce – for both faculty and students.’ Fourth Edition E-Business and E-Commerce Management Strategy, Implementation and Practice Dave Chaffey 8/4/09 09:31:49 A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 15:29 Page i E-Business and E-Commerce Management Strategy, Implementation and Practice Visit the E-Business and E-Commerce Management, fourth edition Companion Website at www.pearsoned.co.uk/chaffey to find valuable student learning material including:
A study guide to reinforce key ideas and topics
Multiple choice questions to test your learning
Links to relevant sites on the web
An online glossary to explain key terms
Flashcards to test your understanding of key terms
A smarter online searching guide
Link to Dave Chaffey’s blog with a collection of articles and links
Link to Dave Chaffey’s Twitter feed A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 10:59 We work with leading authors to develop the strongest educational materials in business and management, bringing cutting-edge thinking and best learning practice to a global market. Under a range of well-known imprints, including Financial Times Prentice Hall we craft high quality print and electronic publications which help readers to understand and apply their content, whether studying or at work. To find out more about the complete range of our publishing, please visit us on the World Wide Web at: www.pearsoned.co.uk Page ii A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 10:59 Page iii Fourth Edition E-BUSINESS AND E-COMMERCE MANAGEMENT STRATEGY, IMPLEMENTATION AND PRACTICE Dave Chaffey A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 10:59 Page iv Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsoned.co.uk First published 2002 Second edition published 2004 Third edition published 2007 Fourth edition published 2009 © Dave Chaffey 2002 © Marketing Insights Limited 2002, 2009 The right of Dave Chaffey to be identified as author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS. All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners. ISBN: 978-0-273-71960-1 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Chaffey, Dave, 1963– E-business and e-commerce management : strategy, implementation, and practice / Dave Chaffey. -- 4th ed. p. cm. Includes bibliographical references and index. ISBN 978-0-273-71960-1 (pbk. : alk. paper) 1. Electronic commerce. 2. Business enterprises--Computer networks. I. Title. II. Title: Ebusiness and ecommerce management. HF5548.32.C472 2009 658.8'72--dc22 2009009561 10 9 8 7 6 5 4 3 2 1 13 12 11 10 09 Typeset in 10/12pt Minion by 30 Printed and bound by Rotolito Lombarda, Italy The publisher’s policy is to use paper manufactured from sustainable forests. A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 10:59 Page v Brief contents Preface Guided tour Author’s acknowledgements Publishers acknowledgements Part 1 Introduction xiii xxiv xxvi xxvii 1 1 Introduction to e-business and e-commerce 3 2 E-commerce fundamentals Part 2 Part 3 51 3 E-business infrastructure 103 4 E-environment 192 Strategy and applications 253 5 E-business strategy 255 6 Supply chain management 330 7 E-procurement 380 8 E-marketing 412 9 Customer relationship management 481 Implementation 559 10 Change management 560 11 Analysis and design 604 12 Implementation and maintenance 680 Glossary Index 736 754 A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 10:59 Page vi A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 10:59 Page vii Contents Preface Guided tour About the author Author’s acknowledgements Publisher’s acknowledgements xiii xxiv xxvi xxvii xxvii Introduction 52 Real-world E-Business: More Th>n 53 The e-commerce environment 57 Strategic agility 57 Online marketplace analysis 59 Location of trading in the marketplace 67 The importance of multi-channel marketplace models 70 Different types of online intermediary 71 Types of intermediaries 74 The importance of search engines 76 Business models for e-commerce 77 Revenue models 79 Online publisher and intermediary revenue models 80 Focus on auction business models 86 Case Study 2.1 The impact of B2B reverse auctions 87 Focus on Internet start-up companies 88 From ‘bricks and mortar’ to ‘clicks and mortar’ 88 Assessing e-businesses 89 Valuing Internet start-ups 89 Case Study 2.2 lastminute.com – an international dot-com survivor 91 The dot-com bubble bursts 93 Why dot-coms failed 93 The impact of the dot-com phenomenon on traditional organizations 95 Case Study 2.3 Zopa launches a new lending model 95 Summary 98 Exercises 99 References 100 Further reading 101 Web links 101 Part 1 Introduction 1 Introduction to e-business and e-commerce Learning outcomes / Management issues Links to other chapters Introduction The impact of the electronic communications on traditional businesses Real-world E-Business: HP.com What is the difference between e-commerce and e-business? E-commerce defined E-business defined Case Study 1.1 A short history of Facebook Business or consumer models of e-commerce transactions E-business opportunities Business adoption of digital technologies for e-commerce and e-business Drivers of business Internet adoption Case Study 1.2 North West Supplies extends its reach online E-business risks and barriers to business adoption Evaluating an organization’s e-business capabilities Drivers of consumer Internet adoption Barriers to consumer Internet adoption Management responses to e-commerce and e-business Part 1: Introduction Part 2: Strategy and applications Part 3: Implementation Case Study 1.3 eBay – the world’s largest e-business Summary Exercises References Further reading Web links 2 E-commerce fundamentals Learning outcomes / Management issues Links to other chapters 1 3 3 3 4 6 7 9 10 13 17 26 29 30 30 33 35 36 37 39 39 39 40 42 42 46 46 48 49 49 51 51 51 3 E-business infrastructure Learning outcomes / Management issues Links to other chapters Introduction E-business infrastructure components Real-world E-Business: Random House Internet technology Hosting of web sites and e-business services The Internet timeline Just how big is the Internet? Case Study 3.1 Innovation at Google Intranets and extranets Web technology Internet-access software applications Blogs and blogging Electronic mail or e-mail Feeds Voice over IP (VoIP) 103 103 103 104 105 107 109 110 111 114 115 116 124 128 129 131 132 134 A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD viii 4 16/4/09 10:59 Page viii Contents How does it work? Internet standards Networking standards The HTTP protocol Uniform resource locators (URLs) Domain names Web presentation and data exchange standards Audio and video standards Focus on Internet governance Managing e-business infrastructure Managing hardware and systems software infrastructure Managing Internet service and hosting providers Managing employee access to the Internet and e-mail Managing e-business applications infrastructure Focus on web services, SaaS and service-oriented architecture (SOA) Benefits of web services or SaaS Challenges of deploying SaaS Case Study 3.2 New architecture or just new hype? EDI Focus on mobile commerce Wireless Internet access standards Wireless access devices Popularity of mobile applications Summary Exercises References Further reading Web links 136 136 138 139 139 141 152 152 158 E-environment 192 192 192 193 196 198 198 209 222 Learning outcomes / Management issues Links to other chapters Introduction Real-world E-Business: GD Worldwide Social and legal factors Factors governing e-commerce service adoption Privacy and trust in e-commerce Other e-commerce legislation Environmental and green issues related to Internet usage Taxation Freedom-restrictive legislation Economic and competitive factors Focus on e-commerce and globalization Case Study 4.1 The implications of globalization for consumer attitudes The implications of e-commerce for international B2B trading Political factors Internet governance E-government Technological innovation and technology assessment Approaches to identifying emerging technology Summary Exercises References 159 160 165 165 168 168 169 174 176 177 178 179 179 186 187 188 190 190 227 229 231 232 233 235 236 238 239 240 241 244 246 246 247 249 249 Further reading Web links Part 2 Strategy and applications 5 253 E-business strategy Learning outcomes / Management issues Links to other chapters Introduction Real-world E-Business: Standard Life What is e-business strategy? The imperative for e-business strategy E-channel strategies Strategy process models for e-business Strategic analysis Resource and process analysis Competitive environment analysis Assessing competitive threats Co-opetion Competitor analysis Strategic objectives Defining vision and mission How can e-business create business value? Case Study 5.1 Capital One creates value through e-business Objective setting Case Study 5.2 Setting the Internet revenue contribution at Sandvik Steel Strategy definition Decision 1: E-business channel priorities Decision 2: Market and product development strategies Decision 3: Positioning and differentiation strategies Decision 4: Business, service and revenue models Decision 5: Marketplace restructuring Decision 6: Supply-chain management capabilities Decision 7: Internal knowledge management capabilities Decision 8: Organizational resourcing and capabilities Strategy implementation Failed e-business strategies E-business strategy implementation success factors for SMEs Case Study 5.3 Boo hoo – learning from the largest European dot-com failure Focus on information systems strategy and e-business strategy Elements of IS strategy Investment appraisal Summary Exercises References Further reading Web links 255 255 255 256 256 259 261 262 264 269 269 276 276 281 281 281 282 285 286 287 292 295 298 300 303 306 308 309 310 310 313 314 315 316 319 320 320 324 325 326 328 329 A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 10:59 Page ix Contents 6 Supply chain management Learning outcomes / Management issues Links to other chapters Introduction Problems of supply chain management What is supply chain management? Using technology to support supply chain management – an example A simple model of a supply chain Case Study 6.1 Shell chemicals redefines its customers’ supply chains What is logistics? Push and pull supply chain models Focus on the value chain Restructuring the internal value chain The value stream Value chain analysis Value networks Towards the virtual organization Options for restructuring the supply chain Using e-business to restructure the supply chain Technology options and standards for supply chain management Adoption rates of e-business applications Case Study 6.2 Tesco develops a buy-side e-commerce system for supply chain management IS-supported downstream supply chain management Outbound logistics management IS infrastructure for supply chain management Supply chain management implementation Data standardization and exchange Human resources requirements of SCM The supply chain management strategy process Managing partnerships Managing global distribution Case Study 6.3 RFID: keeping track starts its move to a faster track Summary Exercises References Further reading Web links 7 E-procurement Learning outcomes / Management issues Links to other chapters Introduction What is e-procurement? Understanding the procurement process Types of procurement Participants in online procurement Drivers of e-procurement Case Study 7.1 Cambridge Consultants reduce costs through e-procurement Focus on estimating e-procurement cost The impact of cost savings on profitability Risks and impacts of e-procurement 330 330 330 331 334 335 337 340 341 345 347 348 350 351 351 352 354 356 358 359 360 363 365 365 366 368 368 369 371 372 374 374 375 376 377 379 379 380 380 380 381 381 384 385 386 387 388 390 391 392 8 ix Organizational risks Failure to achieve real cost reductions Technology risks Implementing e-procurement The growth in adoption of web-enabled e-procurement Integrating company systems with supplier systems Focus on electronic B2B marketplaces Case Study 7.2 Covisint – a typical history of a B2B marketplace? Types of marketplace The future of e-procurement? Summary Exercises References Further reading Web links 393 393 394 394 E-marketing 412 412 412 413 414 415 416 416 417 Learning outcomes / Management issues Links to other chapters Introduction Chapter structure Real-world E-Business: Guess What is e-marketing? Marketing defined E-marketing defined Distinguishing between e-marketing, e-business and e-commerce E-marketing planning Is a separate e-marketing plan required? Situation analysis Demand analysis Competitor analysis Intermediary analysis Internal marketing audit Objective setting Case Study 8.1 The e-volution of easyJet’s online revenue contribution Strategy Market and product positioning Target market strategies Focus on characteristics of new-media marketing communications Tactics Product Case Study 8.2 Dell gets closer to its customers online Price Place Promotion People, Process and Physical evidence Focus on online branding The importance of brand online Actions Control Case Study 8.3 The new Napster changes the music marketing mix 396 397 400 403 405 407 407 408 409 410 410 417 418 418 420 421 425 427 428 428 431 433 436 437 443 448 451 453 456 460 462 464 464 467 469 470 471 A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD x 16/4/09 10:59 Page x Contents Summary Exercises References Further reading Web links 475 476 477 479 480 Customer relationship management 481 481 481 482 483 484 486 487 488 490 491 492 493 Part 3 Implementation 559 10 Change management 9 Learning outcomes / Management issues Links to other chapters Introduction Marketing applications of CRM Real-world E-Business: Warner Breaks What is e-CRM? Benefits of e-CRM Permission marketing Customer profiling Conversion marketing The online buying process Differences in buyer behaviour in target markets Differences between B2C and B2B buyer behaviour The net promoter score Customer acquisition management Focus on marketing communications for customer acquisition The characteristics of interactive marketing communications Assessing marketing communications effectiveness Online marketing communications Customer retention management Personalization and mass customization Online communities Techniques for managing customer activity and value Lifetime value modelling Focus on excelling in e-commerce service quality Improving online service quality Customer extension Advanced online segmentation and targeting techniques Technology solutions for CRM Types of CRM applications Integration with back-office systems The choice of single-vendor solutions or a more fragmented choice Data quality Case Study 9.1 Tesco.com increases product range and uses triggered communications to support CRM Summary Exercises References Further reading Web links 493 495 498 498 499 502 503 526 528 530 533 534 536 536 539 540 546 547 547 548 549 549 552 552 553 556 557 Learning outcomes / Management issues Links to other chapters Introduction The challenges of e-business transformation The challenges of sell-side e-commerce implementation Different types of change in business Case Study 10.1 Process management: making complex business simpler Planning change The imperative for project governance? The project plan and schedule for an e-business system Prototyping Human resource requirements Staff retention Outsourcing Revising organizational structures Approaches to managing change Senior management involvement Models for achieving change Organizational culture Focus on knowledge management What is knowledge? Objectives of knowledge management Implementing knowledge management Technologies for implementing knowledge management Case Study 10.2 Using Web 2.0 tools to support knowledge management at Janssen-Cillag Australia Risk management Summary Exercises References Further reading Web links 11 Analysis and design Learning outcomes / Management issues Links to other chapters Introduction Real-world E-Business: Arena Flowers Analysis for e-business Workflow management Process modelling Process mapping Task analysis and task decomposition Process dependencies Validating a new process model 560 560 560 561 561 563 566 570 572 572 574 576 579 580 581 583 586 586 586 588 590 590 592 593 594 596 598 600 600 601 603 603 604 604 604 605 606 608 609 610 610 610 612 618 A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 10:59 Page xi Contents Data modelling Design for e-business Architectural design of e-business systems Focus on user-centred site design Use-case analysis Designing the information architecture Customer orientation Elements of site design Web accessibility Case Study 11.1 Dabs.com refines its web store Focus on security design for e-business Managing computer viruses Controlling information service usage Monitoring of electronic communications E-mail management Hacking Secure e-commerce transactions Approaches to developing secure systems Current approaches to e-commerce security Reassuring the customer Case Study 11.2 Building an e-business fortress Summary Exercises References Further reading Web links 12 Implementation and maintenance Learning outcomes / Management issues Links to other chapters Introduction Real-world E-Business: Thomas Cook Alternatives for acquiring e-business systems Development of web-based content and services 619 621 621 623 627 634 639 641 646 649 652 658 660 660 665 669 671 671 673 674 674 675 676 677 679 679 680 680 680 681 682 684 686 Creating static web content Software and services for web-site development and testing Testing The testing process Testing environments Changeover Database creation and data migration Deployment planning Content management and maintenance Frequency and scope of content updating Maintenance process and responsibilities Focus on measuring and improving performance of e-business systems Principles of performance management and improvement Stage 1: Creating a performance management system Stage 2: Defining the performance metrics framework Stage 3: Tools and techniques for collecting metrics and summarizing results Budgeting Case Study 12.1 Learning from Amazon’s culture of metrics Summary Exercises References Further reading Web links Glossary Index xi 686 689 694 694 695 695 696 697 697 697 699 703 704 705 706 711 724 726 732 732 733 734 735 736 754 A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 10:59 Page xii Supporting resources Visit www.pearsoned.co.uk/chaffey to find valuable online resources Companion Website for students
A study guide to reinforce key ideas and topics
Multiple choice questions to test your learning
Links to relevant sites on the web
An online glossary to explain key terms
Flashcards to test your understanding of key terms
A smarter online searching guide
Link to Dave Chaffey’s blog with a collection of articles and links
Link to Dave Chaffey’s Twitter feed For instructors
Complete, downloadable Instructor’s Manual
PowerPoint slides that can be downloaded and used for presentations
Testbank of question material Also: The Companion Website provides the following features:
Search tool to help locate specific items of content
E-mail results and profile tools to send results of quizzes to instructors
Online help and support to assist with website usage and troubleshooting For more information please contact your local Pearson Education sales representative or visit www.pearsoned.co.uk/chaffey A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 10:59 Page xiii Preface In 1849 a group of settlers travelling west towards the promised land, California, entered a then unnamed valley. The valley presented a harsh environment with a barrier of mountains to the west making the way forward unclear. Some of the settlers lost their lives as they sought to find a route west before eventually reaching California and what was to become one of the most prosperous places on Earth. As the group left the valley, one of the women in the group turned and said ‘Goodbye, Death Valley’ and hence the valley got its name. The route to e-business success is also not straightforward and similarly fraught with difficulties of selecting the correct strategic direction and surviving in an increasingly harsh competitive environment. Not all who follow the route survive. However, the competitive drivers to follow this route, such as demand from customers and adoption by competitors, make this journey essential. The rewards are evident from those adopters who identified the opportunity early and steered their companies in the right direction. But the journey to e-business can never be completed, because of the relentless evolution in technology and new commercial approaches which exploit it. Smart e-businesses have an agile approach which enables them to review and select the appropriate technologies at the right time. Flagship e-businesses with headquarters in California such as eBay and Google.com are now leading global brands with turnovers of billions of dollars, yet this has happened less than 300 years after the first modern settlers arrived. This book is intended to equip current and future managers with some of the knowledge and practical skills to help them navigate their organization towards e-business. It is your guide to how all types of companies can prosper through e-business. A primary aim of this book is to identify and review the key management decisions required by organizations moving to e-business and consider the process by which these decisions can be taken. Key questions are the following: What approach to e-business strategy do we follow? How much do we need to invest in e-business? Which processes should be our e-business priorities? Should we adopt new business and revenue models? What are the main changes that need to be made to the organization to facilitate e-business? Given the broad scope of e-business, this book takes an integrative approach drawing on new and existing approaches and models from many disciplines including information systems, strategy, marketing, supply and value chain management, operations and human resources management. What is e-business management? Electronic commerce (e-commerce) All electronically mediated information exchanges between an organization and its external stakeholders. As we will see in Chapter 1, electronic business (e-business) is aimed at enhancing the competitiveness of an organization by deploying innovative information and communications technology throughout an organization and beyond, through links to partners and customers. It does not simply involve using technology to automate existing processes, but should also achieve process transformation by applying technology to help change these processes. To be successful in managing e-business, a breadth of knowledge is needed of different business processes and activities from across the value chain such as marketing and sales, through new product development, manufacturing and inbound and outbound logistics. Organizations also need to manage the change required by new processes and technology through what have traditionally been support activities such as human resources management. A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD xiv 16/4/09 10:59 Page xiv Preface Supply chain management (SCM) The coordination of all supply activities of an organization from its suppliers and partners to its customers. From this definition, it is apparent that e-business involves looking at how electronic communications can be used to enhance all aspects of an organization’s supply chain management. It also involves optimizing an organization’s value chain, a related concept that describes the different value-adding activities that connect a company’s supply side with its demand side. The e-business era also involves management of a network of interrelated value chains or value networks. What is e-commerce management? Electronic commerce (e-commerce) All electronically mediated information exchanges between an organization and its external stakeholders. Value chain A model for analysis of how supply chain activities can add value to products and services delivered to the customer. Value networks The links between an organization and its strategic and nonstrategic partners that form its external value chain. To this point we have exclusively used the term ‘e-business’, but what of ‘e-commerce’? Both these terms are applied in a variety of ways; to some they mean the same, to others they are quite different. As explained in Chapter 1, what is most important is that they are applied consistently within organizations so that employees and external stakeholders are clear about how the organization can exploit electronic communications. The distinction made in this book is to use ‘electronic commerce’ (e-commerce) to refer to all types of electronic transactions between organizations and stakeholders whether they are financial transactions or exchanges of information or other services. These e-commerce transactions are either buy-side e-commerce or sell-side e-commerce and the management issues involved with each aspect are considered separately in Part 2 of the book. ‘E-business’ is applied as a broader term encompassing e-commerce but also including all electronic transactions within an organization. Management of e-commerce involves prioritizing buy-side and sell-side activities and putting in place the plans and resources to deliver the identified benefits. These plans need to focus on management of the many risks to success, some of which you may have experienced when using e-commerce sites, from technical problems such as transactions that fail, sites that are difficult to use or are too slow, through to problems with customer service or fulfilment, which also indicate failure of management. How is this book structured? Electronic business (e-business) All electronically mediated information exchanges, both within an organization and with external stakeholders supporting the range of business processes. Buy-side e-commerce E-commerce transactions between an organization and its suppliers and other partners. Sell-side e-commerce E-commerce transactions between an organization and its customers. The overall structure of the book shown in Figure P.1 follows a logical sequence: introducing e-business terms, concepts and history of development in Part 1; reviewing alternative strategic approaches and applications of e-business in Part 2; and how strategy can be implemented in Part 3. Within this overall structure, differences in how electronic communications are used to support different business processes are considered separately. This is achieved by distinguishing between how electronic communications are used, from buyside e-commerce aspects of supply chain management in Chapters 6 and 7, to the marketing perspective of sell-side e-commerce in Chapters 8 and 9. Figure P.1 shows the emphasis of perspective for the particular chapters. Part 1: Introduction (Chapters 1–4) Part 1 introduces e-business and e-commerce. It seeks to clarify basic terms and concepts by looking at different interpretations of terms and applications through case studies.
Chapter 1: Introduction to e-business and e-commerce. Definition of the meaning and scope of e-business and e-commerce. Introduction to business use of the Internet – what are the benefits and barriers to adoption and how widely used is it? A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 10:59 Page xv Preface xv Part 1 INTRODUCTION Chapter 1 Introduction to e-business and e-commerce Chapter 2 E-commerce fundamentals Chapter 3 E-business infrastructure Chapter 4 E-environment Part 2 STRATEGY AND APPLICATIONS Chapter 5 E-business strategy Chapter 6 Supply chain management Chapter 7 E-procurement Chapter 8 E-marketing Chapter 9 Customer relationship management Part 3 IMPLEMENTATION Chapter 10 Change management Chapter 11 Analysis and design Chapter 12 Implementation and maintenance Key Sell-side e-commerce emphasis E-business emphasis Figure P.1


Structure of the book Chapter 2: E-commerce fundamentals. Introduction to new business models and marketplace structures enabled by electronic communications. Chapter 3: E-business infrastructure. Background on the hardware, software and telecommunications that need to be managed to achieve e-business. Chapter 4: E-environment. Describes the macro-environment of an organization that presents opportunities and constraints on strategy and implementation. Part 2: Strategy and applications (Chapters 5–9) In Part 2 of the book approaches to developing e-business strategy and applications are reviewed for the organization as a whole (Chapter 5) and with an emphasis on buy-side e-commerce (Chapters 6 and 7) and sell-side e-commerce (Chapters 7 and 8).




Chapter 5: E-business strategy. Approaches to developing e-business strategy. Differences from traditional strategic approaches. Relation to IS strategy. Chapter 6: Supply chain management. A supply chain perspective on strategy with examples of how technology can be applied to increase supply chain and value chain efficiency. Chapter 7: E-procurement. Evaluation of the benefits and practical issues of adopting e-procurement. Chapter 8: E-marketing. A sell-side e-commerce perspective to e-business, reviewing differences in marketing required through digital media. Structured around developing an e-marketing plan. Chapter 9: Customer relationship management. Reviews marketing techniques that apply e-commerce for acquiring and retaining customers. A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD xvi 16/4/09 10:59 Page xvi Preface Part 3: Implementation (Chapters 10–12) Management of e-business implementation is described in Part 3 of the book in which we examine practical management issues involved with creating and maintaining e-business solutions.


Chapter 10: Change management. How to manage the organizational, human and technology changes required in the move to e-business. Chapter 11: Analysis and design. We discuss the main issues of analysis and design raised by e-commerce systems that need to be discussed by managers and solutions providers. Chapter 12: Implementation and maintenance. How should e-commerce systems be managed and monitored once they are live? Who should use this book? Students This book has been created as the main student text for undergraduate and postgraduate students taking specialist courses or modules which cover e-business, e-commerce information systems or e-marketing. The book is relevant to students who are:



undergraduates on business programmes which include modules on the use of the Internet and e-commerce. This includes specialist degrees such as electronic business, electronic commerce, Internet marketing and marketing or general business degrees such as business studies, business administration and business management; undergraduate project students who select this topic for final-year projects or dissertations – this book is an excellent source of resources for these students; undergraduates completing work placement involved with different aspects of e-business such as managing an intranet or company web site; postgraduate students on specialist masters degrees in electronic commerce, electronic business or e-marketing and generic MBA, Certificate in Management, Diploma in Management Studies which involve modules or electives for electronic commerce and digital marketing. What does the book offer to lecturers teaching these courses? The book is intended to be a comprehensive guide to all aspects of deploying e-business and e-commerce within an organization. The book builds on existing theories and concepts and questions the validity of these models in the light of the differences between the Internet and other media. The book references the emerging body of literature specific to e-business, e-commerce and e-marketing. As such, it can be used across several modules. Lecturers will find the book has a good range of case studies, activities and exercises to support their teaching. These activities assist in using the book for student-centred learning as part of directed study. Web links given in the text and at the end of each chapter highlight key information sources for particular topics. Practitioners There is also much of relevance in this book for the industry professional, including:

Senior managers and directors seeking to apply the right e-business and e-commerce approaches to benefit their organization. Information systems managers who are developing and implementing e-business and e-commerce strategies. A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 10:59 Page xvii Preface


xvii Marketing managers responsible for defining an e-marketing strategy and implementing and maintaining the company web site. Supply chain, logistics and procurement managers wanting to see examples of best practice in using e-commerce for supply chain management. Technical project managers or webmasters who may understand the technical details of building a site, but have a limited knowledge of business or marketing fundamentals. Student learning features A range of features have been incorporated into this book to help the reader get the most out of it. They have been designed to assist understanding, reinforce learning and help readers find information easily. The features are described in the order you will encounter them. At the start of each chapter





Chapter at a glance: a list of main topics, ‘focus on’ topics and case studies. Learning outcomes: a list describing what readers can learn through reading the chapter and completing the activities. Management issues: a summary of main issues or decisions faced by managers related to the chapter topic area. Web support: additional material on the Companion Web Site. Links to other chapters: a summary of related topics in other chapters. Introductions: succinct summaries of the relevance of the topic to marketing students and practitioners together with content and structure. In each chapter








Activities: short activities in the main text that develop concepts and understanding, often by relating to student experience or through reference to web sites. Model answers are provided to activities at the end of the chapter where applicable. Case studies: real-world examples of issues facing companies that implement e-business. Questions at the end of the case study highlight the main learning points from that case study (see p. xx). Real-world e-business experiences: interviews with e-commerce managers at a range of UK, European and US-based organizations concerning the strategies they have adopted and their approaches to strategy implementation. Box features: these explore a concept in more detail or give an example of a principle discussed in the text. ‘Focus on’ sections: more detailed coverage of specific topics of interest. Questions for debate: suggestions for discussion of significant issues for managers involved with the transformation required for e-business. Definitions: when significant terms are first introduced the main text contains succinct definitions in the margin for easy reference. Web links: where appropriate, web addresses are given for further information, particularly those to update information. Chapter summaries: intended as revision aids and to summarize the main learning points from the chapter. At the end of each chapter

Self-assessment exercises: short questions which will test understanding of terms and concepts described in the chapter. Discussion questions: require longer essay-style answers discussing themes from the chapter, and can be used for essays or as debate questions in seminars. A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD xviii 16/4/09 10:59 Page xviii Preface




Essay questions: conventional essay questions. Examination questions: typical short-answer questions found in exams and can also be used for revision. References: these are references to books, articles or papers referred to within the chapter. Further reading: supplementary texts or papers on the main themes of the chapter. Where appropriate a brief commentary is provided on recommended supplementary reading on the main themes of the chapters. Web links: these are significant sites that provide further information on the concepts and topics of the chapter. All web site references within the chapter, for example company sites, are not repeated here. The web site address prefix ‘http://’ is omitted from www links for clarity. At the end of the book

Glossary: a list of all definitions of key terms and phrases used within the main text. Index: all key words and abbreviations referred to in the main text. Learning techniques The book is intended to support a range of learning styles. It can be used for an active or student-centred learning approach whereby students attempt the activities through reflecting on questions posed, answering questions and then comparing to a suggested answer at the end of the chapter. Alternatively, students can proceed straight to suggested answers in a more traditional learning approach, which still encourages reflection about the topic. Module guide The table below presents one mapping of how the book could be used in different weekly lectures and seminars through the core eleven weeks of a module where the focus is on management issues of e-business and e-commerce. A fullset of PowerPoint slides and accompanying notes to assist lecturers in preparing lectures is available on the lecturer’s side of the Companion Web Site. Enhancements for the fourth edition The effective chapter structure of previous editions has been retained, but many other changes have been incorporated based on lecturer and student feedback. There are two main new features. First, new case studies in boxes ‘Real-world e-business experiences – the Econsultancy interview’ are introduced at the start of most chapters. These are interviews with e-commerce managers at a range of UK, European and US-based organizations concerning the strategies they have adopted and their approaches to strategy implementation. Second, there are numbered boxes which explore a concept in more detail or give an example of a principle discussed in the text. There are also three major new case studies to enable learning from brands that will be well-known personally to students in different countries: Dell, Facebook and Google. To help accommodate these, less reference is given to the running ‘B2C and B2B Company’ case. A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 10:59 Page xix Preface xix The main updates for the fourth edition on a chapter-by-chapter basis are:











Chapter 1 starts with a look at the amazing innovation in business model that the web has facilitated. The introduction to different e-commerce concepts now covers different Web 2.0 and Web 3.0 concepts in more detail including a new case study on the Facebook business model. Chapter 2 is structured around a new approach to online marketplace analysis for e-business which can be used by students working on case studies or practitioners in business and is described with new diagrams and links to information sources. Coverage of evaluation of business and revenue models has been extended with a spreadsheet activity on a web ad revenue model. Chapter 3. The simple introduction has been removed with more detailed coverage on the advantages and disadvantages of the Software as a Service (SaaS) model. The tools section has been updated to include concept of Web 2.0 and atomization and widgets. Coverage of mobile commerce and IPTV has been extended (these are also covered throughout the book). Chapter 3 includes a new case study on Google technology and innovation. Chapter 4. Increased focus on the adoption of different web services and social media rather than Internet adoption. Legal implications for e-commerce in different countries and regions have been updated. A section on green and environmental issues has been added. Chapter 5. Incorporates the strategy models and latest research completed by Dave Chaffey for Econsultancy on managing digital channels. Chapter 6. Incorporates new research on SCM from PMP Research. There is new content on the challenges of managing supply chains and the information supply chain concept. Chapter 7. Update to content on adoption of B2B marketplaces. Chapter 8. Management of customer acquisition, conversion and retention incorporated into strategy process. Marketing mix section has been updated to include new content on customer insight, long tail, tipping point and digital product options. There is a new case study on how Dell varies its marketing mix. Chapter 9. Increased depth on search engine marketing, e-mail marketing and social media. Chapter 10. Scrum and agile methodologies introduced. Use of Web 2.0 for knowledge management through a case study on Janssen Cilag. Chapter 11. Section on user-centred design extended with additional commentary and mini case studies. New section on common security threats and solutions for the e-business. Chapter 12. Removed basic introduction to HTML and scripting languages as recommended by reviewers. Introduced section on application frameworks and servers added. Updated section on web analytics with new example of online retailer benchmarking.