Electronic Business & Commerce

449 Pages·2003·11.7 MB·English

by  Michael Chesher BSc, MBA, MPhil, CEng, Rukesh Kaura BSc, CCM, Peter Linton BA (auth.)

Electronic Business & Commerce
Springer-Verlag London Ltd.
Michael Chesher, Rukesh Kaura
and Peter Linton
Electronic
Business &
Commerce
Springer
Michael Chesher, BSc, MBA, MPhil, CEng
Roehampton University of Surrey, UK
Rukesh Kaura, BSc, CCM
JP Morgan Chase & Co, Singapore
Peter Linton, BA
Linton Associates, UK
British Library Cataloguing in Publication Data
Chesher, Michael, 1942-
Electronic business and commerce
1. Electronic commerce
I. Tide II. Kaura, Rukesh, 1971-III. Linton, Peter
658'.05
ISBN 978-1-85233-584-7 ISBN 978-1-4471-0077-5 (eBook)
DOI 10.1007/978-1-4471-0077-5
Library of Congress Cataloging-in-Publication Data
A catalog recorcl for this book is available from the Library of Congress
Apart from any fair clealing for the purposes of research or private study, or criticism or review, as permitted
under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or
transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in
the case of reprographie reproduction in accordance with the terms of licences issued by the Copyright
Licensing Agency. Enquiries concerning reproduction outside those terms should be sent to the publishers.
ISBN 978-1-85233-584-7 Springer-Verlag London Berlin Heidelberg
a member of BertelsmannSpringer Science+ Business Media GmbH
http://www.springer.co. uk
© Springer-Verlag London 2003
Originally published by Springer-Verlag London Limited in 2003
The use of registered names, trademarks etc. in this publication does not imply, even in the absence of a
specific statement, that such names are exempt from the relevant laws and regulations and therefore free
for general use.
The publisher makes no representation, express or implied, with regard to the accuracy of the information
contained in this book and cannot accept any legal responsibility or liability for any errors or omissions
that may be made.
Typesetting: EPS, London Wl3 8DG
34/3830-543210 Printed on acid-free paper SPIN 10863963
Contents
Preface ix
Chapter I: Business Context
Age of Turbulence and Change 1
Three Introductory Scenarios 1
Organizational Change 6
People and Information Technology 7
The Business Manager 8
Globalization 9
Political and Legislative 10
Competition 13
Industry Re-structuring 18
Customer Service 19
Sales Channels 20
Technology 21
Business Productivity Improvements 25
Change and Information Technology 25
Chapter 2: Framework for e-Business
Introduction 27
Origins of Electronic Business 29
Electronic Business Communications 29
Electronic Mail 30
What is the Internet? 32
Electronic Data Interchange 33
Electronic Commerce 36
Electronic Business 42
Electronic Marketplaces 45
Evolving Scope of Electronic Business 45
Chapter 3: Financial e-Business
Financial Services Evolution 51
Dawn of the Cash-Less Society 52
e-Wallets - Virtual Cash? 53
Mobile Payments 61
Electronic Bill Presentment and Payment (EBPP) 64
Facilitating e-Financial Services 68
Cashis King 73
Chapter 4: Desktop Support for e-Business
Introduction - Desktop Computing 75
The Role of the Network 79
Software Evolution 81
Network Operating Systems 87
v
11
Electronic Business and Commerce
Group Working 91
Instant Messaging - R U Ready? 94
Workflow Software/Computing 99
Conference and Consensus Building Software 102
Scheduling/Diary Software 103
Justifying and Implementing Groupware 104
Videoconferencing 106
Chapter 5: Business-to-Business (B2B)
Introduction 111
Business Focus 113
The Supply Chain 113
The Value Chain 116
Just-in-Time and Quick Response 117
e-Collaboration 118
e-Procurement 119
Efficient Consumer Response 124
Supply Chain Evolution 126
e-Business Evolution 127
Quantifying the Benefits 129
e-Business B2B Summary 130
Chapter 6:Traditional B2B-
Electronic Data Interchange
Introduction to EDI 133
EDI Standards 140
Operation of EDI 150
Enterprise Application Integration 152
EDI over the Internet 155
Chapter 7: Evolving B2B - Electronic Business XML
Introduction 161
Three different uses of XML 162
Core Technology - Syntax Rules 163
Core Technology - XML Metadata 164
XML Example Order 168
Core Technology - Presentation of XML 171
Processing of XML 174
XMLIssues 175
XML Initiatives 178
XML Terminologies 184
Chapter 8: B2B Electronic Marketplaces
The Advent of the e-Marketplace 187
e-Marketplace Evolution 188
A Question of Integration 198
Platform Providers 203
vi
Contents 11
Chapter 9: Business-to-Consumer (B2C)
Introduction 207
Contrasting B2B and B2C 208
E-Tailer Benefits 209
Creating Positive Customer Experience 209
Factors Impacting Growth 210
What Sells Best 211
Brand Presence 215
Ois-intermediation 216
Internet Shopping Therapy 217
Chapter 10: Wireless Commerce
Nomads of the Future 237
The Next Generation of Hardware 238
Cutting the Umbilical Cord 239
Wireless Networks - Why? 240
Radio Frequency Identification (RFIO) 241
Mobile Workers 243
Mobile Commerce 244
The Wireless LAN 245
Remote Access 249
Satellite Technology 252
Cellular Technology - Proliferation of the G'S 252
Personal Digital Assistants 258
The Future of Wireless Networks 259
Chapter I I: Dot.Com Economy
The New Economy 261
Oot.Com Frenzy 263
End of the First Wave 264
Oot.Com Successes and Failures 267
Lessons Learnt 270
Chapter 12: Securing e-Business
The Elusive Search for Security 279
Cyber Crime 281
Public Key Infrastructure 287
Govemmental Initiatives 296
Secure Messaging 299
Securing the Internet 302
Privacy Please 308
Smart Card Technologies 309
Securing Financial Services 312
Security of the Future 314
Chapter 13: Legal Aspects of Electronic Business
Introduction 319
Enabling Infrastructure 319
vii
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Electronic Business and Commerce
Indirect and Direct Transactions 321
Governrnental Action 321
Electronic Commerce Legislation 322
Data Protection 325
Internet/Web Content 328
Chapter 14: Electronic Business Strategies
Introduction 333
Corporate Transformation 334
Strategie Management and Information Technology 335
Integrating Business and IT Strategies 336
e-Business Strategy Development 342
Contrasting e-Business and e-Commerce 344
Business Models for e-Commerce 346
Strategie Choiees 349
Retaining Customers through Loyalty 351
Summary 351
Chapter 15: Communications Fundamentals
Introduction 353
Exchanging Data between Computers 354
Data and Metadata 360
Communieations Technologies 362
Internet TCP /IP Network Architecture 366
Types of Connection 370
Other Communications Technologies 374
Chapter 16: Standards in e-Business
Introduction 377
Electronic Mail (E-mail) 378
SMTP 379
IMAPandPOP 383
HTTP 386
DNS - Domain Name System 390
X.400 394
Chapter 17: Server-side Technologies
Introduction 397
Client-server Model 397
Sockets 400
Dynamie Data 403
What Does 'Object-Orientated' Mean? 408
Using Server-side Technologies 415
Acronyms and Glossary 417
Index 439
viii
Preface
This book started as a project to prepare a second edition of Electronic
Commerce and Business Communications published by Springer in 1998
(now out of print), but in practice has become a complete rewrite. This is
because so much has changed in the field of electronic business and
commerce in such a short period of time. The new title reflects the
growing consensus that doing business electronically is increasingly 'just
business', and covers all aspects of the business processes of the firm, both
internally and externally. E-Commerce is now considered as a subset of e
Business that primarily involves the marketing, buying and selling of
products and services over the Internet.
The new book is primarily intended as a student text for undergraduate
courses, which include an e-Business module in the course syllabus, and
for postgraduate courses where e-Business forms the main focus of the
course or indeed is simply a module. It is completely self-supporting in
that it includes reference chapters (Chapters 15, 16 and 17) for those
wishing to understand more about the information technologies
underpinning e-Business. In addition it is a valuable reference book for
practitioners in the field of e-Business and includes a comprehensive
glossary built up over several years.
The approach taken within the book is to provide the reader with asound
grounding in the basic concepts to enhance their understanding and
learning through an extensive use of examples, case studies and
schematics. Also, a companion Web site has been created which is
increasingly being populated with material related to the book, including
an online glossary (see www.roehampton.ac.uk/stafflMichaeIChesher).
The chapters listed below form a logical sequence for the serious student
of e-Business to follow, although the last three chapters and the glossary
are likely to be more useful for reference purposes.
ix