E-business and e-commerce management : strategy, implementation and practice

798 Pages·2009·13.54 MB·English

by  Dave Chaffey

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‘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 CB
both faculty and students.’
Ben Clegg, aston Business school ou
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‘this text provides a strong strategic framework to help
students understand this fast-moving subject, as well as i
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a useful guide to practical analysis.’ n
mette Præst Knudsen, university of southern denmark
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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?
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Written in an engaging and informative style, E-Business and E-Commerce Management explores these
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questions, equipping you with the knowledge and skills to navigate today’s fast-paced world of continuous
technological development.
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In this latest edition of his bestselling text, leading authority Dave Chaffey brings together the latest academic
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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:
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• A structured approach to planning, implementing, assessing and improving
Fourth edition
e-business strategy for all types of organization. n
• The latest on managing e-business security and cutting edge e-marketing
t
techniques such as social media and search engine optimization. E-BusinEss and
• 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. Fourth

edition E-CommErCE
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.
C
h
managEmEnt
a
dave Chaffey (www.davechaffey.com) is an e-business consultant and visiting lecturer on e-business
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courses at Warwick University and Cranfield School of Management.
f
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y Strategy, ImplementatIon and practIce
Additional learning resources are online at
www.pearsoned.co.uk/chaffey
davE ChaffEy
An imprint of www.pearson-books.com
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E-Business and
E-Commerce
Management
Strategy,ImplementationandPractice
Visit the E-Business and E-Commerce Management, fourth edition Companion Website at
www.pearsoned.co.uk/chaffeytofindvaluablestudentlearningmaterialincluding:
Astudyguidetoreinforcekeyideasandtopics
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Weworkwithleadingauthorstodevelopthe
strongesteducationalmaterialsinbusinessand
management,bringingcutting-edgethinkingand
bestlearningpracticetoaglobalmarket.
Underarangeofwell-knownimprints,including
FinancialTimesPrenticeHallwecrafthighquality
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studyingoratwork.
Tofindoutmoreaboutthecompleterangeofour
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Fourth Edition
E-BUSINESS AND
E-COMMERCE

MANAGEMENT
STRATEGY, IMPLEMENTATION AND PRACTICE
Dave Chaffey
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PearsonEducationLimited
EdinburghGate
Harlow
EssexCM202JE
England
andAssociatedCompaniesthroughouttheworld
VisitusontheWorldWideWebat:
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Firstpublished2002
Secondeditionpublished2004
Thirdeditionpublished2007
Fourtheditionpublished2009
©DaveChaffey2002
©MarketingInsightsLimited2002,2009
TherightofDaveChaffeytobeidentifiedasauthorofthisworkhas
beenassertedbyhiminaccordancewiththeCopyright,DesignsandPatentsAct1988.
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ISBN:978-0-273-71960-1
BritishLibraryCataloguing-in-PublicationData
AcataloguerecordforthisbookisavailablefromtheBritishLibrary
LibraryofCongressCataloging-in-PublicationData
Chaffey,Dave,1963–
E-businessande-commercemanagement:strategy,implementation,and
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Includesbibliographicalreferencesandind ex.
ISBN978-0-273-71960-1(pbk.:alk.paper)1.Electroniccommerce.
2.Businessenterprises--Computernetworks.I.Title.II.Title:
Ebusinessandecommercemanagement.
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Brief contents
Preface xiii
Guidedtour xxiv
Author’sacknowledgements xxvi
Publishersacknowledgements xxvii
Part 1 Introduction 1
1 Introductiontoe-businessande-commerce 3
2 E-commercefundamentals 51
3 E-businessinfrastructure 103
4 E-environment 192
Part 2 Strategy and applications 253
5 E-businessstrategy 255
6 Supplychainmanagement 330
7 E-procurement 380
8 E-marketing 412
9 Customerrelationshipmanagement 481
Part 3 Implementation 559
10 Changemanagement 560
11 Analysisanddesign 604
12 Implement ationandmaintenance 680
Glossary 736
Index 754
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Contents
Preface xiii Introduction 52
Guidedtour xxiv Real-worldE-Business:MoreTh>n 53
Abouttheauthor xxvi Thee-commerceenvironment 57
Author’sacknowledgements xxvii Strategicagility 57
Publisher’sacknowledgements xxvii Onlinemarketplaceanalysis 59
Locationoftradinginthemarketplace 67
Theimportanceofmulti-channelmarketplace
Part 1 models 70
Differenttypesofonlineintermediary 71
Introduction 1 Typesofintermediaries 74
Theimportanceofsearchengines 76
1 Introductiontoe-businessande-commerce 3 Businessmodelsfore-commerce 77
Revenuemodels 79
Learningoutcomes/Managementissues 3
Onlinepublisherandintermediaryrevenuemodels 80
Linkstootherchapters 3
Focusonauctionbusinessmodels 86
Introduction 4
CaseStudy2.1TheimpactofB2Breverse
Theimpactoftheelectroniccommunicationson
auctions 87
traditionalbusinesses 6
FocusonInternetstart-upcompanies 88
Real-worldE-Business:HP.com 7
From‘bricksandmortar’to‘clicksandmortar’ 88
Whatisthedifferencebetweene-commerceand
Assessinge-businesses 89
e-business? 9
ValuingInternetstart-ups 89
E-commercedefined 10
CaseStudy2.2lastminute.com–aninternational
E-businessdefined 13
dot-comsurvivor 91
CaseStudy1.1AshorthistoryofFacebook 17
Thedot-combubblebursts 93
Businessorconsumermodelsofe-commerce Whydot-comsfailed 93
transactions 26 Theimpactofthedot-comphenomenonon
E-businessopportunities 29 traditionalorganizations 95
Businessadoptionofdigitaltechnologiesfor CaseStudy2.3Zopalaunchesanewlending
e-commerceande-business 30 model 95
DriversofbusinessInternetadoption 30 Summary 98
CaseStudy1.2NorthWestSuppliesextendsits Exercises 99
reachonline 33 References 100
E-businessrisksandbarrierstobusinessadoption 35 Furtherreading 101

Evaluatinganorganization’se-businesscapabilities 36 Weblinks 101
DriversofconsumerInternetadoption 37
BarrierstoconsumerInternetadoption 39 3 E-businessinfrastructure 103
Managementresponsestoe-commerceand Learningoutcomes/Managementissues 103
e-business 39 Linkstootherchapters 103
Part1:Introduction 39 Introduction 104
Part2:Strategyandapplications 40 E-businessinfrastructurecomponents 105
Part3:Implementation 42 Real-worldE-Business:RandomHouse 107
CaseStudy1.3eBay–theworld’slargest Internettechnology 109
e-business 42 Hostingofwebsitesande-businessservices 110
Summary 46 TheInternettimeline 111
Exercises 46 JusthowbigistheInternet? 114
CaseStudy3.1InnovationatGoogle 115
References 48
Intranetsandextranets 116
Furtherreading 49
Webtechnology 124
Weblinks 49
Internet-accesssoftwareapplications 128
Blogsandblogging 129
2 E-commercefundamentals 51
Electronicmailore-mail 131
Learningoutcomes/Managementissues 51
Feeds 132
Linkstootherchapters 51
VoiceoverIP(VoIP) 134
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viii Contents
Howdoesitwork?Internetstandards 136 Furtherreading 249
Networkingstandards 136 Weblinks 249
TheHTTPprotocol 138
Uniformresourcelocators(URLs) 139
Domainnames 139 Part 2
Webpresentationanddataexchangestandards 141
Audioandvideostandards 152 Strategy and applications 253
FocusonInternetgovernance 152
Managinge-businessinfrastructure 158 5 E-businessstrategy 255
Managinghardwareandsystemssoftware Learningoutcomes/Managementissues 255
infrastructure 159 Linkstootherchapters 255
ManagingInternetserviceandhostingproviders 160 Introduction 256
ManagingemployeeaccesstotheInternetand Real-worldE-Business:StandardLife 256
e-mail 165 Whatise-businessstrategy? 259
Managinge-businessapplicationsinfrastructure 165 Theimperativefore-businessstrategy 261
Focusonwebservices,SaaSandservice-oriented E-channelstrategies 262
architecture(SOA) 168 Strategyprocessmodelsfore-business 264
BenefitsofwebservicesorSaaS 168
Strategicanalysis 269
ChallengesofdeployingSaaS 169
Resourceandprocessanalysis 269
CaseStudy3.2Newarchitectureorjustnew
Competitiveenvironmentanalysis 276
hype? 174
Assessingcompetitivethreats 276
EDI 176
Co-opetion 281
Focusonmobilecommerce 177
Competitoranalysis 281
WirelessInternetaccessstandards 178
Strategicobjectives 281
Wirelessaccessdevices 179
Definingvisionandmission 282
Popularityofmobileapplications 179
Howcane-businesscreatebusinessvalue? 285
Summary 186
CaseStudy5.1CapitalOnecreatesvalue
Exercises 187
throughe-business 286
References 188
Objectivesetting 287
Furtherreading 190
CaseStudy5.2SettingtheInternetrevenue
Weblinks 190
contributionatSandvikSteel 292
Strategydefinition 295
4 E-environment 192
Decision1:E-businesschannelpriorities 298
Learningoutcomes/Managementissues 192
Decision2:Marketandproductdevelopment
Linkstootherchapters 192
strategies 300
Introduction 193
Decision3:Positioninganddifferentiation
Real-worldE-Business:GDWorldwide 196
strategies 303
Socialandlegalfactors 198 Decision4:Business,serviceandrevenuemodels 306
Factorsgoverninge-commerceserviceadoption 198 Decision5:Marketplacerestructuring 308
Privacyandtrustine-commerce 209 Decision6:Supply-chainmanagementcapabilities 309
Othere-commercelegislation 222 Decision7:Internalknowledgemanagement
EnvironmentalandgreenissuesrelatedtoInternet capabilities 310
usage 227 Decision8:Organizationalresourcingand
Taxation 229 capabilities 310
Freedom-restrictivelegislation 231 Strategyimplementation 313
Economicandcompetitivefactors 232 Failede-businessstrategies 314
Focusone-commerceandglobalization 233 E-businessstrategyimplementationsuccess
CaseStudy4.1Theimplicationsofglobalization factorsforSMEs 315
forconsumerattitudes 235 CaseStudy5.3Boohoo–learningfromthe
Theimplicationsofe-commerceforinternational largestEuropeandot-comfailure 316
B2Btrading 236 Focusoninformationsystemsstrategyand
Politicalfactors 238 e-businessstrategy 319
Internetgovernance 239 ElementsofISstrategy 320
E-government 240 Investmentappraisal 320
Technologicalinnovationandtechnologyassessment 241 Summary 324
Approachestoidentifyingemergingtechnology 244 Exercises 325
Summary 246 References 326
Exercises 246 Furtherreading 328
References 247 Weblinks 329
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Contents ix
6 Supplychainmanagement 330 Organizationalrisks 393
Learningoutcomes/Managementissues 330 Failuretoachieverealcostreductions 393
Linkstootherchapters 330 Technologyrisks 394
Introduction 331 Implementinge-procurement 394
Problemsofsupplychainmanagement 334 Thegrowthinadoptionofweb-enabled
Whatissupplychainmanagement? 335 e-procurement 396
Usingtechnologytosupportsupplychain Integratingcompanysystemswithsupplier
management–anexample 337 systems 397
Asimplemodelofasupplychain 340 FocusonelectronicB2Bmarketplaces 400
CaseStudy6.1Shellchemicalsredefinesits CaseStudy7.2Covisint–atypicalhistoryofa
customers’supplychains 341 B2Bmarketplace? 403
Whatislogistics? 345 Typesofmarketplace 405
Pushandpullsupplychainmodels 347 Thefutureofe-procurement? 407
Focusonthevaluechain 348 Summary 407
Restructuringtheinternalvaluechain 350 Exercises 408
Thevaluestream 351 References 409
Valuechainanalysis 351 Furtherreading 410
Valuenetworks 352 Weblinks 410
Towardsthevirtualorganization 354
Optionsforrestructuringthesupplychain 356 8 E-marketing 412
Usinge-businesstorestructurethesupplychain 358 Learningoutcomes/Managementissues 412
Technologyoptionsandstandardsforsupply Linkstootherchapters 412
chainmanagement 359 Introduction 413
Adoptionratesofe-businessapplications 360 Chapterstructure 414
CaseStudy6.2Tescodevelopsabuy-side Real-worldE-Business:Guess 415
e-commercesystemforsupplychainmanagement 363 Whatise-marketing? 416
IS-supporteddownstreamsupplychain Marketingdefined 416
management 365 E-marketingdefined 417
Outboundlogisticsmanagement 365 Distinguishingbetweene-marketing,e-business
ISinfrastructureforsupplychainmanagement 366 ande-commerce 417
Supplychainmanagementimplementation 368 E-marketingplanning 418
Datastandardizationandexchange 368 Isaseparatee-marketingplanrequired? 418
HumanresourcesrequirementsofSCM 369 Situationanalysis 420
Demandanalysis 421
Thesupplychainmanagementstrategyprocess 371
Competitoranalysis 425
Managingpartnerships 372
Intermediaryanalysis 427
Managingglobaldistribution 374
Internalmarketingaudit 428
CaseStudy6.3RFID:keepingtrackstartsits
Objectivesetting 428
movetoafastertrack 374
CaseStudy8.1Thee-volutionofeasyJet’sonline
Summary 375
Exercises 376 revenuecontribution 431
Strategy 433
References 377
Marketandproductpositioning 436
Furtherreading 379
Targetmarketstrategies 437
Weblinks 379
Focusoncharacteristicsofnew-mediamarketing
communications 443
7 E-procurement 380
Tactics 448
Learningoutcomes/Managementissues 380
Product 451
Linkstootherchapters 380
CaseStudy8.2Dellgetsclosertoitscustomers
Introduction 381
online 453
Whatise-procurement? 381
Price 456
Understandingtheprocurementprocess 384
Place 460
Typesofprocurement 385
Promotion 462
Participantsinonlineprocurement 386 People,ProcessandPhysicalevidence 464
Driversofe-procurement 387 Focusononlinebranding 464
CaseStudy7.1CambridgeConsultantsreduce Theimportanceofbrandonline 467
coststhroughe-procurement 388 Actions 469
Focusonestimatinge-procurementcost 390 Control 470
Theimpactofcostsavingsonprofitability 391 CaseStudy8.3ThenewNapsterchangesthe
Risksandimpactsofe-procurement 392 musicmarketingmix 471