E-business and e-commerce management : strategy, implementation and practice PDF
Preview E-business and e-commerce management : strategy, implementation and practice
EE ‘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 ms ‘this text provides a strong strategic framework to help students understand this fast-moving subject, as well as i m a useful guide to practical analysis.’ n mette Præst Knudsen, university of southern denmark EE rs Cs E a m n ad n 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? a Written in an engaging and informative style, E-Business and E-Commerce Management explores these g questions, equipping you with the knowledge and skills to navigate today’s fast-paced world of continuous technological development. E In this latest edition of his bestselling text, leading authority Dave Chaffey brings together the latest academic m 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: E • 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 f courses at Warwick University and Cranfield School of Management. f E 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 CVR_CHAFF9601_04_SE_CVR.indd 1 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,ImplementationandPractice Visit the E-Business and E-Commerce Management, fourth edition Companion Website at www.pearsoned.co.uk/chaffeytofindvaluablestudentlearningmaterialincluding: Astudyguidetoreinforcekeyideasandtopics (cid:1) Multiplechoicequestionstotestyourlearning (cid:1) Linkstorelevantsitesontheweb (cid:1) Anonlineglossarytoexplainkeyterms (cid:1) Flashcardstotestyourunderstandingof keyterms (cid:1) Asmarteronlinesearchingguide (cid:1) LinktoDaveChaffey’sblogwithacollectionof articlesandlinks (cid:1) LinktoDaveChaffey’sTwitterfeed (cid:1) A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 10:59 Page ii Weworkwithleadingauthorstodevelopthe strongesteducationalmaterialsinbusinessand management,bringingcutting-edgethinkingand bestlearningpracticetoaglobalmarket. Underarangeofwell-knownimprints,including FinancialTimesPrenticeHallwecrafthighquality printandelectronicpublicationswhichhelpreaders tounderstandandapplytheircontent,whether studyingoratwork. Tofindoutmoreaboutthecompleterangeofour publishing,pleasevisitusontheWorldWideWebat: www.pearsoned.co.uk 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 PearsonEducationLimited EdinburghGate Harlow EssexCM202JE England andAssociatedCompaniesthroughouttheworld VisitusontheWorldWideWebat: www.pearsoned.co.uk Firstpublished2002 Secondeditionpublished2004 Thirdeditionpublished2007 Fourtheditionpublished2009 ©DaveChaffey2002 ©MarketingInsightsLimited2002,2009 TherightofDaveChaffeytobeidentifiedasauthorofthisworkhas beenassertedbyhiminaccordancewiththeCopyright,DesignsandPatentsAct1988. Allrightsreserved.Nopartofthispublicationmaybereproduced,storedinaretrieval system,ortransmittedinanyformorbyanymeans,electronic,mechanical, photocopying,recordingorotherwise,withouteitherthepriorwrittenpermissionofthe publisheroralicencepermittingrestrictedcopyingintheUnitedKingdomissuedbythe CopyrightLicensingAgencyLtd,SaffronHouse,6–10KirbyStreet,LondonEC1N8TS. Alltrademarksusedhereinarethepropertyoftheirrespectiveowners.Theuseofany trademarkinthistextdoesnotvestintheauthororpublisheranytrademarkownershiprights insuchtrademarks,nordoestheuseofsuchtrademarksimplyanyaffiliationwithor endorsementofthisbookbysuchowners. ISBN:978-0-273-71960-1 BritishLibraryCataloguing-in-PublicationData AcataloguerecordforthisbookisavailablefromtheBritishLibrary LibraryofCongressCataloging-in-PublicationData Chaffey,Dave,1963– E-businessande-commercemanagement:strategy,implementation,and practice/DaveChaffey.--4thed. p.cm. Includesbibliographicalreferencesandind ex. ISBN978-0-273-71960-1(pbk.:alk.paper)1.Electroniccommerce. 2.Businessenterprises--Computernetworks.I.Title.II.Title: Ebusinessandecommercemanagement. HF5548.32.C472 2009 658.8'72--dc22 2009009561 10987654321 1312111009 Typesetin10/12ptMinionby30 PrintedandboundbyRotolitoLombarda,Italy Thepublisher’spolicyistousepapermanufacturedfromsustainableforests. A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 10:59 Page v 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 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 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 A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 10:59 Page viii 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 A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 10:59 Page ix 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
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