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

Cover......Page 1
Cover2......Page 2
Half Title Page......Page 3
Title Page......Page 5
Copyright Page......Page 6
Brief contents......Page 7
Contents......Page 9
Preface......Page 16
Guided tour......Page 28
About the author......Page 30
Acknowledgements......Page 31
Part 1: Introduction......Page 35
  Links to other chapters......Page 37
  Introduction......Page 38
   Inbound marketing......Page 40
    Trends update: Social media usage......Page 41
    Trends update: Mobile usage......Page 46
   Case Study 1.1: The Facebook business model......Page 42
    Trends update: E-commerce growth rates......Page 47
   Digital business defined......Page 48
   Intranets and extranets......Page 49
   Different types of sell-side e-commerce......Page 51
    Digital marketing......Page 52
    Owned, earned and paid media options......Page 53
    The six key types of digital media channels......Page 54
    Web 2.0 and user-generated content......Page 57
   Business or consumer models of e-commerce transactions......Page 58
  Digital business opportunities......Page 62
    Competitiveness drivers......Page 64
   Drivers of consumer technology adoption......Page 66
  Case Study 1.2: eBay – the world’s largest online business?......Page 68
  Summary......Page 71
  Exercises......Page 72
  References......Page 73
  Web links......Page 74
  Links to other chapters......Page 75
  Online marketplace analysis......Page 76
   Strategic agility......Page 80
   A process for online marketplace analysis......Page 81
   Review of marketplace channel structures......Page 87
   The importance of multichannelmarket place models......Page 89
   Different types of online intermediary and influencers......Page 91
  Business models for e-commerce......Page 92
   Online publisher and intermediary revenue models......Page 96
    Calculating revenue for an online business......Page 98
  Focus on: Online start-up companies......Page 100
    3. Execution......Page 101
    Examples of e-commerce failures......Page 102
   Case Study 2.1: i-to-i – a global marketplace for a start-up company......Page 103
   Why dot-coms failed......Page 104
  Summary......Page 107
  Exercises......Page 108
  References......Page 109
  Web links......Page 110
  Links to other chapters......Page 111
  Introduction......Page 112
   Supporting the growing range of digital business technology platforms......Page 116
    Trends update: Mobile usage......Page 117
   Other hardware platforms......Page 119
   Augmented reality......Page 121
  Digital business infrastructure components......Page 122
  A short introduction to Internet technology......Page 123
   Domain name selection......Page 124
   Uniform resource locators (URLs)......Page 125
   Managing hardware and systems software infrastructure......Page 126
   Managing digital business applications infrastructure......Page 127
   Benefits of web services or SaaS......Page 130
   Challenges of deploying SaaS......Page 131
   Cloud computing......Page 132
    Examples of cloud computing web services......Page 133
    Virtualisation......Page 135
   Selecting hosting providers......Page 136
    Speed of access......Page 137
    Availability......Page 139
    Security......Page 140
   Intranet applications......Page 141
   Extranet applications......Page 143
   Encouraging use of intranets and extranets......Page 146
   Widgets......Page 147
   Examples of XML applications......Page 148
   Semantic web standards......Page 149
  Focus on: Internet governance......Page 150
   The net neutrality principle......Page 151
   The Internet Corporation for Assigned Names and Numbers (ICANN, www.icann.org)......Page 152
   How can companies influence or take control of Internet standards?......Page 153
   Open-source software......Page 154
   Case Study 3.1: Innovation at Google......Page 155
  Exercises......Page 157
  References......Page 158
  Web links......Page 159
  Links to other chapters......Page 161
  Introduction......Page 162
   Factors governing e-commerce service adoption......Page 165
    Understanding users’ access requirements......Page 166
    Motivation for use of online services......Page 167
    Business demand for digital business services......Page 170
   Privacy and trust in e-commerce......Page 171
    Why personal data are valuable for digital businesses......Page 173
    Worldwide regulations on privacy and electronic communications......Page 179
    1. Marketing your e-commerce business......Page 184
    2. Forming an electronic contract (contract law and distance-selling law)......Page 186
    6. Protecting intellectual property (IP)......Page 187
  Environmental and green issues related to Internet usage......Page 188
  Taxation......Page 189
   Tax jurisdiction......Page 190
   Freedom-restrictive legislation......Page 191
  Economic and competitive factors......Page 192
   Case Study 4.1: The implications of globalisation for consumer attitudes......Page 194
   The implications of e-commerce for international B2B trading......Page 195
  Political factors......Page 196
  E-government......Page 198
  Technological innovation and technology assessment......Page 199
   Approaches to identifying emerging technology......Page 202
  Summary......Page 204
  Exercises......Page 205
  References......Page 206
  Web links......Page 208
Part 2: Strategy and applications......Page 211
  Links to other chapters......Page 213
   Development of the social business......Page 214
  What is digital business strategy?......Page 218
   The imperative for digital business strategy......Page 219
   Digital channel strategies......Page 220
   Strategy process models for digital business......Page 223
  Strategic analysis......Page 226
    Stage models of digital business development......Page 227
    Application portfolio analysis......Page 229
    Organisational and IS SWOT analysis......Page 230
    Human and financial resources......Page 231
   Competitive environment analysis......Page 232
    Competitive threats......Page 233
    Sell-side threats......Page 235
    Buy-side threats......Page 236
   Defining vision and mission......Page 237
   How can digital business create business value?......Page 241
   Case Study 5.1: Debenhams creates value through mobile commerce......Page 242
   Objective setting......Page 243
    Conversion modelling for sell-side e-commerce......Page 245
   Case Study 5.2: Setting the Internet revenue contribution at Sandvik Steel......Page 247
   The balanced scorecard approach to objective setting......Page 250
   Selection of digital business strategy options......Page 251
   Decision 1: Digital business channel priorities......Page 252
   Decision 2: Market and product development strategies......Page 254
   Decision 3: Positioning and differentiation strategies......Page 258
   Decision 4: Business, service and revenue models......Page 259
   Decision 6: Supply chain management capabilities......Page 262
   Decision 8: Organisational resourcing and capabilities......Page 264
   Failed digital business strategies......Page 266
   Case Study 5.3: Boo hoo – learning from the largest European dot-com failure......Page 268
  Focus on: Aligning and impacting digital business strategies......Page 271
   Investment appraisal......Page 272
    The productivity paradox......Page 274
  Summary......Page 276
  Exercises......Page 277
  References......Page 278
  Web links......Page 280
  Links to other chapters......Page 281
  Introduction......Page 282
   Problems of supply chain management......Page 285
  What is supply chain management?......Page 286
   Using technology to support supply chain management – an example......Page 287
   A simple model of a supply chain......Page 289
   Case Study 6.1: Shell Chemicals redefines its customers’ supply chains......Page 293
   What is logistics?......Page 297
   Push and pull supply chain models......Page 299
  Focus on: The value chain......Page 300
   Restructuring the internal value chain......Page 301
   Value chain analysis......Page 302
   Value networks......Page 304
   Towards the virtual organisation......Page 305
  Options for restructuring the supply chain......Page 306
   Technology options and standards for supply chain management......Page 309
    Benefits of e-supply chain management......Page 311
   Case Study 6.2: Argos uses e-supply chain management to improve customer convenience......Page 312
    RFID and The Internet of Things......Page 314
   Outbound logistics management......Page 315
   IS infrastructure for supply chain management......Page 317
   Data standardisation and exchange......Page 318
   The supply chain management strategy process......Page 319
   Managing partnerships......Page 321
   Managing global distribution......Page 323
   Case Study 6.3: RFID: keeping track starts its move to a faster track......Page 324
  Exercises......Page 326
  References......Page 327
  Web links......Page 329
  Links to other chapters......Page 331
  Introduction......Page 332
  What is e‑procurement?......Page 333
   Understanding the procurement process......Page 335
   Types of procurement......Page 336
   Participants in different types of e-procurement......Page 337
  Drivers of e-procurement......Page 338
   Examples of the benefits of e-procurement......Page 339
   Case Study 7.1: Cambridge Consultants reduces costs through e-procurement......Page 340
   The impact of cost savings on profitability......Page 342
  Implementing e-procurement......Page 344
   Integrating company systems with supplier systems......Page 346
  Focus on: B2B marketplaces......Page 348
   From neutral to private B2B exchanges......Page 350
   Case Study 7.2: Covisint – a typical history of a B2B marketplace?......Page 351
   Types of marketplace......Page 352
  The future of e‑procurement......Page 353
  Exercises......Page 354
  References......Page 355
  Web links......Page 356
  Links to other chapters......Page 357
  Introduction......Page 358
   Chapter structure......Page 359
   Marketing defined......Page 362
   Digital marketing defined......Page 364
    Content marketing......Page 365
  Digital marketing planning......Page 368
   Is a separate digital marketing plan required?......Page 369
  Situation analysis......Page 370
   Customer demand analysis......Page 372
    Qualitative customer research......Page 374
   Competitor analysis......Page 375
   Intermediary or influencer analysis......Page 377
  Objective setting......Page 378
   Case Study 8.1: The evolution of easyJet’s online revenue contribution......Page 381
  Strategy......Page 384
   Market and product positioning......Page 385
   Target market strategies......Page 386
    Content strategy......Page 391
   1. Interactivity......Page 392
   2. Intelligence......Page 393
   3. Individualisation......Page 394
   4. Integration......Page 395
  Tactics......Page 397
   Product......Page 400
   Case Study 8.2: Dell gets closer to its customers online......Page 402
   Price......Page 405
   Place......Page 408
   Promotion......Page 410
   People, process and physical evidence......Page 411
  Focus on: Online branding......Page 412
   Brand identity......Page 413
   The importance of brand online......Page 414
  Actions......Page 415
  Exercises......Page 417
  References......Page 418
  Web links......Page 420
  Links to other chapters......Page 421
  Introduction......Page 422
   Marketing applications of CRM......Page 423
   From e‑CRM to social CRM......Page 427
   Benefits of e‑CRM......Page 428
   Permission marketing......Page 429
   Customer profiling......Page 430
  Conversion marketing......Page 431
   Differences in buyer behaviour in target markets......Page 434
    Influences on purchase......Page 435
   The net promoter score......Page 436
  Customer acquisition management......Page 438
    3. From one‑to‑many to one‑to‑some and one‑to‑one......Page 439
    7. Increase in communications intermediaries......Page 440
   Assessing marketing communications effectiveness......Page 441
    1. Search engine marketing (SEM)......Page 443
    2. Online PR......Page 450
  Focus on: Social media and social CRM strategy......Page 452
   3. Online partnerships......Page 460
   4. Interactive advertising......Page 462
   5. Email marketing......Page 465
   Social media marketing......Page 469
  Customer retention management......Page 470
   Personalisation and mass customisation......Page 472
    Extranets......Page 473
   Techniques for managing customer activity and value......Page 474
   Lifetime-​value modelling......Page 476
  Focus on: Excelling in e‑commerce service quality......Page 477
    Responsiveness......Page 479
    Empathy......Page 480
   Advanced online segmentation and targeting techniques......Page 482
    Sense, Respond, Adjust – delivering relevant e‑communications through monitoring customer behaviour......Page 484
    Recency, Frequency, Monetary value (RFM) analysis......Page 485
  Technology solutions for CRM......Page 488
   Types of CRM applications......Page 489
   The choice of single-​vendor solutions or a more fragmented choice......Page 490
   Case Study 9.1: Tesco.com increases product range and uses triggered communications to support CRM......Page 491
  Summary......Page 493
  Exercises......Page 494
  References......Page 495
  Further reading......Page 498
  Web links......Page 499
Part 3: Implementation......Page 501
  Links to other chapters......Page 502
  Introduction......Page 503
  The challenges of digital business transformation......Page 506
   The challenges of sell-sidee‑commerce implementation......Page 507
  Different types of change in business......Page 512
   Discontinuous process change......Page 513
   Case Study 10.1: Process management: making complex business simpler......Page 515
   The imperative for project governance?......Page 517
   The project plan and schedule for a digital business system......Page 521
   Prototyping......Page 523
  Human resource requirements......Page 524
   Outsourcing......Page 526
  Revising organisational structures......Page 528
  Approaches to managing change......Page 530
   Senior management involvement......Page 531
   Models for achieving change......Page 532
   Organisational culture......Page 534
  Focus on: Knowledge management......Page 535
   What is knowledge?......Page 536
   Implementing knowledge management......Page 538
   Technologies for implementing knowledge management......Page 539
   Case Study 10.2: Using collaborative tools to support knowledge management at Janssen-Cilag Australia......Page 541
   What is social business?......Page 544
  Risk management......Page 545
  Summary......Page 546
  Exercises......Page 547
  References......Page 548
  Web links......Page 550
  Links to other chapters......Page 551
  Introduction......Page 552
  Analysis for digital technology projects......Page 555
   Process mapping......Page 556
   Task analysis and task decomposition......Page 557
   Workflow management......Page 558
    Flow process charts......Page 559
    Effort duration analysis......Page 560
    Network diagrams......Page 562
    Event-drivenprocess chain (EPC) model......Page 563
   3. Identify relationships between entities......Page 565
   Big Data and data warehouses......Page 567
   Architectural design of digital business systems......Page 570
  Focus on: User-centredsite design and customer experience management......Page 572
   Usability......Page 577
   Use-case analysis......Page 578
    Persona and scenario analysis......Page 579
    Stages in use-caseanalysis......Page 581
   Designing the information architecture......Page 584
    Wireframes......Page 586
   Customer orientation......Page 589
    Site design and structure......Page 592
   Mobile design......Page 596
    Mobile site design option A. Simple mobile site......Page 597
    Mobile site design option C. Responsive design......Page 598
    Mobile site design option D. HTML5......Page 599
   Web accessibility......Page 601
   Case Study 11.1: Providing an effective online experience for local markets......Page 604
  Focus on: Security design for digital business......Page 606
    Types of virus......Page 611
    Protecting computer systems against viruses......Page 612
   Monitoring of electronic communications......Page 613
    Employee monitoring legislation......Page 616
    1. Minimising spam (unsolicited email)......Page 617
    2. Minimising internal business email......Page 619
   Hacking......Page 620
    Protecting computer systems against hackers......Page 621
    Principles of secure systems......Page 622
    Digital certificates......Page 623
    Secure Sockets Layer Protocol (SSL)......Page 624
   Reassuring the customer......Page 625
  Exercises......Page 626
  References......Page 627
  Web links......Page 629
  Links to other chapters......Page 631
  Introduction......Page 632
   Optimisation of digital business services......Page 633
  Alternatives for acquiring digital business systems......Page 636
   Managing web content......Page 637
    Web application frameworks and application servers......Page 639
    Content management systems......Page 640
    Selecting e‑commerce servers......Page 641
   The testing process......Page 642
  Changeover......Page 643
   Database creation and data migration......Page 644
   Managing a content marketing strategy......Page 645
   Frequency and scope of content and site updating......Page 648
    Process for routine content changes......Page 649
    Initiatives to keep content fresh......Page 652
    Managing content for a global site......Page 654
   Principles of performance management and improvement......Page 655
   Stage 1: Creating a performance management system......Page 656
   Stage 2: Defining the performance metrics framework......Page 657
    1. Channel promotion......Page 658
    3. Channel satisfaction......Page 659
    4. Channel outcomes......Page 660
    Multichannel evaluation......Page 661
  Focus on: Measuring social media marketing......Page 662
    Collecting site‑ visitor activity data......Page 663
    Comparing apples to oranges?......Page 664
    Collecting site outcome data......Page 665
    Selecting a web analytics tool......Page 666
    AB and multivariate testing......Page 669
    Clickstream analysis and visitor segmentation......Page 671
   Budgeting......Page 673
   Case Study 12.1: Learning from Amazon’s culture of metrics......Page 676
  Exercises......Page 681
  References......Page 682
  Web links......Page 683
Glossary......Page 684
Index......Page 700