Electronic Commerce: A Managerial and Social Networks Perspectives

Cover......Page 1
Contents......Page 5
 CHAPTER 1 OVERVIEW OF ELECTRONIC COMMERCE......Page 36
  Net-A-Porter: Dress for Success......Page 37
   Major EC Concepts......Page 39
  1.2 THE ELECTRONIC COMMERCE FIELD: CLASSIFICATION, CONTENT, AND A BRIEF HISTORY......Page 40
   An EC Framework......Page 41
   Classification of EC by the Nature of the Transactions and the Relationships Among Participants......Page 43
   A Brief History of EC......Page 45
   The Future of EC......Page 46
   Case 1.1 EC Application: Zappos: A Success Story of Selling Footwear Online......Page 47
  1.3 E-COMMERCE 2.0: FROM SOCIAL COMMERCE TO VIRTUAL WORLDS......Page 48
   Web 2.0......Page 49
   Enterprise Social Networks......Page 50
   Virtual Worlds and Second Life......Page 51
   The Major Tools of Web 2.0......Page 52
   The Digital Enterprise......Page 53
   The Digital Society......Page 55
   The Changing Business Environment......Page 57
   Performance, Business Pressures, and Organizational Responses and EC Support......Page 58
   The Structure and Properties of Business Models......Page 61
   Typical EC Business Models......Page 64
   Case 1.2 EC Application: Groupon......Page 65
   The Limitations and Barriers of EC......Page 67
   Why Study E-Commerce?......Page 69
   Case 1.3 EC Application: How College Students Become Entrepreneurs......Page 70
   Part 2: EC Applications......Page 71
  Managerial Issues......Page 72
  Summary......Page 73
  Topics for Class Discussion and Debates......Page 74
  Team Assignments and Projects......Page 75
  Closing Case: E-Commerce at the German Soccer League (Bundesliga)......Page 76
  Online Resources......Page 77
  References......Page 78
 CHAPTER 2 E-COMMERCE: MECHANISMS, INFRASTRUCTURE, AND TOOLS......Page 80
  Web 2.0 Tools at Eastern Mountain Sports......Page 81
   EC Activities and Support Mechanisms......Page 83
   Sellers, Buyers, and Transactions......Page 84
  2.2 E-MARKETPLACES......Page 85
   Electronic Markets......Page 86
   Components of and the Participants in E-Marketplaces......Page 87
   Case 2.1 EC Application: How Blue Nile Inc. Is Changing the Jewelry Industry......Page 88
   Types of E-Marketplaces......Page 89
   Electronic Storefronts......Page 90
   Web (Information) Portals......Page 91
   The Roles and Value of Intermediaries in E-Marketplaces......Page 93
   Case 2.2 EC Application: Financial Standard.......Page 94
   Electronic Catalogs......Page 95
   EC Search Activities, Types, and Engines......Page 96
   Other Mechanisms in Merchant Software......Page 98
   Dynamic Pricing......Page 99
   Innovative Auctions......Page 100
   Types of Auctions......Page 101
   Benefits and Limitations of E-Auctions......Page 102
   Impacts of Auctions......Page 103
   Online Negotiating......Page 104
   Blogging (Weblogging)......Page 105
   Twitter......Page 108
   Mechanism Aids for Web 2.0 Tools: Tags, Folksonomy, Mashups, and Social Bookmarks......Page 110
  2.7 VIRTUAL COMMUNITIES AND SOCIAL NETWORKS......Page 112
   Characteristics of Traditional Online Communities and Their Classification......Page 113
   Online Social Networks......Page 115
   Business-Oriented Social Networks......Page 116
   Business Models and Services Related to Social Networking......Page 117
   Mobile Social Networking......Page 118
   Case 2.4 EC Application: Craigslist: The Ultimate Online Classified Community......Page 119
   Avatars......Page 120
   Business Activities and Value in Virtual Worlds......Page 121
   Web 3.0: What’s Next?......Page 122
  Managerial Issues......Page 125
  Summary......Page 126
  Key Terms......Page 127
  Internet Exercises......Page 128
  Team Assignments and Projects......Page 129
  Closing Case: Business in Second Life......Page 130
  References......Page 132
 CHAPTER 3 RETAILING IN ELECTRONIC COMMERCE: PRODUCTS AND SERVICES......Page 134
  Amazon.com: The World’s Largest B2C E-Store......Page 135
  3.1 INTERNET MARKETING AND B2C ELECTRONIC RETAILING......Page 136
   Size and Growth of the B2C Market......Page 137
   Characteristics and Advantages of Successful E-Tailing......Page 138
  3.2 E-TAILING BUSINESS MODELS......Page 141
   Classification of Models by Distribution Channel......Page 142
   Case 3.1 EC Application: Selling Cars Online: Build-to-Order......Page 143
   Other B2C Models and Special Retailing......Page 145
   B2C Social Shopping......Page 146
   Virtual Visual Shopping......Page 147
  3.3 TRAVEL AND TOURISM (HOSPITALITY) SERVICES ONLINE......Page 148
   Special Services Online......Page 149
   Case 3.2 EC Application: WAYN: A Lifestyle and Travel Social Network......Page 150
   Corporate Travel......Page 151
   The Internet Job Market......Page 152
   Benefits and Limitations of the Electronic Job Market......Page 155
   Real Estate Online......Page 156
   Online Stock Trading......Page 157
   Virtual Banks......Page 159
   International and Multiple-Currency Banking......Page 160
   Case 3.3 EC Application: Security for Online Bank Transactions......Page 161
   Online Billing and Bill Paying......Page 162
   On-Demand Delivery of Products......Page 163
   Online Entertainment......Page 164
   Shopping Portals......Page 165
   Price and Quality Comparison by Shopbot Software Agents......Page 166
   Other Shopping Tools......Page 167
   Disintermediation and Reintermediation......Page 169
   Product and Service Customization and Personalization......Page 170
   Lessons Learned from Failures and Lack of Success of E-Tailers......Page 171
  Managerial Issues......Page 172
  Summary......Page 173
  Topics for Class Discussion and Debates......Page 174
  Team Assignments and Projects......Page 175
  Closing Case: IKEA: The Convergence of the Virtual and Physical Worlds......Page 176
  Online Resources......Page 177
  References......Page 178
 CHAPTER 4 B2B E-COMMERCE......Page 180
  Branas Isaf Competes by Using E-Tendering......Page 181
   The Basic Types of B2B E-Marketplaces and Services......Page 182
   Market Size and Content of B2B......Page 183
   B2B Characteristics......Page 184
   Service Industries Online in B2B......Page 186
   Partner and Supplier Relationship Management......Page 187
   The Benefits and Limitations of B2B......Page 188
   Sell-Side Models......Page 189
   Sales from Catalogs: Storefront......Page 190
   Case 4.1 EC Application: Brady Corporation Uses Catalogs and Multichannels to Sell......Page 191
   Case 4.2 EC Application: The Haier Group......Page 192
   Case 4.3 EC Application: W.W. Grainger and Goodrich Corporation......Page 194
   Using Intermediaries in Auctions......Page 195
   Examples of B2B Forward Auctions......Page 196
   Inefficiencies in Traditional Procurement Management......Page 197
   E-Procurement Concepts......Page 198
   The Goals and Process of E-Procurement......Page 199
   The Benefits and Limitations of E-Procurement......Page 201
   Conducting Reverse Auctions......Page 202
   Group Reverse Auctions......Page 203
   An Internal Purchasing Marketplace: Aggregating Suppliers’ Catalogs and Desktop Purchasing......Page 204
   Buying at Sellers’ Sites......Page 205
   Selecting an Appropriate E-Procurement Solution......Page 206
  4.8 B2B EXCHANGES: DEFINITIONS AND CONCEPTS......Page 207
   Ownership of B2B Exchanges......Page 208
   Advantages, Limitations, and the Revenue Model of Exchanges......Page 210
   An Overview......Page 211
   Corporate (Enterprise) Portals......Page 212
   Case 4.5 EC Application: Alibaba.com......Page 215
   The Opportunities of Social Commerce in B2B......Page 217
   Social Networking in B2B......Page 218
   Examples of Other Activities of B2B Social Networks......Page 219
  4.11 B2B INTERNET MARKETING......Page 220
   The Marketing and Advertising Processes in B2B......Page 221
   Affiliate Programs, Market Research, and Data Mining......Page 222
  Managerial Issues......Page 223
  Summary......Page 224
  Topics for Class Discussion and Debates......Page 225
  Team Assignments and Projects......Page 226
  Closing Case: iMarketKorea......Page 227
  References......Page 229
 CHAPTER 5 INNOVATIVE EC SYSTEMS: FROM E-GOVERNMENT TO E-LEARNING, COLLABORATIVE COMMERCE, AND C2C COMMERCE......Page 231
  Knowledge Sharing as a Strategic Asset at Caterpillar Inc.......Page 232
   Government-to-Citizens......Page 233
   Government-to-Business......Page 236
   Government-to-Government......Page 237
   Government-to-Employees and Internal Efficiency and Effectiveness......Page 238
   E-Government 2.0 and Social Networking......Page 239
   M-Government......Page 240
  5.2 E-LEARNING, E-TRAINING, AND E-BOOKS......Page 241
   The Basics of E-Learning: Definitions and Concepts......Page 242
   Benefits and Drawbacks of E-Learning......Page 243
   Distance Learning and Online Universities......Page 245
   Online Corporate Training......Page 246
   Social Networks and E-Learning......Page 247
   Learning in Virtual Worlds and Second Life......Page 248
   Visual Interactive Simulation......Page 249
   E-Learning Management......Page 250
   Electronic Books (E-Books)......Page 251
   KM Types and Activities......Page 254
   Knowledge Sharing......Page 255
   How Is Knowledge Management Related to E-Commerce?......Page 256
   Deploying KM Technologies......Page 257
   Finding Expertise and/or Experts Electronically and the Use of Expert Location Systems......Page 258
   Essentials of Collaborative Commerce......Page 261
   Collaboration Hubs......Page 262
   Representative Examples of Collaborative Commerce......Page 263
   Implementing C-Commerce......Page 265
  5.5 CONSUMER-TO-CONSUMER ELECTRONIC COMMERCE......Page 266
   E-Commerce: C2C Applications......Page 267
  Managerial Issues......Page 268
  Summary......Page 269
  Discussion Questions......Page 270
  Internet Exercises......Page 271
  Closing Case: Social Networking Initiatives by the New Zealand Government......Page 272
  Online Resources......Page 274
  References......Page 275
 CHAPTER 6 MOBILE COMMERCE AND UBIQUITOUS COMPUTING......Page 276
  Hertz Goes Mobile All the Way......Page 277
   The Attributes of M-Commerce......Page 278
   Drivers of M-Commerce......Page 280
   An Overview of the Applications of M-Commerce......Page 281
   The Benefits of M-Commerce......Page 282
   Overview of Mobile Computing......Page 283
   Mobile Devices......Page 284
   Mobile Computing Software and Services......Page 287
   Wireless Telecommunications Networks......Page 288
   Putting It All Together......Page 291
   Other Financial-Related Mobile Applications......Page 292
   The Framework and Content of Mobile Enterprise Applications......Page 294
   Mobile Workforce and M-Commerce Support......Page 295
   Fleet and Transportation Management......Page 297
   Mobile Applications in Warehouses......Page 298
   Case 6.1 EC Application: Right Time, Right Place, Right Recipient at Puma’s Scandinavian Central Warehouse......Page 299
   Other Enterprise Mobile Applications......Page 300
   Mobile Games......Page 301
   Mobile Gambling......Page 302
   Mobility and Sports......Page 303
   Service Industry Consumer Applications......Page 304
  6.6 LOCATION-BASED MOBILE COMMERCE......Page 305
   L-Commerce Infrastructure......Page 306
   Location-Based Services and Applications......Page 309
   Barriers to Location-Based M-Commerce......Page 311
   Overview of Ubiquitous Computing......Page 312
   Smart Application: Grid, Homes, Cars, and More......Page 314
   Wireless Sensor Networks......Page 317
   Privacy Issues in Ubiquitous Computing......Page 319
   M-Commerce Security and Privacy Issues......Page 320
   Failures in Mobile Computing and M-Commerce......Page 321
   Ethical, Legal, Privacy, and Health Issues in M-Commerce......Page 322
  Managerial Issues......Page 323
  Summary......Page 324
  Discussion Questions......Page 325
  Team Assignments and Projects......Page 326
  Closing Case: Hassle-Free Shopping at the METRO GROUP Future Store......Page 327
  References......Page 329
 CHAPTER 7 SOCIAL COMMERCE......Page 332
  How Starbucks Drives Millions to Its Coffee Shops Using Social Media......Page 333
   Web 2.0 and Its Characteristics......Page 334
   Welcome to the Web 2.0 Revolution......Page 335
   Social Media, Social Marketing, Social Capital, and Social Media Marketing......Page 336
   Social Networks and Social Networking......Page 338
  7.2 THE FUNDAMENTALS OF SOCIAL COMMERCE AND SOCIAL NETWORKING......Page 339
   The Evolution of Social Commerce......Page 340
   The Potential Benefits of Social Commerce......Page 341
   Mobile Social Networking and Commerce......Page 343
   Definitions, Concepts, and Benefits of Social Shopping......Page 344
   The Major Models of Social Shopping......Page 346
   Ratings and Reviews, Social Recommendations, Advice, Comparisons, and Conversations......Page 347
   Group Buying, Deal Purchasing, and Shopping Together......Page 349
   Shopping Communities and Clubs......Page 350
   Other Innovative Models......Page 352
   Social Marketplaces and Direct Sales......Page 353
   What Components to Expect in a Social Shopping Site......Page 354
   Social Ads and Social Apps......Page 356
   Location-Based Advertisement and Social Networks......Page 357
   Using Twitter as an Advertising and Marketing Tool......Page 360
   Other Innovative Ways to Advertise in Social Media......Page 361
   Using Social Networking for Market Research......Page 363
   Social Analytics and Social Intelligence in Social Commerce......Page 365
   Analyzing Consumer Conversations and Other User Generated Content......Page 366
   Conducting Market Research Using the Major Social Networks......Page 367
   Putting It All Together......Page 368
   How Social Networking Improves Customer Service......Page 369
   How to Serve the Social Customers......Page 370
   Implementation of Social Customer Service and CRM......Page 371
   Some More Advanced Applications......Page 372
  7.7 ENTERPRISE APPLICATIONS: FROM COMMUNITY BUILDING TO COLLABORATION......Page 373
   Case 7.1 EC Application: LinkedIn: The Business-Oriented Social Network......Page 374
   Business-Oriented Public Social Networking......Page 376
   Enterprise Private Social Networks......Page 377
   How Companies Interface with Social Networks and Networking......Page 380
   Social Human Resource Management......Page 381
   Managerial Problem Solving, Innovations, and Knowledge Management......Page 382
   Using Web 2.0 Tools for Managerial Tasks......Page 383
   Definitions, Major Concepts, and Benefits......Page 385
   The Process of Crowdsourcing......Page 386
   Successfully Deployed Crowdsourcing Systems: Some Representative Examples......Page 387
   Case 7.2 EC Application: Wikipedia......Page 388
   Issues and Concerns in Implementing Crowdsourcing......Page 389
   Tools for Crowdsourcing......Page 391
   The Landscape of Virtual World Commercial Applications......Page 392
   The Major Categories of Virtual World Applications......Page 393
   The Major Drivers of Social Commerce in Virtual Worlds......Page 397
   Entertainment and Social Networks......Page 399
   Multimedia Presentation and Sharing Sites......Page 401
   Social Games......Page 402
   Justification, Cost–Benefit, and ROI of Social Commerce Systems......Page 404
   Risk Factors and Analysis......Page 406
   Other Implementation Issues......Page 407
   A Strategy for SC Success of Implementation......Page 408
   Revenue-Generation Strategies in Social Networks......Page 410
   Case 7.3 EC Application: Revenue Sources at YouTube......Page 411
   The Future of Social Commerce......Page 412
  Managerial Issues......Page 413
  Summary......Page 414
  Discussion Questions......Page 415
  Internet Exercises......Page 416
  Team Assignments and Projects......Page 417
  Closing Case: F-Commerce: Business Activities on Facebook......Page 418
  Online Resources......Page 422
  References......Page 423
 CHAPTER 8 MARKETING AND ADVERTISING IN E-COMMERCE......Page 428
  Netflix Increases Sales Using Movie Recommendations and Advertisements......Page 429
   A Model of Consumer Behavior Online......Page 430
   A Generic Purchasing-Decision Model......Page 433
   Customer Decision Support in Web Purchasing......Page 434
   Customer Loyalty......Page 435
   Satisfaction in EC......Page 436
   Trust in EC......Page 437
   From Mass Marketing to One-to-One Marketing......Page 439
   How One-to-One Relationships Are Practiced......Page 441
   Personalization in E-Commerce......Page 442
   Behavioral Marketing and Collaborative Filtering......Page 443
   Objectives and Concepts of Market Research Online......Page 445
   Case 8.1 EC Application: Internet Market Research Expedites Time-to-Market at Procter & Gamble......Page 446
   Representative Market Research Approaches......Page 447
   Limitations of Online Market Research and How to Overcome Them......Page 451
  8.7 WEB ADVERTISING......Page 452
   Overview of Web Advertising......Page 453
   Why Internet Advertising?......Page 454
   Major Categories of Ads......Page 455
   Banners......Page 456
   E-Mail Advertising......Page 457
   Search Engine Advertisement......Page 458
   Google: The Online Advertising King......Page 461
   Video Ads......Page 462
   Augmented Reality Advertisement......Page 465
   Advertising in Chat Rooms and Forums......Page 466
   Major Concepts......Page 467
   Implementing Mobile Advertising and Marketing......Page 468
   Tools to Support Mobile Advertisement......Page 471
   Permission Advertising......Page 472
   Other Advertising Strategies......Page 473
   Localization......Page 475
   Developing an Online Advertising Plan......Page 476
  Managerial Issues......Page 478
  Summary......Page 479
  Discussion Questions......Page 480
  Internet Exercises......Page 481
  Team Assignments and Projects......Page 482
  Closing Case: Johnson & Johnson Uses New Media Marketing......Page 483
  Online Resources......Page 484
  References......Page 485
 CHAPTER 9 E-COMMERCE SECURITY AND FRAUD PROTECTION......Page 487
  How Seattle’s Hospital Survived a Bot Attack......Page 488
   What Is EC Security?......Page 489
   The Drivers of EC Security Problems......Page 492
   Why Is an E-Commerce Security Strategy Needed?......Page 494
   Basic Security Terminology......Page 495
   The Threats, Attacks, and Attackers......Page 496
   The Targets of the Attacks in Vulnerable Areas......Page 497
   Security Scenarios and Requirements in E-Commerce......Page 498
   Recovery......Page 500
   The Major Technical Attack Methods......Page 501
   Malicious Code: Viruses, Worms, and Trojan Horses......Page 502
   Social Engineering and Fraud......Page 505
   Fraud on the Internet......Page 506
   Cyber Bank Robberies......Page 509
   Spam and Spyware Attacks......Page 510
   Social Networking Makes Social Engineering Easy......Page 511
   Authentication, Authorization, and Nonrepudiation......Page 514
   E-Commerce Security Strategy......Page 515
   The Defense Side of EC Systems......Page 517
   Access Control......Page 518
   Encryption and the One-Key (Symmetric) System......Page 520
   Public Key Infrastructure (PKI)......Page 521
   Firewalls......Page 524
   Virtual Private Networks (VPNs)......Page 525
   Honeynets and Honeypots......Page 526
   General, Administrative, and Other Controls......Page 528
   Protecting Against Spam......Page 529
   Protecting Against Pop-Up Ads......Page 530
   Protecting Against Social Engineering Attacks......Page 531
   Business Continuity and Disaster Recovery Planning 531......Page 532
   Risk-Management and Cost–Benefit Analysis......Page 534
   The Drivers of EC-Security Management......Page 536
   EC Security Policies and Training......Page 537
   Why Is It Difficult to Stop Internet Crime?......Page 538
  Managerial Issues......Page 539
  Summary......Page 540
  Discussion Questions......Page 542
  Internet Exercises......Page 543
  Team Assignments and Projects......Page 544
  Closing Case: How Two Banks Stopped Scams, Spams, and Cybercriminals......Page 545
  Online Resources......Page 546
  References......Page 547
 CHAPTER 10 ELECTRONIC COMMERCE PAYMENT SYSTEMS......Page 549
  Pay-per-View Pages: The Next iTunes......Page 550
  10.1 THE PAYMENT REVOLUTION......Page 551
   Processing Cards Online......Page 553
   Fraudulent Card Transactions......Page 555
  10.3 SMART CARDS......Page 557
   Applications of Smart Cards......Page 558
  10.4 STORED-VALUE CARDS......Page 560
  10.5 E-MICROPAYMENTS......Page 561
  10.6 E-CHECKING......Page 563
   Case 10.1 EC Application: To POP or BOC: Digital Checks in the Offline World......Page 564
  10.7 MOBILE PAYMENTS......Page 566
   Mobile Remote Payments......Page 567
   Case 10.2 EC Application: Closing the Digital Divide with Mobile Microfinance in Bangalore (India)......Page 568
   Mobile POS Payments......Page 569
   Enterprise Invoice Presentment and Payment......Page 570
  Managerial Issues......Page 573
  Summary......Page 574
  Discussion Questions......Page 575
  Team Assignments and Projects......Page 576
  Closing Case: Freemiums in the Social Gaming World......Page 577
  Online Resources......Page 578
  References......Page 579
 CHAPTER 11 ORDER FULFILLMENT ALONG THE SUPPLY CHAIN AND OTHER EC SUPPORT SERVICES......Page 580
  How Amazon.com Fulfills Orders......Page 581
  11.1 ORDER FULFILLMENT AND LOGISTICS: AN OVERVIEW......Page 582
   Acquiring Goods and Services......Page 583
   The EC Order Fulfillment Process......Page 584
   Why Supply Chain Problems Exist......Page 587
  11.3 SOLUTIONS TO ORDER FULFILLMENT PROBLEMS ALONG SUPPLY CHAINS......Page 588
   Warehousing and Inventory Management Improvements......Page 589
   Changing the Structure and Process of the Supply Chain......Page 590
   Speeding Deliveries......Page 591
   Integrated Global Logistics Systems......Page 592
   Order Fulfillment in Make-to-Order and Mass Customization......Page 593
   Handling Returns (Reverse Logistics)......Page 594
   Order Fulfillment in B2B......Page 595
   Case 11.3 EC Application: How Daisy Brand Fulfills B2B Orders......Page 596
   Case 11.4 EC Application: How Sundowner Motor Inns Fulfills Its Online Reservations......Page 597
   Innovative E-Fulfillment Strategies......Page 598
   The Essentials of RFID......Page 599
   RFID Applications in the Supply Chain Around the Globe......Page 600
   Collaborative Planning, Forecasting, and Replenishment......Page 603
   Consulting Services......Page 605
   Directory Services, Newsletters, and Search Engines......Page 606
   More EC Support Services......Page 607
   Outsourcing EC Support Services......Page 609
  Managerial Issues......Page 610
  Summary......Page 611
  Topics for Class Discussion and Debates......Page 612
  Internet Exercises......Page 613
  Closing Case: How Mass Customized EC Orders Are Fulfilled—Multibras of Brazil......Page 614
  Online Resources......Page 615
  References......Page 616
 CHAPTER 12 EC STRATEGY, GLOBALIZATION, AND SMES......Page 618
  New EC Strategies Enable Travelocity to Move Ahead in the Online Travel Market......Page 619
   Strategy in the Web Environment......Page 620
   The Strategic Planning Process......Page 623
   Strategic Planning Tools......Page 627
  12.2 E-COMMERCE STRATEGY: CONCEPTS AND OVERVIEW......Page 629
   Representative Issues in E-Strategy Initiation......Page 630
   Case 12.2 EC Application: Measuring Profit on the Web: Axon of New Zealand......Page 633
   Strategy in the Web 2.0 Environment and in Social Networking......Page 634
   Selecting E-Commerce Opportunities......Page 635
   Determining an Appropriate EC Application Portfolio Mix......Page 636
   Security Issues to Consider During Strategy Formulation......Page 637
   Other Issues in E-Commerce Strategy Formulation......Page 638
   E-Commerce Strategy Implementation Process......Page 639
   E-Commerce Strategy Implementation Issues......Page 640
   The Objectives of Assessment......Page 642
   Measuring Results and Using Metrics......Page 643
   Benefits and Extent of Global Operations......Page 646
   Barriers to Global E-Commerce......Page 647
  12.8 E-COMMERCE STRATEGY FOR SMALL AND MEDIUM-SIZED ENTERPRISES......Page 650
   SMEs and Social Networks......Page 652
  Managerial Issues......Page 653
  Summary......Page 654
  Discussion Questions......Page 655
  Internet Exercises......Page 656
  Closing Case: CatchOfTheDay Seizes the Market......Page 657
  Online Resources......Page 658
  References......Page 659
 CHAPTER 13 IMPLEMENTING EC SYSTEMS: FROM JUSTIFICATION TO SUCCESSFUL PERFORMANCE......Page 661
  Vodafone Essar of India......Page 662
   The Major Implementation Factors......Page 664
   Other Reasons Why EC Justification Is Needed......Page 665
   What Needs to Be Justified? When Should Justification Take Place?......Page 666
   Using Metrics in EC Justification......Page 667
   The EC Justification Process......Page 669
   Difficulties in Measuring Productivity and Performance Gains......Page 670
   Relating EC and IT Expenditures to Organizational Performance......Page 671
   Intangible Costs and Benefits......Page 672
   The Use of Gartner’s Hype Cycle......Page 673
  13.4 METHODS AND TOOLS FOR EVALUATING AND JUSTIFYING E-COMMERCE INVESTMENTS......Page 674
   Traditional Methods for Evaluating EC Investments......Page 675
   ROI Calculators......Page 677
   Advanced Methods for Evaluating IT and EC Investments......Page 678
   Justifying E-Procurement......Page 680
   Justifying Social Networking and the Use of Web 2.0 Tools......Page 681
   Reducing Production Costs......Page 682
   Increased Revenues......Page 684
   Valuation of EC Companies......Page 686
  13.7 A FIVE-STEP APPROACH TO DEVELOPING AN E-COMMERCE SYSTEM......Page 688
   Step 1: Identifying, Justifying, and Planning EC Systems......Page 689
   Step 2: Creating an EC Architecture......Page 690
   Step 4: Installing, Testing, Integrating, and Deploying EC Applications......Page 691
  13.8 DEVELOPMENT STRATEGIES FOR E-COMMERCE PROJECTS......Page 692
   Buy the Applications (Off-the-Shelf Approach)......Page 693
   Outsourcing EC Systems Development and Applications......Page 694
   Leasing EC Applications: Cloud Computing and Software-as-a-Service......Page 695
   Selecting a Development Option......Page 697
   Improving Marketing and Sales......Page 698
   Transforming Organizations and Work......Page 699
   Change Management......Page 702
   How to Organize an EC Unit in a Company......Page 704
   Factors That Determine E-Commerce Success......Page 705
   E-Commerce Successes......Page 706
   Cultural Differences in EC Successes and Failures......Page 708
  Managerial Issues......Page 709
  Summary......Page 710
  Topics for Class Discussion and Debates......Page 712
  Team Assignments and Projects......Page 713
  Closing Case: Developing a Web 2.0 Platform to Enable Innovative Market Research at Del Monte......Page 714
  Online Resources......Page 715
  References......Page 716
 CHAPTER 14 E-COMMERCE: REGULATORY, ETHICAL, AND SOCIAL ENVIRONMENTS......Page 718
  Why Is Disney Funding Chinese Pirates?......Page 719
   Business Ethics......Page 720
   EC Ethical Issues......Page 722
   Intellectual Property in E-Commerce......Page 724
   Social Networks Changing the Landscape of Privacy and Its Protection......Page 728
   Privacy Rights and Protection......Page 729
   Free Speech Online Versus Privacy Protection......Page 730
   The Price of Protecting an Individual's Privacy......Page 731
   How Information About Individuals Is Collected and Used Online......Page 732
   Privacy Protection by Information Technologies......Page 736
   Privacy Protection by Ethical Principles......Page 737
   Case 14.2 EC Application: Octopus Card Used Everywhere and Tracked Everywhere......Page 738
   Privacy Protection in Countries Other Than the United States......Page 740
   The Legal and Regulatory Environment......Page 741
   E-Discovery......Page 742
   Cyberbullying......Page 743
   Consumer (Buyer) Protection......Page 744
   Protecting Buyers and Sellers: Electronic and Digital Signatures......Page 747
   Government Regulation of E-Commerce......Page 748
   Taxation of EC Transactions......Page 749
   Internet Censorship by Countries......Page 750
   Regulatory Compliance......Page 751
   The Digital Divide......Page 752
   Telecommuting......Page 753
   Green EC and IT......Page 754
   Other Societal Issues......Page 757
  Managerial Issues......Page 758
  Summary......Page 759
  Discussion Questions......Page 760
  Topics for Class Discussion and Debates......Page 761
  Team Assignments and Projects......Page 762
  Closing Case: Pirate Bay and the Future of File Sharing......Page 763
  Online Resources......Page 764
  References......Page 765
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  CHAPTER 15 LAUNCHING A SUCCESSFUL ONLINE BUSINESS AND EC PROJECTS......Page 794
   Facebook: Making a Business Out of Friendship......Page 795
    Getting into E-Commerce......Page 796
    Creating a New Company or Adding an Online Project......Page 797
    Case 15.1 EC Application: Innovation and Creativity at Amazon.com......Page 798
    Planning Online Businesses......Page 800
    Funding a New Online Business......Page 802
    Adding EC Initiatives to an Existing Business......Page 804
    Transformation to an E-Business......Page 805
    Classification of Websites......Page 807
    Building a Website......Page 808
    Web Hosting Options......Page 810
    Registering a Domain Name......Page 812
    Categories and Types of Content......Page 813
    Creation or Acquisition of Content......Page 815
    Content Management and Maintenance......Page 817
    Content Maximization and Streaming Services......Page 818
    Case 15.2 EC Application: Akamai Technologies......Page 819
   15.6 WEBSITE DESIGN......Page 820
    Information Architecture......Page 822
    Performance (Speed)......Page 824
    Website Usability......Page 825
    Payments: Accepting Credit Cards......Page 826
    Website Promotion......Page 827
    Options for Acquiring Webstores......Page 828
    Case 15.4 EC Application: Baidu’s Search for Success......Page 829
   Managerial Issues......Page 832
   Summary......Page 833
   Discussion Questions......Page 834
   Internet Exercises......Page 835
   Closing Case: Alibaba.com: From a Small Startup to an International Enterprise......Page 836
   Online Resources......Page 837
   References......Page 838
  W1.1 Application Case: Dell—Using E-Commerce for Success......Page 840
  W1.2 Application Case: Campusfood.com—Student Entrepreneurs......Page 842
  W1.3 Major Characteristics of Web 2.0......Page 843
  W1.4 Application Case: Beijing 2008: A Digital Olympics......Page 844
  W1.5 Response Activities for Organizations......Page 847
  W1.6 Representative EC Business Models......Page 849
  W1.7 Basic Resources in E-Commerce (for All Chapters)......Page 850
  W2.1 Examples of Digital Products......Page 852
  W2.2 Application Case: How Raffles Hotel Is Conducting E-Commerce......Page 853
  W2.3 Application Case: eBay: The World’s Largest Auction Site......Page 854
  W2.4 Application Case: Reverse Mortgage Auctions in Singapore......Page 855
  W3.1 Some Current Trends in B2C EC......Page 857
  W3.3 Application Case: The European Job Mobility Portal (EURES CV-Search) and Xing.com......Page 858
  W3.4 Investment Information......Page 859
  W3.5 Examples of Online Entertainment......Page 860
  W3.6 Representative Shopping Software Agents and Comparison Sites......Page 862
  W3.7 What Lessons Can Be Learned from These EC Failures?......Page 863
  W4.1 Application Case: Cisco System’s Connection Online......Page 866
  W4.2 Application Case: Boeing’s Spare PART Marketplace......Page 867
  W4.3 Implementing E-Procurement......Page 869
  W4.4 EC Application ChemConnect: The World Commodity Chemical Exchange......Page 872
  W5.1 Application Case: E-Government in Hong Kong (1998 to 2009)......Page 873
  W5.2 Key Issues and Trends of E-Government Development and Implementation......Page 875
  W5.3 Application Case: E-Learning at Cisco Systems......Page 878
  W5.4 Preventing E-Learning Failures......Page 879
  W5.5 Education-Related Activities in Second Life......Page 880
  W5.6 Fila’s Collaboration Software Reduces Time-to-Market and Product Cost......Page 882
  W6.1 Wi-Fi and the Traveling Public......Page 883
  W6.3 Application Case: Mobile Sales Solution Results in £1 Million Revenue Boost for Hillarys......Page 884
  W6.4 Application Case: NextBus: A Superb Customer Service......Page 886
  W6.5 Warehouse Management Systems: Mobile Solutions......Page 887
  W6.6 Application Case: Wi-Fi Sensor Net Aids Winemakers......Page 889
  W6.7 Representative Wireless Industrial Sensor Network Applications......Page 890
  W6.8 Security Approaches for Mobile Computing......Page 891
  W7.1 Application Case: Social Money Lending: Zopa and Prosper......Page 893
  W7.2 How Wikis Are Used......Page 895
  W7.3 Seven Guidelines for Achieving Success in Crowdsourcing......Page 896
  W7.4 The Essentials of Virtual Trade Shows and Trade Fairs in Virtual Worlds......Page 898
  W7.5 How to Educate People to Reduce Pollution: The Alter Space Game......Page 900
  W7.6 Solis’s Compass Components......Page 901
  W7.7 Potential Social Commerce Risks......Page 902
  W7.8 Application Case: YouTube and Company—A Whole New World......Page 904
  W8.1 Online Buyer Decision Making Process......Page 909
  W8.3 Spyware......Page 910
  W8.4 The List of Information Provided by Clickstream Data......Page 911
  W8.5 From Mass Advertising to Interactive Advertising......Page 912
  W8.6 Application Case: 1-800-Flowers.com Uses Data Mining to Foster Customer Relationship Management......Page 913
  W8.7 Advantages and Limitations of Internet Advertising......Page 914
  W8.8 How to Attract Web Surfers......Page 915
  W8.9 E-Mail Advertising Methods......Page 916
  W8.10 Software Agents in Marketing and Advertising Applications......Page 917
  W8.11 The Life Cycle of an Online Advertising Plan......Page 922
  W9.1 Application Case: Hackers Profit from TJX’s Corporate Data......Page 923
  W9.2 Top Cybersecurity Areas in 2011......Page 924
  W9.3 Examples of Internet Fraud......Page 925
  W9.4 What Firewalls Can Protect......Page 928
  W9.5 Application Case: Honeynets and the Law......Page 929
  W9.6 Protecting Against Spam and Splogs......Page 931
  W9.7 Auditing Information Systems......Page 932
  W9.8 Application Case: Impacts of ChoicePoint’s Negligence in Information Security......Page 933
  W10.1 Application Case: Taiwan Money Card......Page 935
  W10.2 Application Case: The Check Is in the Network......Page 936
  W11.2 The Bullwhip Effect......Page 938
  W11.3 Application Case: How Dell Fulfills Customer Repair Orders......Page 939
  W11.4 Application Case: Grocery Supermarket Keeps It Fresh—Woolworths of Australia......Page 940
  W11.5 Order Fulfillment at GroceryWorks......Page 941
  W11.6 Application Case: How Walmart Uses EC in Its Supply Chain......Page 942
  W11.7 Players and Challenges in B2B Order Fulfillment......Page 944
  W11.8 The CPFR Process......Page 945
  W11.9 Intellegent Agents and Their Role in E-Commerce......Page 946
  W12.1 Security Risks in E-Commerce and Social Commerce and Mitigation Guidelines......Page 952
  W12.2 Partners’ Strategy and Business Alliances......Page 953
  W12.3 Application Case: Mary Kay Combines E-Commerce Strategies to Revamp Its Business Model......Page 954
  W12.4 Application Case: Web Page Translation at the Denver Metro Convention and Visitors Bureau......Page 956
  W12.5 Application Case: Adena Medical Center Named “Most Wired” Small and Rural Hospital......Page 957
  W13.1 Nucleus Research’s ROI Methodology......Page 959
  W13.2 Handling Intangible Benefits......Page 961
  W13.3 Issues in Implementing Traditional Justification Methods......Page 962
  W13.4 Advanced Methods for Justifying EC and IT Investments Value Analysis......Page 963
  W13.5 E-Procurement Complexities in Marketplaces......Page 968
  W13.6 Application Case: Cost–Benefit Justification of Wireless E-Commerce at Paesano Restaurant of Australia......Page 969
  W13.8 Vendor and Software Selection......Page 971
  W13.9 Categories of E-Market Success Factors......Page 974
  W13.10 Application Case: The Rise and Fall of Kozmo.com......Page 975
  W13.11 Application Case: The Success Story of E-Choupal......Page 976
  W13.12 Application Case: Alliance Insurance Exercise......Page 977
  W14.1 Framework for Ethical Issues......Page 978
  W14.3 Intellectual Property Websites—International Sites......Page 979
  W14.4 Representative EC Patents......Page 980
  W14.5 Application Case: Protection Pitted Against Privacy......Page 981
  W14.6 Representative U.S. Federal Privacy Legislation......Page 982
  W14.7 Censorship in the United States, China, and Around the Globe......Page 983
  W14.8 How to Go Green in a Data Center and the Related Supply Chain......Page 985