Strategies for e-Business: Concepts and Cases on Value Creation and Digital Business Transformation

Preface
	Context and Positioning of the Book
	Target Readers
	Key Features
	Structure and Content
	Getting the Most from This Book
	Acknowledgements
Contents
Author Biographies
I: Introduction
	1: Key Terminology and Evolution of e-Business
		1.1 Key Terminology
			1.1.1 e-Business
			1.1.2 Electronic Commerce
			1.1.3 Mobile e-Commerce
			1.1.4 Social Commerce
			1.1.5 Omni-Channel Commerce
			1.1.6 u-Commerce
			1.1.7 e-Market
			1.1.8 The Concept of Strategy
			1.1.9 The Concept of Value Creation and Capturing
		1.2 The Evolution of e-Business
			1.2.1 The Grassroots of e-Business
			1.2.2 The Rise of the Internet
			1.2.3 The Crash
			1.2.4 The Synergy Phase
			1.2.5 The Maturity Phase
		1.3 The Benefits of e-Business Adoption
		References
			Further Reading
			Weblinks
II: The E-business Strategy Framework
	2: Overview of the e-Business Strategy Framework
		2.1	 Strategic Thinking in the Field of e-Business
			2.1.1	 Systematic Thinking
			2.1.2	 Creative Thinking
			2.1.3	 Vision-Driven Thinking
			2.1.4	 Market-Oriented Thinking
		2.2	 Critical Successful Factors of e-Business Strategy
			2.2.1	 Technology
			2.2.2	 Customers
			2.2.3	 Suppliers-Partners
			2.2.4	 Personnel
			2.2.5	 Leadership
			2.2.6	 Data, Information, and Knowledge Management
			2.2.7	 Strategic Performance Assessment
		2.3	 A Systematic Approach to e-Business Strategy Formulation
		References
			Further Reading
	3: External Analysis: The Impact of the Internet on the Macro-environment and on the Industry Structure of e-Business Companies
		3.1 Examining Trends in the Macro-environment
			3.1.1 Political and Legal Environment
			3.1.2 Economic Environment
			3.1.3 Social Environment
			3.1.4 Natural Environment
			3.1.5 Technological Environment
		3.2 Examining Industry Structure with the Five Forces Framework
			3.2.1 Industry Rivalry
			3.2.2 Barriers to Entry
			3.2.3 Substitute Products
			3.2.4 Bargaining Powers of Buyers and Suppliers
		3.3 Complementing the Five Forces Framework with the Co-opetition Framework
		3.4 Defining Industries, Segmenting Markets, and Targeting Markets in e-Business
			3.4.1 Defining an Industry
			3.4.2 Segmenting Markets in an Industry
			3.4.3 e-Business Concept 3.1
			3.4.4 Targeting Specific Markets in an Industry
		References
			Further Reading
			Weblinks
	4: Internal Analysis: e-Business Competencies as Sources of Strengths and Weaknesses
		4.1	 Understanding Core Competencies in e-Business
			4.1.1	 Competencies and Core Competencies: A Brief Overview
				4.1.1.1	 Sources of Value and Core Competencies in e-Business
		4.2	 Analyzing the Internet-Impacted Value Chain
		4.3	 Leveraging the Virtual Value Chain
		4.4	 Selecting Activities for Online Interaction with Customers: The ICDT Framework
			4.4.1	 Information Activities
			4.4.2	 Communication Activities
			4.4.3	 Transaction Activities
			4.4.4	 Distribution Activities
		4.5	 Moving Beyond the Value Chain to Value Networks
		References
			Further Reading
			Weblinks
	5: Strategy Options in e-Business Markets
		5.1 Examining the Landscape of Strategy Options for e-Business
			5.1.1 Cost Leadership Strategies
			5.1.2 Differentiation Strategies
			5.1.3 Outpacing Strategies (and the Risk of Getting “Stuck in the Middle”)
		5.2 Creating a Fit Between the Chosen Strategy and the Value Chain
			5.2.1 Consistency Between Activities
			5.2.2 Reinforcement of Activities
			5.2.3 Optimization of Efforts
		5.3 Business Model Canvas
			5.3.1 A Brief Overview
			5.3.2 Some Applications to e-Business
				5.3.2.1 Facebook
				5.3.2.2 7 Amazon.
		5.4 Developing Strategy Alternatives: Major e-Business Models
			5.4.1 B2C
			5.4.2 B2B
			5.4.3 C2C
			5.4.4 Government-Related e-Business Models
		References
			Further Reading
			Weblinks
	6: Creating and Sustaining a Competitive Advantage over Time
		6.1	 Understanding the Fundamentals of Competitive Advantage in e-Business
		6.2	 Creating Competitive Advantage Through e-Business
			6.2.1	 A Traditional Company Business Model to Create Competitive Advantage
			6.2.2	 The Role of e-Business Integration in Creating Competitive Advantage
		6.3	 Sustaining Competitive Advantage
			6.3.1	 Building Up Barriers to Imitation
			6.3.2	 Specific Strategies to Sustain Competitive Advantage
		6.4	 Dealing with the Threats of Disruptive Innovations in e-Business
			6.4.1	 Understanding the Fundamental Process of Disruptive Innovations
			6.4.2	 Discovering the Underlying Reasons for Incumbents’ Failure
			6.4.3	 Asking the Right Questions to Recognize the Threats of Disruptive Innovations
			6.4.4	 Finding Ways to Deal with Disruptive Innovations
			6.4.5	 Selecting the Appropriate Cognitive Frame for Efficient Responses
		References
			Further Reading
			Weblinks
	7: Exploiting Opportunities of New Market Spaces in e-Business
		7.1	 Being Ready for Sectors Without Borders
		7.2	 Gaining Insights into New Market Spaces Through the Value Curve
		7.3	 Looking Outside One’s Own Box
		7.4	 Pinpointing Possibilities for New Value Creation
		7.5	 Finding the Right Time to Enter a Market
			7.5.1	 Early-Mover Advantages
			7.5.2	 Early-Mover Disadvantages
		References
			Further Reading
			Weblinks
	8: Creating and Capturing Value Through e-Business Strategies
		8.1 Basics on Value Creation and Capture
			8.1.1 Creating Value
			8.1.2 Capturing Value
		8.2 Two Perspectives on Value Creation and Capture
			8.2.1 A Good-Dominant Logic
			8.2.2 A Service-Dominant Logic
		8.3 Value Creation Spheres
			8.3.1 Provider Sphere
			8.3.2 Joint Sphere
			8.3.3 Customer Sphere
		8.4 The Process and Causal Pathways of Value Creation and Capture
		8.5 WeChat: S-D Logic Applied into Value Creation and Value Capture
			8.5.1 WeChat and Its S-D Logic
			8.5.2 Value Creation and Capture on WeChat
		Notes and References
			Further Reading
	9: Choosing the Appropriate Strategy for the Internal Organization of e-Business Activities
		9.1	 Reasons Determining “Make-or-Buy” Decisions in e-Business
			9.1.1	 Reasons Favoring “Make” Decisions
			9.1.2	 Reasons Favoring “Buy” Decisions
		9.2	 Choosing the Organizational Structure for e-Business Activities
			9.2.1	 Separate e-Business Organization
			9.2.2	 Integrated e-Business Organization
		9.3	 Value Chain Deconstruction over the Internet
		9.4	 Unbundling the Corporation over the Internet
		References
			Further Reading
	10: Interaction with Suppliers: e-Procurement
		10.1 Advantages and Drawbacks of e-Procurement
		10.2 The Critical Success Factors of e-Procurement
			10.2.1 The Definition of Deliverables
			10.2.2 e-Procurement Champions
			10.2.3 Consultation and Buy-In
			10.2.4 Ongoing Monitoring
		10.3 The Steps of e-Procurement
			10.3.1 e-Procurement Process
			10.3.2 Technologies and Systems Involved in e-Procurement
				10.3.2.1	 Systems
				10.3.2.2 Technologies
		10.4 Summary
		References
			Further Reading
			Weblinks
	11: Choosing the Appropriate e-Business Strategy for Interacting with Users
		11.1	 The Internet and Social Commerce
			11.1.1	 The Advent of Web 2.0
			11.1.2	 Implications of Web 2.0 on the Internet Business Models
			11.1.3	 Understanding User Behavior on the Social Web
		11.2	 The Trade-Off Between Richness and Reach
		11.3	 Increasing the Richness of Interactions with Customers
			11.3.1	 Customer Relationship Management (CRM) in a Digital Context
			11.3.2	 The Concept of Mass Customization
		11.4	 Increasing the Reach of Interactions with Customers
			11.4.1	 Viral Growth
			11.4.2	 The “Tipping Point” Concept
			11.4.3	 The “Long Tail” of Internet-Based Social Networks
			11.4.4	 Using Machine Learning to Offer Personalization
		References
			Further Reading
			Weblinks
	12: Moving from Wired e-Commerce to Mobile e-Commerce and U-Commerce
		12.1	 Mobility and Unwired e-Commerce
			12.1.1	 Understanding the Value Network of Mobile e-Commerce
			12.1.2	 Segmenting Mobile e-Commerce Consumers and Business Services
			12.1.3	 Comparison of Mobile e-Commerce and Wired e-Commerce
		12.2	 Strategy and Mobility
			12.2.1	 Leveraging Wireless Technologies to Create a Competitive Advantage
			12.2.2	 Impact of Wireless Technologies on a Company’s Value Chain
			12.2.3	 Influence of Wireless Technologies on the Industry’s Five Forces
		12.3	 Ubiquity and U-Commerce: Strategy for the Ultimate Evolution of Commerce
			12.3.1	 What Is U-Commerce?
			12.3.2	 Main Features of U-Commerce
			12.3.3	 From Wired e-Commerce to U-Commerce: The Definite Evolution
			12.3.4	 Types of U-Commerce and New Forms of Marketing
		References
			Further Reading
			Useful Third-Party Weblinks
	13: Strategies for Mobile Commerce
		13.1 Mobile Commerce Strategy: Conceptual Foundations
			13.1.1	 What Is a Mobile Commerce Strategy?
			13.1.2 Elements of a Mobile Commerce Strategy
		13.2 Factors Influencing Mobile Commerce Adoption
			13.2.1 Fee or Free
			13.2.2 Functionality
			13.2.3 Value Added
			13.2.4 Perceived Worthiness
		13.3 Value of Mobile Commerce for Consumers and Businesses
			13.3.1 Consumers
			13.3.2 Businesses
		13.4 Mobile Payments
			13.4.1	 Introduction
			13.4.2 History
			13.4.3 Benefits and Risks
				13.4.3.1 Benefits
				13.4.3.2 Risks
			13.4.4 Classification and Variety
			13.4.5 Main Mobile Payment Apps
		13.5 Mobile Commerce Apps and Tools
			13.5.1 Classifications of Mobile Commerce Apps
			13.5.2 Useful Tools for Mobile Commerce
		13.6 Challenges for Mobile e-Commerce Businesses
			13.6.1 Trust
			13.6.2 Usability
			13.6.3 Conversion Rate: The Ultimate Challenge
		References
			Further Reading
	14: Strategies for Social Commerce
		14.1	 Why Should Companies Adopt Social Commerce Strategies?
		14.2	 Classification of Social Commerce
		14.3 Structure and Characteristics of Social Commerce
			14.3.1	 Structure of Social Commerce
			14.3.2	 Characteristics of Social Commerce
		14.4 Value Creation on the Social Web
			14.4.1	 Evolution of the Marketing Approach
				14.4.1.1 Marketing 1.0
				14.4.1.2 Marketing 2.0
				14.4.1.3 Marketing 3.0
			14.4.2	 Co-creating Value on the Social Web
		14.5 Monetizing Strategies for Social Platforms
			14.5.1	 Advertising Strategies
			14.5.2	 Commerce Strategies
		14.6	 Building a Mobile Social Commerce Business
			14.6.1	 The Concept of Mobile Social Commerce
			14.6.2	 The Three Layers of Mobile Social Commerce
		Notes and References
			Recommended Key Reading
	15: Unifying Channels to Reach Customers: Omni-Channel Strategies
		15.1	 Why Should Firms Implement Omni-Channel Strategies?
		15.2	 The Conceptual Framework of an Omni-Channel System
			15.2.1	 Channel Visibility
			15.2.2	 An Integrated Omni-Channel System
		15.3	 Stumbling Blocks for Moving Toward Omni-Channel
		15.4	 Managing Conflicts Between Online and Offline Distribution Channels
			15.4.1	 Understanding Conflicts in Distribution Channels
			15.4.2	 The Channel Conflict Matrix
		15.5	 Devising an Omni-Channel Strategy Hybridizing Social/Local/Mobile (SoLoMo)
			15.5.1	 Why Do We Need SoLoMo?
			15.5.2	 Omni-Channeling Through a Social/Local/Mobile (SoLoMo) Approach
		References
			Further Reading
	16: The Strategic Approach of the World’s Biggest e-Tailing Companies: Amazon and Alibaba
		16.1 Why Can We Learn from Amazon and Alibaba?
		16.2 Amazon
			16.2.1	 An Introduction to Amazon
			16.2.2	 Business Model of Amazon
			16.2.3	 Amazon’s Success Factors
			16.2.4	 Amazon’s Current Strategies
			16.2.5	 Amazon’s Future Strategic Decisions
		16.3 Alibaba
			16.3.1	 An Introduction to Alibaba
			16.3.2	 Business Model of Alibaba
			16.3.3	 Alibaba’s Success Factors
			16.3.4	 Alibaba’s Current Strategies
				16.3.4.1	 Alibaba’s Future Strategic Decisions
		16.4 The Contrasts and Lessons of Amazon and Alibaba
			16.4.1	 Distinctions Between the Amazon and Alibaba Marketplaces
			16.4.2	 Lessons of the Amazon and Alibaba Business Models
		References
			Further Reading
	17: Strategic Trends for e-Business
		17.1	 An Overview on Strategic Trends for e-Business
		17.2	 Blockchain
		17.3	 Artificial Intelligence/Machine Learning
		17.4	 Augmented Reality (AR)/Virtual Reality (VR)
		17.5	 Same-Day Delivery and Last-Mile Fulfillment
		17.6	 E-Commerce in China
		17.7	 The Internet of Things (IoT) and e-Commerce
		17.8	 Cloud Computing and e-Commerce
		17.9	 Video Marketing
		17.10	 Returns Rates of Online Purchases
		References
			Further Reading
III: A Roadmap for E-business Strategy Implementation
	18: A Roadmap for e-Business Strategy Implementation
		18.1	 What Is the Mission of Our Company?
		18.2	 What Are the Objectives for Our e-Business Strategy
		18.3	 What Value Do We Want to Offer Through Our e-Business Strategy?
			18.3.1	 What Type of Competitive Advantage Do We Aim for?
			18.3.2	 How Much Breadth Do We Want to Have in Our Product and Service Offerings?
		18.4	 What Are the Customer Segments to Target and What Is Our Value Proposition for Each Segment
		18.5	 What Factors Do We Need to Consider when Implementing e-Business Strategies?
			18.5.1	 Organizational Capabilities
			18.5.2	 Resources
			18.5.3	 Adhocracy Culture
			18.5.4	 Top Management Support
		18.6	 Should We Implement Our e-Business Strategy Alone or with External Partners?
		18.7	 What Organizational Structure Should Our e-Business Activities Have?
		18.8	 What Is Our Cost and Revenue Model?
			18.8.1	 What Is the Cost Structure of Our e-Business Activities?
			18.8.2	 What Is the Revenue Structure of Our e-Business Activities?
		18.9	 How Should We Align Our Physical-World Strategy with Our e-Strategy
		References
			Further Reading
IV: Case Studies
	19: Digital Transformation at Axel Springer
		19.1	 Company History
		19.2	 Early Attempts at Digitization
		19.3	 Accelerating Content Digitization
		19.4	 Digitizing the Classified Advertising Business Through Acquisitions
			19.4.1	 Classified Ads Business
			19.4.2	 Marketing Business
		19.5	 Reducing Analog Footprint
			19.5.1	 Building Subscriber-Based Digital Brands
			19.5.2	 Turning Its Attention to Early-Stage Investments
			19.5.3	 Expanding Horizontal and Geographical Footprint
		19.6	 Human Resource Transformation
		19.7	 Cultural Transformation
		19.8	 Going Forward
		References
	20: Dallara Automobili: Transforming a Racing Legend
		20.1 Gian Paolo Dallara: The Birth of a Giant
		20.2 Dallara Automobili (1972–2007)
		20.3 The Succession Challenge
		20.4 Andrea Pontremoli’s First Steps
			20.4.1 Culture Shift
			20.4.2 Process Modernization
			20.4.3 Vision and Structure Changes
			20.4.4 Network Externalities: Toward a Cluster Economy
		20.5 Innovation-Driven Change
			20.5.1 Simulator to the Rescue
			20.5.2 Designing the Beast
			20.5.3 Moving the Lines
			20.5.4 New Tools, New Organization… New Strategy?
			20.5.5 Leading the Local Cluster
			20.5.6 Global Dominance
				20.5.6.1 Indianapolis Motor Valley
				20.5.6.2 Super Formula
				20.5.6.3 Formula E
				20.5.6.4 Formula One
		20.6 The Future
	21: DBS Transformation (a): Becoming a World-Class Multinational Bank
		21.1	 Company Background
		21.2	 DBS in 2009
		21.3	 Turning DBS into a World-Class Multinational Bank
			21.3.1	 The Strategic Vision
			21.3.2	 An Efficient and Effective Operational Architecture
			21.3.3	 Changing the Culture
		21.4	 Emerging Challenges
			21.4.1	 The Rise of the Fintechs
			21.4.2	 Achieving Critical Mass in the Big Asian Markets
	22: DBS Transformation (b): Going Digital and Creating a 22,000-Person Start-Up
		22.1 Making Banking Joyful
			22.1.1 Fixing the Technology
			22.1.2 Rethinking the Customer Journey
			22.1.3 Rewiring Mindsets Toward a Start-Up Culture
		22.2 DBS digibank: India’s First Mobile-Only Bank
			22.2.1 Creating the Platform
			22.2.2 Launching DBS digibank India
		22.3 Emerging Challenges
			22.3.1	 Singapore: Are We Doing Enough?
			22.3.2 Growth Markets: Will the Digital Bank Strategy Work?
	23: Digital Business Transformation in Silicon Savannah: How M-PESA Changed Safaricom (Kenya)
		23.1 Safaricom and M-PESA
		23.2 M-PESA Spurred Safaricom’s Digital Business Transformation
			23.2.1 Extending Safaricom’s Business Model
			23.2.2 Diversified Service Increasingly Plugging in Third Parties
			23.2.3 Going Online
			23.2.4 Competition Within and Across Sectors
			23.2.5 Revamping Customer Segmentation
			23.2.6 Multichannel Customer Engagement to Strengthen Loyalty
			23.2.7 Ensuring a Strong IT Backbone and More Digitized Processes
			23.2.8 Organizational Structure and Leadership
			23.2.9 Human Resources Requirements for Becoming a Digital Platform Company
			23.2.10 Data Analytics in High Demand as Platform Businesses Thrive
			23.2.11 Start-Up Business Diversifying Safaricom’s Revenue Streams
		23.3 New Horizons
		Appendix
			Background Information 1: Safaricom CEO’s 2016 Statement on Annual Performance and Strategic Focus (Adapted Extract)
			Background Information 2: Safaricom Chairman’s 2016 Statement on Kenyan ICT Market (Adapted Extract)
		References
	24: DBS Transformation (C): The World’s Best Digital Bank
		24.1 Making Banking Joyful: Three-Pronged Approach
			24.1.1 Embracing Digital
			24.1.2 Embedding Itself in the Customer’s Journey
			24.1.3 Creating a Start-Up Mindset
		24.2 Outcomes
			24.2.1 Customer Reach and Acquisition
			24.2.2 Efficiency
			24.2.3 Data Analytics
		24.3 The Future
	25: AccorHotels’ Digital Transformation: A Strategic Response to Hospitality Disruptor Airbnb
		25.1 The Hospitality Industry
			25.1.1	 The Traditional Hospitality Industry
			25.1.2 The Digital Disruption of the Hospitality Industry
		25.2 Airbnb
			25.2.1 History
			25.2.2 Key Figures
			25.2.3 Business Model
			25.2.4 Challenges
			25.2.5 Expansion
		25.3 AccorHotels Group
			25.3.1	 History
			25.3.2 Key Figures
			25.3.3 Corporate and Digital Transformation Under New CEO Sébastien Bazin
			25.3.4 Challenges Ahead
		References
	26: Disruptive Change at Bossard with SmartFactoryLogistics.com?
		26.1 Bossard Group: Background
		26.2 Global Fastening Industry
		26.3 Bossard’s Early Innovations
		26.4 The Potential of the Internet of Things
		26.5 Time to Make a Move from Products to Services
		26.6 From Smart Factory to Smart Ecosystem: 7 SmartFactoryLogistics.­com
		26.7 Key Developments in IoT for Bossard’s Smart Factory Logistics
		26.8 Will 7 SmartFactoryLogistics.­com Lead to Disruptive Change?
		References
	27: Mary Barra and the Lyft Investment: Leading GM into the Sharing Economy Through Acquisitions
		27.1 Emergence from Bankruptcy
		27.2 Constantly Shifting Consumer Preferences: A Reality for All Companies
		27.3 Modern Automotive Trends Were All About Digital Enablement
			27.3.1 Realigning to Green Energy
			27.3.2 Intelligent Vehicles
			27.3.3 Sharing Economy Was Taking Off
			27.3.4 Move to Digital Engagement
		27.4 Lessons from Past Innovation Successes and Failures
		27.5 GM Invests in the Ride-Sharing Company Lyft
		27.6 Where to Next?
	28: Turkcell (A): How to Respond to Digital Disruption?
		28.1 Turkcell’s Founding and Early History
		28.2 Turkcell in April 2015
			28.2.1 Turkcell Turkey
			28.2.2 Organization and Culture
			28.2.3 International Operations
		28.3 Emerging Challenges
			28.3.1 The 4.5G Auction
			28.3.2 Competition from OTT Service Providers
	29: Turkcell (B): From a Telecom Network Operator to a Customer Experience Provider
		29.1 Turkcell Turkey: From a Network Operator to an  Experience Provider
			29.1.1 Creating the Impetus for Change
			29.1.2 Changing the Organization
			29.1.3 Changing the Culture
			29.1.4 Becoming the Number One Telco
			29.1.5 Becoming an Experience Provider
			29.1.6 Digitalizing the Company
		29.2 Building the International Business
		29.3 Keeping the Growth Going
			29.3.1 Growth Opportunities in Turkey
			29.3.2 International Growth Opportunities
	30: Nestlé: Developing a Digital Nutrition Platform for Japan
		30.1 Bringing Digital Nutrition Solutions to Life
		30.2 Japan’s Aging Population: A Pressing Issue for the Nation—A Unique Opportunity for Nestlé
		30.3 Japan’s Regulatory Framework Supports Healthy Food
		30.4 Consumer Choices and Habits
		30.5 Evolution of Availability and Use of Medical Data
		30.6 Rapidly Evolving Market Structure and Distribution Channels
		30.7 Nestlé in Japan
			30.7.1 Nestlé Products for Consumers
			30.7.2 Nestlé Products for Hospitals
		30.8 Digital Nutrition Platforms: New Entrants
		Reference
	31: Rabobank: Building Digital Agility at Scale
		31.1 Rabobank: The Cooperative Bank
		31.2 Digital@Rabobank
		31.3 The Digital Hub
			31.3.1 Selecting the Customer Journeys
			31.3.2 The 12-Week Customer Journeys
			31.3.3 Customer Journey Examples
		31.4 Transformation@Scale
			31.4.1 Changing Mindsets and Expectations
			31.4.2 Increasing Tensions
				31.4.2.1 Aligning Priorities
				31.4.2.2 Attracting and Retaining Squad Members
			31.4.3 Professional Jealousy
			31.4.4 Conflicts Around Roles and Responsibilities
		31.5 Building the Digital Organization