Ebook E-business and e-commerce management: Strategy, implementation and practice - Part 1

Ebook E-business and e-commerce management : Strategy, implementation and practice - Part 1 presents the following content: Chapter 1 Introduction to e-business and e-commerce; Chapter 2 E-commerce fundamentals; Chapter 3 E-business infrastructure; Chapter 4 E-environment. Please refer to the documentation for more details.

Ben Clegg, Aston Business School ‘This text provides a strong strategic framework to help students understand this fast-moving subject, as well as a useful guide to practical analysis.’ Mette Præst Knudsen, University of Southern Denmark What approach to e-business strategy should you follow? How much you need to invest in e-business? Which processes should be your priorities? Written in an engaging and informative style, E-Business and E-Commerce Management explores these questions, equipping you with the knowledge and skills to navigate today’s fast-paced world of continuous technological development In this latest edition of his bestselling text, leading authority Dave Chaffey brings together the latest academic 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: • A structured approach to planning, implementing, assessing and improving e-business strategy for all types of organization The latest on managing e-business security and cutting edge e-marketing • techniques such as social media and search engine optimization • 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 Dave Chaffey (www.davechaffey.com) is an e-business consultant and visiting lecturer on e-business courses at Warwick University and Cranfield School of Management Additional learning resources are online at www.pearsoned.co.uk/chaffey An imprint of CVR_CHAFF9601_04_SE_CVR.indd www.pearson-books.com Fourth Edition Chaffey 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 E-Business and E-Commerce Management ‘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 both faculty and students.’ Fourth Edition E-Business and E-Commerce Management Strategy, Implementation and Practice Dave Chaffey 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, Implementation and Practice Visit the E-Business and E-Commerce Management, fourth edition Companion Website at www.pearsoned.co.uk/chaffey to find valuable student learning material including: A study guide to reinforce key ideas and topics Multiple choice questions to test your learning Links to relevant sites on the web An online glossary to explain key terms Flashcards to test your understanding of key terms A smarter online searching guide Link to Dave Chaffey’s blog with a collection of articles and links Link to Dave Chaffey’s Twitter feed A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 10:59 We work with leading authors to develop the strongest educational materials in business and management, bringing cutting-edge thinking and best learning practice to a global market Under a range of well-known imprints, including Financial Times Prentice Hall we craft high quality print and electronic publications which help readers to understand and apply their content, whether studying or at work To find out more about the complete range of our publishing, please visit us on the World Wide Web at: www.pearsoned.co.uk Page ii 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 Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsoned.co.uk First published 2002 Second edition published 2004 Third edition published 2007 Fourth edition published 2009 © Dave Chaffey 2002 © Marketing Insights Limited 2002, 2009 The right of Dave Chaffey to be identified as author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988 All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS All trademarks used herein are the property of their respective owners The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners ISBN: 978-0-273-71960-1 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Chaffey, Dave, 1963– E-business and e-commerce management : strategy, implementation, and practice / Dave Chaffey 4th ed p cm Includes bibliographical references and index ISBN 978-0-273-71960-1 (pbk : alk paper) Electronic commerce Business enterprises Computer networks I Title II Title: Ebusiness and ecommerce management HF5548.32.C472 2009 658.8'72 dc22 2009009561 10 13 12 11 10 09 Typeset in 10/12pt Minion by 30 Printed and bound by Rotolito Lombarda, Italy The publisher’s policy is to use paper manufactured from sustainable forests A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 10:59 Page v Brief contents Preface Guided tour Author’s acknowledgements Publishers acknowledgements Part Introduction xiii xxiv xxvi xxvii 1 Introduction to e-business and e-commerce E-commerce fundamentals Part Part 51 E-business infrastructure 103 E-environment 192 Strategy and applications 253 E-business strategy 255 Supply chain management 330 E-procurement 380 E-marketing 412 Customer relationship management 481 Implementation 559 10 Change management 560 11 Analysis and design 604 12 Implementation and maintenance 680 Glossary Index 736 754 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 Guided tour About the author Author’s acknowledgements Publisher’s acknowledgements xiii xxiv xxvi xxvii xxvii Introduction 52 Real-world E-Business: More Th>n 53 The e-commerce environment 57 Strategic agility 57 Online marketplace analysis 59 Location of trading in the marketplace 67 The importance of multi-channel marketplace models 70 Different types of online intermediary 71 Types of intermediaries 74 The importance of search engines 76 Business models for e-commerce 77 Revenue models 79 Online publisher and intermediary revenue models 80 Focus on auction business models 86 Case Study 2.1 The impact of B2B reverse auctions 87 Focus on Internet start-up companies 88 From ‘bricks and mortar’ to ‘clicks and mortar’ 88 Assessing e-businesses 89 Valuing Internet start-ups 89 Case Study 2.2 lastminute.com – an international dot-com survivor 91 The dot-com bubble bursts 93 Why dot-coms failed 93 The impact of the dot-com phenomenon on traditional organizations 95 Case Study 2.3 Zopa launches a new lending model 95 Summary 98 Exercises 99 References 100 Further reading 101 Web links 101 Part Introduction Introduction to e-business and e-commerce Learning outcomes / Management issues Links to other chapters Introduction The impact of the electronic communications on traditional businesses Real-world E-Business: HP.com What is the difference between e-commerce and e-business? E-commerce defined E-business defined Case Study 1.1 A short history of Facebook Business or consumer models of e-commerce transactions E-business opportunities Business adoption of digital technologies for e-commerce and e-business Drivers of business Internet adoption Case Study 1.2 North West Supplies extends its reach online E-business risks and barriers to business adoption Evaluating an organization’s e-business capabilities Drivers of consumer Internet adoption Barriers to consumer Internet adoption Management responses to e-commerce and e-business Part 1: Introduction Part 2: Strategy and applications Part 3: Implementation Case Study 1.3 eBay – the world’s largest e-business Summary Exercises References Further reading Web links E-commerce fundamentals Learning outcomes / Management issues Links to other chapters 3 10 13 17 26 29 30 30 33 35 36 37 39 39 39 40 42 42 46 46 48 49 49 51 51 51 E-business infrastructure Learning outcomes / Management issues Links to other chapters Introduction E-business infrastructure components Real-world E-Business: Random House Internet technology Hosting of web sites and e-business services The Internet timeline Just how big is the Internet? Case Study 3.1 Innovation at Google Intranets and extranets Web technology Internet-access software applications Blogs and blogging Electronic mail or e-mail Feeds Voice over IP (VoIP) 103 103 103 104 105 107 109 110 111 114 115 116 124 128 129 131 132 134 A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD viii 16/4/09 10:59 Page viii Contents How does it work? Internet standards Networking standards The HTTP protocol Uniform resource locators (URLs) Domain names Web presentation and data exchange standards Audio and video standards Focus on Internet governance Managing e-business infrastructure Managing hardware and systems software infrastructure Managing Internet service and hosting providers Managing employee access to the Internet and e-mail Managing e-business applications infrastructure Focus on web services, SaaS and service-oriented architecture (SOA) Benefits of web services or SaaS Challenges of deploying SaaS Case Study 3.2 New architecture or just new hype? EDI Focus on mobile commerce Wireless Internet access standards Wireless access devices Popularity of mobile applications Summary Exercises References Further reading Web links 136 136 138 139 139 141 152 152 158 E-environment 192 192 192 193 196 198 198 209 222 Learning outcomes / Management issues Links to other chapters Introduction Real-world E-Business: GD Worldwide Social and legal factors Factors governing e-commerce service adoption Privacy and trust in e-commerce Other e-commerce legislation Environmental and green issues related to Internet usage Taxation Freedom-restrictive legislation Economic and competitive factors Focus on e-commerce and globalization Case Study 4.1 The implications of globalization for consumer attitudes The implications of e-commerce for international B2B trading Political factors Internet governance E-government Technological innovation and technology assessment Approaches to identifying emerging technology Summary Exercises References 159 160 165 165 168 168 169 174 176 177 178 179 179 186 187 188 190 190 227 229 231 232 233 235 236 238 239 240 241 244 246 246 247 249 249 Further reading Web links Part Strategy and applications 253 E-business strategy Learning outcomes / Management issues Links to other chapters Introduction Real-world E-Business: Standard Life What is e-business strategy? The imperative for e-business strategy E-channel strategies Strategy process models for e-business Strategic analysis Resource and process analysis Competitive environment analysis Assessing competitive threats Co-opetion Competitor analysis Strategic objectives Defining vision and mission How can e-business create business value? Case Study 5.1 Capital One creates value through e-business Objective setting Case Study 5.2 Setting the Internet revenue contribution at Sandvik Steel Strategy definition Decision 1: E-business channel priorities Decision 2: Market and product development strategies Decision 3: Positioning and differentiation strategies Decision 4: Business, service and revenue models Decision 5: Marketplace restructuring Decision 6: Supply-chain management capabilities Decision 7: Internal knowledge management capabilities Decision 8: Organizational resourcing and capabilities Strategy implementation Failed e-business strategies E-business strategy implementation success factors for SMEs Case Study 5.3 Boo hoo – learning from the largest European dot-com failure Focus on information systems strategy and e-business strategy Elements of IS strategy Investment appraisal Summary Exercises References Further reading Web links 255 255 255 256 256 259 261 262 264 269 269 276 276 281 281 281 282 285 286 287 292 295 298 300 303 306 308 309 310 310 313 314 315 316 319 320 320 324 325 326 328 329 A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 10:59 Page ix Contents Supply chain management Learning outcomes / Management issues Links to other chapters Introduction Problems of supply chain management What is supply chain management? Using technology to support supply chain management – an example A simple model of a supply chain Case Study 6.1 Shell chemicals redefines its customers’ supply chains What is logistics? Push and pull supply chain models Focus on the value chain Restructuring the internal value chain The value stream Value chain analysis Value networks Towards the virtual organization Options for restructuring the supply chain Using e-business to restructure the supply chain Technology options and standards for supply chain management Adoption rates of e-business applications Case Study 6.2 Tesco develops a buy-side e-commerce system for supply chain management IS-supported downstream supply chain management Outbound logistics management IS infrastructure for supply chain management Supply chain management implementation Data standardization and exchange Human resources requirements of SCM The supply chain management strategy process Managing partnerships Managing global distribution Case Study 6.3 RFID: keeping track starts its move to a faster track Summary Exercises References Further reading Web links E-procurement Learning outcomes / Management issues Links to other chapters Introduction What is e-procurement? Understanding the procurement process Types of procurement Participants in online procurement Drivers of e-procurement Case Study 7.1 Cambridge Consultants reduce costs through e-procurement Focus on estimating e-procurement cost The impact of cost savings on profitability Risks and impacts of e-procurement 330 330 330 331 334 335 337 340 341 345 347 348 350 351 351 352 354 356 358 359 360 363 365 365 366 368 368 369 371 372 374 374 375 376 377 379 379 380 380 380 381 381 384 385 386 387 388 390 391 392 ix Organizational risks Failure to achieve real cost reductions Technology risks Implementing e-procurement The growth in adoption of web-enabled e-procurement Integrating company systems with supplier systems Focus on electronic B2B marketplaces Case Study 7.2 Covisint – a typical history of a B2B marketplace? Types of marketplace The future of e-procurement? Summary Exercises References Further reading Web links 393 393 394 394 E-marketing 412 412 412 413 414 415 416 416 417 Learning outcomes / Management issues Links to other chapters Introduction Chapter structure Real-world E-Business: Guess What is e-marketing? Marketing defined E-marketing defined Distinguishing between e-marketing, e-business and e-commerce E-marketing planning Is a separate e-marketing plan required? Situation analysis Demand analysis Competitor analysis Intermediary analysis Internal marketing audit Objective setting Case Study 8.1 The e-volution of easyJet’s online revenue contribution Strategy Market and product positioning Target market strategies Focus on characteristics of new-media marketing communications Tactics Product Case Study 8.2 Dell gets closer to its customers online Price Place Promotion People, Process and Physical evidence Focus on online branding The importance of brand online Actions Control Case Study 8.3 The new Napster changes the music marketing mix 396 397 400 403 405 407 407 408 409 410 410 417 418 418 420 421 425 427 428 428 431 433 436 437 443 448 451 453 456 460 462 464 464 467 469 470 471 M04_CHAF9601_04_SE_C04.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 11:11 Page 237 Chapter E-environment 237 Larger organizations typically already compete in the global marketplace, or have the financial resources to achieve this But what about the smaller organization? Most governments are looking to encourage SMEs to use electronic commerce to tap into the international market Advice from governments must reassure SMEs wishing to export Hamill and Gregory (1997) identify the barriers to SME internationalization shown in Table 4.7 Complete Activity 4.5 to look at the actions that can be taken to overcome these barriers More recent research suggests SMEs have been relatively slow to adopt the Internet Research by Arnott and Bridgewater (2002) suggests limited usage of the Internet The authors test the level of sophistication by which SMEs are using the Internet (see stage models in Chapter 5) They find that the majority of firms are using the Internet for information provision rather than interactive, relationship-building or transactional facilities They find that smaller firms are using significantly fewer Internet tools than their larger counterparts Quayle (2002) has assessed issues considered by SMEs to be strategically important In the UK 298 SMEs were surveyed Issues of marketing, leadership and waste reduction were given highest priority and supplier development, financial management, time to market and supply chain management were medium priority Perhaps unsurprisingly, the lowest priority was given to technology, research and development, e-commerce, customer management and purchasing – all closely related to e-business In further research, Meckel et al (2004) analysed e-business adoption by several hundred SMEs in the NW of England and found that fewer than 15% had formal, documented e-business strategies which is also limiting adoption Activity 4.5 Overcoming SME resistance to international e-commerce Purpose To highlight barriers to exporting amongst SMEs and suggest measures by which they may be overcome by governments Activity For each of the four barriers to internationalization given in Table 4.7 suggest the management reasons why the barriers may exist and actions that governments can take to overcome these barriers Evaluate how well the government in your country communicates the benefits of e-commerce through education and training Table 4.7 Issues in SME resistance to exporting Barrier Management issues How can barrier be overcome? Psychological Operational Organizational Product/market Source: Barriers from Hamill and Gregory (1997) and Poon and Jevons (1997) Answers to activities can be found at www.pearsoned.co.uk/chaffey M04_CHAF9601_04_SE_C04.QXD:D01_CHAF7409_04_SE_C01.QXD 238 16/4/09 11:11 Page 238 Part Introduction Political factors The political environment is shaped by the interplay of government agencies, public opinion, consumer pressure groups such as CAUCE (the Coalition against Unsolicited E-mail), www.cauce.org, and industry-backed organizations such as TRUSTe (www.truste.org) that promote best practice amongst companies The political environment is one of the drivers for establishing the laws to ensure privacy and to achieve taxation, as described in previous sections Political action enacted through government agencies to control the adoption of the Internet can include: promoting the benefits of adopting the Internet for consumers and business to improve a country’s economic prosperity; enacting legislation to protect privacy or control taxation, as described in previous sections; providing organizations with guidelines and assistance for compliance with legislation setting up international bodies to coordinate the Internet such as ICANN (the Internet Corporation for Assigned Names and Numbers, www.icann.com) and other independent organizations controlling Internet technology described in Chapter Political involvement in many of these activities is intended to improve the economic competitiveness of countries or groups of countries Quayle (2002) summarizes six strands of the UK government strategy for e-commerce which are intended to increase industry competitiveness: Establish a brand in e-commerce both domestically and internationally Transform existing businesses Foster e-commerce creation and growth Expand the e-commerce talent pool (skills) Provide leadership in international e-commerce policy development Government online should be a priority These goals are typical for many countries and specific targets are set for the proportion of people and businesses that have access, including public access points for those who cannot currently afford the technology Managers who are aware of these initiatives can tap into sources of funding for development or free training to support their online initiatives Alternatively, there may be incentives such as tax breaks for business or consumer adoption of the Internet and technology companies can also take advantage of these Some other examples of the role of government organizations in promoting and regulating e-commerce are given by these examples from the European Commission (EC): Information society A society with widespread access and transfer of digital information within business and the community The EC Information Society initiative (http://europa.eu.int/information_society/index_ en.htm) was launched in 1998 with the aims of increasing public awareness of the impact of the information society and stimulating people’s motivation and ability to participate (reducing social exclusion); increasing socio-economic benefits and enhancing the role of Europe in influencing the global Information Society Information Society was defined by the UK INSINC working party on social inclusion in the information society in 1997 as: A society characterized by a high level of information intensity in the everyday life of most citizens, in most organizations and workplaces; by the use of common or compatible technology for a wide range of personal, social, educational and business activities; and by the ability to transmit and receive digital data rapidly between places irrespective of distance UNESCO (the United Nations Educational, Scientific and Cultural Organization) has also been active in advancing the Information Society in less developed countries (http://portal.unesco.org/ci) M04_CHAF9601_04_SE_C04.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 11:11 Page 239 Chapter E-environment 239 The European Community has set up ‘i2010’ (European Information Society in 2010) whose aims include providing an integrated approach to information society and audio-visual policies in the EU, covering regulation, research, and deployment and promoting cultural diversity (eEurope, 2005) In 1998 new data protection guidelines were enacted to help protect consumers and increase the adoption of e-commerce by reducing security fears In the new millennium cross-Europe laws have been enacted to control online consumer privacy, electronic selling and taxation Booz Allen Hamilton (2002) reviews approaches used by governments to encourage use of the Internet They identify five broad themes in policy: Increasing the penetration of ‘access devices’ Approaches include either home access through Sweden’s PC Tax Reform, or in public places, as in France’s programme to develop 7,000 access points by 2003 France also offer a tax incentive scheme, where firms can make tax-free gifts of PCs to staff for personal use Increasing skills and confidence of target groups These may target potentially excluded groups, as with France’s significant €150 million campaign to train the unemployed Japan’s IT training programmes use existing mentors Establishing ‘driving licences’ or ‘passport’ qualifications France, Italy and the UK have schemes which grant simple IT qualifications, particularly at low-skilled groups such as the long-term unemployed Building trust, or allaying fears An example of this in the US is the 1998 Child Online Protection Act which used schemes to provide ‘kitemark’-type verification, or certification of safe services Direct marketing campaigns According to the report, only the UK, with its UK Online campaign, is marketing directly to citizens on a large scale Internet governance Internet governance Internet governance describes the control put in place to manage the growth of the Inter- Control of the operation and use of the Internet net and its usage Governance is traditionally undertaken by government, but the global nature of the Internet makes it less practical for a government to control cyberspace Dyson (1998) says: Now, with the advent of the Net, we are privatizing government in a new way – not only in the traditional sense of selling things off to the private sector, but by allowing organizations independent of traditional governments to take on certain ‘government’ regulatory roles These new international regulatory agencies will perform former government functions in counterpoint to increasingly global large companies and also to individuals and smaller private organizations who can operate globally over the Net The US approach to governance, formalized in the Framework for Global Electronic Commerce in 1997, is to avoid any single country taking control Dyson (1998) describes different layers of jurisdiction These are: Physical space comprising each individual country where its own laws such as those governing taxation, privacy and trading and advertising standards hold ISPs – the connection between the physical and virtual worlds Domain name control (www.icann.net) and communities Agencies such as TRUSTe (www.truste.org) The organizations that manage the infrastructure, which were described in Chapter 3, also have a significant role in governance M04_CHAF9601_04_SE_C04.QXD:D01_CHAF7409_04_SE_C01.QXD 240 16/4/09 11:11 Page 240 Part Introduction E-government E-government E-government is distinct from Internet governance We introduced e-government in Chapter The application of e-commerce technologies to government and public services 1, where we noted that it is a major strategic priority for many countries in Europe and the remainder of the world To achieve the potential cost savings, some governments have set targets for both buy- and sell-side e-government In the UK, the government’s main target was: That by 2005, 100% of dealings with Government should be capable of being delivered electronically, where there is a demand Debate 4.2 Getting value from e-government ‘Efforts by national governments to deliver e-government services for citizens represent a massive waste of public money, given the limited demand for these services.’ Although this target is to be applauded, one can view this as the UK government’s dot-com investment Although many services have been created, adoption rates tend to be low and the government is having to invest in marketing usage of these services In Australia, the National Office for the Information Economy, NOIE (www.noie.gov.au), has created a strategic framework which has the following themes This summarizes the types of actions that many governments are taking to encourage e-business within their countries Access, participation and skills – Encouraging all sectors of the community to actively participate in the information economy Adoption of e-business – The government is working to provide more efficient communi- cation between businesses to help improve the productivity of the Australian economy A priority focus for 2002/03 is to promote the uptake of electronic procurement and broader electronic business processes, especially by small and medium enterprises Confidence, trust and security – The government is working to build public trust and confidence in going online, and addressing barriers to consumer confidence in e-commerce and other areas of online content and activity e-Government strategies and implementation – The use of new technologies for government information provision, service delivery and administration has the potential to transform government This transformation will improve the lives of Australians NOIE provides a framework and coordinates all government approaches to support Commonwealth agency efforts in this area Environment for information economy firms – Provide research on the environmental variables that drive innovation and growth in the information economy and underpin its future development International dimensions – NOIE, in cooperation with other government bodies, represents Australia in world forums where decisions are made that may affect national interests in the information economy Mini Case Study 4.1 SourceUK SourceUK (www.sourceuk.org.uk) is an example of a successful e-government initiative that has been responsible for the delivery and the management of the busiest electronic communication and e-procurement channels to UK government and wider public-sector departments in line with the Modernising Government Agenda legislation Approximately 250,000 senior managers, budget holders and decision makers have direct access to the channels for their on-the-minute must-have news and information needs and for the sourcing of their goods and services SourceUK is proven to be one of the most accredited, respected, well known and busiest portals of its sort available to this marketplace The portal is currently receiving on average 500,000 visits each month Source: SourceUK e-mail alert, 2008 M04_CHAF9601_04_SE_C04.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 11:11 Page 241 Chapter E-environment 241 Technological innovation and technology assessment One of the great challenges of managing e-commerce is the need to be able to assess which new technological innovations can be applied to give competitive advantage I’m often asked what is ‘the next big thing’ or to predict changes in e-commerce over the next years The truth is no one can predict the future, there are lots of examples of companies that have misunderstood the market for products ‘This “telephone” has too many shortcomings to be seriously considered as a means of communication The device is inherently of no value to us.’ Western Union internal memo, 1876 ‘Who the hell wants to hear actors talk?’ H M Warner, Warner Brothers, 1927 ‘I think there is a world market for maybe five computers.’ Thomas Watson, chairman of IBM, 1943 ‘There is no reason for any individual to have a computer in their home’ Ken Olson (President of Digital Equipment Corporation) at the Convention of the World Future Society in Boston in 1977 I personally believe the best that organizations can is to analyse the current situation and respond rapidly where appropriate This is encapsulated by the quote by the Canadian sciencefiction writer William Gibson, who said: ‘The future is here It’s just not widely distributed yet.’ A slightly different, and more forward-looking, perspective came from Bruce Toganizzi, who founded the Human Interface Team at Apple and developed the company’s first interface guidelines (E-consultancy, 2007): ‘Successful technology-predicting is based on detecting discontinuities and predicting the trends that will flow from them.’ He gives the example of the introduction of the Apple iPhone and the other devices based on gestural interfaces that will follow In addition to technologies deployed on the web site, the suitability of new approaches for attracting visitors to the site must be evaluated – for example, should registration at a paid-for search engine, or new forms of banner adverts or e-mail marketing be used (Chapter 9)? Decisions on strategy are covered in Chapter The manager may have read several articles in the trade and general press which have highlighted the issue and then faces a difficult decision as to whether to: ignore the use of the technique, perhaps because it is felt to be too expensive or untried, or the manager simply doesn’t believe the benefits will outweigh the costs; enthusiastically adopt the technique without a detailed evaluation since the hype alone convinces the manager that the technique should be adopted; evaluate the technique and then take a decision whether to adopt it according to the evaluation Depending on the attitude of the manager, this behaviour can be summarized as: Cautious, ‘wait-and-see’ approach Risk-taking, early-adopter approach Intermediate approach M04_CHAF9601_04_SE_C04.QXD:D01_CHAF7409_04_SE_C01.QXD 242 16/4/09 11:11 Page 242 Part Introduction Figure 4.12 Early adopters Companies or departments that invest in new technologies and techniques Hype cycle A graphic representation of the maturity, adoption and business application of specific technologies Diffusion–adoption curve This diffusion–adoption process (represented by the bell curve in Figure 4.12) was identified by Rogers (1983) who classified those trialling new products as innovators, early adopters, early majority, late majority, or laggards Figure 4.12 can be used in two main ways as an analytical tool to help managers First, it can be used to understand the stage customers have reached in adoption of a technology, or any product For example, the Internet is now a well established tool and in many developed countries we are into the late majority phase of adoption with larger numbers of users of services This suggests it is essential to use this medium for marketing purposes But if we look at 3G or mobile services (Table 4.3) it can be seen that we are in the innovator phase, so investment now may be wasted since it is not clear how many will adopt these services Second, managers can look at adoption of a new technique by other businesses – from an organizational perspective For example, an online supermarket could look at how many other e-tailers have adopted personalization to evaluate whether it is worthwhile adopting the technique An alternative graphic representation of diffusion of innovation has been specifically developed by technology analyst Gartner for assessing the maturity, adoption and business application of specific technologies (Figure 4.13) Gartner (2005) recognizes the following stages within a hype cycle, an example of which is given in Figure 4.13 for trends current in 2005: Technology Trigger – The first phase of a hype cycle is the ‘technology trigger’ or breakthrough, product launch or other event that generates significant press and interest Peak of Inflated Expectations – In the next phase, a frenzy of publicity typically generates over-enthusiasm and unrealistic expectations There may be some successful applications of a technology, but there are typically more failures Trough of Disillusionment – Technologies enter the ‘trough of disillusionment’ because they fail to meet expectations and quickly become unfashionable Consequently, the press usually abandons the topic and the technology Slope of Enlightenment – Although the press may have stopped covering the technology, some businesses continue through the ‘slope of enlightenment’ and experiment to understand the benefits and practical application of the technology Plateau of Productivity – A technology reaches the ‘plateau of productivity’ as the benefits of it become widely demonstrated and accepted The technology becomes increasingly stable and evolves in second and third generations The final height of the plateau varies according to whether the technology is broadly applicable or benefits only a niche market M04_CHAF9601_04_SE_C04.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 11:11 Page 243 Chapter E-environment 243 Biometric Identity Documents BPM Suites P2P Vol P Desktop Search Inkjet Manufacturing Electronic Ink/Digital Paper Linux on Desktop for Mainstream Business Users Micro Fuel Cells Visibility Model-Driven Approaches Carbon Nanotubes Podcasting Text Mining Augumented Reality Business Process Networks Corporate Semantic Web Really Simple Syndication Grid Computing Wikis Web-ServicesEnabled Business Models 4G Biometric User Identification 802.16 2004 WiMAX Organic Light-Emitting Devices Business Rule Engines Location-Aware Applications Software as Service/ASP Handwriting Recognition Videoconferencing RFID (Passive) XBRL Tablet PC Internet Micropayments Quantum Computing DNA Logic Peak of inflated expectations Text-toSpeech/ Speech Synthesis VoIP Mesh Networks – Sensor Trusted Computing Group SOA Prediction Markets Network Collective Intelligence Technology trigger Speech Recognition for Telephony and Call Centre Corporate Blogging Trough of disillusionment Slope of enlightenment Internal Web Services As of August 2005 Plateau of productivity Maturity Plateau will be reached in: less than years to years Acronym key: 4G Fourth generation ASP Application service provider BPM Business process management P2P Peer to peer RFID Radio frequency identification Figure 4.13 to 10 years SOA VoIP WiMAX XBRL more than 10 years Service-oriented architecture Voice over Internet Protocol Worldwide Interoperability for Microwave Access Extensible Business Reporting Language Example of a Gartner hype cycle Source: Gartner (2005) Gartner’s Hype Cycle Special Report for 2005 Trott (1998) looks at this organizational perspective to technology adoption He identifies different requirements that are necessary within an organization to be able to respond effectively to technological change or innovation These are: Growth orientation – a long-term rather than short-term vision Vigilance – the capability of environment scanning Commitment to technology – willingness to invest in technology Acceptance of risk – willingness to take managed risks Cross-functional cooperation – capability for collaboration across functional areas Receptivity – the ability to respond to externally developed technology Slack – allowing time to investigate new technological opportunities Adaptability – a readiness to accept change Diverse range of skills – technical and business skills and experience The problem with being an early adopter (as an organization) is that the leading edge of using new technologies is often also referred to as the ‘bleeding edge’ due to the risk of failure New technologies will have bugs, may integrate poorly with the existing systems, or the marketing benefits may simply not live up to their promise Of course, the reason for risk taking is that the rewards are high – if you are using a technique that your competitors are not, then you will gain an edge on your rivals M04_CHAF9601_04_SE_C04.QXD:D01_CHAF7409_04_SE_C01.QXD 244 16/4/09 11:11 Page 244 Part Introduction Figure 4.14 InnoCentive Approaches to identifying emerging technology PMP (2008) describes four contrasting approaches to identifying new technologies which may give a company a competitive edge if they are involved in manufacturing or are looking to improve their supply chain effectiveness These are the four alternative approaches which apply to e-business technologies (the author describe them for manufacturing and supply chain approaches) and equally to other technologies: Technology scouting A structured approach to reviewing technology innovations akin to football scouting Crowdsourcing Utilizing a network of customers or other partners to gain insights for new product or process innovations Technology networking This involves individuals monitoring trends through their personal network and technology scouting and then sharing them through an infrastructure and process that supports information sharing PMP (2008) give Novartis as an example of a company using this approach They facilitate sharing between inside and outside experts on specific technologies through an extranet and face-to-face events Crowdsourcing Crowdsourcing facilitates access to a marketplace of ideas from customers, partners or inventors for organizations looking to solve specific problems Eli Lilly is cited as an example of a company using this approach Lego is well known for involving customers in discussion of new product developments InnoCentive (Figure 4.14) is one of the largest commercial examples of crowdsourcing It is an online marketplace which connects and manages the relationship between ‘seekers’ and ‘solvers’ Seekers are the companies conducting research and development that are looking for new solutions to their business challenges and opportunities Solvers are the 170,000 registered members of InnoCentive who can win cash prizes ranging from $5,000 to $1,000,000 for solving problems in a variety of domains including business and technology Technology hunting This is a structured review of new technology through reviewing the capabilities of start-up companies For example, British Telecom undertakes a structured review of up to 1,000 start-ups to assess relevance for improving their own capabilities M04_CHAF9601_04_SE_C04.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 11:11 Page 245 Chapter E-environment 245 which may ultimately be reduced to five companies that BT will enter into a formal arrangement with each year Technology mining A traditional literature review of technologies described in published documents Deutsche Telekom AG is given as an example They use technology to automate the process through software such as Autonomy which searches for patterns indicating potential technology solutions within patents, articles, journals, technological reports and trend studies A simpler approach is setting up a keyword search for technologies through a free service such as Google Alerts (www.google.com/alerts) Changes in strategy and technology It may also be useful to identify how rapidly a new concept is being adopted When a product or service is adopted rapidly this is known as ‘rapid diffusion’ The access to the Internet is an example of this In developed countries the use of the Internet has become widespread more rapidly than the use of TV, for example It seems that in relation to Internet access and interactive TV, Internet-enabled mobile phones are relatively slow-diffusion products! So, what action should e-commerce managers take when confronted by new techniques and technologies? There is no straightforward rule of thumb, other than that a balanced approach must be taken It would be easy to dismiss many new techniques as fads, or classify them as ‘not relevant to my market’ However, competitors will probably be reviewing new techniques and incorporating some, so a careful review of new techniques is required This indicates that benchmarking of ‘best of breed’ sites within sectors and in different sectors is essential as part of environmental scanning However, by waiting for others to innovate and review the results on their web site, a company may have already lost to 12 months Figure 4.15 summarizes the choices The stepped curve I shows the variations in technology through time Some may be small incremental changes such as a new operating system, others such as the introduction of personalization technology are more significant in delivering value to customers and so improving business performance Line A is a company that is using innovative business techniques, that adopts technology early, or is even in advance of what the technology can currently deliver Line C shows the conservative adopter whose use of technology lags behind the available potential Line B, the middle ground, is probably the ideal situation where a company monitors new ideas as early adopters trial them and then adopts those that will have a positive impact on the business A Innovator B Responder I Technology changes C Laggard Time Figure 4.15 Alternative responses to changes in technology M04_CHAF9601_04_SE_C04.QXD:D01_CHAF7409_04_SE_C01.QXD 246 16/4/09 11:11 Page 246 Part Introduction Summary Exercises Environmental scanning and analysis are necessary in order that a company can respond to environmental changes and act on legal and ethical constraints on its activities Environmental constraints are related to the micro-environment variables reviewed in Chapter and the macro-environment variables in this chapter using the SLEPT mnemonic Social factors that must be understood as part of the move to the Information Society include buyer behaviour characteristics such as access to the Internet and perceptions about it as a communications tool Ethical issues include the need to safeguard consumer privacy and security of personal information Privacy issues include collection and dissemination of customer information, cookies and the use of direct e-mail Legal factors to be considered by e-commerce managers include: accessibility, domain name registration, copyright and data protection legislation Economic factors considered in the chapter are the regional differences in the use of the Internet for trade Different economic conditions in different markets are considered in developing e-commerce budgets Political factors involve the role of governments in promoting e-commerce, but also trying to control it Rapid variation in technology requires constant monitoring of adoption of the technology by customers and competitors and appropriate responses Self-assessment questions Why is environmental scanning necessary? Give an example how each of the macro-environment factors may directly drive the content and services provided by a web site Summarize the social factors that govern consumer access to the Internet How can companies overcome these influences once people venture online? What actions can e-commerce managers take to safeguard consumer privacy and security? What are the general legal constraints that a company acts under in any country? How governments attempt to control the use of the Internet? Summarize adoption patterns across the continents How should innovation be managed? Essay and discussion questions You recently started a job as e-commerce manager for a bank Produce a checklist of all the different legal and ethical issues that you need to check for compliance on the existing web site of the bank How should the e-commerce manager monitor and respond to technological innovation? Benchmark different approaches to achieving and reassuring customers about their privacy and security using three or four examples for a retail sector such as travel, books, toys or clothing M04_CHAF9601_04_SE_C04.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 11:11 Page 247 Chapter E-environment 247 ‘Internet access levels will never exceed 50% in most countries.’ Discuss Select a new Internet access technology that has been introduced in the last two years and assess whether it will become a significant method of access Assess how the eight principles of the UK Data Protection Act (www.dataprotection gov.uk) relate to actions an e-commerce manager needs to take to ensure legal compliance of their site Examination questions Explain the different layers of governance of the Internet Summarize the macro-environment variables a company needs to monitor Explain the purpose of environmental scanning Give three examples of how web sites can use techniques to protect the user’s privacy What are the three key factors which affect consumer adoption of the Internet? Explain the significance of the diffusion–adoption concept to the adoption of new technologies to: (a) Consumers purchasing technological innovations (b) Businesses deploying technological innovations What action should an e-commerce manager take to ensure compliance with ethical and legal standards of their site? References Ahmed, N.U and Sharma, S.K (2006) Porter’s value chain model for assessing the impact of the internet for environmental gains International Journal of Management and Enterprise Development, 3(3), 278–95 Arnott, D and Bridgewater, S (2002) Internet, interaction and implications for marketing Marketing Intelligence and Planning, 20(2), 86–95 Bart, Y., Shankar, V., Sultan, F., and Urban, G (2005) Are the drivers and role of online trust the same for all web sites and consumers? A large-scale exploratory empirical study Journal of Marketing, October, 133–52 Basu, D (2007) Global Perspectives on E-commerce Taxation Law Ashgate, Aldershot BMRB (2004) Internet Monitor, November BMRB International, Manchester Available online at www.bmrb.co.uk Booz Allen Hamilton (2002) International E-Economy Benchmarking the World’s Most Effective Policies for the E-Economy Report published 19 November, London www.e-envoy gov.uk/oee/oee.nsf/sections/esummit-benchmarking/$file/indexpage.htm BrandNewWorld (2004) AOL Research published at www.brandnewworld.co.uk Cairns, S (2005) Delivering supermarket shopping: more or less traffic? Transport Reviews, 25(1), 51–84 Chaffey, D., Mayer, R., Johnston, K and Ellis-Chadwick, F (2009) Internet Marketing: Strategy, Implementation and Practice, 4th edn Financial Times Prentice Hall, Harlow CIFAS (2008) CIFAS (Credit Industry Fraud Association) Press release: figures emphasise the change in UK’s fraud landscape Press release: www.cifas.org.uk/default.asp? edit_id=839-57 Common Sense Advisory (2002) Beggars at the globalization banquet White Paper available at: www.commonsenseadvisory.com Editor: Don Da Palma No locale given M04_CHAF9601_04_SE_C04.QXD:D01_CHAF7409_04_SE_C01.QXD 248 16/4/09 11:11 Page 248 Part Introduction Computer Weekly (2004) Assessing the real risk of being online Computer Weekly Article by Stewart King Thursday December www.computerweekly.com comScore M:Metrics (2008) M:metrics now measuring china, the world’s largest mobile market, Seattle, WA, February www.mmetrics.com/press/PressRelease.aspx? article=20080211-china-market Daniel, L., Wilson, H and Myers, A (2002) Adoption of e-commerce by SMEs in the UK Towards a stage model International Small Business Journal, 20(3), 253–70 Dyson, E (1998) Release 2.1 A Design for Living in the Digital Age Penguin, London Econsultancy (2007) E-business briefing interview Bruce Tognazzini on human–computer interaction Interview published November www.econsultancy.com/news-blog/ newsletter/link_track.asp?id=3515&link_id=#1 eEurope (2005) Information Society Benchmarking Report From eEurope (2005) initiative Published at: http://europa.eu.int/information_society/eeurope/i2010/docs/benchmarking/ 051222%20Final%20Benchmarking%20Report.pdf European Commission (2007) i2010 Annual Information Society Report 2007, published at: http://ec.europa.eu/information_society/eeurope/i2010/index_en.htm European Interactive Advertising Association (2008) EIAA Online Shoppers 2008 Report, www.eiaa.net/Ftp/casestudiesppt/ EIAA_Online_Shoppers_Report.pdf Fletcher, K (2001) Privacy: the Achilles heel of the new marketing Interactive Marketing, 3(2), 128–40 Freedom House (2000) Censoring dot-gov report 17 April www.freedomhouse.org/news/ pr041700.html, New York Gartner (2005) Gartner’s Hype Cycle Special Report for 2005 Report summary available at www.gartner.com: ID Number: G00130115 Godin, S (1999) Permission Marketing Simon and Schuster, New York Goldman, E (2007) Eric Goldman Technology and Marketing Law blog Rhino Sports, Inc v Sport Court, Inc., May 8th, 2007, http://blog.ericgoldman.org/archives/2007/05/ broad_matching.htm Grossnickle, J and Raskin, O (2001) The Handbook of Online Marketing Research, Knowing Your Customer Using the Net McGraw-Hill, New York Hamill, J and Gregory, K (1997) Internet marketing in the internationalisation of UK SMEs Journal of Marketing Management, 13, 9–28 HMRC (2003) Electronically supplied services and broadcasting services: New EU rules HMRC Reference: VAT Info Sheet 01/03 HM Revenue and Customs Mason, R (1986) Four ethical issues of the information age MIS Quarterly, March Meckel, M., Walters, D Greenwood, A and Baugh, P (2004) A taxonomy of e-business adoption and strategies in small and medium sized enterprises Strategic Change 13: 259–69 Mougayer, W (1998) Opening Digital Markets – Battle Plans and Strategies for Internet Commerce, 2nd edn CommerceNet Press, McGraw-Hill, New York Multilingual (2008) Localizing a localizer’s website: the challenge Jan/Feb, 30–33 Nitish, S., Fassott, G., Zhao, H and Boughton, P (2006) A cross-cultural analysis of German, Chinese and Indian consumers’ perception of web site adaptation Journal of Consumer Behaviour, 5, 56–68 NMA (2008) Profile – Travis Katz, Author: Luan Goldie, New Media Age magazine, published 31 January PMP (2008) Supply Chain & Manufacturing Systems Report PMP Research Report published at www.conspectus.com March Poon, S and Jevons, C (1997) Internet-enabled international marketing: a small business network perspective Journal of Marketing Management, 13, 29–41 Quayle, M (2002) E-commerce: the challenge for UK SMEs in the twenty-first century International Journal of Operation and Production Management, 22(10), 1148–61 Quelch, J and Klein, L (1996) The Internet and international marketing Sloan Management Review, Spring, 61–75 M04_CHAF9601_04_SE_C04.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 11:11 Page 249 Chapter E-environment 249 RedEye (2003) A study into the accuracy of IP and cookie-based online management information The RedEye Report Available at www.redeye.com Rodgers, S., Chen, Q., Wang, Y Rettie, R and Alpert, F (2007) The Web Motivation Inventory International Journal of Advertising, 26(4), 447–76 Rogers, E (1983) Diffusion of Innovations, 3rd edn Free Press, New York Siikavirta, H., Punakivi, M., Karkkainen, M and Linnanen, L (2003) Effects of e-commerce on greenhouse gas emissions, a case study of grocery home delivery in Finland Journal of Industrial Ecology, 6(2), 83-97 Singh, N and Pereira, A (2005) The Culturally Customized Web Site, Customizing Web Sites for the Global Marketplace Butterworth-Heinemann, Oxford Sparrow, A (2000) E-Commerce and the Law The Legal Implications of Doing Business Online Financial Times Executive Briefings, London Trott, P (1998) Innovation Management and New Product Development Financial Times Prentice Hall, Harlow Ward, S., Bridges, K and Chitty, B (2005) Do incentives matter? An examination of on-line privacy concerns and willingness to provide personal and financial information Journal of Marketing Communications, 11(1), 21–40 Further reading Booz Allen Hamilton (2002) International E-Economy Benchmarking The World’s Most Effective Policies for the E-Economy Report published 19 November, London A detailed study (177-page report) reviewing government attempts to influence use of the Internet by citizens and businesses Dibb, S., Simkin, L., Pride, W and Ferrell, O (2000) Marketing Concepts and Strategies, 4th edn Houghton Mifflin, Boston In Chapter 2, the authors introduce the different elements of the marketplace from a marketing perspective Dyson, E (1998) Release 2.1 A Design for Living in the Digital Age Penguin, London Chapters (Governance), (Privacy), (Anonymity) and 10 (Security) are of particular relevance Garfinkel, S (2000) Database Nation O’Reilly, San Francisco This book is subtitled ‘The death of privacy in the 21st century’ and this is the issue on which it focuses (includes Internet- and non-Internet-related privacy) Slevin, J (2000) The Internet and Society Polity Press, Oxford A book about the Internet that combines social theory, communications analysis and case studies from both academic and applied perspectives M04_CHAF9601_04_SE_C04.QXD:D01_CHAF7409_04_SE_C01.QXD 250 16/4/09 11:11 Page 250 Part Introduction Web links Dave Chaffey’s link directory (www.davechaffey.com) A directory of e-business-related Internet adoption and usage links is maintained by Dave Chaffey to support this book Guide to Smarter Internet Searching (www.pearsoned.co.uk/chaffey) A detailed explanation from the author of this book on how to use the Internet more effectively to search for business and academic sources Includes a description of an advanced searching approach using Google The Oxford Internet Institute (OII) (www.oii.ox.ac.uk) Research institute focused on the study of the impact of the Internet on society Government sources on Internet usage and adoption European government (http://europa.eu.int/comm/eurostat) OECD (www.oecd.org) OECD broadband research (www.oecd.org/sti/ict/broadband) UK government (www.statistics.gov.uk) Ofcom (www.ofcom.org.uk) Ofcom is the independent regulator and competition authority for the UK communications industries, with responsibilities across television, radio, telecommunications and wireless communications services and has in-depth reports on communications markets US government (www.stat-usa.gov) Online audience panel media consumption and usage data These are fee-based data, but contain useful free data within press release sections Comscore (www.comscore.com) Hitwise (www.hitwise.com) Hitwise blog (http://weblogs.hitwise.com) Sample reports from Hitwise on consumer search behaviour and importance of different online intermediaries Netratings (www.netratings.com) Other major online research providers The European Interactive Advertising Association (www.eiaa.net) The EIAA is a panEuropean trade organization with surveys of media consumption and usage across Europe International Telecommunications Union (www.itu.int/ITU-D/icteye) Adoption of Internet and mobile phone statistics by company The Pew Internet & American Life Project (www.pewinternet.org) Produces reports that explore the impact of the Internet on families, communities, work and home, daily life, education, health care, and civic and political life Privacy Australian Privacy Commissioner (www.privacy.gov.au) Information on privacy laws in Australia such as the Privacy Act and the Telecommunications Act European Data Protection resources (http://europa.eu.int/comm/justice_home/fsj/ privacy/index_en.htm) These laws are coordinated centrally, but interpreted differently in different countries Federal Trade commission (www.ftc.gov/privacy) US privacy initiatives GetSafeOnline (www.getsafeonline.org) Site created by government and business to educate consumers to help them understand and manage their online privacy and security M04_CHAF9601_04_SE_C04.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 11:11 Page 251 Chapter E-environment 251 Home Office Identify theft web site (www.identitytheft.org) An awareness site created by the government iCompli (www.icompli.co.uk) Portal and e-newsletter about privacy and data protection compliance Information Commissioner (www.informationcommisioner.gov.uk) Site explaining law for UK consumers and businesses Marketing Law (www.marketinglaw.co.uk) Useful e-mail update on the latest privacy law developments Outlaw (www.out-law.com) Compilation of the latest technology-related law Office of Electronic Government and Technology (www.estrategy.gov) US agency facilitating e-government in the USA Privacy International (www.privacyinternational.org) A human rights group formed in 1990 as a watchdog on surveillance and privacy invasions by governments and corporations ... 10 3 10 4 10 5 10 7 10 9 11 0 11 1 11 4 11 5 11 6 12 4 12 8 12 9 13 1 13 2 13 4 A 01_ 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QXD viii 16 /4/09 10 :59 Page viii Contents How does it work? Internet standards Networking... buy-side and sell-side e-commerce M 01_ CHAF96 01_ 04_SE_C 01. QXD:D 01_ CHAF7409_04_SE_C 01. QXD 12 16 /4/09 11 :02 Page 12 Part Introduction Activity 1. 3 Understanding e-commerce and e-business Purpose...A 01_ CHAF96 01_ 04_SE_FM.QXD:D 01_ CHAF7409_04_SE_C 01. QXD 16 /4/09 15 :29 Page i E-Business and E-Commerce Management Strategy, Implementation and Practice Visit the E-Business and E-Commerce