Ebook E-business and e-commerce management: Strategy, implementation and practice - Part 2

Ebook E-business and e-commerce management: Strategy, implementation and practice - Part 2 presents the following content: Chapter 5 e-business strategy, chapter 6 supply chain management, chapter 7 e-procurement, chapter 8 e-marketing, chapter 9 customer relationship management, chapter 10 change management, chapter 11 analysis and design, chapter 12 implementation and maintenance. Please refer to the documentation for more details.

M05_CHAF9601_04_SE_C05.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 11:12 Page 252 M05_CHAF9601_04_SE_C05.QXD:D01_CHAF7409_04_SE_C01.QXD Part 16/4/09 11:12 Page 253 Strategy and applications In Part of the book approaches to developing e-business strategy and applications are reviewed for the organization as a whole (Chapter 5), with an emphasis on buy-side e-commerce (Chapters and 7) and sell-side e-commerce (Chapters and 9) E-business strategy p 255 What is e-business strategy? Strategic analysis Strategic objectives Strategy definition Supply chain management p 330 What is supply chain management? Options for restructuring the supply chain Using e-business to restructure the supply chain Strategy implementation Focus on … Information systems strategy and e-business strategy Supply chain management implementation Focus on … The value chain E-procurement p 380 What is e-procurement? Drivers of e-procurement Risks and impacts of e-procurement Implementing e-procurement The future of e-procurement? Focus on … Estimating e-procurement cost savings Electronic B2B marketplaces M05_CHAF9601_04_SE_C05.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 11:12 E-marketing p 412 What is e-marketing? E-marketing planning Situation analysis Objective setting Strategy Tactics Page 254 Actions Control Focus on … Characteristics of new media marketing communications Online branding Customer relationship management p 481 What is e-CRM? Conversion marketing The online buying process Customer acquisition management Customer retention management Customer extension Technology solutions for CRM Focus on … Marketing communications for customer acquisition Excelling in e-commerce service quality M05_CHAF9601_04_SE_C05.QXD:D01_CHAF7409_04_SE_C01.QXD Chapter at a glance Main topics ➔ What is e-business strategy? 259 ➔ Strategic analysis 269 ➔ Strategic objectives 281 ➔ Strategy definition 295 16/4/09 11:12 Page 255 E-business strategy Learning outcomes After completing this chapter the reader should be able to: Follow an appropriate strategy process model for e-business Apply tools to generate and select e-business strategies Outline alternative strategic approaches to achieve e-business ➔ Strategy implementation 313 Focus on … Management issues ➔ Information systems strategy and e-business strategy 319 Case studies 5.1 Capital One creates value through e-business 286 5.2 Setting the Internet revenue contribution at Sandvik Steel 292 5.3 Boo hoo – learning from the largest European dot-com failure 316 Consideration of e-business strategy raises these issues for management: How does e-business strategy differ from traditional business strategy? How should we integrate e-business strategy with existing business and information systems strategy? How should we evaluate our investment priorities and returns from e-business? Links to other chapters Web support The following additional case study is available at www.pearsoned.co.uk/chaffey ➔ Evolving business models in the Internet car sales market The site also contains a range of study material designed to help improve your results The main related chapters to this chapter are summarized in Figure 5.1 They are as follows: Chapters and review the specific enactment of e-business strategy to supply chain and procurement management processes; Chapters and explain how e-marketing and customer relationship management relate to the concept of e-business, and e-commerce and e-marketing planning are approached; Chapters 10, 11 and 12 look at practical aspects of the implementation of e-business strategy M05_CHAF9601_04_SE_C05.QXD:D01_CHAF7409_04_SE_C01.QXD 256 16/4/09 11:12 Page 256 Part Strategy and applications Introduction Developing an e-business strategy requires a fusion of existing approaches to business, marketing, supply chain management and information systems strategy development In addition to traditional strategy approaches, commentators have exhorted companies to apply innovative techniques to achieve competitive advantage Around the start of the new millennium, many articles, fuelled by the dot-com hype of the time, urged CEOs to ‘innovate or die’ For many existing companies this was neither desirable nor necessary and they have made a more gradual approach to e-business practice Those companies that have successfully managed the transformation to e-business such as Cisco, Dell, General Motors, HSBC and IBM, and, in Europe, easyJet and British Telecom, have done so by applying traditional strategy approaches At the same time there have been many start-ups featured as cases in previous chapters such as eBay, Lastminute.com and Zopa.com that have succeeded through innovative business models But these companies also have succeeded through applying established principles of business strategy, planning and risk management In this chapter we seek to show how an e-business strategy can be created through following these established principles, but also through careful consideration of how to best identify and exploit the differences introduced by new electronic channels In a nutshell, e-business isn’t just about defining ‘how to business online’, it defines ‘how to business differently online’ The e-business strategy defines how We start the chapter by introducing e-business strategy and then discuss appropriate strategy process model to follow as a framework for developing e-business strategy The chapter is structured around this four-stage strategy process model: Strategic evaluation Strategic objectives Strategy definition Strategy implementation For each of these components of strategy, management actions are reviewed with the emphasis on development of e-business strategy Real-world E-Business experiences The Econsultancy interview Standard Life’s Sharon Shaw on strategy and planning Overview and main concepts covered Developing a new e-commerce strategy can be a daunting experience, especially considering the lack of case studies and benchmarks available We spoke to Sharon Shaw, e-commerce manager at Standard Life, and agency Avenue A/Razorfish’s Adrian Gans about their experiences of strategy creation, including budgets, KPIs, incentives and structures Q When developing a new digital strategy, how you start? What models are out there for you to base it on? We have developed a wheel framework for acquisition, conversion and retention, but what approach did you use? Sharon Shaw, Standard Life: Standard Life and Avenue A/Razorfish have used an Attract, Convert, Support, Extend model, which is very similar to the E-consultancy framework, though its meaning is evolving as the role of digital changes within the organisation Measurement and optimisation are fundamentals in both M05_CHAF9601_04_SE_C05.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 11:12 Page 257 Chapter E-business strategy 257 Building the model, we combine existing business and brand strategies with primary and secondary customer research, competitor audits and innovation trends The customer research covers online attitudes and behaviours and cross-channel preferences and needs The competitor audit includes a SWOT analysis of our own site and an evaluation against business objectives and user expectations Q Someone said the evolution to digital is ‘a bit like global warming’ – we all know it’s happening but fixed goalposts or yardsticks are hard to find What references and benchmarks can you use for targets and comparisons? Sharon Shaw, Standard Life: The boon with digital is that it is so measurable As such, setting financial targets and comparisons is easier than in traditional media ROI stands out as the most obvious measure for individual projects, varying for brand campaigns and e-commerce builds (but always positive!) Overall, we like to look at the percentage contribution digital makes to total sales volumes and we can set a benchmark target of around 15% for a mature multi-channel retail business Strategically, the aim is to reference the customer experience online and across channels to make sure it is consistent and mutually constructive This can be measured through online and offline surveys, and increasingly through ‘buzz’ metrics on the social web Standard Life is considering using services like eBenchmarkers to compare site performance with competitors It provides metrics for our site in comparison to aggregated scores across all their registered sites Q What are the key success metrics and what reliable data is out there to compare ‘like with like’ Sharon Shaw, Standard Life: Ultimately, success in e-commerce is measured through improved profits across sales and marketing activity Conversion rates and basket value are therefore the most important numbers for the site, followed by (and related to) campaign ROI and/or CPA Natural and paid search performance are key traffic generation metrics Other measures include dwell time to evaluate customer engagement with rich media, and a recency-frequency model to score customer loyalty For reliable data, we refer to the IMRG, Hitwise, comScore, Mintel, eMarketer and TGI Q What are the challenges and opportunities of moving towards multi-channel measurement and integration? Sharon Shaw, Standard Life: Both the biggest opportunities and biggest challenges lie in the integration of online and offline systems and databases We know that allowing each channel the same view of the customer and their transactional history can drive KPIs up, through delivering a consistent and personalised customer experience at every touchpoint But it is rare that such integration can happen easily as most organisations have developed their online and offline architectures in isolation Which leads us nicely on to the other key challenge – getting the budget, staff and (most importantly) board level buy-in to undertake the large-scale business change needed to deliver an effective multi-channel proposition Q Where should e-commerce fit into the overall budget – should it have its own P&L, or is it a cost centre for other business units? Sharon Shaw, Standard Life: It really depends on the organisation, its objectives and how far it has already gone with e-commerce A dedicated P&L is great for new e-commerce ventures that don’t rely too much on other channels The autonomy and flexibility of financial control allow the channel to change and grow at pace M05_CHAF9601_04_SE_C05.QXD:D01_CHAF7409_04_SE_C01.QXD 258 16/4/09 11:12 Page 258 Part Strategy and applications A more mature online channel that has significant crossover with offline will at the very least need to share elements of their P&L with other business units For instance, if an initial enquiry is made online and a sale is converted from the lead by telephone, who gets the credit? A sensible approach would be to give the telephone centre 75% and the website 25% If the telephone centre has a code to give customers when they go online, the reverse can be true The point being, the P&L should be used to encourage a symbiotic relationship between channels If e-commerce is solely a cost-centre for other units, decision making will be slow, political manoeuvring common and the team fragmented Q Where should e-commerce sit in the organisation and who should be the senior person responsible for it? Sharon Shaw, Standard Life: We strongly recommend a dedicated team run e-commerce The channel requires people with appropriate skills and experience to drive it forward and a mandate to give it their complete attention The integration with the rest of the business should happen through collaboration on the ground and only through reporting lines at the most senior levels The organisation at the senior level is a point of some debate It is fairly common in retail for a Commercial Director to take responsibility for e-commerce sales but the marketing team has a significant input and interest The online marketing budget to advertise and attract customers is growing all the time and there is a powerful need to integrate communications and the customer experience across channels One approach is to create a multi-channel role responsible for all online activity and how it is integrated with the rest of the business This role could report into the Sales & Marketing Director or directly to the MD In terms of incentive structures and targets, if each channel has its own target, how you avoid channels competing with each other to the detriment of the overall organisation’s goals? The challenge here is to motivate and reward the team that is tasked with growing a new channel without upsetting other channels that may be experiencing slower growth The P&L attribution is a key factor but incentives can also help Most companies reward on total business performance to target first, followed by an individual’s performance One way to motivate a channel team might be to introduce a middle-tier related to the channel performance to target, a factor that will give them a boost if they see strong growth in their area Q Do you have any tips on staff recruitment and retention – finding and retaining the right skills for a reasonable price? Sharon Shaw, Standard Life: The main issues for digital workers seem to be the environment in which they work, the variety of their work and their opportunities for personal development With a dedicated online team there is a great opportunity to create a fun and fastpaced workplace that feels dynamic and creative (even for the techies!) There is a risk of giving people repetitive work when administering a site so it is also important to make sure staff have a chance to try their hand at different tasks and project work Back this up with the security of good HR and corporate benefits Finally, don’t forget that the digital world doesn’t stand still Give all the team plenty of exposure to the latest research, emerging trends and breakthrough technologies M05_CHAF9601_04_SE_C05.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 11:12 Page 259 Chapter E-business strategy 259 Q When a large business is going through a major reorganisation, what are the main ways this can impact upon the e-commerce/digital marketing team? What types of demands are placed on the team by different business units? Sharon Shaw, Standard Life: The biggest problem tends to be a freeze on investment and/or significant change Digital teams are expected to carry on delivering business as usual but won’t be given the opportunities to make often long-awaited improvements until the reorganisation is complete Projects get put on hold and the team feel stuck in limbo Strong leadership is needed to keep everyone on track Source: www.econsultancy.com/news-blog/newsletter/3504/interview-with-standard-life-s-sharon-shaw.html Econsultancy.com provides information, training and events on best practice in online marketing and e-commerce management What is e-business strategy? Strategy Strategy defines the future direction and actions of an organization or part of an organization Definition of the future direction and actions of a company defined as approaches to achieve specific objectives Johnson and Scholes (2006) define corporate strategy as: the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a changing environment to meet the needs of markets and to fulfil stakeholder expectations Lynch (2000) describes strategy as an organization’s sense of purpose However, he notes that purpose alone is not strategy; plans or actions are also needed E-business strategies share much in common with corporate, business and marketing strategies These quotes summarizing the essence of strategy could equally apply to each strategy: ‘Is based on current performance in marketplace.’ ‘Defines how we will meet our objectives.’ ‘Sets allocation of resources to meet goals.’ ‘Selects preferred strategic options to compete within a market.’ ‘Provides a long-term plan for the development of the organization.’ ‘Identifies competitive advantage through developing an appropriate positioning defining a value proposition delivered to customer segments.’ E-business strategy Definition of the approach by which applications of internal and external electronic communications can support and influence corporate strategy Johnson and Scholes (2006) note that organizations have different levels of strategy, particularly for larger or global organizations These are summarized within Figure 5.1 They identify corporate strategy which is concerned with the overall purpose and scope of the organization, business unit strategy which defines how to compete successfully in a particular market and operational strategies which are concerned with achieving corporate and business unit strategies Additionally, there are what can be described as functional strategies that describe how the corporate and business unit strategies will be operationalized in different functional areas or business processes Functional or process strategies refer to marketing, supply chain management, human resources, finance and information systems strategies Where does e-business strategy fit? Figure 5.1 does not show at which level e-business strategy should be defined, since for different organizations this must be discussed and agreed We can observe that there is a tendency for e-business strategy to be incorporated within the functional strategies, for example within a marketing plan or logistics plan, or as part of information systems (IS) strategy A danger with this approach is that e-business strategy may not be recognized at a higher level within organizational planning A distinguishing feature of organizations that are leaders in e-business, such as Cisco, Dell, HSBC, easyJet and General Electric, is that e-business is an element of corporate strategy development M05_CHAF9601_04_SE_C05.QXD:D01_CHAF7409_04_SE_C01.QXD 260 16/4/09 11:12 Page 260 Part Strategy and applications Corporate strategy Business unit strategies Figure 5.1 Regional strategies Functional strategies Typical e-business planning Different forms of organizational strategy There is limited research on how businesses have integrated e-business strategy into existing strategy, although authors such as Doherty and McAulay (2002) have suggested it is important that e-commerce investments be driven by corporate strategies We return to approaches of alignment later in the chapter Box 5.1 illustrates some of the challenges in integrating e-business into existing planning processes Box 5.1 Perspectives on senior management buy-in to e-commerce Research of retail banks by Hughes (2001) suggested that, in the early phases of e-business development, there is no clarity in e-commerce strategy at a senior level In one of the responding companies, interviewees comment that: My perception would be that they are not leading e-commerce as actively as they are other parts of change within the organisation (Organisation development manager, case 1) Another comments: There is a lack of understanding of the new technology and its implications by the executive team: Whereas if it’s a life and pensions decision they can take that because it’s in their blood If it’s a technology decision, it’s much more difficult (Marketing manager, case 1) However, problems in defining strategy can occur, even though clear control is evident In company the importance of senior involvement is stressed: The ability to drive forward a project without a very high level sponsor is doomed to failure really [In our organization] The allocation of budgets is decided at the highest level In organization 3, three senior managers are responsible for driving e-commerce: the chief executive, the head of the electronic channel and the technology director However, the marketing manager feels that the marketing function has not been sufficiently central in e-commerce development: What marketing is trying to is say there should be a strong consumer voice within there who can think about it purely from the marketing side We’re trying to make sure that we’ve got strong representation M05_CHAF9601_04_SE_C05.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 11:12 Page 261 Chapter E-business strategy 261 Although these quotes date back to an early phase in e-business strategy development in organizations, they are still instructive in indicating the importance of senior management sponsorship and ownership of e-business strategy E-consultancy (2005, 2008a) research into managing digital channels again showed the challenges and importance of senior sponsorship The main challenges identified by e-commerce managers from over a hundred participating companies from Europe and the United States showed that gaining buy-in into e-commerce involved significant challenges for many These are the ratings for the main challenges: Gaining senior management buy-in or resource (68% agreed that this was a challenge, 68% in 2005) Gaining buy-in / resource from traditional marketing functions / brands (68% agreed that this was a challenge, 66% in 2005) Gaining IT resource / technical support (68% agreed that this was a challenge, 69% 2005) Finding suitable staff appeared to have got more challenging (75% agreeing that this was a challenge compared to 60% in 2005) However, enormous strides have still been made with almost three-quarters of respondents agreeing with the statement: ‘digital channels are fully recognised and integrated into our annual planning and budgeting process’ The imperative for e-business strategy Think about the implications if e-business strategy is not clearly defined The following may result: Missed opportunities from lack of evaluation of opportunities or insufficient resourcing of e-business initiatives These will result in more savvy competitors gaining a competitive advantage; Inappropriate direction of e-business strategy (poorly defined objectives, for example, with the wrong emphasis on buy-side, sell-side or internal process support); Limited integration of e-business at a technical level resulting in silos (separate organizational team with distinct responsibilities which does not work in an integrated manner with other teams) of information in different systems; Resource wastage through duplication of e-business development in different functions and limited sharing of best practice For instance, each business unit or region may develop a separate web site with different suppliers without achieving economies of scale To help avoid these typical problems of implementing e-business in traditional organizations, organizations will want e-business strategy to be based on corporate objectives such as which markets to target and targets for revenue generation from electronic channels As Rowley (2002) has pointed out, it is logical that e-business strategy should support corporate strategy objectives and it should also support functional marketing and supply chain management strategies However, these corporate objectives should be based on new opportunities and threats related to electronic network adoption, which are identified from environment analysis and objectives defined in an e-business strategy So it can be said that e-business strategy should not only support corporate strategy, but should also influence it Figure 5.2 explains how e-business strategy should relate to corporate and functional strategies It also shows where these topics are covered in this book Z01_CHAF9601_04_SE_GLOSS.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 13:04 Page 751 Glossary 751 Talk-through A user verbally describes his or her Transaction log files A web server file that records all required actions page requests Target marketing strategy Evaluation and selection of appropriate segments and the development of appropriate offers Task analysis Identification of different tasks, their sequence and how they are broken down TCP/IP The Transmission Control Protocol is a transport-layer protocol that moves data between applications The Internet Protocol is a network-layer protocol that moves data (packets) across networks Technology convergence A trend in which different hardware devices such as TVs, computers and phones merge and have similar functions Technology scouting A structured approach to reviewing technology innovations akin to football scouting TELNET This allows remote access to computer systems For example, a retailer could check to see whether an item was in stock in a warehouse using a TELNET application Test environment Separate software and hardware used to test a system Test specification A description of the testing process and tests to be performed Testing Aims to identify non-conformance in the requirements specification and errors Thin client An end-user device (terminal) where computing requirements such as processing and storage (and so cost) are minimized Third-party cookies Served by another site to the one you are visiting – typical for portals where an ad network will track remotely or where the web analytics software places a cookie Three-tier client–server The first tier is the client that handles display, second is application logic and business rules, third is database storage Tipping point Using the science of social epidemics explains principles that underpin the rapid spread of ideas, products and behaviours through a population Total cost of ownership (TCO) The sum of all cost elements of managing information systems for endusers including purchase, support and maintenance Trademark A trademark is a unique word or phrase that distinguishes your company The mark can be registered as plain or designed text, artwork or a combination In theory, colours, smells and sounds can also be trademarks Trading hub See B2B electronic marketplace Traffic-building campaign The use of online and offline promotion techniques such as banner advertising, search engine promotion and reciprocal linking to increase the audience of a site (both new and existing customers) Transaction processing systems (TPS) Transaction processing systems (TPS) manage the frequent external and internal transactions such as orders for goods and services which serve the operational level of the organization Trojan A virus that masquerades as a bona fide application U UMTS (Universal Mobile Telecommunications System) The standard for 3G mobile access Unified Modelling Language (UML) A language used to specify, visualize and document the artefacts of an object-oriented system Uniform (universal) resource locators (URL) A web address used to locate a web page on a web server Unique visitors Individual visitors to a site measured through cookies or IP addresses on an individual computer Upstream supply chain Transactions between an organization and its suppliers and intermediaries, equivalent to buy-side e-commerce URL (uniform or universal resource locator) A web address used to locate a web page on a web server URL strategy A defined approach to forming URLs including the use of capitalization, hyphenation and sub-domains for different brands and different locations This has implications for promoting a web site offline through promotional or vanity URLs, search engine optimization and findability A clean URL which fits many of these aims is http://www.domain.com/ folder-name/document-name Care must be taken with capitalization since Linux servers parse capitals differently from lower-case letters Usability An approach to web site design intended to enable the completion of user tasks Usability/user testing Representative users are observed performing representative tasks using a system Use-case The sequence of transactions between an actor and a system that supports the activities of the actor Use-case modelling A user-centred approach to modelling system requirements Usenet newsgroups A widely used electronic bulletin board used to discuss a particular topic such as a sport, hobby or business area Traditionally accessed by special newsreader software, can now be accessed via a web browser from www.deja.com Z01_CHAF9601_04_SE_GLOSS.QXD:D01_CHAF7409_04_SE_C01.QXD 752 16/4/09 13:04 Page 752 Glossary User-centred design Design based on optimizing the user experience according to all factors, including the user interface, which affect this Utility computing IT resources and in particular software and hardware are utilized on a pay-per-use basis and are managed externally as ‘managed services’ V Validation This is a test of the design where we check that the design fulfils the requirements of the business users which are defined in the requirements specification Value-added network (VAN) A secure wide-area network that uses proprietary rather than Internet technology Value chain A model for analysis of how supply chain activities can add value to products and services delivered to the customer Value network The links between an organization and its strategic and non-strategic partners that form its external value chain Value stream The combination of actions required to deliver value to the customer as products and services Vendor-managed inventory (VMI) Supply chain partners manage the replenishment of parts or items for sale through sharing of information on variations in demand and stocking level for goods used for manufacture or sale Vertical integration The extent to which supply chain activities are undertaken and controlled within the organization Viral marketing In an online context, ‘Forward to a Friend’ e-mail is used to transmit a promotional message from one person to another ‘Online word of mouth’ Virtual integration The majority of supply chain activities are undertaken and controlled outside the organization by third parties Virtual organization An organization which uses information and communications technology to allow it to operate without clearly defined physical boundaries between different functions It provides customized services by outsourcing production and other functions to third parties Virtual private network (VPN) A secure, encrypted (tunnelled) connection between two points using the Internet, typically created by ISPs for organizations wanting to conduct secure Internet trading Virtual world An electronic environment which simulates interactions between online characters known as avatars Also known as Massively Multiplayer Online Roleplaying Games (MMORPG) Virtualization (company) The process of a company developing more of the characteristics of the virtual organization Virtualization (technology) The indirect provision of technology services through another resource (abstraction) Essentially one computer is using its processing and storage capacity to the work of another Vision or mission statement A concise summary defining the scope and broad aims of an organization’s digital channel in the future, explaining how they will contribute to the organization and support customers and interactions with partners Voice over IP (VOIP) Voice data are transferred across the Internet – it enables phone calls to be made over the Internet W WAIS A tool important before the advent of the web for storing and searching documents on the Internet Has largely been superseded by the web which provides better searching and more sophisticated document publishing Walk-through A user executes their actions through using a system or mock-up Web 2.0 concept Web 2.0 refers to a collection of web services which facilitate certain behaviours online such as community participation and user-generated content, rating and tagging Web 3.0 concept Next-generation web incorporating high-speed connectivity, complex cross-community interactions, full range of digital media (text, voice, video) and an intelligent or semantic web where automated applications can access data from different online services to assist searchers perform complex tasks of supplier selection Web address See URL Web analytics Techniques used to assess and improve the contribution of e-marketing to a business including reviewing traffic volume, referrals, clickstreams, online reach data, customer satisfaction surveys, leads and sales Web analytics system Information on visitor volumes, sources and pages visited are analysed through web analytics systems Web application frameworks A standard programming framework based on reusable library functions for creating dynamic web sites through a programming language Web application server Software processes which is accessed by a standard programming interface (API) of a web application framework to serve dynamic web-site Z01_CHAF9601_04_SE_GLOSS.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 13:04 Page 753 Glossary functionality in response to requests received from browsers They are designed to manage multiple requests from multiple users and will provide loadbalancing to support high volumes of usage Web browsers Browsers such as Microsoft Internet Explorer provide an easy method of accessing and viewing information stored as web documents on different servers Web classification See Card sorting Web design personas A summary of the characteristics, needs, motivations and environment of typical web-site users Web logs Web logs or blogs are a method of publishing web pages, particularly those with news listings Web page See Static web page, Dynamic web page and Web servers Web servers Store and present the web pages accessed by web browsers Web services Business applications and software services are provided through Internet and web protocols with the application managed on a separate server from where it is accessed Web-site persona A summary of the characteristics, needs, motivations and environment of typical web site users Whitelist A compilation of trusted sources of e-mail that is permitted to enter an inbox Widgets A badge or button incorporated into a site or social network space by its owner, with content or services typically served from another site making widgets effectively a mini-software application or web service Content can be updated in real time since the widget interacts with the server each time it loads 753 Wi-Fi (‘wireless-fidelity’) A high-speed wireless local- area network enabling wireless access to the Internet for mobile, office and home users Wireframes Also known as ‘schematics’ – a way of illustrating the layout of an individual web page Wireless Application Protocol (WAP) WAP is a technical standard for transferring information to wireless devices, such as mobile phones Wireless communications Electronic transactions and communications conducted using mobile devices such as laptops, personal digital assistants (PDAs) and mobile phones (and fixed access platforms) with different forms of wireless connection Wireless Markup Language (WML) Standard for displaying mobile pages such as transferred by WAP Workflow management (WFM) Workflow management is the automation of information flows and provides tools for processing the information according to a set of procedural rules World Wide Web (WWW) The most common technique for publishing information on the Internet It is accessed through web browsers which display web pages of embedded graphics and HTML- or XMLencoded text Worm A small program that self-replicates and transfers across a network from machine to machine A form of virus X XML or eXtensible Markup Language A standard for transferring structured data, unlike HTML which is purely presentational Z02_CHAF9601_04_SE_INDX.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 13:04 Page 754 Index A Aaker, D 465, 466 AB testing 719–20 Aberdeen Group 381 Abraham, M 518 acceptable-use policy 662 accessibility legislation 224–5, 647 actions in e-marketing 469 activity-based process definition methods 610 actors, identifying 631 ad serving 518 Adams, C 705, 707 affiliate marketing 515–16, 526 affiliate revenue 81 affiliates 62 affiliation as disruptive internet technology 29, 68 agents 148 aggregated buying 459 aggregators 62 agile software development 578 Agrawal, V 442, 491, 492, 533, 707 Ahmed, N.U 229 Ahonen, T 179 Ajax 688 Akamai 161 Alibaba.com (case study) 400–1 Allen, E 449, 460, 463 Alliance and Leicester 703 on CRM (case study) 504–5 allowable cost per acquisition 502 alt tags 648 Amazon 314, 365–6 metrics at (case study) 726–32 analysis and design 605–8 data modelling 619–20 process modelling 610–18 security design for e-business 652–75 web site design 623–52 analysis for e-business 608–9 Anderson, C 450 Anderson, Chris 436 Anderson, Tony 432 Ansoff, H 300, 436 anti-spam legislation 216 anti-virus software 659 anticipatory change 567 application portfolio analysis 272–4 application service provider (ASP) 170 architectural design for e-business 621–3 Arena Flowers: case studies e-business strategy 289–90 online communications 510–11 web design and development 606–8 Armstrong, A 530 Arnold, D 374 Arnott, D 237, 271 assurance in service quality 537 asymmetric encryption 672 AT Kearney 395, 397 atomization 136 Atos Consulting 275 attitudinal targeting 438–9 attributes for entities in data modelling 619 attrition rate 709, 710 auction business models 86–7 auctions 69 Automobile Association 298 Azumah, G 461 B Baber, C 611, 632 backbones 110 Baily, P 381 Bain, Laurence 331–2 baker, P 583 Baker, W 457 balanced scorecard approach to objective setting 294–5 Bank First Direct 21 Barclays Bank (case study) 539 Barnett, E 595 Barrenechea, Mark 174–6 Barrett, Matt 284 Bart, Y 206 barter 69 Barton, Sam 606–8 Basu, D 229 Baye, M 459 Bayne, K 725 Bazett, M 447 BBC 119 behavioural ad targeting 518 behavioural targeting 439 benchmarking 304 Benjamin, R 354 Berners-Lee Sir Tim 4, 114, 139, 148, 155 Berthon, B 501 bespoke web site development 684 Betfair 488 Betfair (case study) 27–8 Bevan, Nigel 623, 627, 632 Bezos, Jeff 515, 726–32 bid price 86 Binney, D 594 BitTorrent 134 blacklist 666 Blendtec (case study) 23 bloggers in online marketplace map 62 blogs 6–9, 129–31, 510, 512 services 130–1 bluecasting (case study) 183–4 bluejacking 184 blueprints in web design 636 Bluescope Steel 337–8 bluetooth 183–4 Bocij, P 371, 588, 605, 619, 695 Boddy, D 589 Boo.com 89, 314 failure of (case study) 316–18 boot-sector virus 658 Boots plc 531 Booz Allen Hamilton 199–200, 232, 239 botnet 665 bounce rate 502 bounded rationality 457 Bourne, M 706 Boyd, D 17 BP (case study) 674–5 B&Q 66 brand 464 and change 565 brand-building e-commerce sites 15 brand equity 465 brand experience 465 brand identity 466–7 brand online 467–8 branding 464 BrandNew World 201, 467, 495 Brewer, Julian 284 bricks and mortar companies 88 Bridgewater, S 237, 271 British Airways 298 online services (case study) 263–4 British Midland Airlines 303 broad and shallow site navigation 644 broadband connection 160–1, 163 brochureware 32 brokered deals 69 Brown, Scott 374–5 browser compatibility 128 browser extensions 124 Z02_CHAF9601_04_SE_INDX.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 13:04 Page 755 Index browser plug-in 124 Brynjolfsson, E 104, 322, 323, 450–1 BT 387 bundling 451 burn rate 89 business-alignment IS strategy 319 business continuity management or disaster recovery 657 business effectiveness 428 business-impacting IS strategy 319 business internet adoption drivers of 30–2 for e-business and e-commerce 30–5 risks and barriers to 35–9 business models 306–8 business process automation (BPA) 569 business process improvement (BPI) 569 business process management (BPM) 567 business process perspective on e-commerce 10 business process re-engineering (BPR) 568 business-to-business (B2B) buyer behaviours 493–5 buying unit 494–5 market structure 494 e-procurement in 385 flow process charts in 612–15 objective setting in 429 performance indicators 289 profiles 207 supply chain for 340–1 transactions 26 business-to-consumer (B2C) buyer behaviours 493–5 buying unit 494–5 market structure 494 change management in 562 e-business architecture 622 ER modelling in 620 strategies for 305–6 transactions 26 business transformation 561 business unit strategy 259–60 buy-in to e-commerce 260–1 buy-side e-commerce 11, xiv buy-side innovation 309 buy-side threats 280–1 buyer-oriented sites 68 buyer behaviours 493–5 buyer-controlled sites 68 C Cailliau, R 113 Cairns, S 229 Cambridge Consultants 390 e-procurement (case study) 388–9 Camwell, Andrew 33–5 capability maturity of e-commerce 311–12 Capital One (case study) 286–7 CAPTCHA 654 card sorting 635–6 Carr, N 322–3 Cartellieri, C 518 cascading style sheets (CSS) in web design 638 in web implementation 688 Castillo, Jorge 364 catalogues 76, 503 Cerf, Vince (Vinton ?) 137, 154 certificate authorities 672–3, 674 certificates 672 Chaffey, D 198, 271, 285, 685, 699, 706, 707 on analysis and design 611, 636, 645, 667 on change management 574, 590, 594 on CRM 486, 504, 525, 537 and e-marketing 416–17, 426, 443, 451, 462, 464 challenge/respond system 667 Champy, J 568 Chan, C 337 change agents 586 change management 561 challenges to 561–6 human resource requirements 579–82 key factors 562 and knowledge management 590–8 managing 586–90 culture for change 588–90 models for achieving 586–8 organization structures, revising 583–6 planning change 572–8 prototyping 576–8 and risk management 598–9 types of change 566–71 changeover in web site implementation 695–7 data migration 695–6 database creation 695–6 channel buyer behaviour 708 channel outcomes 709 channel profitability 709–10 channel promotion 708 channel satisfaction indices 708 Charles Tyrwhitt 299, 625 Christodoulides, G 465, 625 churn rate 89 Citibank 278 Clark, Mike 196–8 Clarke, R 176 clicks and mortar companies 88 755 clicks only companies 88 clickstream analysis 722–3 client/server 109 client-server model 621 Clinton, President Bill 230 cloud computing 171 co-opetition 281 COBIT framework 573 cold list 216 collaboration platforms 78 collaborative filtering 528 commercial mechanisms and online transactions 69 commoditization 279, 459 Common Sense Advisory 234 communications perspective on e-commerce 10 competitive threats, assessing 276–81 competitor analysis 281, 425–7 competitor benchmarking 427 competitor environment analysis 276 computer viruses, managing 658–60 protection 659–60 type of virus 658–9 Computer World 402 Confused 66 Conlon, Seamus 141 Conspectus 372, 396 consumer internet adoption barriers to 39 drivers of 37–9 consumer-to-business (C2B) transactions 27 consumer-to-consumer (C2C) transactions 26 content 141 content management systems (CMS) 119 and maintenance 697–703 updating 697–8 for web sites 691 selecting 691–3 content network 509 control in e-marketing 470 control page 720 conversion marketing 290, 491–2 conversion modelling 290–2 conversion rate 709 cookies 218, 219–21 coordination mechanism in auction business models 86 Cope, O 569, 586 core competencies 281 core product 451 core proposition 426 corporate strategy 260 cost effectiveness of CRM 487 cost per acquisition (CPA) 81, 502 cost per click (CPC) 80 Z02_CHAF9601_04_SE_INDX.QXD:D01_CHAF7409_04_SE_C01.QXD 756 16/4/09 13:04 Page 756 Index cost per thousand (CPM) 80, 509 counterintermediation 66 covert monitoring 664 Covin, Denise 343 Covisint 74, 86, 87, 281 e-commerce marketplaces (case study) 403–4 crawling 505 Cronin, J 536 cross-media optimization studies (XMOS) 519 crowdsourcing 244 Crush, P 580 culture for change 588–90 Curtis, B 611 customer acquisition 482 customer acquisition management 498–526 interactive marketing communications 499–501 effectiveness of 502–3 online marketing communications 503–26 customer activity and value 533–4 customer-centric marketing 22, 486 customer extension 483, 539–45 customer insight 22 customer journey 21, 70 customer lifecycle 482 customer orientation 417 in web site design 639–41 customer profiling 490–1 customer relationship marketing (CRM) 482–5 applications 482–3 benefits of 487 and change management 564 description 486–91 customer retention 483 customer retention management 526–36 applications 547 customer activity and value 533–4 lifetime value modelling 534–6 mass customization 528–30 online communities 530–3 personalization 528–30 technology for 546–51 and back-office systems 547–8 data quality 549 single-vendor solutions 548 customer scenario 424 customer scenarios 628 customer segments in online marketplace map 60 customer selection 482 customer self-service 547 customer value 281 Cutts, Matt 140 D Da Palma, Don 234 dabs.com: case studies e-communications at 516 on web site design 649–52 DaimlerChrysler 86 Damanpour, F 313 Daniel, E 296 Daniel, L 207 data controller 213 data migration 695–6 data modelling 619–20 data protection 227 data subject 213 database creation 695–6 Davenport, T.H 568, 569 de Chernatony, L 464, 465, 625 de Jong, B 295 de Kare-Silver, M 298, 435–6 dedicated server 162 deep linking 644 Degnan, Christa 381 Deighton, J 443, 500 Deise, M 266, 281, 294, 353, 426 Dell, Michael 354 Dell Computers 283–4, 306, 324, 354, 445 case studies Dell Premier 120 in e-marketing 453–6 innovation at 307 CRM in 488, 529 e-commerce marketplaces 402 web site performance 704, 709 demand analysis 276, 421–5 demographic targeting 438 denial-of-service attacks 656 deployment planning 697 der Zee, J 295 design for analysis (DFA) 704 design for e-business 621–3 Desmet, D 89 destination sites 52, 518 in online marketplace map 62, 64–7 dial-up connection 160 Dibb, S 437 differential advantage 441 differentiation strategies 303–6 digital certificates 671–2 digital channels 293 digital marketing 16–22, 542 laws controlling 195 digital media channels 498 digital rights management (DRM) 82, 728 digital signatures 672 Direct Line 279–80 directories 76, 503 Disability and Discrimination Act (UK, 1995) 647 discontinuous change 566 discontinuous process change 568–9 disintermediation 65 Disraeli, Benjamin 561 disruptive internet technologies 29–30, 52 distribution mechanism in auction business models 86 diversification 302 Dodds, S 513 Doherty, N 32, 260 domain names 139–41, 222 registratiion of 140–1 value of (case study) 141 Dorey, Paul 674–5 dot.com bubble, bursts 93 dot.coms 88 failure of 93 impact of 95 Dow Chemical (case study) 313–14 downsteam supply chain 335 DTI 661 Dubit Informer 488 Dulux paint (case study) 629–30 Durlacher 308 Dutch (reverse) auction 86 case study 87–8 dynamic e-business application 681 dynamic pricing 459 dynamic web content 686 dynamically created web page 125, 128 Dyson, E 239 Dyson, Esther 152 E E-auctions 78 e-business analysis for 608–9 applications infrastructure, managing 165–8 assessment of 89 benefits from 31 business internet adoption for 30–5 capabilities, evaluating 36–3 defined 13–25 design for 621–3 and e-commerce differences 9–29 relationship between 14 and e-marketing 417–18 management responses to 39–46 opportunities 29–30 personal data, value of 210–16 plan and schedule for change 574–6 restructuring supply chains 358–67 risk management in 599 Z02_CHAF9601_04_SE_INDX.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 13:04 Page 757 Index security design for 652–75 service usage, Europe 33 services, hosting 110–11 e-business infrastructure 104 components 105–6 five-layer model 106 internet technology for 109–24 governance 152–7 intranets and extranets 116–24 software applications 128–36 standards 136–52 management issues 107 managing 158–68 web technology for 124–8 e-business strategy 259–69 failed strategies 314–15 imperative for 261 and other strategies 262 see also strategic analysis e-channel strategies 262–3 e-commerce xiii, xiv adoption, factors governing 198–208 and B2B trading 236–7 benefits from 31 business demand for services 206–7 business internet adoption for 30–5 business models for 77–98 defined 10–12 and e-business differences 9–29 relationship between 14 and e-marketing 417–18 electronic marketplace in 67–77 environment of 57–67 and globalization 233–7 legislation 222–7 management responses to 39–46 marketing, legislation on 222–5 privacy and trust in 209–22 secure transactions 671 security, approaches to 673–4 servers, selecting 693 strategic initiatives 434–5 e-commerce service quality 538–9 Econsultancy 273, 297 on change management 563, 572, 573, 579, 580, 585 e-economy 232 e-environment 193–5 environmental and green issues 227–9 exchange and competitive factors 232–3 political factors 238–9 social and legal factors 198–227 taxation issues 229–32 technological innovation and assessment 241–5 e-government 240 defined 28–9 e-mail risks 226 e-mail filter 666 e-mail management 665–9 minimizing external 668 internal 667–8 personal 668–9 e-mail marketing 520–4, 526 legislation 217–21 E-mall 78, 131–2 e-marketing 413–16 actions 469 control 470 description of 416–18 and e-business 417–18 and e-commerce 417–18 online branding 464–8 plan framework 469–70 planning 418–20 strategy in e-marketing 433–43 ES test 435–6 target strategies 437–43 see also new-media marketing communications; tactics E-procurement 78 e-procurement 381 adoption of, growth 396–7 benefits of 385 cost saving and profitability 391–2 costs, estimating 390–2 description of 381–7 drivers of 387–90 failure of cost reductions 393–4 future of 407 implementation of 394–400 organizational risks 393 participants 386–7 process of 384–5 risks and impacts 392–4 supplier integration 397–400 types 385–7 e-purchasing 383–4 E-shop 78 e-supply chain management benefits 361–2 easyJet 451, 709 online revenue contribution (case study) 431–3 eBay (case study) 42–6 Edgar, M 537 effective consumer response (ECR) 337 effectiveness 288, 705 efficiency 288, 705 efficient allocation in auction business models 86 757 efficient consumer response (ECR) 335–6, 346 in e-procurement 390 effort duration analysis 616 Electricité de France (case study) 149–51 electronic B2B marketplace 400–7 neutral to private exchanges 402 types of 405–7 electronic business xiii, xiv electronic communications government and company monitoring of 232 impact of 6–9 monitoring 660–5 electronic contracts 225–6 electronic customer relationship marketing (e-CRM) 486 electronic data interchange (EDI) 176–7 electronic funds transfer (EFT) 176 electronic marketplace 67–77 multi-channel models 70–1 online intermediaries 71–6 search engines 76–7 electronic procurement system (EPS) 381 Electronic shopping test 435–6 Ellison, N 17 emergent strategy 267–8 emerging technology, identifying 244–5 Emiliani, V 87, 459 empathy in service quality 538 employee communications monitoring 660 employee monitoring legislation 663–5 Enders, A 265, 266, 270, 281, 282 English (forward) auction 86 enterprise application integration (EAI) 122 enterprise resource planning (ERP) applications 166 entities in data modelling 619 environmental scanning 194 and analysis 52 E2open (case study) 359–60 Epson 538 Erdem, T 464 Ericson, Carrie 395 Ernst & Young 595–6 ethical hacker 670 ethical standards 209 Euroffice (case study) 541–2 European Commission 32, 207, 360 Evans, M 528 Evans, P 29–30, 68, 463 event-driven process chain (EPC) model 616–18 expert review 627 explicit knowledge 591 Z02_CHAF9601_04_SE_INDX.QXD:D01_CHAF7409_04_SE_C01.QXD 758 16/4/09 13:04 Page 758 Index extended product 451 eXtensible Markup Language (XML) 142–8 applications 147–8 external value networks 352 extranet 13–15, 116–24 applications 119–22 and CRM 529–30 encouraging use of 122–3 F Facebook 136 history of (case study) 17–21 fake clicks 510 Fanning, Shawn 471–5 Fawcett, S 706, 707 feeds 16, 132–4 Feinberg, R 536 Field, C 354 filtering software 662 financial EDI 176 Financial Times 323, 500 Finch, matthew 484–5 Findlay, Graeme 703 Findlay, Graham 504–5 Firebox.com (case study) 93–4 firewalls 122, 655, 670 first-party cookies 219 Fisher, M 364, 365 fixed-price sale 69 Fjermestad, J 449, 460, 463 Fletcher, K 212 flow process charts 612–15 folksonomies 131 Forrester 628 forward (English) auction 86 frameworks for web applications 690–1 Frazier, G 460, 461 freedom-restrictive legislation 231–2 Friedman, L 705, 707 functional strategy 259–60 Furey, T 705, 707 G Gabbot, M 465, 536 Garino, J 298, 310 Gartner Group 242, 567 Gatarski, R 407 GD Worldwide 196–8 GE 375 gender and online activities 38 General Motors 65, 87, 281 General Packet Radio Services (GPRS) 646 georgakoupoulas, D 611 Ghosh, S 436 Gibson, William 241 Gillies, I 113 Ginsburg, Lyle 374–5 Global Data Synchronisation Network (GDSN) 368 global distribution, managing 374 Global Universitiy Alliance 355 globalization and consumer attitudes (case study) 235–6 and e-commerce 233–7 Godin, Seth 488–9 Goldman, E 224 Google 4, 26, 60, 80, 180, 306, 505–6 iinnovation at (case study) 115–16 searches on 76, 77 size of 114–15 trends for web sites 61 Gould, Russell 682–4 government marketplace exchanges 405 Graham, J 518 graphic editors 689–90 Graphics Interchange Format (GIF) 151 Great Universal Stores 310 Gregory, K 236–7 Griffiths, P 320 Grossnickle, J 200 Grove, Andy 35 Guess 415–16 Gulati, R 298, 310 Gwyther, M 89 H Hackbarth, G 266 hacking 669–71 protection against 670–1 Hackman, J 580 Hagel, J 71, 530 Haji-Ioannou 431–3 Hallowell, R 582 halo effect 517 Hamill, J 236–7 Hammer, M 568 Hansen, M 593, 594, 595 hardware infrastructure, managing 159–60 Havlena, W 518 Hayes, J 586, 587, 588 Hayes, R 357 Hedin, Marianne 593 Hildebrand, C 394 hit 711 Hitt, L 323 Hofacker, C 646 Hoffman, D.L 27, 444, 643 Horton, S 644 hosted web site solution 685 hosting provider 110 managing 160–5 house list 216, 524 Houston, F 417 HP.com 7–9 HSBC 81, 184, 228, 488 personalization at (case study) 529 Hughes, J 371 Hughes, S 417 human resource requirements in change management 579–82 outsourcing 581–2 staff retention 580 hurdle rate 543 hype cycle 242 hyperlink 124 Hypertext Markup Language (HTML) 124, 141–2, 686 meta-tags 142 specialized editors 690 Hypertext Transfer Protocol (HTTP) 138–9 I i-mode 178 IDC 361, 593 identity fraud 209–10 identity theft 209 IEE 446 impact assessment of monitoring 664 implementation activities 681 inbound e-mail marketing 520 inbound e-mall 131 inbound logistics 345 incremental change 566 infomediaries 71, 72 information and communication technology (ICT) 13 information architecture in web site design 634–9 information asset register (IAR) 657 information asymmetry 358 information brokerage 78 information organization schemes 643 information security management system 656 information security policy 656 information service usage, controlling 660 information society 238 information supply chain 358 information systems (IS) strategy 319–24 elements of 321 information technology, and change 565 ING Direct 278 initiatiion phase of projects 574 innovated business models 70 institial ads 519 intellectual property, protecting 226–7 interactive ad formats 519 interactive advertising 517–20, 526 Z02_CHAF9601_04_SE_INDX.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 13:04 Page 759 Index interactive marketing communications 499–501 effectiveness of 502–3 integration 501 intermediaries 501 lean back to lean forward 500 medium 501 monologue to dialogue 500 from one-to many 500 push to pull 499–500 intermediaries and media in online marketplace map 62 threat of 280–1 types of 74–6 intermediary analysis 427–8 intermediary revenue models 80–8 internal knowledge capabilities 310 internal marketing audit 428 internal value chain 350 internet 4, 109 advertising on 227 size of 114–15 internet-access software applications 128–36 internet-based market research 718 Internet Corporation for Assigned Names and Numbers (ICANN) 154 internet EDI 176 internet effectiveness 428 Internet Engineering Task Force (IETF) 155 internet governance 152–7, 239 net neutrality principle 152–4 internet marketing metrics 705 internet pureplay companies 88, 298 internet service provider (ISP) 110 availability 164–5 managing 160–5 service-level agreements 165 speed of access 161–4 Internet Society 154–5 internet standards 136–52 audio and video standards 152 control of 156 domain names 139–41 Hypertext Transfer Protocol 138–9 networking 136–8 presentation and data exchange standards 141–51 semantic web standards 148 TCP/IP 137–8 internet start-ups 89–91 internet technology 109–24 internet timeline 111–14 internet TV (IPTV) 133–4 internet usage habits 21 interruption marketing 489 intranet 13–15, 116–24 applications 117, 119 costs, cutting 117–19 encouraging use of 122–3 investment appraisal 320–4 IP address 138 iProspect 507 IS infrastructure for supply chain management 366–7 IS-supported downsteam supply chain management 365 ISP connection methods 160–1 759 knowledge 590 description 590–2 knowledge management 590–8 implementation 593 objectives 592–3 technologies for 594–6 Kotler, P 494, 705, 706, 707 Kraut, R 354 Kumar, N 285 J Jacobsen, I 628 Janda, S 625 Janssen-Cilag (case study) 596–8 Jaworski, B 39 Jay, K.E 587 Jeffcoate, J.small and medium enterprises in international e-commerce 237 Jelassi, T 265, 266, 270, 281, 282 Jenkins, David 336 Jevons, C 465, 536 Joachimsthaler, E 465, 466 John Lewis 310 Johnson, G 259, 265 Johnson & Johnson 596 Johnston, K 131 Joint Photographics Experts Group (JPEG) 151 Jones, D 351, 352 Jones, L 407 Jorgensen, P 697–8 just-in-time (JIT) 346 L Lancaster, Alison 625 lastminute.com (case study) 91–3 latency in RFM analysis 543 Lautenborn, R 449 Lawler, Ros 107–9 Legner, C, 336, 358 Leonard, Stephen 703 Levi Strauss 451 Levine, R 489 Levy, M 271 Lewin, Kurt 586 Lewis, H and R 492 lifecycle targeting 439 lifetime value 540 lifetime value modelling 534–6 Line 56, 403 link anchor text 506 link building 511 localization 234 log-file analyser 711 logistics 345 logistics management 346 long tail concept 450–1 Lundkvist, A 407 Lynch, P 644 Lynch, R 259, 267, 281, 282, 284 K Kagermann, Henning 174–6 Kahn, Robert 137 Kalakota, R 10, 268, 350, 381, 387 Kaliski, Burt 374–5 Kampas, P 105, 111 Kaplan, R.S 294 Kaplan, S 405, 406, 407 Karmanos, Pete 403–4 Katz, Mike 235 Kesh, S 671 Kettinger, W 266 keyphrase analysis 506–7 Kim, E 303 Kirby, J 525 Kirby, K 498 Klein, L 233–4, 270, 452, 456 Klein, S 86 Kluge, J 387, 391 Knichel, Barry 364 M Ma, Jack 400–1 Mcafee, A 104, 323 McAulay, L 260 McCarthy, J 448 McCutcheon, D 372–4 McDonald, M 67, 71, 265, 296, 417, 443 McDonald, Malcolm 464 McFarlan, F 272 McGaffin, K 511 McKenney, J 272 MAD 517 Magretta, J 354 maintenance, repais and operations (MRO) 386 maintenance activities 681 maintenance phase 681 maintenance process and responsibilities 699–703 Malone, T 355, 362 Z02_CHAF9601_04_SE_INDX.QXD:D01_CHAF7409_04_SE_C01.QXD 760 16/4/09 13:04 Page 760 Index malware 212, 654 managed e-mail service 659 March, S 358 Marcus, J 727, 728, 730 Marinos, G 358 market development 301–2 market development strategies 300–3 market penetration 301 market positioning 436 marketing and change 565 defined 416–17 marketing concept 417 marketing effectiveness 428 marketing mix 449 marketing orientation 417 marketplace restructuring 308–9 Marsden, P 452–3 Marshak, R 628 Marshall Industries 121 mashups 22 Mason, R 212 mass customization 451, 486, 528–30 Match.com (case study) 525 media e-commerce sites 15 media multiplier 517 Mekhilef, M 590, 591 Mello, A 547 meta-data 142 meta-tags 142, 508 metamediaries 72, 407 micro-sites 518 microblogging 158–9 Microsoft (case study) 73–4 middleware 122 milestones 574 Millar, V 351 Miller, T 314–15 Ministry of Sound 488 Mintzberg, H 267 Mitra, S 79, 386 mixed-mode buying 447 mobile commerce 6–9, 177–86 popularity of 179–86 potential for 177 strategies for 185–6 mobile subscribers, content consumption 200 Moore, A 179 More Th>n 53–7 Morville, P 634, 636, 643, 645 Mougayer, M Mougayer, W 122, 184, 230 multi-channel e-business strategies 262 multi-channel marketing 21 multi-channel marketing strategy 21, 70 multi-channel marketplace models 70–1 multi-tenancy SaaS 169–70 Multilingual survey 235 multivariate testing 720–1 Munoz, Roberto Hortal 53–7 Murdoch, Rupert 104 Myers, J 262 N Nadler, D 567 Napster.com: case studies brand identity 466–7 marketing mix 471–5 narrow and deep site navigation 644 National Express Group (case study) 720–1 Neely, Andy 705 negotiated deals 69 Nestlé 444 net neutrality principle 152–4 network diagrams 616, 617 networking standards 136–8 neutral sites 68 new business models, threat of 278–9 new digital products, threat of 278 new entrants, threat of 277–8 New Media Age 529 new-media marketing communications 443–8 individualization 445–6 industry restructuring 448 integration 446–7 intelligence 444–5 interactivity 443–4 location independence 448 niche affiliates in online marketplace map 62 Nicholas, Steve 413–16 Nielsen, Jacob 162 90-9-1 rule (case study) 514 on web site design 627, 640, 643, 644 Nielsen Norman Group 623–5 Nike 331 Ning 596 Nokia 374 Nolan, R 270 North West Supplies (case study) 33–5 Norton, D.P 294 notification 213 Novak, T.P 27, 444, 643 Novo, J 543 Noyes, J, 611, 632 O Oasis 147 objective setting 287–92, 294, 428–33 balanced scorecard approach to 294–5 Odessey 119 offer price 86 offline marketing communications 498 Oldham, G 580 Olson, Ken 241 Olve, N 295 O'Malley, L 483 on-site search effectiveness 723 1to1Media 709 online advertising 518–20 online branding 464–8 online business, revenue calculation 82–5 online business model 77 online buyer behaviour 201 online buying process 492–8 buyer behaviour 493–5 net promoter score 495–8 trust 495 online communities 512–14, 530–3 online customer experience 625 online intermediaries 52, 53 types of 71–6 online marketing communications 503–26 e-mail marketing 520–4 interactive advertising 517–20 online partnerships 514–17 online PR 511–14 search engine marketing 503–11 viral marketing 524–6 online marketplace analysis 59–67 resources for 63–4 online marketplace map 60 online partnerships 514–17 online perspective on e-commerce 10 online PR 511–14, 526 online purchasing 204–6 online retailer performance, measurement of 716–18 online revenue contribution 290, 292– 3, 428 online segmentation and targeting 540–5 online service quality 536–8 online services, use of 202–4 online sponsorship 516–17, 526 online value proposition (OVP) 37, 62, 304, 441 open-source software 156–7 Open Systems Interconnection (OSI) 137 operational strategy 259–60 opt-in 217, 489 opt-in e-mail 530 options 524 opt-out 218, 489 O'Reilly, Tim 22, 128 organizational analysis 274–6 organizational change 567 organizational resourcing 310–13 Z02_CHAF9601_04_SE_INDX.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 13:04 Page 761 Index outbound e-mail marketing 520 outbound e-mall 132 outbound logistics 345 outbound logistics management 365–6 outcome data 713 outsourcing in change management 581–2 overlay 519 P packaged web site implementation 684–5 packet 138 page impression 711 page rank 508 page template in web design 638 paid search marketing 509–10 Pandia 171 Pant, S 79, 319 Parasuraman, A 536 Parker, R 532 Parsons, A 583, 584 partnerships in SCM 372–4 path analysis 723 pay-per-click (PPC) search marketing 223, 526 pay-per-view access 82 people in e-marketing 464 people variable 464 Peppers, B 489 Pereira, A 234 performance drivers 491 performance management system 704 analytics tool, selecting 713–19 collecting metrics 711–23 AB testing 719–20 clickstream analysis 722–3 control page 720 multivariate testing 720–1 on-site search effectiveness 723 outcome data 713 path analysis 723 standards 712 visitor activity 711–12 visitor segmentation 723 creating 705–6 metric framework 706–10 channel buyer behaviour 708 channel outcomes 709 channel profitability 709–10 channel promotion 708 channel satisfaction 708 multi-channel evaluation 709–10 performance measurement system 704 permission marketing 218, 488–9 Perrott, B 31, 275 persistent cookies 219 persona 424 personal data, value of 210–16 personalization 486, 528–30 creating 529 Peters, L 500–1 Petersen, Eric 704 Phillips, S 302, 365–6 Phishing 655 physical distribution management (PDM) 345–6 physical evidence in e-marketing 464 physical evidence variable 464 Picardi, R 305 place in e-marketing 460–2 Plant, R 304, 319 plug-in 151 podcasts 17, 510, 512 Portable Network Graphics (PNG) 151 portal sites 15, 74 revenue models of 85 Porter, Michael 276–7, 303, 348–9, 350, 351 positioning 441 positioning strategies 303–6 Potter, C 392 Powell, P 271 Premier Farnell (case study) 331–2 prescriptive strategy 267 price comparison sites 72 price discovery in auction business models 86 price elasticity of demand 457–9 price in e-marketing 456–60 price variable 456 PricewaterhouseCoopers 392 pricing models 456 privacy 209 regulations on 216–17 Privacy and Electronic Communications Regulations Act 217 privacy in e-commerce 209–22 privacy legislation 209–10 privacy statement 221 private B2B exchanges 402 process 610 process analysis 269–76 process in e-marketing 464 process mapping 610 process model, validating 618 process modelling 610–18 dependencies 612–18 mapping 610 task analysis and decomposition 610–12 process variable 464 procter & Gamble 488 product development 302 product development strategies 300–3 761 product in e-marketing 451–2 product positioning 436 product variable 451 productivity paradox 322–4 project governance 572–4 promotion in e-marketing 462–3 propensity modelling 545 prototyping 576–8 proximity marketing 183 psychographic segmentation 202–3 psychographic targeting 438–9 public key (asymmetric) encryption 672 publisher e-commerce sites 15 publisher revenue models 80–8 pull media 499–500 pull supply chain models 347–8 Pullen, Francis 388–9 pure markets 69 push media 499–500 push supply chain models 347–8 Q qualified lead 489 qualitative customer analysis 424–5 quality score 509 Quayle, M 237, 238 Quelch, J 233–4, 270, 452, 456 quick response (QR) code 181 Quinn, J 267 R Rackspace 110–11 radio-frequency identification (RFID) 363–5 in supply chain management (case study) 374–5 radip application development (RAD) 576 Random House 107–9 Rappa, Michael 79 Raskin, O 200 Ravichandran, T 79, 319 Rayport, J 39, 67, 71, 349 reach as disruptive internet technology 29, 68 reactive change 567 Really Simple Syndication (RSS) feeds 16, 128, 132, 308, 512 in CRM 512, 514 recency, frequency, monetary value (RFM) analysis 543–5 categories 544 reciprocal links 511 Reck, M 86 referrer 502, 708 Regen, Peter 374–5 Reicheld, F 495–6, 527 reintermediation 66 Z02_CHAF9601_04_SE_INDX.QXD:D01_CHAF7409_04_SE_C01.QXD 762 16/4/09 13:04 Page 762 Index relationship targeting 438 relationships between entities in data modelling 619 reliability in service quality 537 repurposing 186 resource analysis 269–76 responsiveness in service quality 537 Rettie, R 643 revenue models 79–80, 306–8 reverse (Dutch) auction 86 case study 87–8 Rhino Sports 224 rich media 6–9 richness as disruptive internet technology 29, 68 Ries, A and L 467 Riggins, F 79, 386 right-channelling 299–300 risk management 598–9 Robertson, J 635 Robinson, H 518, 519 Robinson, M 268, 350, 381, 387 robots 76, 505 Robson, W 320 Rodgers, E 203 Rogers, E 242 Rogers, P 489 Rohm, A 319 Romanow, Seth 703 Rosenfeld, L 634, 636, 643, 645 Round, M 727, 729 routine content changes in maintenance 699–703 frequency 700 on global sites 703 keeping content fresh 702–3 major changes 701–2 Rowley, J 261 RS Components 588 Ryan, J 516–17 S Samson, A 498 Sandvik Steel (case study) 292–3 SAP 532, 576, 616 infrastructure (case study) 174–6 Saunders, R 590 Sawhney, M 405, 406, 407 scability 582 scanning software 662 scenarios 632 Schefter, P 527 Schein, Edgar 586 Schemm, J 336, 358 Schlumberger (case study) 383 Schneider, G 631 Scholes, K 259, 265 Screentrade 66 scrum 578 search engine marketing 503–11 search engine optimization (SEO) 507– 9, 526 key requirements 688–9 search engines 76–7 search intermediaries in online marketplace map 60–1 searching behaviours 492 secret key (symmetric) encryption 671–2 secure electronic transaction (SET) 673 secure sockets layer protocol (SSL) 673 secure systems 671 developing 671–3 security design for e-business 652–75 common threats 653–6 computer viruses, managing 658–60 protection 659–60 type of virus 658–9 e-commerce security 673–4 e-mail management 665–9 minimizing external 668 internal 667–8 personal 668–9 electronic communications, monitoring 660–5 hacking 669–71 secure systems 671 developing 671–3 segmentation 437 sell-side e-commerce 11, xiv change management, challenges 563–6 types 15 sell-side innovation 309 sell-side threats 279–80 seller-controlled sites 67 seller-oriented sites 67 semantic web standards 148 senior management, and change 564, 586 sense, respond, adjust 542 sense and respond communications 285, 487 servers for e-commerce selecting 693 for web applications 690–1 service models 306–8 service-oriented architecture (SOA) 173–4, 174–6 service perspective on e-commerce 10 services-oriented relationship-building e-commerce sites 15 session cookies 219 7S strategic framework to e-business management 41, 563 Seybold, P 439, 447, 494, 628, 640–1 share of customer 540 share of wallet 540 Sharma, A 486 Sharma, S.K 229 Shaw, Sharon 256–9 Sheffield, Russell 433 Shell Chemicals (case study) 341–5 Sheth, J 486 shopping carts 164–5 short code 181 Siebel 576 Siikavirta, H 229 Simon, Herbert 457 Simon, R 599 Simons, M 284 Singh, Amar 374–5 Singh, N 234 single-tenancy SaaS 169–70 Sircar, S 323 site see web site site-visitor activity data 711–12 situation analysis 52 in e-marketing 420–8 competitor analysis 425–7 demand analysis 421–5 intermediary analysis 427–8 skills in e-business management 41, 563 small and medium enterprises applications, selecting 686 e-business adoption by 207–8 e-business strategy implementation 315–16 SMART objectives 288 Smith, D.C 587 Smith, G 568 Smith, P 265, 451, 462, 464 on CRM 486, 504, 525 Smith, Paul 418 Smith, Steven S 570–1 Smoothspan 169–70 SMS (Short Message Service) 21, 119 applications 180–1 Snowden, David 593 social engineering 670 social networking 181–2 social networks 17, 512–14 soft launch 695 soft lock-in 30, 279 software (intelligent) agents 407 software as a service (SaaS) 30, 168–9 deploying 169–74 software infrastructure, managing 159–60 SOSTAC and e-marketing 418–19 and supply chain management 371 SourceUK (case studies) 240, 405 Z02_CHAF9601_04_SE_INDX.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 13:04 Page 763 Index spam 216, 530, 665–7 Speroni, Ted 7–9 spiders 76, 505 Spinrad, P 162 Sport Coourt 224 staff in e-business management 41, 563 stage models 36, 270–2 Standard Life 119, 121, 256–9 standards 712 static web content, creating 686–9 static web page 125 Steinfield, C 362 Sterne, Jim 704 stickiness 708 Stone, M 546 Storey, J 595 storyboarding in web design 636 Strassman, P 322 strategic agility 57–9 strategic analysis 269–81 application portfolio analysis 272–4 co-opetition 281 competitive environment analysis 276 competitive threats 276–81 competitor analysis 281 resource and process analysis 269–76 stage models 270–2 SWOT analysis 274–6 strategic objectives 281–95 creating value 285–6 objective setting 287–92, 294 balanced scorecard approach to 294–5 vision and mission 282–5 strategy 259 in e-business management 41, 563 in e-marketing 433–43 ES test 435–6 target strategies 437–43 strategy definition 295–313 channel priorities 298–300 options, selection 296–7 strategy implementation 313–18 strategy process models 264–9 alternatives 265 streaming video 510 structure in e-business management 41, 563 Stuart, F 372–4 style in e-business management 41, 563 subject access request 215 subscriber data access 82 Sull, Donald 58–9 Sullivan, U 71 Sultan, F 319 Sun, S 358 superaffiliates in online marketplace map 62 superordinate goals in e-business management 41, 563 suppiers' power, threat of 280 supply chain restructuring options 356–8 supply chain management 331, 334 adoption rates 360–3 benefits 333–4 data standardization and exchange 368–9 description 335 developments in 345–7 human resource requirements 369–71 implementation 368–75 partnerships in 372–4 past, present and future 339–40 problems of 334 simple model of 340–1 SOSTAC approach to 371 strategy process 371–2 technology for 334, 337–40 technology options 359 supply-chain management 309 supply chain management (SCM) 25, xiv supply chain network 335 supply chain visibility 366 Sveiby, K.E 592–3 Sviokla, J 67, 349 Swatman, P 337 SWOT analysis 274–6 symmetric encryption 671–2 system design 621 systems development lifecycle 574 systems in e-business management 41, 563 systems integrator 697 Szygenda, Ralph 65 T tacit knowledge 591 tactics in e-marketing 448–64 people, process and physical evidence 464 place 460–2 price 456–60 product 451–2 promotion 462–3 tagging 131 tailored web site development 685 talk-through 632 tangibles in service quality 536–7 Tapscott, Don 488 target market strategies 437–43 target marketing strategy 302 task analysis 610 task decomposition 610–12 Taylor, S 536 TCP/IP 137–8 technological interface management (TIM) 347 technology convergence 122, 184 763 technology scouting 244 Telecommunications Information Networking Architecture Consortium (TINA-C) 155–6 Tesco case studies buy-side e-commerce system 363–4 CRM at 549–51 supply chain management 352, 363 test specifications 694 testing environments 695 testing web site implementation 694–5 Tew, Alex 81 text editors 689–90 thin client 621 third-party cookies 219 third-party marketplaces 78 Thomas, J 71 Thomas Cook 682–4 Thomson Holidays 308 three-tier client-server 621–2 3M Corporation (case study) 308–9 Timmers, P 73, 77, 78 tipping point 452–3 Tjan, A 296 Toganizzi, Bruce 241 Tognazzini, Bruce 623–5 Toptable.co.uk (case study) 521–4 total cost of ownership (TCO) 36 trademarks 227 traffic-building campaigns 503 Tranmit 390, 394 transaction fee revenue 82 transaction log file 125, 126–7, 128 transactional e-commerce sites 15 Trocchia, P, 625 trojan 659 Trott, P 243 trust and other services 78 trust in e-commerce 209–22, 526 Tse, T 299 Tucker, D 407 Turban, E 390 Twitter (case study) 158–9 Tynan, C 483 U Unified Modelling Language (UML) 627 Uniform (universal) resource locator (URL) 139 strategy 140 unique visitor 711 unique visitors 63 upsteam supply chain 335 US Marine Corps (case study) 58–9 use-case modelling 627 use-case scenarios 632–4 use-cases, identifying 632 user access requirements 200–1 Z02_CHAF9601_04_SE_INDX.QXD:D01_CHAF7409_04_SE_C01.QXD 764 16/4/09 13:04 Page 764 Index user-centred design 623 user testing 627 utility computing 170 V value-added network (VAN) 177 value chain 25, 348–55, xiv value chain analysis 319, 351–2 value-chain integrators 78 value-chain service providers 78 value networks 25, 26, 352–4 value stream 351 value targeting 439 van der Wal, Thomas 131 van Gend & Loos 366 Vandergrifft, Matt 343 Variani, V 424, 491 Vaturi, D 424, 491 Vauxhall Motors 65 Vektatram, N 77 vendor-managed inventory (VMI) 389 vertical integration 356 Viney, David 15 viral marketing 221–2, 514, 524–6 Virtual communities 78 virtual integration 356 virtual organization 354–5 virtual organizations 461–2 virtual private network 673 Virtual private networks (VPN) 177 virtual value chain 349 virtual worlds 6–9 virtualization 172–3, 355 on infrastructure (case study) 173 visitor activity 711–12 visitor segmentation 723 Vlosky, R 120 VMware 172–3 voice aver IP (VoIP) 134–6 W Waddell, D 569, 586 Wagoner, Rick 65 Wal-Mart 374–5 Wales, Jimmy 488 walk-through 632 Walker, Chuck 343 Wall, Jonathan 516 Wallace, Nathan 596–8 Ward, J 320 Ward, S 210 Warner, H.M 241 Warner, Malcolm 355 Warner Breaks 484–5 Waterman, R.H 40, 563 Waterstones 88, 314, 354 Watson, Thomas 241 Watts, D 513 Web 2.0 22–5, 128–9 for knowledge management 595–6 Web 3.0 24–5 web accessibility 646–52, 688 web analytics 704 web analytics system 125 web application frameworks 125 web application server 125 web browsers 125, 128 web classification 635–6 web content design 645–6 web design persona 628 Web Motivation Inventory 203 web page design 645 web security design for e-business 652–75 threats 653–6 web servers 125, 128 web services 168–77 application service provider 170 benefits of 168–9 service-oriented architecture 173–4 utility computing 170 virtualization 172–3 web site content and services, developing 686–93 web site design 623–52 accessibility 646–52 customer orientation 639–41 elements of 641–6 information architecture 634–9 poor design 623–5 and structure 642–3 usability 626–7 use-case analysis 627–34 stages in 631–4 web site flow 643 web site implementation 681–97 acquisition method 684–6 budgeting 724–6 changeover 695–7 content management systems 691 selecting 691–3 developing content and services 686–93 frameworks and servers 690–1 risks 681 software for 689–93 standards for 687–8 testing 694–5 web site map 635 web site navigation schemes 643–5 web site organization 643 web site performance 703–32 management principles 704–5 web site personality 642–3 web site sponsorship 81 web site style 642 web sites timeline web technologies, evolution of 25 web technology 124–8 Webster, F 494 Welch, Jack 12 Wells Fargo Financial (case study) 570–1 Wheelwright, S 357 Whinston, A 10 whitelist 666 Whiteman, N 516–17 widgets 22, 107–9, 135–6 Wigand, R 354 Wiki 148, 149 Wikinomics 488 Wikipedia 488 Wilcocks, L 568 Willcocks, L 319 Williams, Anthony 488 Williams, Evan 158–9 Wilson, H 67, 71, 296, 417, 443, 709 Wind, Y 494 Windham, L 526 Winters, J 631 wireframes in web design 636 wireless access devices 179 wireless application protocol (WAP) 178 wireless communications wireless fidelity (Wi-Fi) mobile access 182 wireless internet access standards 178 Wisner, J 706, 707 Wodtke, C 636 Womack, J 351, 352 Wood, S 285, 574, 590, 594, 636, 667, 685 Wookey, John 174–6 workflow management (WFM) 609 World Wide Web 4, 114, 124 World Wide Web Consortium 155 Worldwide Universities Network 355 worm 658 Wurster, T.S 29–30, 68, 463 Y Yahoo! 82, 307 Yen, J 358 Z Zanzibar Managed Services 405 Zeldman, Jeffrey 687 Zipf, George K 450–1 Zopa 488 new business model (case study) 95–8 Zuckerberg, Mark 17 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 ... whole (Chapter 5), with an emphasis on buy-side e-commerce (Chapters and 7) and sell-side e-commerce (Chapters and 9) E-business strategy p 25 5 What is e-business strategy? Strategic analysis Strategic... M05_CHAF9601_04_SE_C05.QXD:D01_CHAF7409_04_SE_C01.QXD 26 2 16/4/09 11: 12 Page 26 2 Part Strategy and applications Corporate strategy Constraints and opportunities Objectives E-business strategy Chapters and Buy-side e-commerce SCM strategy... set-up costs and technical feasibility, ongoing costs and business and implementation risks Agency resource (cost/time) ( 0 -2 0) Set-up costs and technical feasibility ( 0 -2 0) Ongoing costs ( 0 -2 0)