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E-business and e-commerce management
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An imprint of www.pearson-books.com
E-Business and
E-Commerce
Management
Dave Chaffey
Strategy, Implementation and Practice
Fourth Edition
E-Busin
ess and
E-Comm
e
rce
Manag
e
m
ent Chaff
e
y
Fourth
Edition
What approach to e-business strategy should you follow? How much do 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.
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.
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.
‘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.’
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
Additional learning resources are online at
www.pearsoned.co.uk/chaffey
CVR_CHAFF9601_04_SE_CVR.indd 1 8/4/09 09:31:49
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 15:29 Page i
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
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To find out more about the complete range of our
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A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 10:59 Page ii
STRATEGY, IMPLEMENTATION AND PRACTICE
Dave Chaffey
Fourth Edition
E-BUSINESS AND
E-COMMERCE
MANAGEMENT
A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 10:59 Page iii
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) 1. Electronic commerce.
2. Business enterprises--Computer networks. I. Title. II. Title:
Ebusiness and ecommerce management.
HF5548.32.C472 2009
658.8'72--dc22
2009009561
10 9 8 7 6 5 4 3 2 1
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 iv
Preface xiii
Guided tour xxiv
Author’s acknowledgements xxvi
Publishers acknowledgements xxvii
1 Introduction to e-business and e-commerce 3
2 E-commerce fundamentals 51
3 E-business infrastructure 103
4 E-environment 192
5 E-business strategy 255
6 Supply chain management 330
7 E-procurement 380
8 E-marketing 412
9 Customer relationship management 481
10 Change management 560
11 Analysis and design 604
12 Implementation and maintenance 680
Glossary 736
Index 754
Part 3 Implementation 559
Part 2 Strategy and applications 253
Introduction 1
Brief contents
Part 1
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A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 10:59 Page vi
Preface xiii
Guided tour xxiv
About the author xxvi
Author’s acknowledgements xxvii
Publisher’s acknowledgements xxvii
1 Introduction to e-business and e-commerce 3
Learning outcomes / Management issues 3
Links to other chapters 3
Introduction 4
The impact of the electronic communications on
traditional businesses 6
Real-world E-Business: HP.com 7
What is the difference between e-commerce and
e-business? 9
E-commerce defined 10
E-business defined 13
Case Study 1.1 A short history of Facebook 17
Business or consumer models of e-commerce
transactions 26
E-business opportunities 29
Business adoption of digital technologies for
e-commerce and e-business 30
Drivers of business Internet adoption 30
Case Study 1.2 North West Supplies extends its
reach online 33
E-business risks and barriers to business adoption 35
Evaluating an organization’s e-business capabilities 36
Drivers of consumer Internet adoption 37
Barriers to consumer Internet adoption 39
Management responses to e-commerce and
e-business 39
Part 1: Introduction 39
Part 2: Strategy and applications 40
Part 3: Implementation 42
Case Study 1.3 eBay – the world’s largest
e-business 42
Summary 46
Exercises 46
References 48
Further reading 49
Web links 49
2 E-commerce fundamentals 51
Learning outcomes / Management issues 51
Links to other chapters 51
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
3 E-business infrastructure 103
Learning outcomes / Management issues 103
Links to other chapters 103
Introduction 104
E-business infrastructure components 105
Real-world E-Business: Random House 107
Internet technology 109
Hosting of web sites and e-business services 110
The Internet timeline 111
Just how big is the Internet? 114
Case Study 3.1 Innovation at Google 115
Intranets and extranets 116
Web technology 124
Internet-access software applications 128
Blogs and blogging 129
Electronic mail or e-mail 131
Feeds 132
Voice over IP (VoIP) 134
Part 1
Introduction 1
Contents
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How does it work? Internet standards 136
Networking standards 136
The HTTP protocol 138
Uniform resource locators (URLs) 139
Domain names 139
Web presentation and data exchange standards 141
Audio and video standards 152
Focus on Internet governance 152
Managing e-business infrastructure 158
Managing hardware and systems software
infrastructure 159
Managing Internet service and hosting providers 160
Managing employee access to the Internet and
e-mail 165
Managing e-business applications infrastructure 165
Focus on web services, SaaS and service-oriented
architecture (SOA) 168
Benefits of web services or SaaS 168
Challenges of deploying SaaS 169
Case Study 3.2 New architecture or just new
hype? 174
EDI 176
Focus on mobile commerce 177
Wireless Internet access standards 178
Wireless access devices 179
Popularity of mobile applications 179
Summary 186
Exercises 187
References 188
Further reading 190
Web links 190
4 E-environment 192
Learning outcomes / Management issues 192
Links to other chapters 192
Introduction 193
Real-world E-Business: GD Worldwide 196
Social and legal factors 198
Factors governing e-commerce service adoption 198
Privacy and trust in e-commerce 209
Other e-commerce legislation 222
Environmental and green issues related to Internet
usage 227
Taxation 229
Freedom-restrictive legislation 231
Economic and competitive factors 232
Focus on e-commerce and globalization 233
Case Study 4.1 The implications of globalization
for consumer attitudes 235
The implications of e-commerce for international
B2B trading 236
Political factors 238
Internet governance 239
E-government 240
Technological innovation and technology assessment 241
Approaches to identifying emerging technology 244
Summary 246
Exercises 246
References 247
Further reading 249
Web links 249
5 E-business strategy 255
Learning outcomes / Management issues 255
Links to other chapters 255
Introduction 256
Real-world E-Business: Standard Life 256
What is e-business strategy? 259
The imperative for e-business strategy 261
E-channel strategies 262
Strategy process models for e-business 264
Strategic analysis 269
Resource and process analysis 269
Competitive environment analysis 276
Assessing competitive threats 276
Co-opetion 281
Competitor analysis 281
Strategic objectives 281
Defining vision and mission 282
How can e-business create business value? 285
Case Study 5.1 Capital One creates value
through e-business 286
Objective setting 287
Case Study 5.2 Setting the Internet revenue
contribution at Sandvik Steel 292
Strategy definition 295
Decision 1: E-business channel priorities 298
Decision 2: Market and product development
strategies 300
Decision 3: Positioning and differentiation
strategies 303
Decision 4: Business, service and revenue models 306
Decision 5: Marketplace restructuring 308
Decision 6: Supply-chain management capabilities 309
Decision 7: Internal knowledge management
capabilities 310
Decision 8: Organizational resourcing and
capabilities 310
Strategy implementation 313
Failed e-business strategies 314
E-business strategy implementation success
factors for SMEs 315
Case Study 5.3 Boo hoo – learning from the
largest European dot-com failure 316
Focus on information systems strategy and
e-business strategy 319
Elements of IS strategy 320
Investment appraisal 320
Summary 324
Exercises 325
References 326
Further reading 328
Web links 329
Part 2
Strategy and applications 253
viii Contents
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6 Supply chain management 330
Learning outcomes / Management issues 330
Links to other chapters 330
Introduction 331
Problems of supply chain management 334
What is supply chain management? 335
Using technology to support supply chain
management – an example 337
A simple model of a supply chain 340
Case Study 6.1 Shell chemicals redefines its
customers’ supply chains 341
What is logistics? 345
Push and pull supply chain models 347
Focus on the value chain 348
Restructuring the internal value chain 350
The value stream 351
Value chain analysis 351
Value networks 352
Towards the virtual organization 354
Options for restructuring the supply chain 356
Using e-business to restructure the supply chain 358
Technology options and standards for supply
chain management 359
Adoption rates of e-business applications 360
Case Study 6.2 Tesco develops a buy-side
e-commerce system for supply chain management 363
IS-supported downstream supply chain
management 365
Outbound logistics management 365
IS infrastructure for supply chain management 366
Supply chain management implementation 368
Data standardization and exchange 368
Human resources requirements of SCM 369
The supply chain management strategy process 371
Managing partnerships 372
Managing global distribution 374
Case Study 6.3 RFID: keeping track starts its
move to a faster track 374
Summary 375
Exercises 376
References 377
Further reading 379
Web links 379
7 E-procurement 380
Learning outcomes / Management issues 380
Links to other chapters 380
Introduction 381
What is e-procurement? 381
Understanding the procurement process 384
Types of procurement 385
Participants in online procurement 386
Drivers of e-procurement 387
Case Study 7.1 Cambridge Consultants reduce
costs through e-procurement 388
Focus on estimating e-procurement cost 390
The impact of cost savings on profitability 391
Risks and impacts of e-procurement 392
Organizational risks 393
Failure to achieve real cost reductions 393
Technology risks 394
Implementing e-procurement 394
The growth in adoption of web-enabled
e-procurement 396
Integrating company systems with supplier
systems 397
Focus on electronic B2B marketplaces 400
Case Study 7.2 Covisint – a typical history of a
B2B marketplace? 403
Types of marketplace 405
The future of e-procurement? 407
Summary 407
Exercises 408
References 409
Further reading 410
Web links 410
8 E-marketing 412
Learning outcomes / Management issues 412
Links to other chapters 412
Introduction 413
Chapter structure 414
Real-world E-Business: Guess 415
What is e-marketing? 416
Marketing defined 416
E-marketing defined 417
Distinguishing between e-marketing, e-business
and e-commerce 417
E-marketing planning 418
Is a separate e-marketing plan required? 418
Situation analysis 420
Demand analysis 421
Competitor analysis 425
Intermediary analysis 427
Internal marketing audit 428
Objective setting 428
Case Study 8.1 The e-volution of easyJet’s online
revenue contribution 431
Strategy 433
Market and product positioning 436
Target market strategies 437
Focus on characteristics of new-media marketing
communications 443
Tactics 448
Product 451
Case Study 8.2 Dell gets closer to its customers
online 453
Price 456
Place 460
Promotion 462
People, Process and Physical evidence 464
Focus on online branding 464
The importance of brand online 467
Actions 469
Control 470
Case Study 8.3 The new Napster changes the
music marketing mix 471
Contents ix
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Summary 475
Exercises 476
References 477
Further reading 479
Web links 480
9 Customer relationship management 481
Learning outcomes / Management issues 481
Links to other chapters 481
Introduction 482
Marketing applications of CRM 483
Real-world E-Business: Warner Breaks 484
What is e-CRM? 486
Benefits of e-CRM 487
Permission marketing 488
Customer profiling 490
Conversion marketing 491
The online buying process 492
Differences in buyer behaviour in target markets 493
Differences between B2C and B2B buyer
behaviour 493
The net promoter score 495
Customer acquisition management 498
Focus on marketing communications for customer
acquisition 498
The characteristics of interactive marketing
communications 499
Assessing marketing communications effectiveness 502
Online marketing communications 503
Customer retention management 526
Personalization and mass customization 528
Online communities 530
Techniques for managing customer activity and
value 533
Lifetime value modelling 534
Focus on excelling in e-commerce service quality 536
Improving online service quality 536
Customer extension 539
Advanced online segmentation and targeting
techniques 540
Technology solutions for CRM 546
Types of CRM applications 547
Integration with back-office systems 547
The choice of single-vendor solutions or a more
fragmented choice 548
Data quality 549
Case Study 9.1 Tesco.com increases product
range and uses triggered communications to
support CRM 549
Summary 552
Exercises 552
References 553
Further reading 556
Web links 557
10 Change management 560
Learning outcomes / Management issues 560
Links to other chapters 560
Introduction 561
The challenges of e-business transformation 561
The challenges of sell-side e-commerce
implementation 563
Different types of change in business 566
Case Study 10.1 Process management: making
complex business simpler 570
Planning change 572
The imperative for project governance? 572
The project plan and schedule for an e-business
system 574
Prototyping 576
Human resource requirements 579
Staff retention 580
Outsourcing 581
Revising organizational structures 583
Approaches to managing change 586
Senior management involvement 586
Models for achieving change 586
Organizational culture 588
Focus on knowledge management 590
What is knowledge? 590
Objectives of knowledge management 592
Implementing knowledge management 593
Technologies for implementing knowledge
management 594
Case Study 10.2 Using Web 2.0 tools to support
knowledge management at Janssen-Cillag Australia 596
Risk management 598
Summary 600
Exercises 600
References 601
Further reading 603
Web links 603
11 Analysis and design 604
Learning outcomes / Management issues 604
Links to other chapters 604
Introduction 605
Real-world E-Business: Arena Flowers 606
Analysis for e-business 608
Workflow management 609
Process modelling 610
Process mapping 610
Task analysis and task decomposition 610
Process dependencies 612
Validating a new process model 618
Part 3
Implementation 559
x Contents
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Data modelling 619
Design for e-business 621
Architectural design of e-business systems 621
Focus on user-centred site design 623
Use-case analysis 627
Designing the information architecture 634
Customer orientation 639
Elements of site design 641
Web accessibility 646
Case Study 11.1 Dabs.com refines its web store 649
Focus on security design for e-business 652
Managing computer viruses 658
Controlling information service usage 660
Monitoring of electronic communications 660
E-mail management 665
Hacking 669
Secure e-commerce transactions 671
Approaches to developing secure systems 671
Current approaches to e-commerce security 673
Reassuring the customer 674
Case Study 11.2 Building an e-business fortress 674
Summary 675
Exercises 676
References 677
Further reading 679
Web links 679
12 Implementation and maintenance 680
Learning outcomes / Management issues 680
Links to other chapters 680
Introduction 681
Real-world E-Business: Thomas Cook 682
Alternatives for acquiring e-business systems 684
Development of web-based content and services 686
Creating static web content 686
Software and services for web-site development
and testing 689
Testing 694
The testing process 694
Testing environments 695
Changeover 695
Database creation and data migration 696
Deployment planning 697
Content management and maintenance 697
Frequency and scope of content updating 697
Maintenance process and responsibilities 699
Focus on measuring and improving performance of
e-business systems 703
Principles of performance management and
improvement 704
Stage 1: Creating a performance management
system 705
Stage 2: Defining the performance metrics
framework 706
Stage 3: Tools and techniques for collecting
metrics and summarizing results 711
Budgeting 724
Case Study 12.1 Learning from Amazon’s culture
of metrics 726
Summary 732
Exercises 732
References 733
Further reading 734
Web links 735
Glossary 736
Index 754
Contents xi
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Supporting resources
Visit www.pearsoned.co.uk/chaffey to find valuable online resources
Companion Website for students
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
For instructors
Complete, downloadable Instructor’s Manual
PowerPoint slides that can be downloaded and used for presentations
Testbank of question material
Also: The Companion Website provides the following features:
Search tool to help locate specific items of content
E-mail results and profile tools to send results of quizzes to instructors
Online help and support to assist with website usage and troubleshooting
For more information please contact your local Pearson Education sales representative or visit
www.pearsoned.co.uk/chaffey
A01_CHAF9601_04_SE_FM.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 10:59 Page xii
Preface
In 1849 a group of settlers travelling west towards the promised land, California, entered a
then unnamed valley. The valley presented a harsh environment with a barrier of mountains
to the west making the way forward unclear. Some of the settlers lost their lives as they
sought to find a route west before eventually reaching California and what was to become
one of the most prosperous places on Earth. As the group left the valley, one of the women
in the group turned and said ‘Goodbye, Death Valley’ and hence the valley got its name. The
route to e-business success is also not straightforward and similarly fraught with difficulties
of selecting the correct strategic direction and surviving in an increasingly harsh competitive
environment. Not all who follow the route survive. However, the competitive drivers to
follow this route, such as demand from customers and adoption by competitors, make this
journey essential. The rewards are evident from those adopters who identified the opportunity early and steered their companies in the right direction.
But the journey to e-business can never be completed, because of the relentless evolution
in technology and new commercial approaches which exploit it. Smart e-businesses have an
agile approach which enables them to review and select the appropriate technologies at the
right time.
Flagship e-businesses with headquarters in California such as eBay and Google.com are
now leading global brands with turnovers of billions of dollars, yet this has happened less
than 300 years after the first modern settlers arrived.
This book is intended to equip current and future managers with some of the knowledge
and practical skills to help them navigate their organization towards e-business. It is your
guide to how all types of companies can prosper through e-business.
A primary aim of this book is to identify and review the key management decisions
required by organizations moving to e-business and consider the process by which these
decisions can be taken. Key questions are the following: What approach to e-business strategy do we follow? How much do we need to invest in e-business? Which processes should be
our e-business priorities? Should we adopt new business and revenue models? What are the
main changes that need to be made to the organization to facilitate e-business?
Given the broad scope of e-business, this book takes an integrative approach drawing on
new and existing approaches and models from many disciplines including information systems, strategy, marketing, supply and value chain management, operations and human
resources management.
As we will see in Chapter 1, electronic business (e-business) is aimed at enhancing the competitiveness of an organization by deploying innovative information and communications
technology throughout an organization and beyond, through links to partners and customers.
It does not simply involve using technology to automate existing processes, but should also
achieve process transformation by applying technology to help change these processes. To be
successful in managing e-business, a breadth of knowledge is needed of different business
processes and activities from across the value chain such as marketing and sales, through new
product development, manufacturing and inbound and outbound logistics. Organizations
also need to manage the change required by new processes and technology through what have
traditionally been support activities such as human resources management.
What is e-business management?
Electronic
commerce
(e-commerce)
All electronically mediated
information exchanges
between an organization
and its external stakeholders.
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xiv Preface
Supply chain management (SCM)
The coordination of all
supply activities of an
organization from its
suppliers and partners to
its customers.
Electronic
commerce
(e-commerce)
All electronically mediated
information exchanges
between an organization
and its external stakeholders.
Value chain
A model for analysis of
how supply chain activities can add value to
products and services
delivered to the customer.
Value networks
The links between an
organization and its
strategic and nonstrategic partners that
form its external value
chain.
From this definition, it is apparent that e-business involves looking at how electronic
communications can be used to enhance all aspects of an organization’s supply chain management. It also involves optimizing an organization’s value chain, a related concept that
describes the different value-adding activities that connect a company’s supply side with its
demand side. The e-business era also involves management of a network of interrelated
value chains or value networks.
To this point we have exclusively used the term ‘e-business’, but what of ‘e-commerce’? Both
these terms are applied in a variety of ways; to some they mean the same, to others they are
quite different. As explained in Chapter 1, what is most important is that they are applied
consistently within organizations so that employees and external stakeholders are clear
about how the organization can exploit electronic communications. The distinction made in
this book is to use ‘electronic commerce’ (e-commerce) to refer to all types of electronic
transactions between organizations and stakeholders whether they are financial transactions
or exchanges of information or other services. These e-commerce transactions are either
buy-side e-commerce or sell-side e-commerce and the management issues involved with
each aspect are considered separately in Part 2 of the book. ‘E-business’ is applied as a
broader term encompassing e-commerce but also including all electronic transactions
within an organization.
Management of e-commerce involves prioritizing buy-side and sell-side activities and
putting in place the plans and resources to deliver the identified benefits. These plans need
to focus on management of the many risks to success, some of which you may have experienced when using e-commerce sites, from technical problems such as transactions that fail,
sites that are difficult to use or are too slow, through to problems with customer service or
fulfilment, which also indicate failure of management.
The overall structure of the book shown in Figure P.1 follows a logical sequence: introducing
e-business terms, concepts and history of development in Part 1; reviewing alternative
strategic approaches and applications of e-business in Part 2; and how strategy can be
implemented in Part 3. Within this overall structure, differences in how electronic communications are used to support different business processes are considered separately. This
is achieved by distinguishing between how electronic communications are used, from buyside e-commerce aspects of supply chain management in Chapters 6 and 7, to the marketing
perspective of sell-side e-commerce in Chapters 8 and 9. Figure P.1 shows the emphasis of
perspective for the particular chapters.
Part 1: Introduction (Chapters 1–4)
Part 1 introduces e-business and e-commerce. It seeks to clarify basic terms and concepts by
looking at different interpretations of terms and applications through case studies.
Chapter 1: Introduction to e-business and e-commerce. Definition of the meaning and scope
of e-business and e-commerce. Introduction to business use of the Internet – what are the
benefits and barriers to adoption and how widely used is it?
How is this book structured?
What is e-commerce management?
Electronic business
(e-business)
All electronically mediated
information exchanges,
both within an organization and with external
stakeholders supporting
the range of business
processes.
Buy-side
e-commerce
E-commerce transactions
between an organization
and its suppliers and
other partners.
Sell-side
e-commerce
E-commerce transactions
between an organization
and its customers.
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