Electronic Commerce 2002: A Managerial Perspective

by Turban, Efraim; King, David; Lee, Jae; Warkentin, Merrill; Chung, H. Michael

• ISBN13: 9780130653017
• ISBN10: 0130653012
• Edition: 2nd
• Format: Hardcover
• Copyright: 2002-01-01
• Publisher: Pearson College Div

Summary

For one/two-semester courses in Electronic Commerce. One of the first texts entirely dedicated to EC, this comprehensive, user-friendly text describes what electronic commerce is; how it is being conducted and managed; and its major opportunities, limitations, issues, and risks. With a blend of theory and practical application, this text is structured around the notion that EC applications require certain technological infrastructures and other support mechanisms. It recognizes that e-business has two parts: business and technology.

Table of Contents

PART ONE A Real Revolution	1	(82)
Overview of Electronic Commerce	1	(42)
Qantas Airways-A New Way to Compete	2	(1)
Definitions	3	(8)
Electronic Commerce Terms	4	(2)
Business Models	6	(3)
Electronic Markets	9	(2)
Interorganizational Information Systems	11	(1)
The EC Field	11	(5)
An EC Framework	11	(2)
Classification of the EC Field by the Nature of the Transactions	13	(1)
A Brief History of EC	14	(1)
The Interdisciplinary Nature of EC	14	(1)
EC Failures	15	(1)
The Future of EC	16	(1)
Business Pressures, Organizational Responses, and E-Commerce	16	(9)
The New World of Business	16	(1)
Business Pressures	17	(1)
Organizational Responses	18	(3)
IT Support and EC	21	(4)
Benefits and Limitations	25	(4)
The Benefits of EC	25	(2)
The Limitations of EC	27	(2)
Putting it all Together	29	(1)
Managerial Issues	29	(2)
Text Overview	31	(12)
Part I-A Real Revolution	31	(1)
Part II-Internet Marketing	32	(1)
Part III-Business-to-Business EC	32	(1)
Part IV-Other EC Models and Applications	33	(1)
Part V-Building EC Systems	33	(1)
Part VI-Implementing EC	33	(1)
Appendices	33	(1)
Summary	33	(1)
Key Terms	34	(1)
Questions for Review	34	(1)
Questions for Discussion	35	(1)
Internet Exercises	35	(1)
Team Assignments and Role Playing	36	(1)
Real-World Case: E-commerce Cures Hospitals	37	(1)
References and Bibliography	38	(2)
Appendix IA: Building the Supply Chain	40	(3)
The Digital Economy	43	(40)
Rosenbluth International-A New Way to Compete	43	(1)
The Digital Economy-An Overview	44	(2)
The Digital Economy Defined	45	(1)
Marketspaces VS. Marketplaces	46	(2)
The Components of Digital Ecosystems	48	(2)
Competition in Marketspaces	50	(3)
Competition in the Internet Ecosystem	51	(2)
Issues and Success Factors in the Digital Economy	53	(6)
The Need for a Critical Mass of Buyers and Sellers	54	(1)
Quality Uncertainty and Quality Assurance	55	(1)
Pricing on the Internet	56	(1)
Economic Effects of EC	57	(1)
Contributors to Electronic Market Success	58	(1)
Impacts on Trading Processes, Intermediaries, and Others	59	(8)
Industry Structure	59	(2)
The Roles and Value of Intermediaries in E-Markets	61	(1)
Disintermediation and Reintermediation	62	(1)
Syndication	63	(1)
The Internet and the Value Chain	63	(2)
Potential Winners and Losers in EC	65	(2)
Impacts on Business Processes and Organizations	67	(7)
Improving Direct Marketing	67	(1)
Other Market-Related Impacts	68	(1)
Transforming Organizations	69	(1)
Redefining Organizations	69	(2)
Impacts on Manufacturing	71	(1)
Impact on Finance and Accounting	72	(1)
Human Resource Management, Training, and Education	73	(1)
Mobile Commerce	74	(1)
Applications of M-Commerce	74	(1)
Managerial Issues	75	(8)
Summary	76	(1)
Key Terms	77	(1)
Questions for Review	77	(1)
Questions for Discussion	78	(1)
Internet Exercises	78	(1)
Team Assignments and Role Playing	79	(1)
Real-World Case: How a Singaporean Hotel Transformed Itself to the Digital Economy	80	(1)
References and Bibliography	81	(2)
PART TWO B2C EC-Internet Marketing	83	(132)
Retailing in Electronic Commerce (E-Tailing)	83	(35)
Amazon.com	84	(1)
Electronic Retailing (E-Tailing) and B2C Market Growth	85	(2)
Characteristics of Goods Leading to Higher Online Sales Volumes	87	(1)
Consumer Purchase Process and the Marketing Plan	87	(4)
Types of Online Shoppers	89	(1)
Decision Criteria	89	(1)
A Market Plan	90	(1)
Online Purchase Decision AIDS	91	(2)
Shopping Portals	91	(1)
Shopbots and Agents	92	(1)
Business Ratings Sites	92	(1)
Trust Verification Sites	92	(1)
Other Shopping Tools	93	(1)
E-Tailing Business Models	93	(6)
Direct Marketing	94	(4)
Pure-Play E-Tailers	98	(1)
Traditional Retailers with Web Sites	98	(1)
On-Demand Delivery Services: Grocery Market Case	99	(1)
On-Demand Delivery Service (ODDS) Model	99	(1)
Digital Delivery: Music, Software, News, and More	100	(3)
Napster Experience	101	(1)
New Developments	102	(1)
Successful Click-and-Mortar Strategies	103	(3)
Transform to Click-and-Mortal Retailer: Circuit City Case	104	(1)
Alliance of Pure-Player with Traditional Retailer: Amazon and Toys R Us Case	105	(1)
Disintermediation, Reintermediary, Channel Conflict, and Personalization	106	(1)
Disintermediation and Reintermediaries	106	(1)
Channel Conflict	106	(1)
Personalization	107	(1)
Problems with E-Tailing and Lessons Learned	107	(1)
Managerial Issues	108	(10)
Summary	112	(1)
Key Terms	113	(1)
Questions for Review	113	(1)
Questions for Discussion	113	(1)
Internet Exercises	114	(1)
Team Assignments and Role Playing	115	(1)
Real-World Case: Walmart.Com	116	(1)
References and Bibliography	116	(2)
Internet Consumers, E-Service, and Market Research	118	(55)
Building Customer Relationships: Ritchey Design, Inc.	119	(1)
Consumer Behavior Online	119	(3)
Consumer Behavior	120	(1)
Consumer Types	120	(2)
Direct Sales, Intermediation, and Customer Relations	122	(1)
Personal Characteristics and Demographics of Internet Surfers	122	(3)
Environmental Variables	122	(1)
Personal Characteristics and Personal Differences	123	(2)
Consumer Purchasing Decision Making	125	(2)
The Purchasing Decision-Making Model	125	(1)
The Customer Decision Model in Web Purchasing	126	(1)
A Model of Internet Consumer Satisfaction	126	(1)
Matching Products with Customers: Personalization	127	(7)
One-on-One Marketing: An Overview	127	(2)
Issues in EC-Based One-to-One Marketing	129	(4)
Personalization	133	(1)
Delivering Customer Service in Cyberspace and CRM	134	(9)
E-Service	135	(1)
Product Life Cycle and Customer Service	135	(1)
Customer Relationship Management (CRM)	136	(1)
Customer Service Functions	136	(2)
Customer Service Tools	138	(4)
Justifying Customer Service and CRM Programs	142	(1)
Examples of Superb Customer Service	143	(1)
Market Research for EC	143	(11)
Market Segmentation	145	(2)
Conducting Online Market Research	147	(2)
Online Market Research Methods	149	(2)
Limitations of Online Research	151	(1)
Data Mining	151	(3)
Intelligent Agents in Customer-Related Applications	154	(19)
A Framework for Classifying EC Agents	155	(1)
Need Identification	156	(1)
Product Brokering	156	(1)
Merchant Brokering	157	(1)
Negotiation	157	(1)
Purchase and Delivery	158	(1)
After Sale Service and Evaluation	158	(1)
Other EC Agents	159	(2)
Management Issues	161	(2)
Summary	163	(1)
Key Terms	164	(1)
Questions for Review	164	(1)
Questions for Discussion	164	(1)
Internet Exercises	165	(1)
Team Assignments and Role Playing	166	(1)
Real-World Case: Kansas City Power and Light Company	167	(1)
References and Bibliography	168	(3)
Appendix 4A: Examples of an Online Market Research Tool for Segmentation	171	(2)
Advertisement in Electronic Commerce	173	(42)
Advertisement in the Digital Economy: Illustrative Examples	174	(1)
Web Advertisement	174	(6)
An Overview	174	(1)
Internet Advertising Terminology	175	(1)
Why Internet Advertisement?	176	(1)
The Internet Versus Traditional Methods	177	(1)
Combining Advertising Media	177	(1)
Objectives and Growth of Internet Advertisement	178	(1)
Targeted (One-to-One) Advertisements	179	(1)
Advertisement Methods	180	(6)
Banners	180	(2)
Standard and Classified Ads	182	(1)
E-Mail	183	(1)
Mobile Phones	184	(1)
Splash Screen	184	(1)
Spot Leasing	184	(1)
URL (Universal Resource Locators)	184	(1)
Chat Rooms	185	(1)
Other Forms of Advertisement	186	(1)
Advertisement Strategies	186	(7)
Considerations in Internet-Based Ad Design	186	(1)
Pull (Passive) Strategy	187	(1)
Push (Active) Strategy	187	(1)
Associated Ad-Display Strategy	188	(1)
Ads as a Commodity	188	(1)
Viral Marketing	188	(2)
Implementing the Strategy	190	(1)
Online Events, Promotions, and Attractions	191	(2)
Push Technology and Intelligent Agents	193	(2)
Push Technology	193	(1)
Intelligent Agents	194	(1)
Effectiveness and Pricing Advertisements	195	(2)
Exposure Models That Are Based on Ad Views	196	(1)
Click-Through	196	(1)
Interactivity	196	(1)
Actual Purchase	197	(1)
Other Methods	197	(1)
Using Online Catalogs for Advertisement	197	(4)
Evolution of Online Catalogs	198	(1)
Comparison of Online Catalogs with Paper Catalogs	198	(2)
Customized Catalogs	200	(1)
Special Advertisement Topics	201	(4)
How Much to Advertise	201	(1)
Permission Advertisement	202	(1)
Measuring, Auditing, and Analyzing Web Traffic	202	(2)
Internet Ad Standards	204	(1)
Localization	204	(1)
The Major Web Ad Players	205	(1)
Managerial Issues	205	(10)
Summary	206	(1)
Key Terms	207	(1)
Questions for Review	208	(1)
Questions for Discussion	208	(1)
Internet Exercises	209	(1)
Team Assignments and Role Playing	210	(2)
Real-World Case: Chevron's World of Car Characters	212	(1)
References and Bibliography	213	(2)
PART THREE B2B EC	215	(136)
Company-Centric B2B	215	(48)
General Motors' B2B Initiatives	216	(1)
Concepts and Characteristics of the B2B EC	217	(3)
B2B Basic Concepts	217	(2)
Supply Chain Relationships	219	(1)
Entities of B2B	219	(1)
Information Processed in B2B	219	(1)
Electronic Intermediaries in B2B	220	(1)
Benefits of B2B Models	220	(1)
B2B Models	220	(2)
Company-Centric Models (One-to-Many, Many-to-One)	220	(1)
Many-to-Many Marketplaces-The Exchange	220	(1)
Other B2B Models and Services	221	(1)
Vertical Versus Horizontal Marketplaces	221	(1)
Virtual Service Industries in B2B	221	(1)
Sell-Side Marketplaces: One-to-Many	222	(3)
Virtual Sellers	222	(1)
Customer Service	223	(1)
Direct Sales From Catalogs	224	(1)
Successful Cases and Benefits	224	(1)
Limitations	224	(1)
Selling Side: Auctions and Other Models	225	(1)
Selling from Own Site	225	(1)
Using Intermediaries	225	(1)
Searching and Reporting	226	(1)
Billing and Collection	226	(1)
Sell-Side Case: Cisco Connection Online (CCO)	226	(2)
Customer Service	226	(1)
Online Ordering	226	(1)
Order Status	227	(1)
Benefits to Cisco	227	(1)
Benefits to Customers	228	(1)
Sell-Side Intermediaries: Marshall Industries and Boeing's Part	228	(4)
Marshall Industries	228	(2)
Boeing's PART	230	(2)
Buy Side: One-From-Many, E-Procurement	232	(3)
Inefficiencies in Procurement Management of Indirect Materials	232	(1)
Innovative Procurement Management	232	(1)
The Goals of Procurement Reengineering	233	(1)
Buy-Side Marketplaces	234	(1)
Direct Versus Indirect Sourcing	235	(1)
Buy Side: Reverse Auctions	235	(2)
The Pre-Internet Reverse Auction Process	235	(1)
The Web-Based Reverse Auction Process	236	(1)
Managed Interactive Bidding	236	(1)
Procurement Revolution at General Electric	237	(2)
TPN at GE Lighting Division	237	(1)
Benefits of TPN	238	(1)
Benefits of Buyers	238	(1)
Benefits to Suppliers	239	(1)
Deployment Strategies	239	(1)
Aggregate Catalogs, Group Purchasing, and Bartering	239	(3)
Aggregating Suppliers' Catalogs: An Internal Marketplace	239	(1)
Group Purchasing	240	(1)
Electronic Bartering	241	(1)
Collaborative Commerce (C-Commerce)	242	(5)
Retailer-Supplier Collaboration: Hudson Dayton Case	244	(1)
Reduce Design Cycle Time by Connecting Suppliers: Adaptec. Inc.	245	(1)
Reduce Product Development Time by Connecting Suppliers: Caterpillar, Inc.	245	(1)
Other Examples of C-Commerce	246	(1)
Infrastructure, Integration, EDI, and B2B Agents	247	(3)
Extranet and EDI	247	(2)
Integration with Existing Information Systems	249	(1)
Integration with Business Partners	249	(1)
The Role of Software Agents for B2B EC	249	(1)
Implementation Issues	250	(1)
Justification and Prioritization	250	(1)
Vendor Selection	251	(1)
Affiliate Programs	251	(1)
Implementing E-Procurement	251	(1)
Managerial Issues	251	(12)
Summary	252	(1)
Key Terms	253	(1)
Questions for Review	253	(1)
Questions for Discussion	254	(1)
Internet Exercises	254	(1)
Team Assignments and Role Playing	255	(1)
Real-World Case: Eastman Chemical Makes Procurement A Strategic Advantage	256	(1)
References and Bibliography	257	(1)
Appendix 6A From Traditional to Internet-Based EDI	258	(5)
E-Marketplace and B2B Exchanges	263	(45)
Chemconnect and Covisint	264	(2)
B2B E-Marketplaces and Exchanges-An Overview	266	(4)
Classification of Exchanges	266	(2)
Dynamic Pricing	268	(1)
Ownership of Exchanges	268	(1)
Gains and Risks of B2B Exchange Participation	269	(1)
Governance	269	(1)
Organization of Exchanges	270	(1)
Information Portals	270	(3)
Thomas Register	271	(1)
Alibaba.com	271	(2)
More on Information Portals	273	(1)
Third-Party (Trading) Exchanges	273	(2)
Supplier Aggregation Model	273	(1)
Buyer Aggregation Model	274	(1)
Suitability of Third-Party Markets	274	(1)
Consortium Trading Exchanges	275	(3)
E-Procurement Consortia (Purchasing Oriented)	275	(1)
Selling-Oriented Consortia	276	(1)
Legal Challenges for B2B Consortia	277	(1)
The Critical Success Factors of Consortia	278	(1)
Dynamic Trading: Auctions and Matching	278	(2)
Auctions	278	(2)
Matching	280	(1)
Building and Integrating Marketplaces and Exchanges	280	(4)
A Possible Process for Building Vertical E-Marketplace	281	(1)
Integration	282	(2)
Managing Exchanges	284	(4)
Revenue Models	284	(1)
Networks of Exchanges	285	(1)
Centralized Management	286	(1)
Finding a CEO and Independent Management Team	286	(2)
Critical Success Factors	288	(2)
B2B Networks and Extranets	290	(3)
The Internet	290	(1)
Intranets: Intra-Business Delivery Systems	291	(1)
Extranets	291	(2)
Benefits of Extranets	293	(1)
Implementation Issues	293	(3)
Problems with Exchanges	293	(1)
Private Versus Public Exchanges	294	(1)
Software Agents in B2B Exchanges	295	(1)
Disintermediation	295	(1)
Evaluating Exchanges	295	(1)
Managerial Issues	296	(12)
Summary	296	(1)
Key Terms	297	(1)
Questions for Review	298	(1)
Questions for Discussion	298	(1)
Internet Exercises	299	(1)
Team Assignments and Role Playing	300	(2)
Real-Word Case: E-Steel.Com	302	(1)
References and Bibliography	303	(2)
Appendix 7A: The Extranet	305	(3)
B2B Support Services	308	(43)
HP Closes The Payment Gap in B2B E-Commerce	309	(1)
EC Services: Overview and Strategic Outsourcing	309	(4)
Why Outsource B2B Services?	310	(1)
Strategic Outsourcing	311	(2)
Consulting Services	313	(2)
Application-Building Services and Required Standards	315	(2)
Industry Standards-XML, XSL, and Support Organizations	316	(1)
Web Hosting and Other Services	317	(2)
Sources of Information About Web Hosting	319	(1)
Management Service Provider (MSP)	319	(1)
End-to-End Solutions	319	(1)
Financial B2B Services	319	(8)
Payments	319	(4)
Venture Capital to Fund E-Commerce Initiatives	323	(1)
Tax Calcualtion Services	324	(1)
Other Financial Services	325	(1)
Transaction-Based Financing at eRevenue.com	326	(1)
Order Fulfillment, Logistics, and Supply Chain Services	327	(1)
Marketing and Advertisement	328	(1)
Ad Server Network Provider	329	(1)
Electronic Wholesalers	329	(1)
Affiliate Programs, Informediaries, and Data Mining	329	(4)
Affiliate Programs	329	(1)
Infomediaries and Online Data Mining Services	330	(2)
Other Marketing Services	332	(1)
Content Generation, Syndication, Delivery, and Management	333	(4)
Syndication	333	(1)
Content-Delivery Networks (CDNs)	334	(1)
Catalog Content	334	(2)
Content Maximization and Streaming Services	336	(1)
Directory Services, Search Engines, and Newsletters	337	(2)
Directory Services	337	(1)
Search Engines and News Aggregators	338	(1)
Newsletters	338	(1)
E-Communities, and Partner Relationship Management	339	(1)
E-Communities	339	(1)
Partner Relationships Management (PRM)	339	(1)
Other B2B Services	340	(1)
Integration and Hypermediation	341	(2)
Integration in E-Marketplaces and Exchanges	341	(1)
Hypermediation	342	(1)
Managerial Issues	343	(8)
Summary	343	(1)
Key Terms	344	(1)
Questions for Review	345	(1)
Questions for Discussion	345	(1)
Internet Exercises	345	(1)
Team Assignments and Role Playing	346	(2)
Real-World Case: Commerce One and B2B Services	348	(1)
References and Bibliography	349	(2)
PART FOUR Other EC Models and Applications	351	(120)
Dynamic Pricing: Auctions and More	351	(40)
Electronic Auctions in Action	352	(1)
Fundamentals of Dynamic Pricing and Auctions	353	(5)
Definitions, Types, and Characters	353	(2)
Dynamic Pricing and Types of Auctions	355	(3)
Benefits, Limitations, and Economic Impacts	358
Benefits to Sellers	358	(1)
Benefits to Buyers	359
Benefits to E-Auctioneers	35+	(1)
Limitations	36+	(1)
Strategic Uses of Auctions and Pricing Mechanisms	36+	(1)
Impacts	36+	(1)
The ``Name-Your-Own-Price'' C2B Model	36+	(365)
The Priceline Model	36+	(364)
Other Models	364	(1)
The Auction Process and Software Support	365	(7)
Phase 1: Searching and Comparing	365	(3)
Phase 2: Getting Started at an Auction	368	(1)
Phase 3: The Actual Bidding	369	(1)
Phase 4: Post-Auction Follow-Up	370	(1)
Additional Terms and Rules	371	(1)
Auctions on Private Networks	372	(1)
Double Auctions, Bundle Trading, and Pricing Issues	372	(3)
Double Auctions	372	(2)
Bundle Trading	374	(1)
Prices in Auctions: Higher or Lower?	374	(1)
Fraud in Auctions and its Prevention	375	(2)
Types of E-Auction Fraud	375	(1)
Protecting Against E-Auction Fraud	376	(1)
Bartering Online	377	(1)
Negotiating and Bargaining Online	378	(2)
Technologies for Bargaining	378	(2)
Mobile Auctions and the Future of Auctions	380	(2)
Global Auctions	380	(1)
Selling Art Online on Real-Time Auctions	381	(1)
Strategic Alliances	381	(1)
Managerial Issues	382	(9)
Summary	384	(1)
Key Terms	384	(1)
Questions for Review	385	(1)
Questions for Discussion	385	(1)
Exercises	385	(1)
Internet Exercises	386
Team Assignments and Role Playing	384	(4)
Real-World Case: FreeMarkets.Com	388	(1)
References and Bibliography	389	(2)
Service Industries, Online Publishing, and Knowledge Dissemination	391	(44)
Ordering Journals Electronically At the University of California	392	(1)
Broker-Based Services	393	(1)
Service Industries Versus Manufacturing and Product Retailing	393	(1)
Travel and Tourism Services	394	(5)
Services Provided	394	(1)
Auctions, Bids, and Special Sales	394	(1)
Special Services	395	(1)
Benefits and Limitations	395	(1)
Corporate Travel	396	(1)
The Impact of EC on the Travel Industry (Both Online and Offline)	396	(2)
Intelligent Agents	398	(1)
Employment Placement and the Job Market	399	(5)
Driving Forces of the Electronic Job Market	399	(1)
The Internet Job Market	400	(1)
The Advantage of the Electronic Job Market	401	(1)
The Limitations of Electronic Job Markets	402	(1)
Examples of Online Job Services	402	(1)
Examples of Career Services on the Internet Comprehensive Job Sites	402	(1)
Intelligent Agents	403	(1)
Real Estate and Insurance Online	404	(3)
Real Estate Applications	405	(1)
Real Estate Mortgages	406	(1)
Insurance	406	(1)
Investing and Trading Stocks Online	407	(3)
Online Stock Trading	407	(1)
Investment Information	408	(1)
Initial Public Offerings (IPOs) and the Internet	409	(1)
Global Stock Exchanges	409	(1)
Related Markets	410	(1)
Individual Investors and Day Trading	410	(1)
Electronic Trading of Interest Rate Derivatives	410	(1)
Cyberbanking and Personal Finance	410	(6)
International and Multiple-Currency Banking	412	(1)
Implementation Issues in E-Banking and Online Stock Trading	413	(1)
The Future of Online Banking	414	(1)
Personal Finance Online	415	(1)
Online Billing	416	(1)
Online Publishing	416	(4)
Online Publishing Today and Tomorrow	417	(1)
Publishing Modes and Methods	417	(1)
Content Providers and Distributors	418	(1)
Publishing Music, Videos, and Games	418	(1)
Digital Delivery of Documents	418	(1)
Edutainment	419	(1)
Printing Online	419	(1)
Electronic Books	419	(1)
Knowledge Dissemination, Distance Learning, and Other Online Services	420	(3)
Virtual Teaching and Online Universities	420	(1)
Online Advice and Consulting	421	(1)
Other Services Online	422	(1)
Disintermediation and Reintermediation	423	(3)
Disintermediation in B2B	425	(1)
Cybernediation	425	(1)
Hypermediation	426	(1)
Managerial Issues	426	(9)
Summary	427	(1)
Key Terms	428	(1)
Questions for Review	428	(1)
Questions for Discussion	428	(1)
Internet Exercises	429	(2)
Team Assignments and Role Playing	431	(1)
Real-World Case: Web Takes Banking to Sea	432	(1)
References and Bibliography	432	(3)
Intrabusiness, E-Government and More	435	(36)
Business Intelligence Portal Speds Product Research and Developement (R&D) At Amway	436	(1)
Intrabusiness and Business-to-Employees (B2E) E-Commerce	437	(2)
Business to Its Employees (B2E)	437	(1)
Between and Among Units Within the Business	437	(2)
Between and Among Corporate Employees	439	(1)
Intranets	439	(3)
Internet Functionalities and Applications	442	(3)
Intranet Functionalities	442	(1)
Intranet Application Areas and Benefits	442	(1)
Industry-Specific Intranet Solutions	443	(1)
Intranet Case Studies	444	(1)
Enterprise (Corporate) Portals	445	(4)
Example of Intranet and a Portal: Cadence Design Systems	449	(2)
Business Challenge	450	(1)
The Solution: Intranet and Portal Technology	450	(1)
Lessons Learned	450	(1)
E-Government: An Overview	451	(1)
Scope and Definitions	451	(1)
Major Categories of Applications of E-Government	452	(4)
Government-to-Citizens	452	(1)
Government-to-Business and Business-to-Government	453	(2)
Government-to-Government	455	(1)
Government to Employees	455	(1)
Implementing E-Government	456	(3)
Deloitte's Transformation Process	456	(2)
Implementing G2B	458	(1)
Security Issues	459	(1)
Developing Portals	459	(1)
Non-Internet E-Government	459	(1)
Customer-to-Customer and Peer-to-Peer Applications	459	(4)
Customer-to-Customer E-Commerce	459	(1)
Peer-to-Peer Networks and Applications	460	(1)
P2P Applications in C2C	461	(1)
Commercial Applications in Business C2C	462	(1)
Managerial Issues	463	(8)
Summary	464	(1)
Key Terms	465	(1)
Questions for Review	465	(1)
Questions for Discussion	466	(1)
Exercises	466	(1)
Internet Exercises	466	(1)
Team Assignments and Role Playing	467	(1)
Real-World Case: E-Government Initiatives in Hong Kong	468	(2)
References and Bibliography	470	(1)
PART FIVE Building EC Systems	471	(202)
Building E-Commerce Applications and Infrastructure	471	(68)
Building EC Applications-Some Examples	472	(3)
The Landscape and the Framework of EC Application Development	475	(3)
The Development Process	475	(3)
Project Management	478	(1)
The Major EC Applications and Their Functionalities	478	(3)
Storefronts	478	(2)
E-Procurement and Reverse Auctions	480	(1)
Enterprise Portals	480	(1)
Exchanges	481	(1)
Developing an EC Architecture	481	(3)
Conclusion	483	(1)
Development Strategies for EC Applications: Available Options and Selection Methodology	484	(3)
Buy the Applications (Turnkey Approach)	484	(1)
Lease	484	(1)
In-House Development: Insourcing	485	(1)
Other Developing Options	486	(1)
Outsourcing and Application Service Providers	487	(3)
Outsourcing	487	(1)
Application Service Providers	488	(2)
Criteria for Selecting a Development Approach	490	(3)
Additional Criteria for Selecting an ASP Vendor	492	(1)
System Analysis Activities and Tools: What Managers Need to Know	493	(4)
Requirements Analysis	493	(1)
Modeling	493	(1)
Component-Based Development	493	(2)
Enterprise Application Integration	495	(2)
Electronic Catalogs, Shopping Carts, Web Chatting, Webcasting, and Internet Telephony	497	(3)
Electronic Catalogs, Shopping Carts, and Merchant Servers	497	(1)
Web Chatting	498	(1)
Webcasting	499	(1)
Internet Telephony	500	(1)
EC Suites	500	(3)
IBM WebSphere Commerce Suite	503	(1)
Connecting to Databases, Legacy Systems, and Business Partners	503	(2)
Connecting to Databases and Other Integration Issues	504	(1)
Connecting to Business Partners	505	(1)
Vendor and Software Selection	505	(4)
Identification of Suitable Packages	506	(1)
Determination of Evaluation Criteria	506	(1)
Evaluation of Candidate Packages	507	(1)
Choosing the Package	507	(1)
Contract Negotiation	508	(1)
Service Level Agreements	509	(1)
Conclusion	509	(1)
Site Management and Usage Analysis	509	(4)
Implementation of Evaluation Devices	510	(1)
Collecting and Analyzing Statistics	510	(1)
Usability	511	(2)
E-Commerce Management Tools	513	(1)
The Process of Storefront Development	513	(2)
Design Guidelines	514	(1)
Managerial Issues	515	(24)
Summary	516	(1)
Key Terms	517	(1)
Questions for Review	518	(1)
Questions for Discussion	518	(1)
Internet Exercises	518	(1)
Team Assignments and Role Playing	519	(2)
Real-World Case: Whirlpool's Trading Portal	521	(1)
References and Bibliography	522	(2)
Appendix 12A: Building an Application with Yahoo! Store	524	(15)
E-Commerce Security	539	(42)
Bringing Down An EC Site: Mere Child's Play	540	(2)
The Need For Security	542	(2)
Why Now?	544	(2)
Basic Security Issues	546	(2)
Security Risk Management	548	(4)
Types of Threats and Attacks	552	(11)
System and Software Bugs and Misconfigurations	555	(1)
Denial-of-Service (DoS) Attacks	555	(3)
Input Validation Attacks	558	(1)
Intercepted Transmissions	559	(1)
Malicious Code: Viruses, Worms, and Trojan Horses	560	(2)
Malicious Mobile Code	562	(1)
Security Technologies	563	(7)
Firewalls and Access Control	564	(4)
Virtual Private Networks (VPNs)	568	(1)
Intrusion Detection Systems (IDS)	569	(1)
Managerial Issues	570	(11)
Summary	572	(2)
Key Terms	574	(1)
Questions for Review	574	(1)
Questions for Discussion	575	(1)
Exercises	576	(1)
Team Assignments and Role Playing	577	(1)
Real-World Case: The Rise of Security Standards	578	(1)
References and Bibliography	579	(2)
Electronic Payment Systems	581	(51)
Lensdoc: Credit Card Dilemma	582	(1)
Electronic Payments: An Overview	583	(3)
Security for E-Payments	586	(9)
Public Key Infrastructure	587	(3)
Digital Signatures: Authenticity and Nondenial	590	(1)
Digital Certificates and Certificate Authorities (CAs)	591	(1)
Secure Socket Layer/Transport Layer Security	592	(1)
Secure Electronic Transactions	593	(2)
E-Cards	595	(10)
E-Wallets	598	(1)
Other Security Risks with Credit Cards	598	(1)
Purchase Cards	599	(2)
Smart Cards	601	(4)
E-Cash and Payment Card Alternatives	605	(7)
E-Cash and Credit Card Alternatives	605	(3)
Stored-Value Cards	608	(1)
E-Loyalty and Rewards Programs	609	(2)
Person-to-Person (P2P) Payments and Gifts	611	(1)
E-Checking	612	(4)
E-Billing	616	(4)
Managerial Issues	620	(12)
Summary	621	(3)
Key Terms	624	(1)
Questions for Review	625	(1)
Questions for Discussion	626	(1)
Exercises	626	(1)
Team Assignments and Role Playing	627	(1)
Real-World Case: InternetCash-Solving the Chicken-and-Egg Problem in Teenage Market	628	(2)
References and Bibliography	630	(2)
Order Fulfillment, Logistics, and Supply Chain Management	632	(41)
The Toy Order Fulfillment Y2K Problem	633	(1)
Order Fulfillment and Logistics-Overview	633	(6)
Introduction	633	(2)
Major Concepts	635	(1)
The Process of Order Fulfillment in EC	636	(3)
The Supply Chain and Its Management	639	(3)
Definitions	639	(1)
Benefits of SCM	640	(1)
Global Supply Chains	640	(2)
Typical Problems Along the Supply Chain	642	(1)
Overview	642	(1)
Typical Problems	642	(1)
The Bullwhip Effect and Information Sharing	643	(2)
Information Sharing Between Retailers and Their Suppliers	643	(2)
Solutions to Supply Chain Problems	645	(2)
Preliminaries	645	(1)
Using Inventories to Solve Supply Chain Shortages	646	(1)
EC Solutions Along the Supply Chain	647	(1)
Innovative Solutions to the Order Fulfillment Problem	647	(6)
Same Day, Even Same Hour Delivery	648	(1)
Order Fulfillment in B2B	649	(1)
E-Marketplaces and Exchanges	649	(3)
Automated Warehouses	652	(1)
Dealing with Returns	653	(1)
Outsourcing Logistics: The UPS Strategy	653	(2)
Software Support and Integration Along the Supply Chain	655	(3)
Software Support	655	(1)
Why Integration	656	(1)
Integrating the Supply Chain's Activities	657	(1)
Areas of Integration	658	(1)
Integrated Software Solutions: From MRP to ERP	658	(5)
The Evolution of Computerized Aids for SCM	659	(1)
Enterprise Recourse Planning (ERP)	659	(3)
Post-ERP (Second-Generation ERP)	662	(1)
ASPs and ERP Outsourcing	663	(1)
Managerial Issues	663	(10)
Summary	664	(1)
Key Terms	665	(1)
Questions for Review	665	(1)
Questions for Discussion	666	(1)
Internet Exercises	666	(1)
Team Assignments and Role Playing	667	(1)
Real-World Case: Quantum Corporation Streamlined Its Supply Chain	668	(2)
Real-World Case: How Dell Computer Provides Superb Customer Service	670	(1)
References and Bibliography	671	(2)
PART SIX Implementing EC	673	(203)
EC Strategy and Implementation	673	(57)
IBM'S E-Business Strategy	674	(1)
The Need for a Strategy	675	(2)
Why Does a Company Need an E-Strategy?	676	(1)
Essentials of a Business Strategy	677	(3)
Strategy Defined	677	(1)
Levels of Strategy	677	(1)
Types of Strategy	677	(1)
The Elements of a Strategy	678	(1)
Strategic Planning	679	(1)
The Strategy Landscape	679	(1)
Information Technology (IT) Strategy	680	(1)
E-Commerce Strategy	680	(1)
Strategy Initiation	680	(1)
Industry, Company, and Competitive Analysis	681	(5)
Industry Assessment	682	(1)
Company Assessment	682	(1)
Competitive Assessment	682	(4)
Issues in Strategy Initiation	686	(3)
To Be a First Mover or a Follower?	686	(1)
What Do You Need an EC for?	687	(1)
Going Global	688	(1)
Should You Have a Separate Online Company or Not?	688	(1)
Should You Merge?	689	(1)
Strategy Formulation	689	(1)
Critical Success Factors for EC	689	(1)
Discovering EC Opportunities and Deciding on a Portfolio	690	(5)
Uncovering Specific EC Opportunities and Applications	692	(1)
Determining an Appropriate EC Application Portfolio	693	(2)
Cost-Benefit and Risk Analysis	695	(6)
The Business Case for EC	695	(1)
Cost-Benefit and Risk Analysis	696	(4)
Risk Analysis	700	(1)
EC Scenarios	700	(1)
Strategic Planning Frameworks	701	(5)
EC Levels	701	(1)
Generic Competitive Strategy Versus Cooperative Strategy	702	(2)
Sviokla's Strategy	704	(1)
Mougayar's Approach: Questions that a Strategic Plan Should Answer	704	(1)
Ware et al.'s Seven-Step Model E-Strategy	705	(1)
The Strategic E-Breakout Methodology of Kettinger and Hackbarth	705	(1)
Issues in Strategy Formulation	706	(2)
EC Strategies in Small Businesses	706	(1)
How to Handle the Channel Conflicts	707	(1)
How to Handle the Conflict Between the Off-line and Online Businesses in a Click-and-Mortar Situation	707	(1)
Pricing Strategy	707	(1)
Where to Compete	707	(1)
Should You Get Financing from Big Venture Capital Firms?	708	(1)
Should You Join an Exchange? Which One?	708	(1)
Strategy Implementation and Project Management	708	(1)
Creating a Web Team and Assigning Functional Skills to Subprojects	708	(1)
A Pilot Project	709	(1)
Planning for Resources	709	(1)
Project Management	709	(1)
Other Implementation Issues	709	(1)
Issues in Strategy Implementation	709	(2)
Evaluating Outsourcing	710	(1)
Partners' Strategy	711	(1)
How to Coordinate B2B and B2C	711	(1)
Strategy and Project Assessment	711	(2)
Need for Assessment	712	(1)
Measuring Results	712	(1)
Finalization and Adjustments	712	(1)
EC Metrics	713	(2)
The Balanced Scorecard	714	(1)
EC Failures and Lessons Learned	715	(5)
E-Tailing Failures	716	(1)
Exchange Failures	717	(1)
EC Initiative Failures	717	(1)
Other Failures	717	(1)
EC and the Internet Doomed?	718	(1)
Success Stories and Recommendations for the Future	718	(2)
Managerial Issues	720	(10)
Summary	721	(1)
Key Terms	722	(1)
Questions for Review	722	(1)
Questions for Discussion	722	(1)
Internet Exercises	723	(1)
Team Assignments and Role Playing	724	(1)
Real-World Case: Skymall's EC Strategy	725	(2)
References and Bibliography	727	(3)
The Regulatory Environment of Electronic Commerce	730	(55)
EC-Related Legal Incidents	731	(1)
Ethics in EC	732	(4)
Legal and Ethical Issues: An Overview	733	(1)
Ethical Issues	734	(2)
Protecting Privacy	736	(9)
Privacy Issues	737	(1)
How Is Private Information Collected?	737	(2)
Privacy Protection Issues	739	(1)
Protecting Your Privacy	740	(5)
Protecting Intellectual Property and Domain Names	745	(8)
Domain Names-A Related Issue	745	(1)
Copyrights	745	(4)
Patents	749	(1)
Trademarks	750	(1)
Domain Names	751	(2)
Free Speech, Internet Indecency, Spamming, and Censorship	753	(5)
The Free Speech Versus Censorship Issues	753	(1)
Protecting Children	754	(3)
Controlling Spamming	757	(1)
Taxation	758	(2)
The Taxation Exemption Debate	758	(2)
Proposed Taxation Solutions in the United States	760	(1)
Other Legal Issues: Contracts, Online Gambling, and More	760	(3)
Electronic Contracts	761	(1)
Gambling	762	(1)
Computer Crimes	763	(3)
Legal Aspects	764	(2)
Consumer and Seller Protection in EC	766	(8)
Fraud on the Internet	766	(1)
Consumer Protection	767	(2)
Third-Party Services	769	(1)
Authentication and Biometric Controls	770	(2)
Seller's Protection	772	(1)
What Can Vendors Do?	773	(1)
Managerial Issues	774	(11)
Summary	775	(1)
Key Terms	776	(1)
Questions for Review	776	(1)
Questions for Discussion	776	(2)
Exercises and Debates	778	(1)
Internet Exercises	779	(1)
Team Assignments and Role Playing	780	(1)
Real-World Case: Gnutella Programs and Intellectual Property Payments	781	(1)
References and Bibliography	782	(3)
E-Communities, Global EC, and Other EC Issues	785	(38)
The Australian Fishing Community	786	(1)
Virtual Communities	786	(7)
Internet Communities	788	(2)
Commercial Aspects	790	(3)
Key Strategies for Successful Online Communities	793	(1)
Going Global	793	(8)
Overview	794	(1)
The Global Trading Exchange	794	(1)
Barriers to Global EC	794	(3)
Language and Translation	797	(1)
Purchasing in Different Currencies	798	(1)
The U.S. Policy Regarding Global EC	798	(1)
Localization	799	(1)
Culture	800	(1)
Breaking Down the Global EC Barriers	801	(1)
EC in Small and Medium-Size Enterprises	801	(3)
Critical Success Factors	803	(1)
Supporting Small Businesses	804	(1)
BPR For EC, Virtual Corporations, and Organizational Transformations	804	(4)
Redesign of the Enterprise Processes and Business Process Reengineering (BPR)	804	(2)
Workflow Technologies	806	(1)
Virtual Corporations: Networking Between Business Partners	806	(1)
Knowledge Management	807	(1)
Research in EC	808	(2)
Suggested Behavioral Topics	808	(1)
Suggested Technical Topics	809	(1)
Suggested Managerial and Other Research Topics	809	(1)
The ISWorld Survey	810	(1)
The Future of EC	810	(5)
Technology Trends	813	(1)
Digital Divide	814	(1)
Integrating the Marketplace and Marketspace	814	(1)
Managerial Issues	815	(8)
Summary	815	(1)
Key Terms	816	(1)
Questions for Review	817	(1)
Questions for Discussion	817	(1)
Internet Exercises	817	(1)
Team Assignments and Role Playing	818	(2)
Real-World Case: Yoshida Originals, Inc. of Japan	820	(1)
References and Bibliography	821	(2)
Mobile Commerce	823	(53)
M-Commerce is Already Here	824	(1)
The Benefits and Drivers	825	(5)
Definitions	825	(1)
Terminology and Generations	825	(2)
The Benefits and Attributes of Mobile Communication	827	(3)
Mobile Computing Infrastructure	830	(5)
Hardware	830	(2)
Software	832	(1)
Networks and Access	833	(2)
Wireless Technology, Standards, and Security	835	(5)
Technology	835	(1)
Standards	836	(2)
Security Issues	838	(1)
Voice Systems for M-Commerce	839	(1)
M-Commerce Applications: An Overview	840	(1)
Mobile Financial Applications	841	(2)
Examples of Financial Applications	841	(2)
Mobile Marketing, Advertisement, and Customer Service	843	(5)
Shopping from Wireless Devices	843	(2)
Targeted Advertisement	845	(2)
Supporting Customers and Business Partners (Consumer Services)	847	(1)
Mobile Applications in the Enterprise	848	(6)
Supporting Mobile Employees (Enterprise Solutions)	848	(2)
Non-Internet Applications	850	(2)
Web-Based Applications (Intrabusiness M-Commerce)	852	(2)
Supporting B2B and the Supply Chain	854	(1)
Mobile Supply Chain Integration	854	(1)
Supporting Consumer and Personal Services	855	(5)
Mobile Games	855	(1)
Mobile Music	855	(2)
Mobile Video	857	(1)
Mobile Electronic Pets	857	(1)
Mobile Betting and Gambling	857	(1)
Auctions	857	(1)
Tracking Athletes	857	(1)
Hotels	858	(1)
Intelligent Homes and Appliances	858	(1)
Wireless Telemedicine	859	(1)
Other Services for Consumers	859	(1)
Location-Based Commerce (L-Commerce)	860	(3)
Emergency Cell Phone Calls	861	(1)
Telematics	861	(2)
Non-Internet Applications	863	(1)
Limitations of M-Commerce	863	(3)
The Usability Problem	864	(1)
Lack of Standardized Security Protocol	865	(1)
Insufficient Bandwidth	865	(1)
3G Licenses	865	(1)
Transmission Limitations	865	(1)
Power Consumption	865	(1)
Limitations of the 2001 WAP Applications	865	(1)
Wireless and Health Hazards	866	(1)
Disappointed Users	866	(1)
Implementing M-Commerce	866	(2)
Revenue Models	866	(1)
Consumer Confidence and Trust	867	(1)
M-Commerce Value Chain	868	(1)
Managerial Issues	868	(8)
Summary	868	(1)
Key Terms	869	(1)
Questions for Review	870	(1)
Questions for Discussion	870	(1)
Internet Exercises	870	(1)
Team Assignments and Role Playing	871	(1)
Real-World Case: BlueSkyFrog	872	(2)
References and Bibliography	874	(2)
Glossary	876	(15)
Index	891