E-commerce fundamentals E-business infrastructure
Dave Chaffey BSc, PhD, FCIM, MIDM
Dave Chaffey
www.davechaffey.com
is an independent Internet marketing trainer and con- sultant for Marketing Insights Limited. He is a lecturer on e-marketing courses at Cranfield
and Warwick Universities and the Institute of Direct Marketing, for which he is a tutor and Senior Examiner for the Diploma in Digital Marketing. Author of several best-selling texts,
he has also written the in-depth Best Practice Guides to Managing Digital Channels, Paid Search Marketing, Search Engine Optimisation SEO and Website design for Econsultancy
www.econsultancy.comreports
He also works as consultant in the cScape Customer Engagement Unit
www.cscape.com
. Dave has been recognised by the CIM as one of 50 marketing ‘gurus’ worldwide who have shaped the future of marketing. He is also proud to
have been recognised by the Department of Trade and Industry as one of the leading indi- viduals who have provided input and influence on the development and growth of
e-commerce and the Internet in the UK over the last 10 years. Dave is an active blogger and posts updates to help readers of this text at
www.davechaffey.comblog
.
About the author
The author would like to thank the team at Pearson Education in Harlow, in particular Matthew Walker, Gabrielle Orcutt, Kelly Miller, Mary Lince, Michael Fitch and Brian Burge for
their help in the creation of this book. I would particularly like to thank the reviewers who undertook detailed reviews for the second, third and fourth editions – these reviews have been
important in shaping the book: Magdy Abdel-Kader, University of Essex; Poul Andersen, Aarhus Business School, Denmark; Michelle Bergadaa, University of Geneva, Switzerland;
Bruce Bowhill, University of Portsmouth; Yaw Busia, University of Middlesex; Hatem El-Gohary, Bradford University; Janet French, Barking College; Andy Gravell, University of
Southampton; Ulf Hoglind, Örebro University, Sweden; Judith Jeffcoate, University of Buckingham; Britt-Marie Johansson, University of Jönköping, Sweden; Matthias Klaes,
Keele University; Mette P. Knudsen, University of Southern Denmark; Tuula Mittila, University of Tampere, Finland; Barry Quinn, University of Ulster; Gerry Rogers, EdExcel
Qualifications Leader; Chandres Tejura, University of North London; Ian Watson, University of Northumbria; Steve Wood, Liverpool John Moores University.
Thanks also to these reviewers who were involved at earlier stages with this book: Fintan Clear, Brunel University; Neil Doherty, Loughborough University; Jean-Noel Ezingeard,
Henley Management College; Dr Felicia Fai, University of Bath; Lisa Harris, Brunel University; Sue Hartland, Gloucestershire Business School at Cheltenham and Gloucester College of
Higher Education; Mike Healy, University of Westminster; Eric van Heck, Rotterdam School of Management, The Netherlands; Dipak Khakhar, Lund University, Sweden; Robert Proops,
University of Westminster; Professor Michael Quayle, University of Glamorgan; Richard Riley, University of Central England; Gurmak Singh, University of Wolverhampton; John Twomey,
Brunel University; Gerry Urwin, Coventry University.
We are grateful to the following for permission to reproduce copyright material:
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xxviii Author’s acknowledgements
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xxix Author’s acknowledgements
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xxxii Author’s acknowledgements
Introduction
1
Part 1 introduces e-business and e-commerce and their relevance to businesses and consumers. It clarifies e-business terms and
concepts such as online business, revenue and technology models by reviewing alternative applications through activities and case studies.
Part
1
Introduction to e-business and e-commerce
p. 3 The impact of the electronic communications on traditional
businesses What is the difference between e-commerce and e-business?
E-business opportunities Business adoption of digital technologies for e-commerce and
e-business E-business risks and barriers to business adoption
Management responses to e-commerce and e-business
E-commerce fundamentals
p. 51 The e-commerce
environment Location of trading in the
marketplace Business models for
e-commerce Focus on …
Auction business models Internet start-up companies
– the ‘dot-coms’
2
E-business infrastructure
p. 103 Internet technology
Web technology Internet-access software
applications How does it work?
Internet standards Managing e-business
infrastructure The future of the Internet
infrastructure Focus on …
Internet governance Web services, SaaS and
service-oriented architecture SOA
Mobile commerce
3
4
E-environment
p. 192 Social and legal factors
Privacy and trust in e-commerce
Environmental and green issues
Taxation Economic and competitive
factors Political factors
E-government Technological innovation and
technology assessment Focus on …
E-commerce and globalization
Chapter at a glance
Main topics
➔
The impact of the electronic communications on traditional
businesses 6
➔
What is the difference between e-commerce and e-business? 9
➔
E-business opportunities 29
➔
Business adoption of digital technologies for e-commerce and
e-business 30
➔
E-business risks and barriers to business adoption 35
➔
Management responses to e-commerce and e-business 39
Case studies
1
Learning outcomes
Introduction to e-business and
e-commerce
After completing this chapter the reader should be able to: Define the meaning and scope of e-business and e-commerce
and their different elements Summarize the main reasons for adoption of e-commerce and
e-business and barriers that may restrict adoption Outline the ongoing business challenges of managing e-business
and e-commerce in an organization.
Management issues
The issues for managers raised in this chapter include: How do we explain the scope and implications of e-business and
e-commerce to staff? What is the full range of benefits of introducing e-business and
what are the risks? How do we evaluate our current e-business capabilities?
Links to other chapters