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: Figures Figures 1.2, 1.3, 1.4, 2.1, 3.7, 3.14, 4.12, 4.15, 5.19, 6.8a, 7.7, 8.7, 8.14, 8.18, 9.2 from Internet Marketing : Strategy, Implementation and Practice, 2nd Edition, Financial Times Prentice Hall Chaffey, D., Meyer, R., Johnston, K. and Ellis-Chadwick, F. 2003 Copyright © 2003 Pearson Education Ltd.; Figure 1.7 from Nova Spivack blog posting: How the WebOS evolves? 9 February 2007 http:novaspivack.typepad.comnova_spivacks_weblog200702steps_towards_a.html , reprinted with permission; Figure 1.12 from Business in the Information Age – International Benchmarking Study 2002 DTI 2002, Crown Copyright material is reproduced with permission under the terms of the Click-Use License; Figure 1.14 from Individuals Accessing the Internet–Report from the UK National Statistics Omnibus Survey, published online at www.statistics.gov.uk UK Statistics 2006, Crown Copyright material is reproduced with permission under the terms of the Click-Use License; Figure 1.15 adapted from Structure is not organisation, McKinsey Quarterly Waterman, R.H., Peters, T.J. and Phillips, J.R. 1980, McKinsey Co., Inc.; Figure 3.5 from Netcraft web server survey, http:news.netcraft.comarchives web_server_survey.html , Courtesy of Netcraft and www.netcraft.com ; Figure 3.17 adapted from Publisher’s acknowledgements Author’s acknowledgements Information system integration, Communications of the ACM, 436, pp. 33–38 Hasselbring, W. 2000, ACM Press Books and Journals, Copyright © 2000 ACM, Inc., reprinted by permission, and reproduced by kind permission of the author; Figure 4.2 from www.oecd.orgstiict broadband , reprinted with permission; Figures 4.3, 8.23, 8.24, 9.5 from BrandNewWorld, Anne MollenAOL UK, Cranfield School of Management Henley Centre 2004, with permission from Anne Mollen; Figures 1.10, 4.6 from i2010 Annual Information Society Report 2007, published at http:ec.europa.euinformation_societyeeuropei2010index_en.htm European Commission 2007, © European Communities, 1995-2008; Figure 4.9 from Nielsen Buzzmetrics, www.blogpulse.com , reprinted by permission of Nielsen Buzzmetrics; Figure 4.11 from International E-Economy: Benchmarking the World’s Most Effective Policy for the E-Economy, report published 19 November, London, www.e-envoy.gov.ukoeensfsections summit_benchmarkingfileindexpage.htm Booz Allen Hamilton 2002, Crown Copyright material is reproduced with permission under the terms of the Click-Use License; Figure 5.5 adapted from E-Business. Roadmap for Success, Addison-Wesley Kalakota, R. and Robinson, M. 2000, KalakotaRobinson, EBUSINESS 2.0, © 2001, 1999 Pearson Education, Inc Reproduced by permission of Pearson Education, Inc.; Figure 5.10 from Towards a manager’s model of e-business strategy decisions, Journal of General Management, 30 4 Perrott, B. Summer 2005, The Braybrooke Press; Figure 5.13 from Hard In choices for Senior Managers in Mastering Information Management, Financial Times Prentice Hall, Marchand, D. in Marchand, D. et al. eds. 1999 pp. 187–192, Copyright © Pearson Education; Figure 5.17, Table 5.2 and Table 5.11 from E-consultancy, 2008. Managing digital channels research report by Dave Chaffey, reprinted with permission; Figures 6.8b, 6.9 adapted from Executive’s Guide to E-Business : From Tactics to Strategy, John Wiley Sons, Inc. Deise, M. et al. 2000; Figure 6.12 from i2010 Annual Informa- tion Society Report 2008, mid-term report, published at http:ec.europa.eu information_society eeurope i2010mid_term_review_2008index_en.htm European Commission 2008, c European Communities, 1995-2008; Figure 7.3 from An E-valuation framework for developing net enabled business metrics through functionality interaction, Journal of Organizational Computing and Electronic Commerce, 17 2, pp. 175–203 Riggins, F. and Mitra, S. 2007, Taylor Francis, reprinted by permission of Taylor Francis Group, ttp:www.informaworld.com ; Figures 8.1 and 8.4 from Managing digital teams. Integrating digital marketing into your organisation. Author: Dave Chaffey. Available at http:econsultancy.com , reprinted with permission; Figure 8.3 from EMarketing Excellence: Planning and optimizing your digital marketing, 3rd Edition, Butterworth Heinemann Chaffey, D. and Smith, P.R. 2008; Figure 8.8 from Bowen Craggs Co., www.bowencraggs.com , reprinted with permission; Figure 9.13 from SmartFOCUS Digital, www.smartfocusdigital.com , reprinted with permission; Figure 9.15 adapted and reprinted by permission of Harvard Business Review from graph on p. 167 from ‘Putting the service-profit chain to work’, by Heskett, J. , Jones, T., Loveman, G., Sasser, W. and Schlesinger, E. , in Harvard Business Review, March-April 1994, Copyright c 1994 by The Harvard Business School Publishing Corporation, All rights reserved; Figures 10.2, 10.3, 10.8, 10.10 from Managing an E-commerce team. Integrating digital marketing into your organisation. Author: Dave Chaffey. Available from www.e-consultancy.com , reprinted with permission; Figures 10.4 and 10.5 from E-Consultancy, 2007, Web project management. The practices behind successful web projects. Research report by Sonia Kay available from http:econsultancy.com , reprinted with permission; Figure 10.9 adapted from Organizing for digital marketing, McKinsey Quarterly, No. 4, pp. 183–192 Parsons, A., Zeisser, M. and Waitman, R. 1996, www.mckinsey-quarterly.com , McKinsey Co., Inc.; Figure 11.1 adapted from Groupware, Workflow and Intranets: Re-engineering the enterprise with collaborative software, 1st Edition, Digital Press, Woburn, MA Chaffey, D. 1998 Elsevier, reprinted by permission of Elsevier Science; Figures 11.19, 11.21 from Department of Business, Enterprise and Regulatory Reform BERR Information Security Breaches Survey 2008, published at http:www.pwc.co.ukengpublicationsberr_information_ security_breaches_ survey_2008.html BERR 2008, Crown Copyright material is reproduced with permission under the terms of the Click-Use License; Figure 11.20 from Code Red CRv2 Spread Animation, CAIDAUC San Diego, www-cse. ucsd.edu~savagepapersIEEEESP03.pdf , Copyright © 2001 The Regents of the University of California, reprinted by permission of The xxviii Author’s acknowledgements Regents of the University of California; Figure 11.22 from Marshal Ltd., www.marshal.com , reprinted by permission of Marshal Ltd.; Figure 11.23 from Department of Trade and Industry Information Security Breaches Survey, 2006 DTI 2006, Crown Copyright material is reproduced with permission under the terms of the Click-Use License; Figure 12.1 Image from “The Art of Agile Development”. Copyright c 2007 James Shore and Shane Warden. Used with permission from O’Reilly Media, Inc. All rights reserved; Figure 12.8 was published in The Multichannel Challenge, H. Wilson, Copyright Elsevier 2008; Figure 12.13 from Maxymiser Ltd, Multivariate testing results reproduced by the kind permission of Maxymiser, www.maxymiser.com . Screenshots Screenshot 1.1 from Wayback Machine Archive, http:web.archive.orgweb 19981111183552 google.stanford.edu ; Screenshot 1.5 from www.firstdirect.com , reprinted with permission; Screenshot 1.6 from www.willitblend.com , reprinted with permission; Screenshot 1.9 from www.betfair.com , reprinted with permission; Screenshot 1.11 from www.northwestsupplies.co.uk , reprinted with permission; Screenshot 2.4 from http:trends.google.comwebsites , reprinted by permission of Google, Inc. 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Google™ search engine is a trademark of Google, Inc.; Screenshot 3.21 from www.salesforce.com , reprinted with permission; Screenshot 3.22 from www.giagia.co.uk ?cat=63 , created by www.giagia.co.uk?page_id=2 blog, Image courtesy of Twentieth Century Fox Home Entertainment; Screenshot 3.23 from www.hypertag.com , Reproduced by kind permission of Hypertag Limited; Screenshot 3.24 from http:mtld.mobi emulator.php , reprinted with permission; Screenshot 4.10 from www.hsbc.co.uk , reprinted with permission; Screenshot 4.14 from www.innocentive.com , reprinted with permission; Screenshot 5.3 from www.britishairways.com , reprinted with permission; Screenshot 5.14 from www.arenaflowers.com , reprinted with permission; Screenshot 6.4 from www.bluesopesteelconnect.com , BlueScope Steel, www.bluescopesteelconnect.com ® ; Screenshots 7.2, 7.5, 7.6, 7.9 from Tranmit plc website, www.tranmit.co.uk , reproduced by kind permission of Tranmit plc; Screenshot 7.11 from covisint.com, reprinted by permission of Compuware Corporation; Screenshot 7.12 from www.supply2.gov.uk , reprinted with permission; Screenshot 9.9 from google.com, reprinted by permission of Google, Inc. Google™ search engine is a trademark of Google, Inc; Screenshot 9.16 from www.utalkmarketing.com , The UK’s leading community website for client side marketers ; Screenshot 11.9 from www.dulux.co.uk , Dulux is a trade mark of ICI © ICI; Screenshot 11.13 from www.rswww.com , Screenshot of RS Components homepage supplied courtesy of RS Components http:rswww.com ; Screenshot 11.18 from www.hsbc.com , with permission from HSBC Holdings plc; Screenshot 12.11 from www.google.comanalytics reportingvisitors?id , reprinted by permission of Google, Inc. Google Analytics™ is a trademark of Google, Inc.; Screenshot 12.12 from National Express website, reprinted with permission. Tables Table 2.1 from Hitwise Press Release : UK Internet visits to flower websites at highest ever peak in February, London, 6 March 2008, reprinted with permission; Table 2.3 adapted and xxix Author’s acknowledgements reprinted from New Marketing: Transforming the Corporate Future, M. McDonald and H. Wilson, Copyright 2002, with permission from Elsevier; Table 2.4 adapted and reprinted by permission of Harvard Business Review from table on pp. 2–3 from ‘The all-in-one-market’, by Nunes, P., Kambil, A. and Wilson, D., in Harvard Business Review, May–June, 2000. Copyright © 2000 by the Harvard Business School Publishing Corporation. All rights reserved; Table 3.2 adapted from Road map to the e-revolution, JOURNAL OF INFORMATIONS SYSTEM MANAGEMENT by P. Kampas. Copyright 2000 by Taylor Francis Informa UK Ltd— Journals. Reproduced with permission of Taylor Francis Informa UK Ltd—Journals in the format Textbook via Copyright Clearance Center.; Table 3.5 from www.siteconfidence.co.uk , reprinted with permission; Table 4.5 from CIFAS, 2008, CIFAS Credit Industry Fraud Association Press Release: Figures emphasise the change in UK’s fraud landscape. http:www.cifas.org.ukdefault.asp?edit_id=839-57 , Published by permission of CIFAS-the UK’s Fraud Prevention Service; Table 7.3 adapted from Reducing the costs of goods sold: role of complexity, design relationships, McKinsey Quarterly, Vol. 2, pp. 212-215 Kluge, J. 1997, www.mckinsey-quarterly.com , McKinsey Co., Inc.; Table 7.7 adapted and reprinted by permission of Harvard Business Review from table on p. 99 from ‘E-hubs: the new B2B marketplaces,’ by Kaplan, S. and Sawhney, M., in Harvard Business Review, May–June 2000. Copyright © 2000 by the Harvard Business School Publishing Corporation, All rights reserved; Table 8.6 adapted from Michael De Kare-Silver, e-Shock 2000, published 1999, Palgrave Macmillan, reproduced with permission of Palgrave Macmillan; Table 9.1 from Efficient Frontier, www.efficientfrontier.com , reprinted with permission; Table 9.2 from Data from Interactive Advertising Bureau, www.iab.netxmos . XMOS is a registered trademark of the IAB; Table 9.4 reprinted by permission of Harvard Business Review from information on pp. 105–13 from ‘Your secret weapon on the web’, by Reicheld, F. and Schefter, P., in Harvard Business Review, July–August 2000. Copyright © 2000 by the Harvard Business School Publishing Corporation, All rights reserved; Table 10.6 adapted and reprinted by permission of Harvard Business Review from table on p. 87 from ‘How risky is your company?’, by Simon, R., in Harvard Business Review, May–June 1999. Copyright © 1999 by the Harvard Business School Publishing Corporation, All rights reserved; Table 11.6 adapted from Internet Marketing, John Wiley Sons, Inc. Hofacker, C.F. 2001; Table 11.8 from Department of Business, Enterprise and Regulatory Reform Information Security Breaches Survey 2008, published at http:www.pwc.co.ukengpublicationsberr_information_security_breaches_survey_2008.html BERR 2008, Crown Copyright material is reproduced with permission under the terms of the Click-Use License; Table 12.3 adapted from SOFTWARE TESTING: A CRAFTSMAN’S APPROACH by P.C. Jorgensen. Copyright 1995 by Taylor Francis Group LLC – Books. Reproduced with permission of Taylor Francis Group LLC – Books in the format Other book via Copyright Clearance Center ; Table 12.5 from ABC Electronic, www.abce.org.uk , ABC ELECTRONIC, reprinted with permission; Table 12.7 from Coremetrics monthly metrics benchmark produced for UK retailers, July 2008, http:www.coremetrics.co.uk solutionsbenchmarking.php , reprinted with permission. Text Interview on pages 7–9 from http:econsultancy.comblog1064-interview-ted-speroni- director-emea-hp-com , reprinted with permission; Case Study 1.2 adapted from eSuperbrands 2006, Your guide to some of the best brands on the Net, Superbrands Ltd., London and www.betfair.com , with permission from Betfair; Case Study 1.2 from North- West Supplies Extends its Reach Online, written by Peter Davies, Ecommerce adviser, Mentermon, www.mentermon.com , with permission from Peter Davies; Interview on pages 53–57 from http:econsultancy.comblog2653-q-a-more-than-s-roberto-hortal-munoz-on- comparison-sites , reprinted with permission; Case Study 2.3 with thanks to www.firebox.com ; Interview on pages 107–9 from http:econsultancy.comblog2172- random-house-s-ros-lawler-on-widgets-and-web-2-0 , reprinted with permission; Extract xxx Author’s acknowledgements on pages 153–4 from Office of Communications report: The International Communications Market 2007. Report published December 2007 at http:www.ofcom.org.ukresearch cmicmr07overviewlandscape. , © Ofcom Copyright 2007; Box 3.1 adapted from 12 ways to use your intranet to cut your costs. Member briefing paper August 2008. Published by the Intranet Benchmarking Forum www.ibforum.com , with permission from IBF; Box 3.3 from blog by Matt Cutts, www.mattcutts.comblogseo-glossary-url-definitions , with permission from Matt Cutts; Interview on pages 196–8 from http:econsultancy.comblog1165- interview-mark-clark-uk-md-of-gd-worldwide , reprinted with permission; Extract on pages 213–16 from Data Protection Act 1984, 1998 DPA, Crown Copyright material is reproduced with permission under the terms of the Click-Use License; Extract on pages 217–18 from Privacy and Electronic Communications Regulations PECR Act 2003, Crown Copyright material is reproduced with permission under the terms of the Click-Use License; Case Study 4.2 from http:www.hchlv.com , reprinted with permission from The Futures Company; Box 4.5 from Eric Goldman Technology and Marketing Law Blog. Rhino Sports, Inc. v. Sport Court, Inc., 8 May 2007 blog.ericgoldman.orgarchives200705broad_ matching.htm , with permission from Eric Goldman; Box 4.6 with permission from HSBC Bank; Interview on pages 256–9 from http:econsultancy.comblog1817-standard-life-s- sharon-shaw-on-strategy-and-planning , reprinted with permission; Case Study 5.1 adapted from Campaign of the month, Revolution Rigby, E. 2005, Reproduced from Revolution magazine with the permission of the copyright owner, Haymarket Business Publications Limited.; Case Study 5.1 adapted from Company annual reports and an article in The Banker 2003, reprinted by permission of Capital One Bank Europe plc; Case Study 5.2 from Econsultancy e-Business briefing, 2008, Arena Flowers’ Sam Barton on web design and development, e-newsletter interview 12 March 2008, reprinted with permission; Case Study 7.1 from RS Components White Paper, www.rswww.com , Courtesy of RS Components Ltd. © RS Components Ltd; Case Study 7.2 reprinted by permission of Compuware Corporation; Interview on pages 415–16 from http:econsultancy.comblog1724-interview-steve- nicholas-assistant-director-of-e-commerce-at-guess , reprinted with permission; Case Study 8.3 reprinted by permission of Napster LLC; Newspaper Headline on page 500 from “TV ads ‘a waste of money’”, The Guardian, 4 February 2003 Cozens, C., Copyright Guardian News Media Ltd 2003 ; Interview on pages 484–5 from http:econsultancy.comblog1552- interview-warner-breaks-mat-finch-on-silver-surfers , reprinted with permission; Case Study 9.2 from blog posting, 9 September 2008, http:www.arenaflowers.comblog20080909 wiser-about-web-from-a-flowers-website-to-academic-textcomment-4361 , with permission from Arena Flowers; Case Study 9.3 adapted from Product placement, New Media Age, 12 May 2005 Hargrave, S. 2005, www.nma.co.uk , with permission from NMA; Case Study 10.2 from e-gineer.com blog by Nathan Wallace, www.e-gineer.comv2blog 200708our-intranet-wiki-case-study-of-wiki.htm , with permission from Nathan Wallace; Interview on pages 606–8 from http:www.e-consultancy.comnews-blognewsletter 3722arena-flowers-8217-sam-barton-on-web-design-and-development.html ; Case Study 11.1 from case study developed by Agency.com available through the IAB www.iabuk.net and presented at Engage 2007, with permission from Agency.com; Box 11.2 from Econsultancy, 2007, e-business briefing interview. Bruce Tognazzini on Human-Computer interaction. Interview published November. http:econsultany.comblog1862-q-a-bruce- tognazzini-on-human-computer-interaction, reprinted with permission; Box 11.3 from www.watsonhall.com , with permission from Watson Hall Ltd.; Box 12.2 from Search engine ranking factors v2, 2 April 2007, www.seomoz.orgarticlesearch-ranking-factors , reprinted with permission from SEOmoz, Inc.. The Financial Times Case Study 2.1 from A bid to save money for the government, The Financial Times, 29 January 2003 Timmins, N.; Screenshot 2.2 from www.ft.com ; Case Study 3.2 from New xxxi Author’s acknowledgements architecture or just new hype?, The Financial Times, 8 March 2006 Waters, R.; Newspaper Headline on page 316 from Boo.com collapses as investors refuse funds. Online sports retailer becomes Europe’s first big internet casualty, The Financial Times, 18 May 2000 Barker, T. and Daniel, C.; Quote on page 323 from After decades of debate, studies have started to show how IT spending can dig out hidden productivity and profits, The Financial Times, 10 December 2003 London, S.; Mini Case Study 6.1 from Did IT work? Service was paramount when enhancing supply chain, The Financial Times, 30 January 2008 Pritchard, S.; Case Study 6.2 from Retailers web site allows suppliers to closely monitor product demand, The Financial Times, 3 May 2000 Nairn, G.; Case Study 6.3 from Keeping track starts its move to a faster track ,The Financial Times, 20 April 2005 Nairn,G.; Screenshot 7.10 from FT.com; Case Study 10.1 from Process management: Making complex business a lot simpler?, The Financial Times, 14 May 2008 Cane, A.; Case Study 11.2 from A different approach to protection, The Financial Times, 9 November 2005 Thomas, D. In some instances we have been unable to trace the owners of copyright material, and we would appreciate any information that would enable us to do so. 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

1.1 A short history of Facebook 17

1.2 North West Supplies extends its reach online 33

1.3 eBay – the world’s largest

e-business 42 Web support The following additional case studies are available at www.pearsoned.co.ukchaffey ➜ SME adoption of sell-side e-commerce ➜ Death of the dot-com dream ➜ Encouraging SME adoption of sell-side e-commerce The site also contains a range of study material designed to help improve your results. The main related chapters are: Chapter 2 examines the principal e-commerce business and marketplace models in more detail; Chapter 3 introduces the technical infrastructure of software and hardware that companies must incorporate to achieve e-commerce; Chapter 5 describes approaches to e-business strategy introduced in Chapter 1. 4 Part 1 Introduction Organizations have now been applying technologies based on the Internet , World Wide Web and wireless communications to transform their businesses for over 15 years since the cre- ation of the first web site http:info.cern.ch by Sir Tim Berners-Lee in 1991. Deploying these technologies has offered many opportunities for innovative e-businesses to be created based on new approaches to business. Table 1.1 highlights some of the best-known examples and in Activity 1.1 you can explore some of the reasons for success of these e-businesses. For the author, e-business and e-commerce is an exciting area to be involved with, since many new opportunities and challenges arise yearly, monthly and even daily. Innovation is a given, with the continuous introduction of new technologies, new business models and new communications approaches. For example, Google innovates relentlessly. Its service has developed a long way since 1998 Figure 1.1 with billions of pages now indexed and other services such as web mail, pay per click adverts, analytics and social networks all part of its offering. Complete Activity 1.1 or view Table 1.1 to see other examples of the rate at which new innovations occur. Introduction The Internet ‘The Internet’ refers to the physical network that links computers across the globe. It consists of the infrastructure of network servers and communication links between them that are used to hold and transport information between the client PCs and web servers. 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 HTMLXML-encoded text. 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. Figure 1.1 Google circa 1998 Source: Wayback machine archive: http:web.archive.orgweb19981111183552google.stanford.edu