Download Digital business and E-commerce management : strategy, implementation and practice PDF

SIXTH EDITION ED
DIGITAL BUSINESS AND -I
CG
OI
E-COMMERCE MANAGEMENT
T
MA
STRATEGY, IMPLEMENTATION AND PRACTICE L
M

B
E
DAVE CHAFFEY
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Which strategies and actions are needed to develop and sustain a Digital Business? ME
How should we prioritise our investments in E-commerce and Digital Business? S
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What are the main changes that need to be made to an organisation to facilitate S
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Digital Business?

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The new edition of Dave Chaffey’s bestselling book is your guide to answering these difficult N
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questions. Written in an engaging and informative style, Digital Business and E-Commerce
Management will equip you with the knowledge and skills to navigate today’s fast-paced world D
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of continuous technological development.

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In this sixth edition of his bestselling book, leading authority Dave Chaffey brings together the most
recent academic thinking and professional practice. Covering all aspects of e-business including
strategy, digital marketing and supply chain management, Digital Business and E-Commerce E
Management gives you the benefit of: SIXTH EDITION
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• A structured approach to review, plan and implement e-commerce strategy for all types
of organisation T DIGITAL BUSINESS
• The latest on digital marketing techniques such as search engine, content and social
media marketing
• Expanded coverage of creating integrated experiences for mobile and desktop devices SIXTH
AND E-COMMERCE
• Case studies and interviews showing how startups and large organisations have EDITION
grown through creating effective digital business strategies
• A companion website at www.pearsoned.co.uk/chaffey, providing access to
C MANAGEMENT
the latest digital business and e-commerce developments via Dave Chaffey’s
regularly updated Blog, twitter feed and updates to Dave’s series of books. The H
website also provides the opportunity for self-assessment and access to extra A
case studies demonstrating digital business and e-commerce in action
F
F STRATEGY, IMPLEMENTATION
Whether you’re a student studying digital business and e-commerce, or
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a business manager, Digital Business and E-Commerce Management is
Y AND PRACTICE
the essential text to help you understand and apply digital technology,
strategy and implementation.
DAVE CHAFFEY
Dave Chaffey is co-founder of e-commerce advice site
SmartInsights.com and a consultant, trainer and visiting lecturer
on digital marketing courses at Cranfield School of Management,
University of Derby and Manchester Metropolitan University.
www.pearson-books.com
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Digital Business
anD e-CommerCe
management
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SIxth edItIon
Digital Business
anD e-CommerCe
management
Strategy, ImplementatIon
and practIce
Dave Chaffey
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Pearson education Limited
Edinburgh Gate
Harlow CM20 2JE
United Kingdom
Tel: +44 (0)1279 623623
Web: www.pearson.com/uk
First published 2002 (print)
Second edition published 2004 (print)
Third edition published 2007 (print)
Fourth edition published 2009 (print)
Fifth edition published 2011 (print)
Sixth edition published 2015 (print and electronic)
© Dave Chaffey 2002 (Print)
© Marketing Insights Limited 2002, 2009, 2011
© Marketing Insights Limited 2015 (print and electronic)
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.
The print publication is protected by copyright. Prior to any prohibited reproduction, storage
in a retrieval system, distribution or transmission in any form or by any means, electronic,
mechanical, recording or otherwise, permission should be obtained from the publisher or,
where applicable, a licence permitting restricted copying in the United Kingdom should be
obtained from the Copyright Licensing Agency Ltd, Saffron House, 6-10 Kirby Street, London
EC1N 8TS.
The ePublication is protected by copyright and must not be copied, reproduced, transferred,
distributed, leased, licensed or publicly performed or used in any way except as specifically
permitted in writing by the publishers, as allowed under the terms and conditions
under which it was purchased, or as strictly permitted by applicable copyright law. Any
unauthorised distribution or use of this text may be a direct infringement of the author’s and
the publishers’ rights and those responsible may be liable in law accordingly.
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.
Pearson Education is not responsible for the content of third-party internet sites.
ISBN: 978-0-273-78654-2 (print)
978-0-273-78657-3 (PDF)
978-0-273-78655-9 (eText)
British Library Cataloguing-in-Publication Data
A catalogue record for the print edition is available from the British Library
Library of Congress Cataloging-in-Publication Data
A catalog record for the print edition is available from the Library of Congress
10 9 8 7 6 5 4 3 2 1
18 17 16 15 14
Print edition typeset in 10/12pt MinionPro by 75
Print edition printed and bound by L.E.G.O.S.p.A., Italy
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Brief contents
Preface xiv
Guided tour xxvi
About the author xxviii
Publisher’s acknowledgements xxix
part 1 Introduction 1
1 Introduction to digital business and e-commerce 3
2 Marketplace analysis for e-commerce 41
3 Managing digital business infrastructure 77
4 E-environment 127
part 2 Strategy and applications 177
5 Digital business strategy 179
6 Supply chain management 247
7 E-procurement 297
8 Digital marketing 323
9 Customer relationship management 387
part 3 Implementation 467
10 Change management 468
11 Analysis and design 517
12 Digital business service implementation and optimisation 597
Glossary 650
Index 666
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vi
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Contents
Preface xiv Risks and barriers to digital business adoption 32
Guided tour xxvi Evaluating an organisation’s digital
About the author xxviii business capabilities 32
Acknowledgements xxix Drivers of consumer technology adoption 32
Barriers to consumer Internet adoption 34
Case Study 1.2 eBay – the world’s largest
online business? 34
part 1 Summary 37
Exercises 38
Introduction 1 References 39
Web links 40
1 Introduction to digital business and
e-commerce 3 2 Marketplace analysis for e-commerce 41
Learning outcomes 3 Learning outcomes 41
Management issues 3 Management issues 41
Links to other chapters 3 Links to other chapters 41
Introduction 4 Introduction 42
The impact of electronic communications on Business and revenue models for e-commerce 42
traditional businesses 6 Online marketplace analysis 42
Inbound marketing 6 Strategic agility 46
Social media marketing 7 A process for online marketplace analysis 47
Trends update: Social media usage 7 Location of trading in the marketplace 53
Mobile commerce 12 Review of marketplace channel structures 53
Case Study 1.1 The Facebook business Location of trading in the marketplace 55
model 8 The importance of multichannel
Trends update: Mobile usage 12 marketplace models 55
What is the difference between digital business Commercial arrangement for transactions 57
and e-commerce? 13 Different types of online intermediary
E-commerce defined 13 and influencers 57
Trends update: E-commerce growth rates 13 Summary of the types of intermediary 58
Digital business defined 14 The importance of search engines 58
Intranets and extranets 15 Business models for e-commerce 58
Different types of sell-side e-commerce 17 Revenue models 62
Digital marketing 18 Online publisher and intermediary revenue models 62
Trends update: Social network usage 19 Calculating revenue for an online business 64
Options for companies to reach their Focus on Online start-up companies 66
audience online 19 Assessing online businesses 67
Owned, earned and paid media options 19 Valuing Internet start-ups 67
The six key types of digital media channels 20 1 Concept 67
Web 2.0 and user-generated content 23 2 Innovation 67
Supply chain management 24 3 Execution 67
Business or consumer models of e-commerce 4 Traffic 68
transactions 24 5 Financing 68
E-government defined 28 6 Profile 68
Digital business opportunities 28 Examples of e-commerce failures 68
Drivers of digital technology adoption 30 Case Study 2.1 i-to-i – a global marketplace for a
Cost/efficiency drivers 30 start-up company 69
Competitiveness drivers 30 Why dot-coms failed 70
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vviiiiii Contents
Summary 73 Microformats 116
Exercises 74 Focus on Internet governance 116 
References 75 The net neutrality principle 117
Web links 76 The Internet Corporation for Assigned Names
and Numbers (ICANN, www.icann.org) 118
3 Managing digital business infrastructure 77 The Internet Society (www.isoc.org) 119
Learning outcomes 77 The Internet Engineering Task Force
Management issues 77 (IETF, www.ietf.org) 119
Links to other chapters 77 The World Wide Web Consortium
Introduction 78 (www.w3.org) 119
Supporting the growing range of digital business Telecommunications Information Networking
technology platforms 82 Architecture Consortium (TINA-C,
Desktop, laptop and notebook platforms 83 www.tinac.com/) 119
Mobile phone and tablet platforms 83 How can companies influence or take
Trends update: Mobile usage 83 control of Internet standards? 119
Other hardware platforms 85 Open-source software 120
Augmented reality 87 Case Study 3.1 Innovation at Google 121
Digital business infrastructure components 88 Summary 123
A short introduction to Internet technology 89 Exercises 123
Management issues in creating a new References 124
customer-facing digital service 90 Web links 125
Domain name selection 90
Uniform resource locators (URLs) 91 4 e-environment 127
Domain name registration 92 Learning outcomes 127
Managing hardware and systems software Management issues 127
infrastructure 92 Links to other chapters 127
Layer II – Systems software 93 Introduction 128
Managing digital business applications Social and legal factors 131
infrastructure 93 Factors governing e-commerce service adoption 131
Focus on Web services, SaaS, cloud computing Understanding users’ access requirements 132
and service-oriented architecture (SOA) 96 Consumers influenced by using the
Benefits of web services or SaaS 96 online channel 133
Application programming interfaces (APIs) 97 Motivation for use of online services 133
Challenges of deploying SaaS 97 Purchased online 136
Cloud computing 98 Business demand for digital business services 136
Examples of cloud computing web services 99 B2B profiles 137
Virtualisation 101 Adoption of digital business by businesses 137
Service-oriented architecture (SOA) 102 Privacy and trust in e-commerce 138
Selecting hosting providers 102 Privacy legislation 139
Managing service quality when selecting Internet Why personal data are valuable for
service and cloud hosting providers 103 digital businesses 139
ISP connection methods 103 Anti-spam legislation 145
Issues in management of ISP and hosting Regulations on privacy and electronic
relationships 103 communications 145
Speed of access 103 Worldwide regulations on privacy and
Availability 105 electronic communications 145
Service level agreements 106 Other e-commerce legislation 150
Security 106 1 Marketing your e-commerce business 150
Managing internal digital communications through 2 Forming an electronic contract (contract
intranets and extranets 107  law and distance-selling law) 152
Intranet applications 107 3 Making and accepting payment 153
Extranet applications 109 4 Authenticating contracts concluded
Encouraging use of intranets and extranets 112 over the Internet 153
IPTV (Internet TV) 113 5 Email risks 153
Voice over IP (VoIP) 113 6 Protecting intellectual property (IP) 153
Widgets 113 7 Advertising on the Internet 154
Web presentation and data exchange standards 114  8 Data protection 154
Examples of XML applications 114 Environmental and green issues related to
Semantic web standards 115 Internet usage 154
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