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E-Commerce 2017, Global Edition

E-Commerce 2017, Global Edition

Kenneth C. Laudon | Carol Guercio Traver

(2017)

Additional Information

Book Details

Abstract

Understanding the Vast and Expanding Field of E-commerce

 

Laudon’s E-commerce 2017: Business, Technology, Society emphasizes three driving forces behind the expanding field of e-commerce: technology change, business development, and social issues. A conceptual framework uses the templates of many modern-day companies to further demonstrate the differences and complexities in e-commerce today. An in-depth investigation of companies such as Uber, Airbnb, Pinterest, Spotify, and Alibaba kick off the course while preparing students for real-life scenarios.

 

In the Thirteenth Edition, Laudon and Traver add new existing case studies and update existing ones to match developments in the e-commerce field in today’s tech world. They have built in additional video cases for each chapter, making the material even more accessible to students as they prepare for their future roles in business.


Table of Contents

Section Title Page Action Price
Cover\r Cover
Title Page\r 1
Copyright Page\r 2
Preface\r 3
Brief Contents\r 23
Contents\r 25
1 INTRODUCTION TO E-COMMERCE \r 44
Learning Objectives 44
1.1 The First Thirty Seconds: Why You Should Study E-commerce 49
1.2 Introduction to E-commerce 50
What Is E-commerce? 50
The Difference Between E-commerce and E-business 51
Technological Building Blocks Underlying E-commerce: the Internet, Web, and Mobile Platform 51
Insight on Technology: Will Apps Make the Web Irrelevant? 55
Major Trends in E-commerce 57
1.3 Unique Features of E-commerce Technology 59
Ubiquity 60
Global Reach 60
Universal Standards 61
Richness 61
Interactivity 62
Information Density 62
Personalization and Customization 63
Social Technology: User-Generated Content and Social Networks 63
1.4 Types of E-commerce 63
Business-to-Consumer (B2C) E-commerce 64
Business-to-Business (B2B) E-commerce 65
Consumer-to-Consumer (C2C) E-commerce 66
Mobile E-commerce (M-commerce) 67
Social E-commerce 67
Local E-commerce 68
1.5 E-commerce: A Brief History 69
E-commerce 1995–2000: Invention 70
E-commerce 2001–2006: Consolidation 73
E-commerce 2007–Present: Reinvention 74
Assessing E-commerce: Successes, Surprises, and Failures 75
Insight on Business: Rocket Internet 76
1.6 Understanding E-commerce: Organizing Themes 80
Technology: Infrastructure 80
Business: Basic Concepts 82
Society: Taming the Juggernaut 82
Insight on Society: Facebook and the Age of Privacy 83
1.7 Academic Disciplines Concerned with E-commerce 85
Technical Approaches 85
Behavioral Approaches 85
1.8 Case Study: Puma Goes Omni 86
1.9 Review 89
Key Concepts 89
Questions 91
Projects 92
References 92
2 E-COMMERCE INFRASTRUCTURE\r 94
Learning Objectives 94
Wikitude and Blippar: Augment My Reality 95
2.1 The Internet: Technology Background 98
The Evolution of the Internet: 1961—The Present 100
The Internet: Key Technology Concepts 104
Packet Switching 104
Transmission Control Protocol/Internet Protocol (TCP/IP) 106
IP Addresses 106
Domain Names, DNS, and URLs 108
Client/Server Computing 109
The New Client: The Mobile Platform 111
The Internet “Cloud Computing” Model: Hardware and Software as a Service 111
Other Internet Protocols and Utility Programs 116
2.2 The Internet Today 118
The Internet Backbone 120
Internet Exchange Points 122
Tier 3 Internet Service Providers 122
Campus/Corporate Area Networks 125
Intranets 126
Who Governs the Internet? 126
2.3 The Future Internet Infrastructure 128
Limitations of the Current Internet 128
Insight on Society: Government Regulation and Surveillance of the Internet 129
The Internet2® Project 132
The First Mile and the Last Mile 133
Fiber Optics and the Bandwidth Explosion in the First Mile 134
The Last Mile: Mobile Internet Access 134
Telephone-based versus Computer Network-based Wireless Internet Access 135
Internet Access Drones 138
The Future Internet 139
Latency Solutions 139
Guaranteed Service Levels and Lower Error Rates 140
Declining Costs 140
The Internet of Things 140
2.4 The Web 142
Hypertext 143
Markup Languages 144
HyperText Markup Language (HTML) 144
Insight on Technology: The Rise of HTML5 147
eXtensible Markup Language (XML) 149
Web Servers and Clients 150
Web Browsers 152
2.5 The Internet and the Web: Features and Services 152
Communication Tools 152
E-mail 153
Messaging Applications 153
Online Message Boards 154
Internet Telephony 154
Video Conferencing, Video Chatting, and Telepresence 155
Search Engines 155
Downloadable and Streaming Media 158
Web 2.0 Applications and Services 159
Online Social Networks 159
Blogs 159
Wikis 160
Virtual Reality and Augmented Reality 160
Intelligent Personal Assistants 161
2.6 Mobile Apps: The Next Big Thing Is Here 162
Insight on Business: AI, Intelligent Assistants, and Chatbots 163
Platforms for Mobile Application Development 165
App Marketplaces 165
2.7 Case Study: Akamai Technologies: Attempting to Keep Supply Ahead of Demand 166
2.8 Review 169
Key Concepts 169
Questions 171
Projects 171
References 172
3 BUILDING AN E-COMMERCE PRESENCE\r 174
Learning Objectives 174
The Financial Times: A Remodel for 21st Century Publishing Profitability 175
3.1 Imagine Your E-commerce Presence 178
What’s the Idea? (The Visioning Process) 178
Where’s the Money: Business and Revenue Model 178
Who and Where Is the Target Audience? 179
What Is the Ballpark? Characterize the Marketplace 180
Where’s the Content Coming From? 180
Know Yourself: Conduct a SWOT Analysis 181
Develop an E-commerce Presence Map 182
Develop a Timeline: Milestones 183
How Much Will This Cost? 184
3.2 Building an E-commerce Presence: A Systematic Approach 185
Planning: The Systems Development Life Cycle 186
Systems Analysis/Planning: Identify Business Objectives, System Functionality, and Information Requirements 186
System Design: Hardware and Software Platforms 187
Building the System: In-house Versus Outsourcing 188
Build Your Own versus Outsourcing 190
Host Your Own versus Outsourcing 192
Insight on Business: Weebly Makes Creating Websites Easy 193
Testing the System 196
Implementation and Maintenance 196
Factors in Optimizing Website Performance 197
3.3 Choosing Software 198
Simple Versus Multi-Tiered Website Architecture 198
Web Server Software 200
Site Management Tools 200
Dynamic Page Generation Tools 201
Application Servers 204
E-commerce Merchant Server Software Functionality 205
Online Catalog 205
Shopping Cart 205
Credit Card Processing 205
Merchant Server Software Packages (E-commerce Software Platforms) 205
Choosing an E-commerce Software Platform 206
3.4 Choosing Hardware 208
Right-sizing Your Hardware Platform: The Demand Side 208
Right-sizing Your Hardware Platform: The Supply Side 210
3.5 Other E-commerce Site Tools 213
Website Design: Basic Business Considerations 213
Tools for Search Engine Optimization 214
Tools for Interactivity and Active Content 215
Common Gateway Interface (CGI) 215
Active Server Pages (ASP) and ASP.NET 216
Java, Java Server Pages (JSP), and JavaScript 216
ActiveX and VBScript 217
ColdFusion 218
PHP, Ruby on Rails (RoR), and Django 218
Other Design Elements 219
Personalization Tools 219
The Information Policy Set 220
3.6 Developing a Mobile Website and Building Mobile Applications 220
Insight on Society: Designing for Accessibility 221
Planning and Building a Mobile Presence 223
Mobile Presence: Design Considerations 225
Cross-platform Mobile App Development Tools 226
Mobile Presence: Performance and Cost Considerations 227
Insight on Technology: Carnival Cruise Ships Go Mobile 228
3.7 Case Study: Dick’s Sporting Goods: Taking Control of Its E-commerce Operations 230
3.8 Review 233
Key Concepts 233
Questions 235
Projects 236
References 236
4 E-COMMERCE SECURITY AND PAYMENT SYSTEMS\r 238
Learning Objectives 238
Europol Takes on Cybercrime with EC3 239
4.1 The E-commerce Security Environment 242
The Scope of the Problem 243
The Underground Economy Marketplace: The Value of Stolen Information 244
What Is Good E-commerce Security? 246
Dimensions of E-commerce Security 247
The Tension Between Security and Other Values 248
Ease of Use 248
Public Safety and the Criminal Uses of the Internet 249
4.2 Security Threats in the E-commerce Environment 250
Malicious Code 251
Potentially Unwanted Programs (PUPs) 256
Phishing 256
Hacking, Cybervandalism, and Hacktivism 258
Insight on Society: The Ashley Madison Data Breach 259
Data Breaches 261
Credit Card Fraud/Theft 262
Identity Fraud 263
Spoofing, Pharming, and Spam (Junk) Websites 263
Sniffing and Man-in-the-Middle Attacks 264
Denial of Service (DOS) and Distributed Denial of Service (DDOS) Attacks 265
Insider Attacks 266
Poorly Designed Software 267
Social Network Security Issues 268
Mobile Platform Security Issues 268
Insight on Technology: Think Your Smartphone Is Secure? 270
Cloud Security Issues 272
Internet of Things Security Issues 272
4.3 Technology Solutions 274
Protecting Internet Communications 274
Encryption 275
Symmetric Key Cryptography 275
Public Key Cryptography 276
Public Key Cryptography Using Digital Signatures and Hash Digests 278
Digital Envelopes 280
Digital Certificates and Public Key Infrastructure (PKI) 281
Limitations of PKI 282
Securing Channels of Communication 283
Secure Sockets Layer (SSL) and Transport Layer Security (TLS) 283
Virtual Private Networks (VPNs) 285
Wireless (Wi-Fi) Networks 285
Protecting Networks 286
Firewalls 286
Proxy Servers 287
Intrusion Detection and Prevention Systems 288
Protecting Servers and Clients 288
Operating System Security Enhancements 288
Anti-Virus Software 288
4.4 Management Policies, Business Procedures, and Public Laws 289
A Security Plan: Management Policies 289
The Role of Laws and Public Policy 291
Private and Private-Public Cooperation Efforts 292
Government Policies and Controls on Encryption 294
4.5 E-commerce Payment Systems 295
Online Credit Card Transactions 297
Credit Card E-commerce Enablers 298
PCI-DSS Compliance 298
Limitations of Online Credit Card Payment Systems 299
Alternative Online Payment Systems 299
Mobile Payment Systems: Your Smartphone Wallet 301
Social/Mobile Peer-to-Peer Payment Systems 301
Regulation of Mobile Wallets and Rechargeable Cards 302
Digital Cash and Virtual Currencies 303
4.6 Electronic Billing Presentment and Payment 303
Insight on Business: Bitcoin 304
Market Size and Growth 306
EBPP Business Models 306
4.8 Review 314
Key Concepts 314
Questions 317
Projects 318
References 318
5 E-COMMERCE BUSINESS STRATEGIES\r 322
Learning Objectives 322
Ace & Tate: Disrupting the European Eyewear Industry 323
5.1 E-commerce Business Models 326
Introduction 326
Eight Key Elements of a Business Model 326
Value Proposition 327
Revenue Model 328
Insight on Society: Foursquare: Check Your Privacy at the Door 330
Market Opportunity 332
Competitive Environment 332
Competitive Advantage 333
Market Strategy 335
Organizational Development 335
Management Team 336
Raising Capital 336
Categorizing E-commerce Business Models: Some Difficulties 338
Insight on Business: Crowdfunding Takes Off 339
5.2 Major Business-to-Consumer (B2C) Business Models 341
E-tailer 341
Community Provider 344
Content Provider 345
Portal 346
Insight on Technology: Will the Connected Car Become the Next Hot Entertainment Vehicle? 347
Transaction Broker 349
Market Creator 349
Service Provider 350
5.3 Major Business-to-Business (B2B) Business Models 351
E-distributor 352
E-procurement 352
Exchanges 353
Industry Consortia 354
5.4 How E-commerce Changes Business: Strategy, Structure, and Process 354
Industry Structure 356
Industry Value Chains 358
Firm Value Chains 359
Firm Value Webs 360
Business Strategy 361
E-commerce Technology and Business Model Disruption 364
5.5 Case Study: Freemium Takes Pandora Public 367
5.6 Review 371
Key Concepts 371
Questions 373
Projects 373
References 374
6 E-COMMERCE MARKETING AND ADVERTISING\r 376
Learning Objectives 376
6.1 Consumers Online: The Internet Audience and Consumer Behavior 380
Internet Traffic Patterns: The Online Consumer Profile 380
Intensity and Scope of Usage 381
Demographics and Access 382
Type of Internet Connection: Broadband and Mobile Impacts 383
Community Effects: Social Contagion in Social Networks 383
Consumer Behavior Models 384
Profiles of Online Consumers 384
The Online Purchasing Decision 385
Shoppers: Browsers and Buyers 388
What Consumers Shop for and Buy Online 389
Intentional Acts: How Shoppers Find Vendors Online 389
Why Some People Don’t Shop Online 390
Trust, Utility, and Opportunism in Online Markets 390
6.2 Digital Commerce Marketing and Advertising Strategies and Tools 391
Strategic Issues and Questions 391
The Website as a Marketing Platform: Establishing the Customer Relationship 393
Traditional Online Marketing and Advertising Tools 394
Search Engine Marketing and Advertising 396
Display Ad Marketing 400
E-mail Marketing 408
Affiliate Marketing 410
Viral Marketing 411
Lead Generation Marketing 411
Social, Mobile, and Local Marketing and Advertising 412
Social Marketing and Advertising 412
Mobile Marketing and Advertising 413
Local Marketing: The Social-Mobile-Local Nexus 414
Multi-channel Marketing: Integrating Online and Offline Marketing 414
Other Online Marketing Strategies 415
Customer Retention Strategies 415
Insight on Business: Are the Very Rich Different from You and Me? 416
Pricing Strategies 423
Long Tail Marketing 428
6.3 Internet Marketing Technologies 428
Insight on Technology: The Long Tail: Big Hits and Big Misses 429
The Revolution in Internet Marketing Technologies 431
Web Transaction Logs 432
Supplementing the Logs: Cookies and Other Tracking Files 433
Databases, Data Warehouses, Data Mining, and Big Data 435
Databases 435
Data Warehouses and Data Mining 435
Insight on Society: Every Move You Take, Every Click You Make, We’ll Be Tracking You 436
Hadoop and the Challenge of Big Data 439
Marketing Automation and Customer Relationship Management (CRM) Systems 440
6.4 Understanding the Costs and Benefits of Online Marketing Communications 442
Online Marketing Metrics: Lexicon 442
How Well Does Online Advertising Work? 446
The Costs of Online Advertising 448
Marketing Analytics: Software for Measuring Online Marketing Results 450
6.5 Case Study: Programmatic Advertising: Real-Time Marketing 453
6.6 Review 457
Key Concepts 457
Questions 459
Projects 460
References 461
7 SOCIAL, MOBILE, AND LOCAL MARKETING\r 464
Learning Objectives 464
Pinterest Expands Around the Globe 465
7.1 Introduction to Social, Mobile, and Local Marketing 468
From Eyeballs to Conversations 468
From the Desktop to the Smartphone and Tablet 468
The Social, Mobile, Local Nexus 470
7.2 Social Marketing 471
Social Marketing Players 472
The Social Marketing Process 473
Facebook Marketing 474
Basic Facebook Features 474
Facebook Marketing Tools 476
Starting a Facebook Marketing Campaign 480
Measuring Facebook Marketing Results 481
Insight on Technology: Optimizing Social Marketing with Simply Measured 483
Twitter Marketing 485
Basic Twitter Features 485
Twitter Marketing Tools 485
Starting a Twitter Marketing Campaign 488
Measuring Twitter Marketing Results 490
Pinterest Marketing 490
Basic Pinterest Features 491
Pinterest Marketing Tools 491
Starting a Pinterest Marketing Campaign 494
Measuring Pinterest Marketing Results 496
Marketing on Other Social Networks 496
The Downside of Social Marketing 499
7.3 Mobile Marketing 499
Overview: M-commerce Today 499
Insight on Society: Marketing to Children of the Web in the Age of Social Networks 500
How People Actually Use Mobile Devices 502
In-App Experiences and In-App Ads 504
How the Multi-Screen Environment Changes the Marketing Funnel 505
Basic Mobile Marketing Features 506
The Technology: Basic Mobile Device Features 507
Mobile Marketing Tools: Ad Formats 508
Starting a Mobile Marketing Campaign 510
Insight on Business: Mobile Marketing: Ford Goes 3-D 511
Measuring Mobile Marketing Results 514
7.4 Local and Location-Based Mobile Marketing 515
The Growth of Local Marketing 515
The Growth of Location-Based (Local) Mobile Marketing 516
Location-Based Marketing Platforms 517
Location-Based Mobile Marketing: The Technologies 518
Why Is Local Mobile Attractive to Marketers? 520
Location-Based Marketing Tools 520
A New Lexicon: Location-Based Digital Marketing Features 520
Proximity Marketing with Beacons 520
Starting a Location-Based Marketing Campaign 523
Measuring Location-Based Marketing Results 523
7.5 Case Study: ExchangeHunterJumper.com: Building an International Brand with Social Marketing 525
7.6 Review 531
Key Concepts 531
Questions 533
Projects 534
References 534
8 ETHICS, LAW, AND E-COMMERCE 536
Learning Objectives 536
The Right to Be Forgotten: Europe Leads on Internet Privacy 537
8.1 Understanding Ethical, Social, and Political Issues in E-commerce 540
A Model for Organizing the Issues 541
Basic Ethical Concepts: Responsibility, Accountability, and Liability 543
Analyzing Ethical Dilemmas 545
Candidate Ethical Principles 546
8.2 Privacy and Information Rights 547
What Is Privacy? 547
Privacy in the Public Sector: Privacy Rights of Citizens 548
Privacy in the Private Sector: Privacy Rights of Consumers 549
Information Collected by Websites 552
Key Issues in Online Privacy of Consumers 553
Marketing: Profiling, Behavioral Targeting, and Retargeting 555
The Harm of False Data: That’s Not Me! 557
Social Networks: Privacy and Self Revelation 558
Mobile Devices: Location-Based Privacy Issues 559
Consumer Privacy Regulation: The FTC 560
Consumer Privacy Regulation: The Federal Communications Commission (FCC) 563
Privacy Policies 564
The European Data Protection Directive 566
Industry Self-Regulation 567
Technological Solutions 568
Privacy Protection as a Business 569
Privacy Advocacy Groups 570
Limitations on the Right to Privacy: Law Enforcement and Surveillance 570
8.3 Intellectual Property Rights\r 572
Insight on Technology: Apple: Defender of Privacy? 573
Types of Intellectual Property Protection 576
Copyright: the Problem of Perfect Copies and Encryption 577
Look and Feel 578
Fair Use Doctrine 578
The Digital Millennium Copyright Act of 1998 580
Patents: Business Methods and Processes 584
E-commerce Patents 587
Trademarks: Online Infringement and Dilution 588
Trademarks and the Internet 591
Cybersquatting and Brandjacking 592
Cyberpiracy 593
Metatagging 594
Keywording 595
Linking 595
Framing 596
Trade Secrets 596
Challenge: Balancing the Protection of Property with Other Values 597
8.4 Governance 597
Can the Internet Be Controlled? 598
Taxation 599
Net Neutrality 600
Insight on Business: New Rules Extend EU Taxation of E-commerce 601
8.5 Public Safety and Welfare 604
Protecting Children 604
Cigarettes, Gambling, and Drugs: Is the Web Really Borderless? 606
Insight on Society: The Internet Drug Bazaar Operates Around the Globe 607
8.6 Case Study: The Pirate Bay: Searching for a Safe Haven 611
8.7 Review 615
Key Concepts 615
Questions 617
Projects 618
References 619
9 ONLINE MEDIA 624
Learning Objectives 624
Spotify and Deezer: European Streaming Music Services Spread Around the Globe 625
9.1 Online Content 627
Content Audience and Market: Where Are the Eyeballs and the Money? 627
Media Utilization: A Converging Digital Stream 629
Insight on Society: Are Millennials Really All That Different? 630
Internet and Traditional Media: Cannibalization versus Complementarity 633
Media Revenues 633
Three Revenue Models for Digital Content Delivery: Subscription, A La Carte, and Advertising-Supported (Free and Freemium) 633
Online Content Consumption 634
Free or Fee: Attitudes About Paying for Content and the Tolerance for Advertising 635
Digital Rights Management (DRM) and Walled Gardens 636
Media Industry Structure 637
Media Convergence: Technology, Content, and Industry Structure 637
Technological Convergence 638
Content Convergence 638
Industry Structure Convergence 639
9.2 The Online Publishing Industry 640
Online Newspapers 641
From Print-centric to Digital First: The Evolution of Newspaper Online Business Models, 1995–2016 643
Online Newspaper Industry: Strengths and Challenges 645
Magazines Rebound on the Tablet Platform 652
Insight on Business: Vox: Native Digital News 653
E-Books and Online Book Publishing 655
Amazon and Apple: The New Digital Media Ecosystems 657
E-Book Business Models 658
The Challenges of the Digital E-Book Platform 660
Interactive Books: Converging Technologies 661
9.3 The Online Entertainment Industry 662
Online Entertainment Market Size and Growth 664
Television 664
Feature-Length Movies 668
Insight on Technology: Hollywood and the Internet: Let’s Cut a Deal 673
Music 675
Games 679
9.4 Case Study: Netflix: How Does This Movie End? 683
9.5 Review 688
Key Concepts 688
Questions 689
Projects 690
References 690
10 ONLINE COMMUNITIES 692
Learning Objectives 692
LinkedIn: A Tale of Two Countries 693
10.1 Social Networks and Online Communities 695
What Is an Online Social Network? 696
The Growth of Social Networks and Online Communities 697
Turning Social Networks into Businesses 700
Types of Social Networks and Their Business Models 702
Insight on Society: The Dark Side of Social Networks 703
Social Network Technologies and Features 706
Insight on Technology: Trapped Inside the Facebook Bubble? 709
10.2 Online Auctions 712
Benefits and Costs of Auctions 712
Benefits of Auctions 712
Risks and Costs of Auctions 714
Auctions as an E-commerce Business Model 714
Types and Examples of Auctions 715
When to Use Auctions (and for What) in Business 716
Auction Prices: Are They the Lowest? 718
Consumer Trust in Auctions 719
When Auction Markets Fail: Fraud and Abuse in Auctions 719
10.3 E-commerce Portals 720
The Growth and Evolution of Portals 721
Types of Portals: General-Purpose and Vertical Market 722
Insight on Business: Verizon Doubles Down on Portals 723
Portal Business Models 726
10.4 Case Study: eBay Evolves 728
10.5 Review 731
Key Concepts 731
Questions 733
Projects 733
References 734
11 E-COMMERCE RETAILING AND SERVICES 736
Learning Objectives 736
Souq.com: The Amazon of the Middle East 737
11.1 The Online Retail Sector 740
The Retail Industry 741
Online Retailing 742
E-commerce Retail: The Vision 743
The Online Retail Sector Today 744
11.2 Analyzing the Viability of Online Firms 750
Strategic Analysis 750
Financial Analysis 751
11.3 E-commerce in Action: E-tailing Business Models 753
Virtual Merchants 754
Amazon 754
The Vision 755
Business Model 755
Financial Analysis 756
Strategic Analysis—Business Strategy 758
Strategic Analysis—Competition 760
Strategic Analysis—Technology 760
Strategic Analysis—Social and Legal Challenges 761
Future Prospects 761
Omni-Channel Merchants: Bricks-and-Clicks 761
Catalog Merchants 763
Manufacturer-Direct 764
Common Themes in Online Retailing 766
11.4 The Service Sector: Offline and Online 768
Insight on Technology: Big Data and Predictive Marketing 769
11.5 Online Financial Services 771
Online Financial Consumer Behavior 771
Online Banking and Brokerage 772
Multi-Channel vs. Pure Online Financial Services Firms 773
Financial Portals and Account Aggregators 774
Online Mortgage and Lending Services 774
Online Insurance Services 775
Online Real Estate Services 777
11.6 Online Travel Services 778
Why Are Online Travel Services So Popular? 778
The Online Travel Market 779
Online Travel Industry Dynamics 780
11.7 Online Career Services 781
Insight on Society: Phony Reviews 782
It’s Just Information: The Ideal Web Business? 784
Online Recruitment Industry Trends 786
11.8 On-Demand Service Companies 787
Insight on Business: Wimdu Competes with Airbnb 789
11.9 Case Study: OpenTable: Your Reservation Is Waiting 792
11.10 Review 796
Key Concepts 796
Questions 798
Projects 799
References 800
12 B2B E-COMMERCE 802
Learning Objectives 802
Alibaba: China’s E-commerce King 803
12.1 An Overview of B2B E-commerce 807
Some Basic Definitions 809
The Evolution of B2B E-commerce 809
The Growth of B2B E-commerce 811
Potential Benefits and Challenges of B2B E-commerce 813
12.2 The Procurement Process and Supply Chains 814
Steps in the Procurement Process 814
Insight on Society: Where’s My iPad? Global Supply Chain Risk and Vulnerability 815
Types of Procurement 817
Multi-Tier Supply Chains 818
Visibility and Other Concepts in Supply Chain Management 819
The Role of Existing Legacy Computer Systems and Enterprise Systems in Supply Chains 819
12.3 Trends in Supply Chain Management and Collaborative Commerce 820
Just-in-Time and Lean Production 820
Supply Chain Simplification 821
Supply Chain Black Swans: Adaptive Supply Chains 821
Accountable Supply Chains: Labor Standards 822
Sustainable Supply Chains: Lean, Mean, and Green 824
Electronic Data Interchange (EDI) 825
Mobile B2B 827
B2B in the Cloud 828
Supply Chain Management Systems 829
Insight on Technology: Your Shoes Are in the Cloud 830
Collaborative Commerce 833
Collaboration 2.0: Cloud, Web, Social, and Mobile 834
Social Networks and B2B: The Extended Social Enterprise 835
B2B Marketing 835
12.4 Net Marketplaces: The Selling Side of B2B 836
Characteristics of Net Marketplaces 837
Types of Net Marketplaces 837
E-distributors 838
E-procurement 840
Exchanges 841
Industry Consortia 844
12.5 Private Industrial Networks 846
Objectives of Private Industrial Networks 847
Private Industrial Networks and Collaborative Commerce 848
Insight on Business: Walmart Develops a Private Industrial Network 849
Implementation Barriers 852
12.6 Case Study: Elemica: Cooperation, Collaboration, and Community 853
12.7 Review 858
Key Concepts 858
Questions 861
Projects 861
References 862
Index 865
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Credits 909
List of Video Cases 910
List of Learning Tracks 911