Part 1:Introduction 2
Chapter 1 The Second Wave of Global E-Business 2
Electronic Commerce:The Second Wave 4
Electronic Commerce and Electronic Business 4
Categories of Electronic Commerce 4
The Development and Growth of Electronic Commerce 8
The Dot-Com Boom,Bust,and Rebirth 9
The Second Wave of Electronic Commerce 10
Business Models,Revenue Models,and Business Processes 14
Focus on Specific Business Processes 14
Role of Merchandising 15
Product/Process Suitability to Electronic Commerce 15
Advantages and Disadvantages of Electronic Commerce 17
Advantages of Electronic Commerce 17
Disadvantages of Electronic Commerce 19
Economic Forces and Electronic Commerce 21
Transaction Costs 22
Markets and Hierarehies 24
Using Electronic Commerce to Reduce Transaction Costs 25
Network Economic Structures 26
Network Effects 27
Using Electronic Commerce to Create Network Effects 28
Identifying Electronic Commerce Opportunities 28
Strategic Business Unit Value Chains 28
Industry Value Chains 30
SWOT Analysis:Evaluating Business Unit Opportunities 32
International Nature of Electronic Commerce 34
Trust Issues on the Web 34
Language Issues 35
Cultural Issues 36
Culture and Government 38
Infrastructure Issues 40
Summary 43
Key Terms 43
Review Questions 44
Exercises 44
Cases 45
Chapter 2 E-Business Technology Basics 50
The Internet and the World Wide Web 52
Origins of the Internet 53
New Uses for the Internet 53
Commercial Use of the Internet 54
Growth of the Internet 55
Emergence of the World Wide Web 56
Packet-Switched Networks 59
Routing Packets 59
Internet Protocols 61
TCP/IP 61
IP Addressing 62
Domain Names 63
Web Page Request and Delivery Protocols 65
Electronic Mail Protocols 66
Unsolicited Commercial E-Mail（UCE,Spam） 67
Markup Languages and the Web 68
Markup Languages 69
Hypertext Markup Language 69
Extensible Markup Language（XML） 76
HTML and XML Editors 81
Intranets and Extranets 82
Public and Private Networks 82
Virtual Private Network（VPN） 83
Internet Connection Options 83
Connectivity Overview 84
Voice-Grade Telephone Connections 84
Broadband Connections 85
Leased-Line Connections 86
Wireless Connections 87
Internet2 and the Semantic Web 91
Summary 93
Key Terms 94
Review Questions 96
Exercises 96
Cases 98
Part 2:Business Strategies for Electronic Commerce 102
Chapter 3 E-Business Revenue Models 102
Revenue ModeIs 103
Web Catalog Revenue Models 104
Digital Content Subscription Revenue Models 111
Advertising-Supported Revenue Models 112
Advertising-Subscription Mixed Revenue Models 117
Fee-for-Transaction Revenue Models 119
Fee-for-Service Revenue Models 127
Free for Many,Fee for a Few 128
Revenue Models in Transition 129
Subscription to Advertising-Supported Model 129
Advertising-Supported to Advertising-Subscription Mixed Model 129
Advertising-Supported to Fee-for-Services Model 130
Advertising-Supported to Subscription Model 130
Multiple Transitions 131
Revenue Strategy Issues 132
Channel Conflict and Cannibalization 132
Strategic Alliances 133
Creating an Effective Web Presence 133
Identifying Web Presence Goals 134
Web Site Usability 138
How the Web Is Different 138
Meeting the Needs of Web Site Visitors 139
Trust and Loyalty 141
Rating Electronic Commerce Web Sites 142
Usability Testing 142
Customer-Centric Web Site Design 143
Connecting with Customers 144
The Nature of Communication on the Web 144
Summary 148
Key Terms 148
Review Questions 149
Exercises 149
Cases 150
Chapter 4 Selling to Consumers Online 154
Web Marketing Strategies 156
Product-Based Marketing Strategies 157
Customer-Based Marketing Strategies 158
Communicating with Different Market Segments 159
Trust,Complexity,and Media Choice 160
Market Segmentation 162
Market Segmentation on the Web 164
Offering Customers a Choice on the Web 164
Beyond Market Segmentation:Customer Behavior and Relationship Intensity 165
Segmentation Using Customer Behavior 165
Customer Relationship Intensity and Life-Cycle Segmentation 168
Acquisition,Conversion,and Retention of Customers 170
Customer Acquisition,Conversion,and Retention:The Funnel Model 171
Advertising on the Web 172
Banner Ads 173
Text Ads 175
Other Web Ad Formats 176
Site Sponsorships 177
Online Advertising Cost and Effectiveness 178
Effectiveness of Online Advertising 180
E-Mail Marketing 180
Permission Marketing 181
Combining Content and Advertising 181
Outsourcing E-Mail Processing 182
Technology-Enabled Customer Relationship Management 182
CRM as a Source of Value in the Marketspace 183
Creating and Maintaining Brands on the Web 185
Elements of Branding 186
Emotional Branding vs.Rational Branding 187
Brand Leveraging Strategies 187
Brand Consolidation Strategies 187
Costs of Branding 188
Affiliate Marketing Strategies 188
Viral Marketing Strategies 189
Search Engine Positioning and Domain Names 190
Search Engines and Web Directories 190
Paid Search Engine Inclusion and Placement 191
Web Site Naming Issues 195
Summary 198
Key Terms 198
Review Questions 200
Exercises 200
Cases 201
Chapter 5 Selling to Businesses Online 205
Purchasing,Logistics,and Support Activities 207
Purchasing Activities 208
Direct vs.Indirect Materials Purchasing 210
Logistics Activities 212
Support Activities 213
E-Government 214
Network Model of Economic Organization in Purchasing 216
Electronic Data Interchange 217
Early Business Information Interchange Efforts 217
Emergence of Broader EDI Standards 218
How EDI Works 220
Value-Added Networks 224
EDI Payments 227
EDI on the Internet 227
Supply Chain Management Using Internet Technologies 228
Value Creation in the Supply Chain 228
Increasing Supply Chain Efficiencies 230
Using Materials-Tracking Technologies with EDI and Electronic Commerce 231
Creating an Ultimate Consumer Orientation in the Supply Chain 234
Building and Maintaining Trust in the Supply Chain 234
Electronic Marketplaces and Portals 235
Independent Industry Marketplaces 235
Private Stores and Customer Portals 237
Private Company Marketplaces 237
Industry Consortia-Sponsored Marketplaces 238
Summary 240
Key Terms 240
Review Questions 241
Exercises 241
Cases 242
Chapter 6 Virtual Communities 246
From Virtual Communities to Social Networks 247
Virtual Communities 248
Early Web Communities 248
Social Networking in the Second Wave of Online Communities 249
Revenue Models for Social Networking Sites 253
Mobile Commerce 256
Mobile Operating Systems and Applications 256
The Future of Mobile Commerce 258
Online Auctions 259
Auction Basics 259
Online Auctions and Related Businesses 263
Auction-Related Services 271
Summary 275
Key Terms 275
Review Questions 276
Exercises 277
Cases 277
Part 3:Technologies for Electronic Commerce 282
Chapter 7 Web Hosting and E-Business Software 282
Web Hosting Alternatives 284
Basic Functions of Electronic Commerce Software 286
Catalog Display 287
Shopping Cart 289
Transaction Processing 294
Advanced Functions of Electronic Commerce Software 295
Databases 295
Middleware 296
Enterprise Application Integration 296
Integration with ERP Systems 297
Web Services 298
Electronic Commerce Software for Small and Midsize Companies 302
Basic Commerce Service Providers 302
Mall-Style Commerce Service Providers 303
Estimating Operating Expenses for a Small Web Business 304
Electronic Commerce Software for Midsize to Large Businesses 305
Web Site Development Tools 306
Electronic Commerce Software for Large Businesses 308
Enterprise-Class Electronic Commerce Software 308
Customer Relationship Management Software 310
Supply Chain Management Software 312
Content Management Software 313
Knowledge Management Software 313
Summary 315
Key Terms 315
Review Questions 316
Exercises 316
Cases 318
Chapter 8 Online Security 321
Online Security Issues Overview 323
Computers and Security:A Brief History 323
Computer Security and Risk Management 324
Elements of Computer Security 325
Security Policy and Integrated Security 326
Security for Client Computers 328
Cookies 328
Web Bugs 330
Active Content 330
Java Applets 331
JavaScript 332
AetiveX Controls 333
Graphics and Plug-Ins 333
Viruses,Worms,and Antivirus Software 334
Digital Certificates 339
Steganography 342
Physical Security for Clients 343
Communication Channel Security 343
Secrecy Threats 344
Integrity Threats 346
Necessity Threats 347
Threats to the Physical Security of Internet Communications Channels 347
Threats to Wireless Networks 348
Encryption Solutions 349
Ensuring Transaction Integrity with Hash Functions 356
Ensuring Transaction Integrity with Digital Signatures 357
Security for Server Computers 358
Web Server Threats 358
Database Threats 359
Other Programming Threats 359
Threats to the Physical Security of Web Servers 360
Access Control and Authentication 362
Firewalls 363
Organizations that Promote Computer Security 365
CERT 365
Other Organizations 366
Computer Forensics and Ethical Hacking 366
Summary 367
Key Terms 368
Review Questions 369
Exercises 370
Cases 370
Chapter 9 Online Payment Systems 373
Online Payment Basics 375
Payment Cards 377
Advantages and Disadvantages of Payment Cards 378
Payment Acceptance and Processing 379
Electronic Cash 382
Micropayments and Small Payments 383
Privacy and Security of Electronic Cash 384
Holding Electronic Cash:Online and Offline Cash 384
Advantages and Disadvantages of Electronic Cash 385
Electronic Cash Systems 386
Electronic Wallets 389
Microsoft Windows Live ID 390
Yahoo!Wallet 390
Stored-Value Cards 391
Magnetic Strip Cards 391
Smart Cards 391
Internet Technologies and the Banking Industry 393
Check Processing 393
Mobile Banking 395
Criminal Activity and Payment Systems:Phishing and Identity Theft 395
Phishing Attacks 395
Using Phishing Attacks for Identity Theft 398
Phishing Attack Countermeasures 400
Summary 401
Key Terms 401
Review Questions 402
Exercises 402
Cases 403
Part 4:Integration 408
Chapter 10 Implementing E-Business Initiatives 408
Identifying Benefits and Estimating Costs of Electronic Commerce Initiatives 410
Identifying Objectives 410
Linking Objectives to Business Strategies 410
Identifying and Measuring Benefits 411
Identifying and Estimating Costs 413
Funding Online Business Startups 416
Comparing Benefits to Costs 417
Return on Investment（ROI） 417
Strategies for Developing Electronic Commerce Web Sites 419
Internal Development vs.Outsourcing 420
New Methods for Implementing Partial Outsourcing 423
Managing Electronic Commerce Implementations 425
Project Management 425
Project Portfolio Management 426
Staffing for Electronic Commerce 426
Postimplementation Audits 429
Change Management 430
Summary 431
Key Terms 431
Review Questions 432
Exercises 432
Cases 433
For Further Study and Research 437