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Part 1:Introduction2

Chapter 1 The Second Wave of Global E-Business2

Electronic Commerce:The Second Wave4

Electronic Commerce and Electronic Business4

Categories of Electronic Commerce4

The Development and Growth of Electronic Commerce8

The Dot-Com Boom,Bust,and Rebirth9

The Second Wave of Electronic Commerce10

Business Models,Revenue Models,and Business Processes14

Focus on Specific Business Processes14

Role of Merchandising15

Product/Process Suitability to Electronic Commerce15

Advantages and Disadvantages of Electronic Commerce17

Advantages of Electronic Commerce17

Disadvantages of Electronic Commerce19

Economic Forces and Electronic Commerce21

Transaction Costs22

Markets and Hierarehies24

Using Electronic Commerce to Reduce Transaction Costs25

Network Economic Structures26

Network Effects27

Using Electronic Commerce to Create Network Effects28

Identifying Electronic Commerce Opportunities28

Strategic Business Unit Value Chains28

Industry Value Chains30

SWOT Analysis:Evaluating Business Unit Opportunities32

International Nature of Electronic Commerce34

Trust Issues on the Web34

Language Issues35

Cultural Issues36

Culture and Government38

Infrastructure Issues40

Summary43

Key Terms43

Review Questions44

Exercises44

Cases45

Chapter 2 E-Business Technology Basics50

The Internet and the World Wide Web52

Origins of the Internet53

New Uses for the Internet53

Commercial Use of the Internet54

Growth of the Internet55

Emergence of the World Wide Web56

Packet-Switched Networks59

Routing Packets59

Internet Protocols61

TCP/IP61

IP Addressing62

Domain Names63

Web Page Request and Delivery Protocols65

Electronic Mail Protocols66

Unsolicited Commercial E-Mail（UCE,Spam）67

Markup Languages and the Web68

Markup Languages69

Hypertext Markup Language69

Extensible Markup Language（XML）76

HTML and XML Editors81

Intranets and Extranets82

Public and Private Networks82

Virtual Private Network（VPN）83

Internet Connection Options83

Connectivity Overview84

Voice-Grade Telephone Connections84

Broadband Connections85

Leased-Line Connections86

Wireless Connections87

Internet2 and the Semantic Web91

Summary93

Key Terms94

Review Questions96

Exercises96

Cases98

Part 2:Business Strategies for Electronic Commerce102

Chapter 3 E-Business Revenue Models102

Revenue ModeIs103

Web Catalog Revenue Models104

Digital Content Subscription Revenue Models111

Advertising-Supported Revenue Models112

Advertising-Subscription Mixed Revenue Models117

Fee-for-Transaction Revenue Models119

Fee-for-Service Revenue Models127

Free for Many,Fee for a Few128

Revenue Models in Transition129

Subscription to Advertising-Supported Model129

Advertising-Supported to Advertising-Subscription Mixed Model129

Advertising-Supported to Fee-for-Services Model130

Advertising-Supported to Subscription Model130

Multiple Transitions131

Revenue Strategy Issues132

Channel Conflict and Cannibalization132

Strategic Alliances133

Creating an Effective Web Presence133

Identifying Web Presence Goals134

Web Site Usability138

How the Web Is Different138

Meeting the Needs of Web Site Visitors139

Trust and Loyalty141

Rating Electronic Commerce Web Sites142

Usability Testing142

Customer-Centric Web Site Design143

Connecting with Customers144

The Nature of Communication on the Web144

Summary148

Key Terms148

Review Questions149

Exercises149

Cases150

Chapter 4 Selling to Consumers Online154

Web Marketing Strategies156

Product-Based Marketing Strategies157

Customer-Based Marketing Strategies158

Communicating with Different Market Segments159

Trust,Complexity,and Media Choice160

Market Segmentation162

Market Segmentation on the Web164

Offering Customers a Choice on the Web164

Beyond Market Segmentation:Customer Behavior and Relationship Intensity165

Segmentation Using Customer Behavior165

Customer Relationship Intensity and Life-Cycle Segmentation168

Acquisition,Conversion,and Retention of Customers170

Customer Acquisition,Conversion,and Retention:The Funnel Model171

Advertising on the Web172

Banner Ads173

Text Ads175

Other Web Ad Formats176

Site Sponsorships177

Online Advertising Cost and Effectiveness178

Effectiveness of Online Advertising180

E-Mail Marketing180

Permission Marketing181

Combining Content and Advertising181

Outsourcing E-Mail Processing182

Technology-Enabled Customer Relationship Management182

CRM as a Source of Value in the Marketspace183

Creating and Maintaining Brands on the Web185

Elements of Branding186

Emotional Branding vs.Rational Branding187

Brand Leveraging Strategies187

Brand Consolidation Strategies187

Costs of Branding188

Affiliate Marketing Strategies188

Viral Marketing Strategies189

Search Engine Positioning and Domain Names190

Search Engines and Web Directories190

Paid Search Engine Inclusion and Placement191

Web Site Naming Issues195

Summary198

Key Terms198

Review Questions200

Exercises200

Cases201

Chapter 5 Selling to Businesses Online205

Purchasing,Logistics,and Support Activities207

Purchasing Activities208

Direct vs.Indirect Materials Purchasing210

Logistics Activities212

Support Activities213

E-Government214

Network Model of Economic Organization in Purchasing216

Electronic Data Interchange217

Early Business Information Interchange Efforts217

Emergence of Broader EDI Standards218

How EDI Works220

Value-Added Networks224

EDI Payments227

EDI on the Internet227

Supply Chain Management Using Internet Technologies228

Value Creation in the Supply Chain228

Increasing Supply Chain Efficiencies230

Using Materials-Tracking Technologies with EDI and Electronic Commerce231

Creating an Ultimate Consumer Orientation in the Supply Chain234

Building and Maintaining Trust in the Supply Chain234

Electronic Marketplaces and Portals235

Independent Industry Marketplaces235

Private Stores and Customer Portals237

Private Company Marketplaces237

Industry Consortia-Sponsored Marketplaces238

Summary240

Key Terms240

Review Questions241

Exercises241

Cases242

Chapter 6 Virtual Communities246

From Virtual Communities to Social Networks247

Virtual Communities248

Early Web Communities248

Social Networking in the Second Wave of Online Communities249

Revenue Models for Social Networking Sites253

Mobile Commerce256

Mobile Operating Systems and Applications256

The Future of Mobile Commerce258

Online Auctions259

Auction Basics259

Online Auctions and Related Businesses263

Auction-Related Services271

Summary275

Key Terms275

Review Questions276

Exercises277

Cases277

Part 3:Technologies for Electronic Commerce282

Chapter 7 Web Hosting and E-Business Software282

Web Hosting Alternatives284

Basic Functions of Electronic Commerce Software286

Catalog Display287

Shopping Cart289

Transaction Processing294

Advanced Functions of Electronic Commerce Software295

Databases295

Middleware296

Enterprise Application Integration296

Integration with ERP Systems297

Web Services298

Electronic Commerce Software for Small and Midsize Companies302

Basic Commerce Service Providers302

Mall-Style Commerce Service Providers303

Estimating Operating Expenses for a Small Web Business304

Electronic Commerce Software for Midsize to Large Businesses305

Web Site Development Tools306

Electronic Commerce Software for Large Businesses308

Enterprise-Class Electronic Commerce Software308

Customer Relationship Management Software310

Supply Chain Management Software312

Content Management Software313

Knowledge Management Software313

Summary315

Key Terms315

Review Questions316

Exercises316

Cases318

Chapter 8 Online Security321

Online Security Issues Overview323

Computers and Security:A Brief History323

Computer Security and Risk Management324

Elements of Computer Security325

Security Policy and Integrated Security326

Security for Client Computers328

Cookies328

Web Bugs330

Active Content330

Java Applets331

JavaScript332

AetiveX Controls333

Graphics and Plug-Ins333

Viruses,Worms,and Antivirus Software334

Digital Certificates339

Steganography342

Physical Security for Clients343

Communication Channel Security343

Secrecy Threats344

Integrity Threats346

Necessity Threats347

Threats to the Physical Security of Internet Communications Channels347

Threats to Wireless Networks348

Encryption Solutions349

Ensuring Transaction Integrity with Hash Functions356

Ensuring Transaction Integrity with Digital Signatures357

Security for Server Computers358

Web Server Threats358

Database Threats359

Other Programming Threats359

Threats to the Physical Security of Web Servers360

Access Control and Authentication362

Firewalls363

Organizations that Promote Computer Security365

CERT365

Other Organizations366

Computer Forensics and Ethical Hacking366

Summary367

Key Terms368

Review Questions369

Exercises370

Cases370

Chapter 9 Online Payment Systems373

Online Payment Basics375

Payment Cards377

Advantages and Disadvantages of Payment Cards378

Payment Acceptance and Processing379

Electronic Cash382

Micropayments and Small Payments383

Privacy and Security of Electronic Cash384

Holding Electronic Cash:Online and Offline Cash384

Advantages and Disadvantages of Electronic Cash385

Electronic Cash Systems386

Electronic Wallets389

Microsoft Windows Live ID390

Yahoo!Wallet390

Stored-Value Cards391

Magnetic Strip Cards391

Smart Cards391

Internet Technologies and the Banking Industry393

Check Processing393

Mobile Banking395

Criminal Activity and Payment Systems:Phishing and Identity Theft395

Phishing Attacks395

Using Phishing Attacks for Identity Theft398

Phishing Attack Countermeasures400

Summary401

Key Terms401

Review Questions402

Exercises402

Cases403

Part 4:Integration408

Chapter 10 Implementing E-Business Initiatives408

Identifying Benefits and Estimating Costs of Electronic Commerce Initiatives410

Identifying Objectives410

Linking Objectives to Business Strategies410

Identifying and Measuring Benefits411

Identifying and Estimating Costs413

Funding Online Business Startups416

Comparing Benefits to Costs417

Return on Investment（ROI）417

Strategies for Developing Electronic Commerce Web Sites419

Internal Development vs.Outsourcing420

New Methods for Implementing Partial Outsourcing423

Managing Electronic Commerce Implementations425

Project Management425

Project Portfolio Management426

Staffing for Electronic Commerce426

Postimplementation Audits429

Change Management430

Summary431

Key Terms431

Review Questions432

Exercises432

Cases433

For Further Study and Research437