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E-Commerce 2016: Business, Technology,Society, Global Edition

Table of Contents

Cover

E-commerce: Business, Technology, Society - Global Edition Copyright

Preface

Brief Contents

Contents

1: Introduction to E-commerce Learning Objectives

The Uber-ization of Everything

E-Commerce: The Revolution is just BeginningThe First 30 Seconds

What Is E-Commerce?

The Difference Between E-Commerce and E-Business

Why Study E-Commerce?

Eight Unique Features of E-Commerce Technology

Ubiquity

Global Reach

Universal Standards

Richness

Interactivity

Information Density

Personalization/Customization

Social Technology: User-Generated Content and Social Networks

Types of E-Commerce

Business-to-Consumer (B2C) E-commerce

Business-to-Business (B2B) E-commerce

Consumer-to-Consumer (C2C) E-commerce

Mobile E-commerce (M-commerce)

Social E-commerce

Local E-commerce

Growth of the Internet, Web, and Mobile Platform

Insight on Technology: Will Apps Make the Web Irrelevant?

Origins and Growth of E-Commerce

E-Commerce: A Brief History E-Commerce 19952000: Invention

E-Commerce 20012006: Consolidation

E-Commerce 2007Present: Reinvention

Insight on Business: Rocket Internet

Assessing E-Commerce: Successes, Surprises, and Failures

Table of Contents

Understanding E-Commerce: Organizing ThemesTechnology: Infrastructure

Business: Basic Concepts

Society: Taming the Juggernaut

Academic Disciplines Concerned with E-Commerce

Technical Approaches

Behavioral Approaches

Insight on Society: Facebook and the Age of Privacy

Case Study: Puma Goes Omni

ReviewKey Concepts

Questions

Projects

References

2: E-commerce InfrastructureLearning Objectives

Wikitude, Layar, and Blippar: Augment My Reality

The Internet: Technology BackgroundThe Evolution of the Internet: 1961The Present

The Internet: Key Technology Concepts

Packet Switching

Transmission Control Protocol/Internet Protocol (TCP/IP)

IP Addresses

Domain Names, DNS, and URLs

Client/Server Computing

The New Client: The Mobile Platform

The Internet Cloud Computing Model: Hardware and Software as a Service

Other Internet Protocols and Utility Programs

The Internet TodayThe Internet Backbone

Internet Exchange Points

Campus Area Networks

Internet Service Providers

Intranets

Who Governs the Internet?

The Future Internet InfrastructureLimitations of the Current Internet

Insight on Society: Government Regulation and Surveillance of the Internet

The Internet2® Project

The First Mile and the Last Mile

Fiber Optics and the Bandwidth Explosion in the First Mile

The Last Mile: Mobile Internet Access

Table of Contents

Telephone-based versus Computer Network-based Wireless Internet Access

Internet Access Drones

The Future Internet

Latency Solutions

Guaranteed Service Levels and Lower Error Rates

Declining Costs

The Internet of Things

The WebHypertext

Markup Languages

HyperText Markup Language (HTML)

eXtensible Markup Language (XML)

Insight on Technology: The Rise of HTML5

Web Servers and Clients

Web Browsers

The Internet and the Web: Features and ServicesE-Mail

Instant Messaging

Search Engines

Online Forums

Streaming Media

Cookies

Web 2.0 Features and Services

Online Social Networks

Blogs

Really Simple Syndication (RSS)

Podcasting

Wikis

Music and Video Services

Internet Telephony

Video Conferencing, Video Chatting, and Telepresence

Intelligent Personal Assistants

Mobile Apps: The Next Big Thing is HerePlatforms for Mobile Application Development

App Marketplaces

Insight on Business: Apps for Everything: The App Ecosystem

Case Study: Akamai Technologies: Attempting to Keep Supply Ahead of Demand

ReviewKey Concepts

Questions

Projects

References

3: Building an E-commerce Presence

Table of Contents

Learning Objectives

The Financial Times : A Remodel for 21st Century Publishing Profitability

Imagine Your E-Commerce PresenceWhats the idea? (The Visioning Process)

Wheres The Money: Business and Revenue Model

Who and where is the Target Audience

What is the Ballpark? Characterize the Marketplace

Wheres the Content Coming From?

Know Yourself: Conduct a Swot Analysis

Develop an E-Commerce Presence Map

Develop a Timeline: Milestones

How much will this Cost?

Building an E-Commerce Presence: A Systematic ApproachPlanning: The Systems Development Life Cycle

Systems Analysis/Planning: Identify Business Objectives, System Functionality,

and Information Requirements

System Design: Hardware and Software Platforms

Building the System: In-House Versus Outsourcing

Build your Own versus Outsourcing

Host your Own versus Outsourcing

Testing the System

Implementation and Maintenance

Factors in Optimizing Web Site Performance

Choosing SoftwareSimple Versus Multi-Tiered Web Site Architecture

Web Server Software

Site Management Tools

Dynamic Page Generation Tools

Application Servers

E-Commerce Merchant Server Software Functionality

Online Catalog

Shopping Cart

Credit Card Processing

Merchant Server Software Packages (E-Commerce Software Platforms)

Choosing an E-commerce Software Platform

Choosing HardwareRight-Sizing your Hardware Platform: The Demand Side

Right-Sizing your Hardware Platform: The Supply Side

Other E-Commerce Site Tools Web Site Design: Basic Business Considerations

Tools for Search Engine Optimization

Tools for Interactivity and Active Content

Table of Contents

Common Gateway Interface (CGI)

Active Server Pages (ASP) and ASP.NET

Java, Java Server Pages (JSP), and JavaScript

ActiveX and VBScript

ColdFusion

PHP, Ruby on Rails (RoR), and Django

Other Design Elements

Personalization Tools

The Information Policy Set

Developing a Mobile Web Site and Building Mobile ApplicationsInsight on Society: Designing for Accessibility

Planning and Building a Mobile Presence

Mobile Presence: Design Considerations

Cross-Platform Mobile App Development Tools

Mobile Presence: Performance and Cost Considerations

Insight on Technology: Building a Mobile Presence

Case Study: Orbitz Worldwide Charts Its Mobile Trajectory

ReviewKey Concepts

Questions

Projects

References

4: E-commerce Security and Payment SystemsLearning Objectives

Europol: Takes on Cybercrime with EC3

The E-Commerce Security EnvironmentThe Scope Of The Problem

The Underground Economy Marketplace: The Value of Stolen Information

What Is Good E-Commerce Security?

Dimensions Of E-Commerce Security

The Tension Between Security And Other Values

Ease of Use

Public Safety and the Criminal Uses of the Internet

Security Threats In The E-Commerce EnvironmentMalicious Code

Potentially Unwanted Programs (Pups)

Phishing

Hacking, Cybervandalism, and Hacktivism

Insight on Society: The Ashley Madison Data Breach

Data Breaches

Credit Card Fraud/Theft

Identity Fraud

Table of Contents

Spoofing, Pharming, and Spam (Junk) Web Sites

Sniffing and Man-in-the-Middle Attacks

Denial of Service (Dos) and Distributed Denial of Service (Ddos) Attacks

Insider Attacks

Poorly Designed Software

Social Network Security Issues

Mobile Platform Security Issues

Cloud Security Issues

Insight on Technology: Think Your Smartphone Is Secure?

Internet of Things Security Issues

Technology SolutionsProtecting Internet Communications

Encryption

Symmetric Key Cryptography

Public Key Cryptography

Public Key Cryptography Using Digital Signatures and Hash Digests

Digital Envelopes

Digital Certificates and Public Key Infrastructure (PKI)

Limitations of PKI

Securing Channels Of Communication

Secure Sockets Layer (SSL) and Transport Layer Security (TLS)

Virtual Private Networks (VPNs)

Wireless (Wi-Fi) Networks

Protecting Networks

Firewalls

Proxy Servers

Intrusion Detection and Prevention Systems

Protecting Servers and Clients

Operating System Security Enhancements

Anti-Virus Software

Management Policies, Business Procedures, And Public LawsA Security Plan: Management Policies

The Role Of Laws And Public Policy

Private and Private-Public Cooperation Efforts

Government Policies and Controls on Encryption Software

E-Commerce Payment SystemsOnline Credit Card Transactions

Credit Card E-commerce Enablers

PCI-DSS Compliance

Limitations of Online Credit Card Payment Systems

Alternative Online Payment Systems

Mobile Payment Systems: Your Smartphone Wallet

Social/Mobile Peer-To-Peer Payment Systems

Digital Cash And Virtual Currencies

Table of Contents

Electronic Billing Presentment And PaymentInsight on Business: Bitcoin

Market Size And Growth

EBPP Business Models

Case Study: The Mobile Payment Marketplace: Goat Rodeo

ReviewKey Concepts

Questions

Projects

References

5: E-commerce Business StrategiesLearning Objectives

Ace & Tate: Disrupting the European Eyewear Industry

E-Commerce Business ModelsIntroduction

Eight Key Elements Of A Business Model

Value Proposition

Revenue Model

Insight on Society: Foursquare: Check Your Privacy at the Door

Market Opportunity

Competitive Environment

Competitive Advantage

Market Strategy

Organizational Development

Management Team

Raising Capital

Categorizing E-Commerce Business Models: Some Difficulties

Insight on Business: Crowdfunding Takes Off

Major Business-To-Consumer (B2C) Business ModelsE-Tailer

Community Provider

Content Provider

Portal

Insight on Technology: Online Music: Battle of the Titans and Lilliputians

Transaction Broker

Market Creator

Service Provider

Major Business-To-Business (B2B) Business ModelsE-Distributor

E-Procurement

Exchanges

Industry Consortia

Private Industrial Networks

Table of Contents

How E-Commerce Changes Business: Strategy, Structure, And ProcessIndustry Structure

Industry Value Chains

Firm Value Chains

Firm Value Webs

Business Strategy

E-Commerce Technology And Business Model Disruption

Case Study: Freemium Takes Pandora Public

ReviewKey Concepts

Questions

Projects

References

6: E-commerce Marketing and AdvertisingLearning Objectives

In Mobis Global Mobile Ad Network

Consumers Online: The Internet Audience and Consumer BehaviorInternet Traffic Patterns: The Online Consumer Profile

Intensity and Scope of Usage

Demographics and Access

Type of Internet Connection: Broadband and Mobile Impacts

Community Effects: Social Contagion in Social Networks

Consumer Behavior Models

Profiles Of Online Consumers

The Online Purchasing Decision

Shoppers: Browsers and Buyers

What Consumers Shop for and Buy Online

Intentional Acts: How Shoppers Find Vendors Online

Why Some People DonT Shop Online

Trust, Utility, And Opportunism In Online Markets

Digital Commerce Marketing and Advertising Strategies and ToolsStrategic Issues And Questions

The Web Site As A Marketing Platform: Establishing The Customer Relationship

Traditional Online Marketing And Advertising Tools

Search Engine Marketing and Advertising

Display Ad Marketing

E-mail Marketing

Affiliate Marketing

Viral Marketing

Lead Generation Marketing

SOCIAL, MOBILE, AND LOCAL MARKETING AND ADVERTISING

Social Marketing and Advertising

Table of Contents

Mobile Marketing and Advertising

Local Marketing: The Social-Mobile-Local Nexus

MULTI-CHANNEL MARKETING: INTEGRATING ONLINE AND OFFLINE MARKETING

OTHER ONLINE MARKETING STRATEGIES

Customer Retention Strategies

Insight on Business: Are the Very Rich Different from You and Me?

Pricing Strategies

Long Tail Marketing

Internet Marketing TechnologiesInsight on Technology: The Long Tail: Big Hits and Big Misses

The Revolution In Internet Marketing Technologies

Web Transaction Logs

Supplementing The Logs: Cookies And Other Tracking Files

Databases, Data Warehouses, Data Mining, And Big Data

Databases

Data Warehouses and Data Mining

Insight on Society: Every Move You Take, Every Click You Make, Well Be

Tracking You

Hadoop and the Challenge of Big Data

Marketing Automation And Customer Relationship Management (Crm) Systems

Understanding the Costs and Benefits Of Online Marketing CommunicationsOnline Marketing Metrics: Lexicon

How Well Does Online Advertising Work?

The Costs Of Online Advertising

Marketing Analytics: Software For Measuring Online Marketing Results

Case Study: Programmatic Advertising: Real-Time Marketing

ReviewKey Concepts

Questions

Projects

References

7: Social, Mobile, and Local MarketingLearning Objectives

Just Falafel Soarswith Social Media

Introduction To Social, Mobile, And Local MarketingFrom Eyeballs to Conversations

From the Desktop to the Smartphone and Tablet

The Social, Mobile, Local Nexus

Social MarketingSocial Marketing Players

The Social Marketing Process

Facebook Marketing

Table of Contents

Basic Facebook Features

Facebook Marketing Tools

Starting a Facebook Marketing Campaign

Measuring Facebook Marketing Results

Twitter Marketing

Basic Twitter Features

Twitter Marketing Tools

Insight on Technology: Optimizing Social Marketing with Simply Measured

Starting a Twitter Marketing Campaign

Measuring Twitter Marketing Results

Pinterest Marketing

Basic Pinterest Features

Pinterest Marketing Tools

Starting a Pinterest Marketing Campaign

Measuring Pinterest Marketing Results

Marketing on other Social Networks

The Downside of Social Marketing

Mobile MarketingOverview: M-Commerce Today

Insight on Society: Marketing to Children of the Web in the Age of

SocialNetworks

How People Actually Use Mobile Devices

In-App Experiences and In-App Ads

How the Multi-Screen Environment Changes the Marketing Funnel

BASIC MOBILE MARKETING FEATURES

The Technology: Basic Mobile Device Features

MOBILE MARKETING TOOLS: AD FORMATS

STARTING A MOBILE MARKETING CAMPAIGN

Insight on Business: Mobile Marketing: Ford Goes 3-D

MEASURING MOBILE MARKETING RESULTS

Local And Location-Based Mobile MarketingThe Growth of Local Marketing

The Growth of Location-Based (Local) Mobile Marketing

Location-Based Marketing Platforms

Location-Based Mobile Marketing: The Technologies

Why is Local Mobile Attractive to Marketers?

Location-Based Marketing Tools

A New Lexicon: Location-Based Digital Marketing Features

Proximity Marketing with Beacons

STARTING A LOCATION-BASED MARKETING CAMPAIGN

MEASURING LOCATION-BASED MARKETING RESULTS

Case Study: ExchangeHunterJumper.com: Building a Brand with Social Marketing

ReviewKey Concepts

Table of Contents

Questions

Projects

References

8: Ethics, Law, and E-commerceLearning Objectives

The Right to Be Forgotten: Europe Leads on Internet Privacy

Understanding Ethical, Social, And Political Issues In E-CommerceA Model for Organizing the Issues

Basic Ethical Concepts: Responsibility, Accountability, and Liability

Analyzing Ethical Dilemmas

Candidate Ethical Principles

Privacy And Information RightsInformation Collected at E-Commerce Sites

Social Networks and Privacy

Mobile and Location-Based Privacy Issues

Profiling and Behavioral Targeting

Insight on Technology: Apple: Champion of Privacy?

The Internet and Government Invasions of Privacy: E-Commerce Surveillance

Legal Protections

Informed Consent and Notice

The Federal Trade Commissions Fair Information Practices Principles

Measuring Privacy Policies Over Time

The European Data Protection Directive

Private Industry Self-Regulation

Privacy Advocacy Groups

The Privacy Protection Business

Technological Solutions

Intellectual Property RightsTypes of Intellectual Property Protection

Copyright: The Problem of Perfect Copies and Encryption

Look and Feel

Fair Use Doctrine

The Digital Millennium Copyright Act of 1998

Patents: Business Methods and Processes

E-commerce Patents

Trademarks: Online Infringement and Dilution

Trademarks and the Internet

Cybersquatting and Brandjacking

Cyberpiracy

Metatagging

Keywording

Linking

Framing

Table of Contents

Challenge: Balancing the Protection of Property with other Values

GovernanceCan the Internet be Controlled?

Taxation

Net Neutrality

Insight on Business: New Rules Extend EU Taxation of E-commerce

Public Safety and WelfareProtecting Children

Cigarettes, Gambling, and Drugs: Is the Web Really Borderless?

Insight on Society: The Internet Drug Bazaar Operates Around the Globe

Case Study: The Pirate Bay: Searching for a Safe Haven

ReviewKey Concepts

Questions

Projects

References

9: Online MediaLearning Objectives

Spotify and Deezer: European Streaming Music Services Spread Around the Globe

Online ContentContent Audience and Market: Where are the Eyeballs and the Money?

Insight on Society: Are Millennials Really All That Different?

Media Utilization: A Converging Digital Stream

Internet and Traditional Media: Cannibalization versus Complementarity

Media Revenues

Three Revenue Models for Digital Content Delivery: Subscription, A La Carte, and

Advertising-Supported (Free and Freemium)

Online Content Consumption

Free or Fee: Attitudes About Paying for Content and the Tolerance for

Advertising

Digital Rights Management (DRM) and Walled Gardens

Media Industry Structure

Media Convergence: Technology, Content, and Industry Structure

Technological Convergence

Content Convergence

Industry Structure Convergence

The Online Publishing IndustryOnline Newspapers

From Print-centric to Digital First: The Evolution of Newspaper Online Business

Models, 19952015

Online Newspaper Industry: Strengths and Challenges

Insight on Business: Vox: Native Digital News

Magazines Rebound on the Tablet Platform

E-Books and Online Book Publishing

Table of Contents

Amazon and Apple: The New Digital Media Ecosystems

E-Book Business Models

The Challenges of the Digital E-Book Platform

Interactive Books: Converging Technologies

The Online Entertainment IndustryOnline Entertainment Audience Size and Growth

Television and Premium Video

Feature-Length Movies

Music

Insight on Technology: Hollywood and the Internet: Lets Cut a Deal

GAMES

Case Study: Netflix: How does this Movie End?

ReviewKey Concepts

Questions

Projects

References

10: Online CommunitiesLearning Objectives

Viadeo Challenges LinkedIn witha Multi-Local Approach

Social Networks And Online CommunitiesWhat is an Online Social Network?

The Growth of Social Networks and Online Communities

Insight on Technology: The Appification of Facebook

Turning Social Networks into Businesses

Types of Social Networks and their Business Models

Insight on Society: The Dark Side of Social Networks

Social Network Features and Technologies

Online AuctionsBenefits and Costs of Auctions

Benefits of Auctions

Risks and Costs of Auctions

Auctions as an E-Commerce Business Model

Types and Examples of Auctions

When to Use Auctions (And For What) in Business

Auction Prices: Are they the Lowest?

Consumer Trust in Auctions

When Auction Markets Fail: Fraud and Abuse in Auctions

E-Commerce PortalsThe Growth and Evolution of Portals

Types of Portals: General-Purpose and Vertical Market

Insight on Business: The Transformation of AOL

Table of Contents

Portal Business Models

Case Study: eBay Evolves

ReviewKey Concepts

Questions

Projects

References

11: E-commerce Retailing and ServicesLearning Objectives

Souq.com: The Amazon of the Middle East

Analyzing The Viability Of Online FirmsStrategic Analysis

Financial Analysis

E-Commerce In Action: E-Tailing Business ModelsVirtual Merchants

11.1 THE ONLINE RETAIL SECTOR

THE RETAIL INDUSTRY

ONLINE RETAILING

E-commerce Retail: The Vision

The Online Retail Sector Today

The Vision

Business Model

Financial Analysis

Strategic AnalysisBusiness Strategy

Strategic AnalysisCompetition

Strategic AnalysisTechnology

Strategic AnalysisSocial and Legal Challenges

Future Prospects

Omni-Channel Merchants: Bricks-and-Clicks

Catalog Merchants

Manufacturer-Direct

Common Themes in Online Retailing

The Service Sector: Offline And OnlineInsight on Technology: Big Data and Predictive Marketing

Online Financial ServicesOnline Financial Consumer Behavior

Online Banking and Brokerage

Multi-Channel vs. Pure Online Financial Services Firms

Financial Portals and Account Aggregators

Online Mortgage and Lending Services

Online Insurance Services

Online Real Estate Services

Online Travel Services

Table of Contents

Why Are Online Travel Services So Popular?

The Online Travel Market

Online Travel Industry Dynamics

Insight on Society: Phony Reviews

Online Career ServicesIts Just Information: The Ideal Web Business?

Online Recruitment Industry Trends

On-Demand Service CompaniesInsight on Business: Airbnb Takes Off

Case Study: OpenTable: Your Reservation is Waiting

ReviewKey Concepts

Questions

Projects

References

12: B2B E-commerceLearning Objectives

Alibaba: Chinas E-commerce King

An Overview of B2B E-CommerceSOME BASIC DEFINITIONS

THE EVOLUTION OF B2B E-COMMERCE

THE GROWTH OF B2B E-COMMERCE

POTENTIAL BENEFITS AND CHALLENGES OF B2B E-COMMERCE

The Procurement Process and Supply ChainsSTEPS IN THE PROCUREMENT PROCESS

Insight on Society: Wheres My iPad? Global Supply Chain Risk and Vulnerability

TYPES OF PROCUREMENT

MULTI-TIER SUPPLY CHAINS

VISIBILITY AND OTHER CONCEPTS IN SUPPLY CHAIN MANAGEMENT

THE ROLE OF EXISTING LEGACY COMPUTER SYSTEMS AND ENTERPRISE SYSTEMS IN SUPPLY

CHAINS

Trends in Supply Chain Management and Collaborative CommerceJUST-IN-TIME AND LEAN PRODUCTION

SUPPLY CHAIN SIMPLIFICATION

SUPPLY CHAIN BLACK SWANS: ADAPTIVE SUPPLY CHAINS

ACCOUNTABLE SUPPLY CHAINS: LABOR STANDARDS

SUSTAINABLE SUPPLY CHAINS: LEAN, MEAN, AND GREEN

ELECTRONIC DATA INTERCHANGE (EDI)

MOBILE B2B

B2B IN THE CLOUD

SUPPLY CHAIN MANAGEMENT SYSTEMS

Table of Contents

Insight on Technology: Your Shoes Are in the Cloud

COLLABORATIVE COMMERCE

Collaboration 2.0: Cloud, Web, Social, and Mobile

SOCIAL NETWORKS AND B2B: THE EXTENDED SOCIAL ENTERPRISE

Net MarketplacesCHARACTERISTICS OF NET MARKETPLACES

TYPES OF NET MARKETPLACES

E-distributors

E-procurement

Exchanges

Industry Consortia

Private Industrial NetworksOBJECTIVES OF PRIVATE INDUSTRIAL NETWORKS

PRIVATE INDUSTRIAL NETWORKS AND COLLABORATIVE COMMERCE

Insight on Business: Walmart Develops a Private Industrial Network

IMPLEMENTATION BARRIERS

Case Study: Elemica: Cooperation, Collaboration, and Community

ReviewQuestions

Projects

References

Index

Credits