Electronic Commerce Management for Business Activities and Global Enterprises:

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1 Electronic Commerce Management for Business Activities and Global Enterprises: Competitive Advantages In Lee Western Illinois University, USA IIS SCIENCE Keference/

2 Table of Contents Preface Acknowledgment ix xv Section 1 Introduction Chapter 1 Introduction to E-Commerce in the Global Economy 1 Learning Objectives 1 Online Private Sales Clubs Introduction The Evolution of the Internet Historical Perspective of E-Commerce Types of E-Commerce Organizations in the E-Commerce Era Impacts of E-Commerce on Government Policies Web 1.0, Web 2.0, and Beyond 30 Key Terms and Definitions 33 Case Study: The Case of the Rugby Player and the Handbag 35 Chapter End Review Questions 42 Web Exercises 43 Team Exercises 43 Chapter 2 Web 2.0 and Enterprise Learning Objectives 47 Sabre Town: A New Employee Connection for Sabre Introduction 49

3 2.2 Enterprise Web 2.0 Support Types and Users' Interaction Spaces Web 2.0 Applications for Supporting Existing Business Models Small and Medium-Sized Enterprises (SMEs) and Web 2.0 o Managing Risks Posed by Web 2.0 Initiatives 64 Key Terms and Definitions 65 Case Study: Groupon's Success Story 66 Chapter End Review Questions 71 Web Exercises 71 Team Exercises 71 Chapter 3 Foundations of E-Commerce: Theories, Online Intermediaries, and E-Commerce Business Models 75 Learning Objectives 75 Virtual World Foundation Theories in E-Commerce E-Commerce Business Models Online Intermediaries Emerging Web 2.0-Based Business Models Interaction Dynamics between Emerging Web 2.0-Based Businesses and Existing Businesses 95 Key Terms and Definitions 97 Case Study I: Evolution of Emdeon's E-Business Model 98 Case Study II: E-Commerce in the Public Services: The Case of Britain's National Mapping Agency 107 Chapter End Review Questions 117 Web Exercises 117 Team Exercises 117 Section 2 Consumer and Business Sides of E-Commerce Chapter 4 B2C E-Commerce, C2C E-Commerce, and E-Recruiting 122 Learning Objectives 122 Ing Direct: Online Banking B2C E-Commerce Pure Play vs. Brick-And-Click Retailers B2C in the Digital Content Industry 129

4 4.4 B2C in the Financial Industry B2C Online Auctions Prices in B2C E-Commerce C2C E-Commerce C2C Information Sharing Choiceboards E-Recruiting 147 Key Terms and Definitions 153 Case Study: BAP - The Role of an Online Service in a Magazine Publisher's Business Model 154 Chapter End Review Questions 160 Web Exercises, 160 Team Exercises 161 Chapter 5 B2C Online Consumer Behavior 166 Learning Objectives 166 Web Award Competition Introduction Models of Online Consumer Behavior Consumer Trust Perceived Risk in Online Consumer Behavior Electronic Service Quality 187 Key Terms and Definitions 189 Case Study: Digital Revolution in the Music Industry 191 Chapter End Review Questions 195 Web Exercises 196 Team Exercises 196 Chapter 6 B2C Marketing 202 Learning Objectives 202 Yahoo! vs. Google Customer Relationship Management (CRM) Online Advertising Web Search and Search Engines Optimization Web Analytics Marketing Strategies and the Internet 227 Key Terms and Definitions 233

5 Case Study: New Media and E-Business Strategy: 7 A Case Study Based on a Family-Owned Hotel Chain 235 Chapter End Review Questions 243 Web Exercises 244 Team Exercises 244 Chapter 7 B2B E-Commerce, Online Auction, Supply Chain Management, and E-Collaboration 249 Learning Objectives 249 Teleroute: An Electronic Third Party Logistics Introduction B2B E-Marketplaces : Online Auction Electronic Logistics Marketplaces Supply Chain Management and B2B E-Commerce E-Collaboration in B2B E-Commerce Trust in B2B E-Commerce International B2B E-Commerce B2B E-Commerce Standards for Global Enterprises 278 Key Terms and Definitions 283 Case Study: ARIBA: Successful E-Service Story in the E-Commerce Age 284 Chapter End Review Questions 293 Web Exercises 294 Team Exercises 294 Chapter 8 Mobile Commerce 300 Learning Objectives 300 The Growth of Mobile Communications Introduction : M-Commerce Applications Trends in Mobile Technologies Location Commerce Pervasive (Ubiquitous) Computing and M-Commerce Radio Frequency Identification (RFID) Technologies and M-Commerce Mobile Marketing 318 Key Terms and Definitions 323 Case Study I: Metro Group's Future Store Initiative 325

6 Case Study II: Mobile Service Support At Powerco 329 Chapter End Review Questions 333 Web Exercises 334 Team Exercises 334 Section 3 Payment, Security, and Privacy in E-Commerce Chapter 9 Online Payment Systems 340 Learning Objectives 340 Credit Card Data Breaches Introduction Mobile Payment Online Credit Card Payment Processing Third Party Online Payment Services Electronic Funds Transfer Systems.354 Key Terms and Definitions 355 Case Study: BPAY: An Electronic Bill Payment Intermediary 357 Chapter End Review Questions 361 Web Exercises 361 Team Exercises 362 Chapter 10 Security and Privacy in E-Commerce 366 Learning Objectives 366 Online Privacy Issues Security in E-Commerce Managing Security Threats Public Key Infrastructure (PKI) Privacy in E-Commerce 383 Key Terms and Definitions 390 Case Study: Business Associates in the National Health Information Network 391 Chapter End Review Questions 398 Web Exercises 399 Team Exercises 399

7 Section 4 Systems Development, Technologies, and Issues in E-Commerce Chapter 11 E-Commerce Systems Development and Web Technologies 404 Learning Objectives 404 Netflix A Framework for E-Commerece Systems Development Architecture of E-Commerce Systems Languages and Tools for E-Commerce Systems Development Utility Computing Cloud Computing Web Services 427 Key Terms and Definitions 430 Case Study I: Office Depot's E-Commerce Systems Deveopment 430 Case Study II: Current TV 440 Chapter End Review Questions 448 Web Exercises 449 Team Exercises 449 Chapter 12 Trends, Ethics, and Regulatory Issues in E-Commerce 452 Learning Objectives 452 Digital Watermarking in the Digital Age: Digimarc Corporation Convergence of the Internet and Telecommunications Emerging Standards and Technologies Web Accessibility Ethics and Regulatory Issues in E-Commerce 468 Key Terms and Definitions 477 Case Study: Standard Business Reporting, Australia '. 478 Chapter End Review Questions 486 Web Exercises 487 Team Exercises 487 About the Author 491 Index 492

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