Ebusiness & Ecommerce

eBusiness & eCommerce Andreas Meier • Henrik Stormer eBusiness & eCommerce Managing the Digital Value Chain Translated by Elizabeth Gosselin ABC Prof. Dr. Andreas Meier Dr. Henrik Stormer University of Fribourg Edorex AG Boulevard de Pérolles 90 Oberfeldweg 16 1700 Fribourg 3072 Ostermundigen Switzerland Switzerland [email protected] [email protected] Original German Edition Published by Springer 978-3-540-85016-8 ISBN 978-3-540-89327-1 e-ISBN 978-3-540-89328-8 DOI 10.1007/978-3-540-89328-8 Library of Congress Control Number: 2008943075 c Springer-Verlag Berlin Heidelberg 2009 This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer. Violations are liable to prosecution under the German Copyright Law. The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Cover design: WMX Design GmbH, Heidelberg Printed on acid-free paper 987654321 springer.com Foreword Over a decade ago, the European Union adopted a “plan of action for a European information society.” Internet technologies should broaden the capacity to act of organizations and of individuals, promote transnational contact and exchange relationships, and lead to an open society with cultural originality and variety. To achieve this, the opportunities and risks of utilizing electronic means of com- munication must be weighed against each other, and privacy and intellectual property rights must be protected. Due to technological development and the use of Internet technology, the production of information has gained economic significance. An information company creates value primarily by designing, processing, and relaying information; in other words, through the exchange of digital products and services. This textbook progressively describes all of the elements of the value chain for electronic business and electronic commerce. A process-oriented approach is used to present the electronic business transactions that occur between companies, consumers, and public administration, and these are illustrated with case studies. Along with the organization of digital products and services, special attention is paid to marketing, distribution, and customer relationship care. This textbook is intended for students of economics at universities and technical colleges who would like an overview of the state of the art in electronic business and electronic commerce. It is also suitable for executives, project lead- ers, and company experts who deal with the digital value chain. The book focuses on the members of value chains in electronic business relationships. Each of these members has a chapter devoted to it: Chapter 1 describes the terms of electronic business, electronic commerce, and electronic government, and gives meaningful examples of their application. Chapter 2 presents the organization of electronic products and services using suitable forms of cooperation or business webs. Chapter 3 is dedicated to the strategic and operational procurement process performed using electronic means. Chapter 4 examines marketing for electronic markets and shows possible business relationships with online customers. Chapter 5 deals with coding procedures, digital signatures, and certification sites associated with the receipt of legal contract work. vi Foreword Chapter 6 describes the distribution of digital products and services as part of a comprehensive supply chain. Chapter 7 discusses different electronic currencies, including small-sum or pi- copayment accounting schemes. Chapter 8 illustrates computer-supported procedures like multichannel management for the acquisition, connection, and retention of customers, as well as the customer data warehouse. Chapter 9 describes basic characteristics of portable devices and network ar- chitecture, including mobile applications. Chapter 10 discusses opportunities for and risks to the individual and the company when market participants engage in electronic business independent of time and location. This textbook came into being as a result of Bachelor’s-level and Master’s-level courses run at the Technical College of Northwest Switzerland, at the University of Fribourg, and at the University of Economics in Ho Chi Minh City. Parts of it are used regularly in practicum courses. The eDVDShop electronic trade case study (http://www.edvdshop.ch) developed in each chapter of this textbook is based on experience with the electronic shop system eSarine (http://www. esarine.ch), which is marketed through the eTorrent Company (http://www. etorrent.com). At this point we would like to thank all of the students and colleagues who critically reviewed and added to our lecture documents and case studies. This textbook would not exist without the talents of Elizabeth Gosselin from Fair- banks, Alaska, who translated it from German to English. In addition, we would like to thank the publisher staff at Springer and SPi for the pleasant cooperation. Fribourg, February 2009 Andreas Meier and Henrik Stormer Contents 1 eBusiness Framework 1 1.1DefiningElectronicBusiness..................... 2 1.2CaseStudiesonElectronicBusiness................ 4 1.2.1 ElectronicShop(B2C).................... 4 1.2.2 ElectronicHealthMarket(B2B).............. 7 1.2.3 ElectronicVotingandElections(A2C)........... 9 1.2.4 KnowledgeExchangeviaElectronicBooks(C2C)..... 11 1.3ArgumentsforInternetEconomics................. 12 1.4ValueChainandChapterOverview................. 14 1.5LiteraryReferences.......................... 17 2 eProducts and eServices 19 2.1ComponentsofaBusinessModel.................. 20 2.2 Anatomy of an Electronic Marketplace . ............ 22 2.2.1 HorizontalIntegration.................... 23 2.2.2 VerticalIntegration..................... 24 2.3ClassificationofBusinessWebsAccordingtoTapscott...... 26 2.3.1 AgoraB-Web......................... 26 2.3.2 Aggregator B-Web . ..................... 28 2.3.3 Integrator B-Web . ..................... 30 2.3.4 Alliance B-Web . ..................... 32 2.3.5 DistributorB-Web...................... 35 2.4ComparisonandValuationofNetworks.............. 37 2.5ThePriceFormationProcess.................... 39 2.5.1 OptionsforPriceDifferentiation.............. 39 2.5.2 LinearandNonlinearPriceFormation........... 41 2.5.3 FormsofPriceBundling................... 42 2.5.4 DynamicPriceFormation.................. 43 2.6ProfitModelsforElectronicMarkets................ 45 2.7LiteraryReferences.......................... 46 3 eProcurement 49 3.1StrategicandOperationalProcurement.............. 50 3.2 Information Support for Procurement . ............ 51 viii Contents 3.3BasicTypesofeProcurementSolutions............... 53 3.3.1 MarketModelsforeProcurement.............. 53 3.3.2 Sell-SideModel........................ 55 3.3.3 Buy-SideModel....................... 57 3.3.4 Marketplace.......................... 58 3.4 Catalog Management ......................... 60 3.5StandardSoftwareforDesktopPurchasing............. 65 3.6MarketforeProcurementServiceProvider............. 67 3.7LiteraryReferences.......................... 68 4 eMarketing 69 4.1ThePathtoIndividualMarketing................. 70 4.2ComparisonoftheCommunicationsMedia............ 72 4.3TheDevelopmentModelforOnlineCustomers.......... 73 4.3.1 TheOnlineSurfer...................... 73 4.3.2 TheOnlineConsumer.................... 74 4.3.3 TheOnlineProsumer.................... 75 4.3.4 TheOnlineBuyer...................... 76 4.3.5 TheKeyOnlineCustomer.................. 77 4.3.6 Measuring Success with Online Customers ......... 78 4.4OnlinePromotion........................... 80 4.4.1 PushPrinciplevs.PullPrinciple.............. 80 4.4.2 ContentManagement.................... 81 4.4.3 TypesofPromotion..................... 83 4.5ProspectsforeMarketing...................... 85 4.6LiteraryReferences.......................... 87 5 eContracting 89 5.1 The Electronic Negotiation Process ................. 90 5.2 Generic Services for the Negotiation Process . ........... 91 5.3TheDigitalSignature........................ 93 5.3.1 AsymmetricCodingProcedures............... 93 5.3.2 GeneratingDigitalSignatures................ 94 5.3.3 TasksoftheCertificationSite................ 96 5.3.4 VerificationofCertificates ................. 97 5.4XMLandElectronicContracts................... 100 5.5LegalRightsoftheInformationSociety.............. 101 5.6LiteraryReferences.......................... 103 6 eDistribution 105 6.1ComponentsofaDistributionSystem............... 106 6.2TypesofDistributionLogistics................... 107 6.2.1 OnlineDistribution...................... 107 6.2.2 OfflineDistribution...................... 109 6.2.3 HybridDistribution..................... 111 Contents ix 6.3 Supply Chain Management ..................... 112 6.3.1 CyclesWithintheSalesChain............... 112 6.3.2 TheSCORReferenceModel................ 114 6.3.3 On-DemandProduction................... 116 6.4ElectronicSoftwareDistribution(ESD).............. 118 6.4.1 ArchitectureforSoftwareDistribution..........

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