1111 2 e-Business Fundamentals 3 4 5 6 7 8 9 1011 1 2 3111 The main issues surrounding e-Business are often difficult to untangle. e-Business 4 Fundamentals is a comprehensive textbook that considers all of the key business, 5 management and technical issues of e-Business, examining and explaining how tech- 6 nologies can help organizations in both the public and private sectors conduct business 7 in new ways. 8 The book begins by addressing the changing nature of the e-Economy and the 9 impact of the dotcom ‘bubble’ of the late 1990s, going on to analyze key software 20111 developments and the impact these have had on organizational practices, such as 1 Human Resource Management. It then outlines the legal and ethical frameworks of 2 e-Business, and considers how companies use various e-Commerce tools to enter new 3 markets. Finally, it traces the progress public sector organizations have made in 4 adopting e-Business practice. 5 This is an accessible, jargon-free and focused textbook that offers readers both a 6 technical and managerial overview of the issues surrounding e-Business. It uses illus- 7 trative cases and discussion questions to help students and managers in organizations 8 not only to familiarize themselves with e-Business but also to equip themselves with 9 the skills to challenge and analyze the changing environment in which we work. 30111 1 Paul Jackson is e-Government Forum Manager for the Institute of Public Finance. 2 Lisa Harris is Lecturer in e-Business at Brunel University. 3 Peter M. Eckersley is an e-Government Research Officer for the Institute of Public 4 Finance. 5 6 7 8 9 40111 1 2111 Routledge e-Business series Routledge e-Business is a bold new series examining key aspects of the e-Business world, designed to provide students and academics with a more structured learning resource. Introducing issues of marketing, Human Resource Management, ethics, operations management, law, design, computing and the e-Business environment, it offers a broad overview of key e-Business issues from both managerial and technical perspectives. Marketing the e-Business Lisa Harris and Charles Dennis e-Business Fundamentals Edited by Paul Jackson, Lisa Harris and Peter M. Eckersley e-Retailing Charles Dennis, Bill Merrilees and Tino French e-Business 1111 2 3 Fundamentals 4 5 6 7 8 9 Edited by Paul Jackson, 1011 1 Lisa Harris and 2 3111 Peter M. Eckersley 4 5 6 7 8 9 20111 1 2 3 4 5 6 7 8 9 30111 1 2 3 4 5 6 First published 2003 by Routledge 11 New Fetter Lane, London EC4P 4EE Simultaneously published in the USA and Canada by Routledge 29 West 35th Street, New York, NY 10001 Routledge is an imprint of the Taylor & Francis Group This edition published in the Taylor & Francis e-Library, 2003. © 2003 Paul Jackson, Lisa Harris and Peter M. Eckersley for selection and editorial material; individual contributors for their chapters All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging in Publication Data e-business fundamentals/edited by Paul Jackson, Lisa Harris, and Peter M. Eckersley. p. cm. – (Routledge e-business series) Includes bibliographical references and index. 1. Electronic commerce. I. Jackson, Paul J. II. Harris, Lisa. III. Eckerlsey, Peter M. IV. Series. HF5548.32 E1738 2003 658.8′4–dc21 2002153078 ISBN 0-203-40246-4 Master e-book ISBN ISBN 0-203-40898-5 (Adobe eReader Format) ISBN 0–415–25594–5 (hbk) ISBN 0–415–25595–3 (pbk) Every effort has been made to contact copyright holders for their permission to reprint material in this book. The publishers would be grateful to hear from any copyright holder who is not here acknowledged and will undertake to rectify errors or omissions in future editions of the book. 1111 2 3 4 Contents 5 6 7 8 9 1011 1 2 3111 List of illustrations vi 4 List of contributors vii 5 Preface xi 6 Acknowledgements xiii 7 List of abbreviations xiv 8 Part IIntroduction 1 9 1 Organizations in the Electronic Age 3 20111 PAUL JACKSON AND PETER M. ECKERSLEY 1 2 Part II Getting started 11 2 The business environment for e-Commerce 13 3 LESLIE BUDD AND FINTAN CLEAR 4 3 e-Commerce technology 43 5 NANDISH V. PATEL 6 7 Part III The difference e-Business tools can make 65 8 4 Organizational considerations for e-Business 67 LISA HARRIS AND NELARINE CORNELIUS 9 5 Using marketing databases in e-Business 101 30111 MICHAEL COLLINS 1 2 Part IV The boundaries of e-Business 131 3 6 The ethics environment for e-Business 133 4 LAURA J. SPENCE 5 7 e-Business and the law 152 DAVE WADSWORTH 6 8 e-Commerce: a global overview 191 7 GERALDINE T. COHEN 8 9 Part V The public sector 225 40111 9 e-Government 227 1 NOAH CURTHOYS, PETER M. ECKERSLEY AND PAUL JACKSON 2111 Index 259 v Illustrations FIGURES 1.1 Structure of this volume 6 2.1 Taxonomy of transactions between businesses and consumers 18 2.2 Relative global densities of Internet hosts, July 1999 22 4.1 Interdependent stakeholder relationships 68 4.2 External and internal customer satisfaction 81 5.1 Free text string complete with spelling error 110 5.2 Conformity ensured and the quality of the data maintained 110 5.3 The database environment 113 5.4 Where data tools are useful within organizations 118 5.5 Notional tactical campaign design 121 5.6 Notional strategic campaign design (up to second phase) 122 5.7 Notional solution 125 5.8 Model of old-style data processing 127 5.9 Model of new-style data processing 128 6.1 Locating the use and abuse of ICTs in the workplace 142 8.1 STEP elements of the organization’s external environment 199 8.2 Cultural environments 201 8.3 Levels of business formality expected in Asian and Pacific countries 207 8.4 Traditional and e-Commerce distribution channels 218 TABLES 2.1 e-Commerce revenue as a percentage of GDP, 2000 19 2.2 Estimated revenues and jobs in the Internet economy, 1999 28 2.3 Market capitalizations at March 2000 37 4.1 Transaction marketing and relationship marketing compared 87 6.1 Summary of ethical theories 136 8.1 Internet penetration in top ten countries 194 8.2 Primary languages of Web sites and Web users 202 vi 1111 2 3 4 Contributors 5 6 7 8 9 1011 1 2 3111 LESLIE BUDD is Reader in Social Enterprise at the Open University Business 4 School. He has published widely in the field of regional and urban economics in 5 the context of international financial markets. He has produced consultancy 6 reports for UK public bodies on benchmarking regional competitiveness and 7 modelling training and entrepreneurship in small businesses. 8 9 FINTAN CLEAR is a Lecturer at the School of Business and Management, Brunel 20111 University, where he teaches business strategy for electronically mediated trading. 1 He hails from Worcester, and after cutting his academic teeth in geography and 2 communications policy went on to gain extensive experience in industry, working 3 on large-scale supply chain systems in food retailing. He has taught on three 4 continents, worked as a consultant for a number of small firms in the United 5 Kingdom, and also for larger bodies such as the European Space Agency, Italcable 6 Telecommunications (Italy) and the BBC World Service. His recent research 7 has been concerned with examining the inhibitors and promoters of e-Business 8 adoption among small firms in the west London catering trade. He is working 9 on an EU-sponsored project looking at the adoption problems of telework by 30111 small firms. His other interests include archaeology, speaking rusty Italian and 1 proselytizing the health-giving benefits of olive oil. 2 3 GERALDINE T. COHEN, Dipl. Ing., MBA (INSEAD), MCIM, Chartered 4 Marketer, is a Lecturer in Marketing at the Brunel School of Business and 5 Management, Brunel University. Her main research interests lie in the areas of 6 marketing for professional services and corporate branding. She is a member 7 of the Chartered Institute of Marketing and has been a Chartered Marketer 8 since 1998. 9 40111 MICHAEL COLLINS, BA (Hons), DipM, MCIM, MIDM, MInstD, a CIM 1 Chartered Marketer and accredited Institute of Direct Marketing consultant and 2111 trainer, has more than twenty-eight years’ marketing experience, with the last vii CONTRIBUTORS eighteen spent specializing in data-driven marketing. An internationally acknowl- edged writer, speaker and award-winning marketing consultant, he has wide experience in developing data-driven strategies, in data analysis and interpreta- tion and the integration of business intelligence for clients in both consumer and business-to-business markets. He is a Visiting Lecturer in Database Marketing at Brunel University and has delivered his seminars and workshops on database marketing in the United Kingdom, Europe, North America and the Far East. NELARINE CORNELIUS is Senior Lecturer in Human Resource Management and Organizational Behaviour in the School of Business and Management at Brunel University. She is also Senior Honorary Research Fellow, King’s College Hospital Medical School, University of London. Her research areas include learning and change in organizations, workplace diversity and quality of life and emotional labour.