GLOBAL EDITION - Bibliothekbusiness, technology, society. GLOBAL EDITION ELEVENTH E a I T I ( ) N Kenneth C. Laudon Carol Guercio Traver New York University Azimuth Interactive, Inc

business, technology, society. GLOBAL EDITION

E L E V E N T H E a I T I ( ) N

Kenneth C. Laudon Carol Guercio Traver New York University Azimuth Interactive, Inc.

P E A RSON

Boston Columbus Indianapolis New York San Francisco Amsterdam Cape Tbwn Dubai London Madrid Milan Munich Paris Montreal Tbronto

Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tbkyo

B r i e f C o n t e n t s

a INTRODUCTION TO E-COMMERCE 42

§ E-COMMERCE INFRASTRUCTURE 94

§0 BUILDING AN E-COMMERCE PRESENCE 170

< 3 E-COMMERCE SECURITY AND PAYMENT SYSTEMS 234

§ E-COMMERCE BUSINESS STRATEGIES 312

<b E-COMMERCE MARKETING AND ADVERTISING 366

V SOCIAL, MOBILE, AND LOCAL MARKETING 456

© ETHICS, LAW, AND E-COMMERCE 524

ONLINE MEDIA 602

a ® ONLINE COMMUNITIES 676

a a E-COMMERCE RETAILING AND SERVICES 718

m B2B E-COMMERCE 784

C o n t e n t s

INTRODUCTION TO E-COMMERCE 42

Learning Objectives 42

Puma Goes Omni 43

1.1 E-commerce: The Revolution Is Just Beginning 46 The First 30 Seconds 48

What Is E-commerce? 49

The Difference Between E-commerce and E-business 49

Why Study E-commerce? 50 Eight Unique Features of E-commerce Technology 51

Ubiquity 52 Global Reach 52

Universal Standards 53 Richness 53 Interactivity 53

Information Density 54 Personalization/Customization 54

Social Tbchnology: User Content Generation and Social Networking 54

Web 2.0: Play My Version 56 Types of E-commerce 57

Business-to-Consumer (B2C) E-commerce 57 Business-to-Business (B2B) E-commerce 58

Consumer-to-Consumer (C2C) E-commerce 58

Mobile E-commerce (M-commerce) 59

Social E-commerce 59 Local E-commerce 60

Growth of the Internet, Web, and Mobile Platform 61

Insight on Technology: Will Apps Make the Web Irrelevant? 64 Origins and Growth of E-commerce 66

1.2 E-commerce: A Brief History 66 E-commerce 1995-2000: Invention 67

E-commerce 2001-2006: Consolidation 70

I 23

2 4 C o n t e n t s

E-commerce 2007-Present: Reinvention 71 Assessing E-commerce: Successes, Surprises, and Failures^ 71

Insight on Business: Rocket Internet 72 Predictions for the Future: More Surprises 76

1.3 Understanding E-commerce: Organizing Themes 79 Technology: Infrastructure 79 Business: Basic Concepts 80

Society: Taming the Juggernaut 80

Insight on Society: Facebook and the Age of Privacy 82 Academic Disciplines Concerned with E-commerce 84

Technical Approaches 84 Behavioral Approaches 84

1.4 Case Study: The Pirate Bay: Searching for a Safe Haven 86

1.5 Review 89 Key Concepts 89 Questions 91

Projects 92

References 92

E-COMMERCE INFRASTRUCTURE 94


Wikitude, Layar, and Blippar: Augment My Reality 95

2.1 The Internet: Technology Background 98 The Evolution of the Internet: 1961—The Present 100

The Internet: Key Technology Concepts 101 Packet Switching 101 Transmission Control Protocol/Internet Protocol (TCP/IP) 106 IP Addresses 106

Domain Names, DNS, and URLs 108

Client/Server Computing 108

The New Client: The Mobile Platform 111

The Internet "Cloud Computing" Model: Hardware and Software as a Service 111

Other Internet Protocols and Utility Programs 113

2.2 The internet Tbday 115 The Internet Backbone 117 Internet Exchange Points 118

Campus Area Networks 118

C o n t e n t s | 2 5

Internet Service Providers 118

Intranets 121

Who Governs the Internet? 122

2.3 The Future Internet Infrastructure 124 Limitations of the Current Internet 124

Insight on Society: Government Regulation and Surveillance of the Internet 125

The Internet2® Project 128 The First Mile and the Last Mile 129

Fiber Optics and the Bandwidth Explosion in the First Mile 130 The Last Mile: Mobile Internet Access 130

Internet Access Drones 134

The Future Internet 135 Latency Solutions 135 Guaranteed Service Levels and Lower Error Rates 135 Declining Costs 135

The Internet of Things 136

2.4 The Web 137 Hypertext 139

Markup Languages 141

HyperText Markup Language (HTML) 141

extensible Markup Language (XML) 142

Insight on Technology: Is HTML5 Ready for Prime Time? 143 Web Servers and Clients 145

Web Browsers 147

2.5 The Internet and the Web: Features and Services 147 E-mail 147

Instant Messaging 148

Search Engines 148 Online Forums 151 Streaming Media 151 Cookies 152

Web 2.0 Features and Services 152

Online Social Networks 152

Blogs 152

Really Simple Syndication (RSS) 153 Podcasting 153 Wikis 154 Music and Video Services 154 Internet Telephony 155

Video Conferencing, Video Chatting, and Telepresence 156

C o n t e n t s

Online Software and Web Services: Web Apps, Widgets, and Gadgets 156

Intelligent Personal Assistants 156

Mobile Apps: The Next Big Thing Is Here 157 Platforms for Mobile Application Development 158

App Marketplaces 158

Insight on Business: Apps for Everything: The App Ecosystem 159

Case Study: Akamai Technologies: Attempting to Keep Supply Ahead of Demand 161

Review 165 Key Concepts 165

Questions 166 Projects 167 References 167

BUILDING AN E-COMMERCE PRESENCE 170


The Financial Times: A Remodel for 21st Century Publishing Profitability 171

3.1 Imagine Your E-commerce Presence 174 What's the Idea? (The Visioning Process) 174 Where's the Money: Business and Revenue Model Who and Where Is the Target Audience 175

What Is the Ballpark? Characterize the Marketplace

Where's the Content Coming From? 176 Know Yourself: Conduct a SWOT Analysis 177

Develop an E-commerce Presence Map 178

Develop a Timeline: Milestones 179

How Much Will This Cost? 179

3.2 Building an E-commerce Presence: A Systematic Approach 180 Planning: The Systems Development Life Cycle 182 Systems Analysis/Planning: Identify Business Objectives, System Functionality,

and Information Requirements 182

System Design: Hardware and Software Platforms 184

Building the System: In-house Versus Outsourcing 184

Build Your Own versus Outsourcing 184

Host Your Own versus Outsourcing 188

Insight on Business: Weebly Makes Creating Web Sites Easy 189 Ttesting the System 191

2.6

2.7

2.8

174

175

C o n t e n t s | 2 7

Implementation and Maintenance 191

Factors in Optimizing Web Site Performance 192 \

3.3 Choosing Software 193 Simple Versus Multi-Tiered Web Site Architecture 193

Web Server Software 194 Site Management Tbols 196 Dynamic Page Generation Tbols 198

Application Servers 199

E-commerce Merchant Server Software Functionality 200 Online Catalog 200

Shopping Cart 201 -i Credit Card Processing 201

Merchant Server Software Packages (E-commerce Software Platforms) 201 Choosing an E-commerce Software Platform 203

3.4 Choosing Hardware 204 Right-sizing Your Hardware Platform: The Demand Side 204 Right-sizing Your Hardware Platform: The Supply Side 207

3.5 Other E-commerce Site Tbols 209 Web Site Design: Basic Business Considerations 209

Tools for Web Site Optimization 210

Tbols for Interactivity and Active Content 211

Common Gateway Interface (CGI) 211 Active Server Pages (ASP and ASP.NET) 212

Java, Java Server Pages (JSP), and JavaScript 212 ActiveX and VBScript 213 ColdFusion 213

PHP, Ruby on Rails (RoR), and Django 213

Web 2.0 Design Elements 214 Personalization Tools 215 The Information Policy Set 215

Insight On Society: Designing for Accessibility 216

3.6 Developing a Mobile Web Site and Building Mobile Applications 218 Planning and Building a Mobile Presence 219

Mobile Presence: Design Considerations 220

Cross-platform Mobile App Development Tbols 222

Mobile Presence: Performance and Cost Considerations 222

Insight on Technology: Building a Mobile Presence 223

3.7 Case Study: Orbitz Worldwide Charts Its Mobile Trajectory 226

3.8 Review 230

28 C o n t e n t s

Key Concepts 230

Questions 232 x

Projects 232 References 233

E-COMMERCE SECURITY AND PAYMENT SYSTEMS 234

w Learning Objectives 234

Europol Takes on Cybercrime with EC3 235

4.1 The E-commerce Security Environment 238 The Scope of the Problem 239

The Underground Economy Marketplace: The Value of Stolen Information 240

What Is Good E-commerce Security? 242 Dimensions of E-commerce Security 243 The Tension Between Security and Other Values 244

Ease of Use 244

Public Safety and the Criminal Uses of the Internet 245

4.2 Security Threats in the E-commerce Environment 246 Malicious Code 247 Potentially Unwanted Programs (PUPs) 250

Phishing 252 Hacking, Cybervandalism, and Hacktivism 253

Data Breaches 254

Insight on Business: Hackers Infiltrate Target 255 Credit Card Fraud/Theft 257

Identity Fraud 258 Spoofing, Pharming, and Spam (Junk) Web Sites 258 Denial of Service (DOS) and Distributed Denial of Service (DDOS) Attacks 259 Sniffing 260

Insider Attacks 260 Poorly Designed Software 261

Social Network Security Issues 262 Mobile Platform Security Issues 262

Insigh t on Technology: Think Your Smartphone Is Secure? 264 Cloud Security Issues 266

4.3 Technology Solutions 266 Protecting Internet Communications 266

Encryption 267

C o n t e n t s | 2 9

Symmetric Key Cryptography 268

Public Key Cryptography 269

Public Key Cryptography Using Digital Signatures and Hash Digests ' 270 Digital Envelopes 273

Digital Certificates and Public Key Infrastructure (PKI) 274 Limitations to Encryption Solutions 275

Securing Channels of Communication 276

Secure Sockets Layer (SSL) and Transport Layer Security (TLS) 276

Virtual Private Networks (VPNs) 278 Wireless (Wi-Fi) Networks 278

Protecting Networks 278

Firewalls 279

Proxy Servers 279 Intrusion Detection and Prevention Systems 281

Protecting Servers and Clients 281

Operating System Security Enhancements 281 Anti-Virus Software 281

4.4 Management Policies, Business Procedures, and Public Laws 282 A Security Plan: Management Policies 282 The Role of Laws and Public Policy 284

Private and Private-Public Cooperation Efforts 285

Government Policies and Controls on Encryption Software 287

4.5 E-commerce Payment Systems 287 Online Credit Card Transactions 289

Credit Card E-commerce Enablers 291

Limitations of Online Credit Card Payment Systems 291 Alternative Online Payment Systems 291

Mobile Payment Systems: Your Smartphone Wallet 293

Digital Cash and Virtual Currencies 294

4.6 Electronic Billing Presentment and Payment 294 Insight on Society: Bitcoin 295

Market Size and Growth 297

EBPP Business Models 297

4.7 Case Study: The Mobile Payment Marketplace: Goat Rodeo 299

4.8 Review 305 Key Concepts 305 Questions 307 Projects 308

References 308

3 0 C o n t e n t s

E-COMMERCE BUSINESS STRATEGIES 312


Beatguide: Turning a Passion into a Business 313

5.1 E-commerce Business Models 316 Introduction 316

Eight Key Elements of a Business Model 316

Value Proposition 317

Revenue Model 318

Insight on Society: Foursquare: Check Your Privacy at the Door 320 Market Opportunity 322

Competitive Environment 322

Competitive Advantage 323

Market Strategy 325

Organizational Development 325

Management Team 326

Raising Capital 326

Insight on Business: Crowdfunding Takes Off 328 Categorizing E-commerce Business Models: Some Difficulties 330

5.2 Major Business-to-Consumer (B2C) Business Models 332 E-tailer 332

Community Provider 332

Content Provider 334

Portal 335

Insight on Technology: Battle of the Titans: Music in the Cloud - 336 Transaction Broker 338 Market Creator 339 Service Provider 340

5.3 Major Business-to-Business (B2B) Business Models 341 E-distributor 342 E-procurement 342

Exchanges 342 Industry Consortia 343

Private Industrial Networks 343

5.4 Hou1 E-commerce Changes Business: Strategy, Structure, and Process 344

Industry Structure 344

Industry Value Chains 348 Firm Value Chains 349

C o n t e n t s 3 1

Firm Value Webs 349

Business Strategy 350

E-commerce "[technology and Business Model Disruption 354

5.5 Case Study: Freemium Hakes Pandora Public 357


Projects 363

References 363

E-COMMERCE MARKETING AND ADVERTISING 366


InMobi's Global Mobile Ad Network 367

6.1 Consumers Online: The Internet Audience and Consumer Behavior 370

Internet Traffic Patterns: The Online Consumer Profile 370 Intensity and Scope of Usage 371

Demographics and Access 372 Type of Internet Connection: Broadband and Mobile Impacts 373

Community Effects: Social Contagion in Social Networks 373

Consumer Behavior Models 374 Profiles of Online Consumers 374

The Online Purchasing Decision 375

Shoppers: Browsers and Buyers 378

What Consumers Shop for and Buy Online 379

Intentional Acts: How Shoppers Find Vendors Online 379 Why More People Don't Shop Online 380 Trust, Utility, and Opportunism in Online Markets 380

6.2 Digital Commerce Marketing and Advertising Strategies and Tbols 381 Strategic Issues and Questions 381

The Web Site as a Marketing Platform: Establishing the Customer Relationship 383

Traditional Online Marketing and Advertising Tbols 384 Search Engine Marketing and Advertising 386 Display Ad Marketing 390 E-mail Marketing 397 Affiliate Marketing 399

Viral Marketing 400

Lead Generation Marketing 400

Social, Mobile, and Local Marketing and Advertising N 401

Social Marketing and Advertising 401

Mobile Marketing and Advertising 402

Local Marketing: The Social-Mobile-Local Nexus 403

Multi-channel Marketing: Integrating Online and Offline Marketing 404

Other Online Marketing Strategies 405

Customer Retention Strategies 405

Insight on Business: Are the Very Rich Different from You and Me? 406 Pricing Strategies 413

Long TM Marketing 419

Insight on Technology: The Long Tail: Big Hits and Big Misses 420

Internet Marketing Technologies 422 The Revolution in Internet Marketing Technologies 422 Web Transaction Logs 422

Supplementing the Logs: Tracking Files 424

Databases, Data Warehouses, Data Mining, and Big Data 425

Insight on Society: Every Move You Take, Every Click You Make, We'll Be Tracking You 426

Databases 428 Data Warehouses and Data Mining 428 Hadoop and the Challenge of Big Data 430

Marketing Automation and Customer Relationship Management (CRM) Systems 431

Understanding the Costs and Benefits of Online Marketing Communications 433

Online Marketing Metrics: Lexicon 433 How Well Does Online Advertising Work? 437 The Costs of Online Advertising 439

Web Analytics: Software for Measuring Online Marketing Results 441

Case Study: Programmatic Advertising: Real-Time Marketing 444

Review 448 Key Concepts 448

Questions 450

Projects 450

References 451

C o n t e n t s 33

SOCIAL, MOBILE, AND LOCAL MARKETING 456


Just Falafel: Soars with Social Media 457

7.1 Introduction to Social, Mobile, and Local Marketing 460 From Eyeballs to Conversations 460 From the Desktop to the Smartphone and Tablet 460

The Social, Mobile, Local Nexus 462

7.2 Social Marketing 463 Social Marketing Players 463

The Social Marketing "Process 464 Facebook Marketing 466

Basic Facebook Features 466

Facebook Marketing Tools 466 Starting a Facebook Marketing Campaign 470 Measuring Facebook Marketing Results 472

TWitter Marketing 474

Basic TWitter Features 474

Insight on Technology: Fairmont Hotels: Using Google Analytics to Optimize Social and Mobile Marketing 475

TWitter Marketing Tools 477

Starting a TWitter Marketing Campaign 479

Measuring TWitter Marketing Results 480 Pinterest Marketing 481

Basic Pinterest Features 482

Pinterest Marketing Tbols 482

Starting a Pinterest Marketing Campaign 485 Measuring Pinterest Marketing Results 487

The Downside of Social Marketing 488

7.3 Mobile Marketing 488 Overview: M-commerce Today 488

Insight on Society: Marketing to Children of the Web in the Age of Social Networks 489

How People Actually Use Mobile Devices . 492

In-App Experiences and In-App Ads 493 How the Multi-Screen Environment Changes the Marketing Funnel 495

Basic Mobile Marketing Features 495

The Technology: Basic Mobile Device Features 496

Mobile Marketing Tools: Ad Formats 498

Starting a Mobile Marketing Campaign 499

Insight on Business: Mobile Marketing: Land Rover Seeks Engagement on the Small Screen 500

Measuring Mobile Marketing Results 503

7.4 Local and Location-Based Mobile Marketing 504 The Growth of Local Marketing 504

The Growth of Location-Based (Local) Mobile Marketing 505 Location-Based Marketing Platforms 506

Location-Based Mobile Marketing: The Technologies 507

Why Is Local Mobile Attractive to Marketers? 509

Location-Based Marketing Tools 509 A New Lexicon: Location-Based Digital Marketing Features 509

Proximitj' Marketing with Beacons 510 Starting a Location-Based Marketing Campaign 511 Measuring Location-Based Marketing Results 512

7.5 Case Study: ExchangeHunterfumper.com: Building a Brand with Social Marketing 513

7.6 Review 519 Key Concepts 519

Questions 521

Projects 522 References 522

j^jr~ETHICS, LAW, AND E-COMMERCE 524


The EU Objects to Google's New Privacy Policy 525

8.1 Understanding Ethical, Social, and Political Issues in E-commerce 528 A Model for Organizing the Issues 529 Basic Ethical Concepts: Responsibility, Accountability, and Liability 531

Analyzing Ethical Dilemmas 533

Candidate Ethical Principles 534

8.2 Privacy and Information Rights 535 Information Collected at E-commerce Sites 536 Social Networks and Privacy 538 Mobile and Location-Based Privacy Issues 539

Profiling and Behavioral Targeting 540

C o n t e n t s | 3 5

The Internet and Government Invasions of Privacy: E-commerce Surveillance 542

Legal Protections 545 ' Informed Consent and Notice 546

The Federal Trade Commission's Fair Information Practices Principles 549 The European Data Protection Directive 553

Private Industry Self-Regulation 554 Privacy Advocacy Groups 556 The Emerging Privacy Protection Business 556

Technological Solutions 557

8.3 Intellectual Property Rights 558 Types of Intellectual Property Protection 559

Copyright: the Problem of Perfect Copies and Encryption 559 Look and Feel 560 Fair Use Doctrine 560 The Digital Millennium Copyright Act of 1998 561

Patents: Business Methods and Processes 564

E-commerce Patents 565

Insight on Technology: Apple and Samsung Fight a Patent Battle Around the Globe 566

Trademarks: Online Infringement and Dilution 571

Trademarks and the Internet 571

Cybersquatting and Brandjacking 572

Cyberpiracy 573 Metatagging 574

Keywording 575

Linking 575 Framing 576

Challenge: Balancing the Protection of Property with Other Values 576

8.4 Governance 577 Can the Internet Be Controlled? 577

Taxation 578

Insight on Business: New Rules Extend EU Taxation of E-commerce 580 Net Neutrality 582

8.5 Public Safety and Welfare 584 Protecting Children 585 Cigarettes, Gambling, and Drugs: Is the Web Really Borderless? " 586

Insight on Society: The Internet Drug Bazaar Operates Around the Globe 587

8.6 Case Study: The Google Books Settlement: Is It Fair? 590

3 6 C o n t e n t s


Questions 597 Projects 598

References 598

ONLINE CONTENT 602


Spotify and Deezer: European Streaming Music Services Spread Around the Globe 603

9.1 Online Content 607 Content Audience and Market: Where Are the Eyeballs and the Money? 609

Media Utilization: A Converging Digital Stream 609 Internet and Traditional Media: Cannibalization versus

Complementarity 610

Media Revenues 610

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

and Advertising-Supported (Free and Freemium) 611 Online Content Consumption 612 Free or Fee: Attitudes About Paying for Content and the Tolerance for

Advertising 613 Digital Rights Management (DRM) and Walled Gardens 615 Media Industry Structure 616 Media Convergence: Technology, Content, and Industry Structure 617

Technological Convergence 617 Content Convergence 617 Industry Structure Convergence 618

Making a Profit with Online Content: From Free to Fee 620

9.2 The Online Publishing Industry 621 Online Newspapers 621

Newspapers: Searching for a Digital Business Model 621 From Print-centric to Digital First: The Evolution of Newspaper Online

Business Models, 1995-2014 623 Assets: Newspaper Audience Size and Growth 626 Challenge: Digital Ad Revenue 627

Strength: Content Is King 627 Challenge: Finding a Revenue Model 629 Challenge: Growth of Pure Digital Competitors 630 Can Newspapers Survive Digital Disruption? 632

Magazines Rebound on the Tablet Platform 633

C o n t e n t s 37

Insight on Society: Vox: The All-Digital News Site 634 E-Books and Online Book Publishing ' 638 \

Insight on Business: Digital Newsstands Grow 639 ' Amazon and Apple: The New Digital Media Ecosystems 642

E-Book Business Models 644

The Challenges of the Digital E-Book Platform 646

Interactive Books: Converging Technologies 647

9.3 The Online Entertainment Industry 648 Online Entertainment Audience Size and Growth 650

Television and Premium Video 651

Movies 653

Music 657

Insight on Technology: Hollywood and the Internet: Let's Cut a Deal 658 Games 664

9.4 Case Study: Netflix: How Does This Movie End? 667


Questions 673 Projects 673 References 674


Viadeo Challenges Linkedln with a Multi-Local Approach 677

10.1 Social Networks and Online Communities 679 • What Is an Online Social Network? 681 The Growth of Social Networks and Online Communities 681

Insight on Technology: The Appification of Facebook 684 Timing Social Networks into Businesses 686

Types of Social Networks and Their Business Models 688

Insight on Society: The Dark Side of Social Networks 689 Social Network Features and Technologies 692

The Future of Social Networks 693

10.2 Online Auctions 694 Benefits and Costs of Auctions 695

ONUNE COMMUNITIES 676

Benefits of Auctions 695 Risks and Costs of Auctions 696

38 C o n t e n t s

Auctions as an E-commerce Business Model 697

Types and Examples of Auctions 697 \

When to Use Auctions (and for What) in Business 698

Auction Prices: Are They the Lowest? 700 Consumer Trust in Auctions 701 When Auction Markets Fail: Fraud and Abuse in Auctions 701

10.3 E-commerce Portals 702 The Growth and Evolution of Portals 703 Types of Portals: General-Purpose and Vertical Market 704

Insight on Business: The Transformation of AOL 705 Portal Business Models 708

10.4 Case Study: eBay Evolves


Questions 716

Projects 716

References 716


Souq.com: The Amazon of the Middle East 719

11.1 The Online Retail Sector 723 The Retail Industry 724

Online Retailing 725

11.2 Analyzing the Viability of Online Firms 730 Strategic Analysis 730 Financial Analysis 731

11.3 E-commerce in Action: E-tailing Business Models 733 Virtual Merchants 733

Amazon 734

E-COMMERCE RETAILING AND SERVICES 718

E-commerce Retail: The Vision 725

The Online Retail Sector Today 726

The Vision 734 Business Model 735

Financial Analysis 738

C o n t e n t s 3 9

Strategic Analysis—Business Strategy 740

Strategic Analysis—Competition 741 Strategic Analysis—Technology 742 Strategic Analysis—Social and Legal Challenges 742

Future Prospects 742 Omni-Channel Merchants: Bricks-and-Clicks 743 Catalog Merchants 744

Manufacturer-Direct 745 Common Themes in Online Retailing 747

11.4 The Service Sector: Offline and Online 749 Insight on Technology: Big Data and Predictive Marketing 750

11.5 Online Financial Services 752 Online Financial Consumer Behavior 752

Online Banking and Brokerage 753

Multi-Channel vs. Pure Online Financial Services Firms 754 Financial Portals and Account Aggregators 755

Online Mortgage and Lending Services 755

Online Insurance Services 756

Online Real Estate Services 757

11.6 Online Travel Services 759 Why Are Online Travel Services So Popular? 760

The Online Travel Market 760

Online Travel Industry Dynamics 761

Insight on Society Phony Reviews 763

11.7 Online Career Services 765 It's Just Information: The Ideal Web Business? 765 . Online Recruitment Industry Trends 767

11.8 Sharing Economy Companies 769 Insight on Business: Airbnb Takes Off 771

11.9 Case Study: OpenTahle: Your Reservation Is Waiting 774


Projects 782

References 782

40 C o n t e n t s

Tfel B2B E-COMMERCE

00


Alibaba: China's E-commerce King 785

12.1 An Overview of B2B E-commerce 789 Some Basic Definitions 790

The Evolution of B2B E-commerce 790 The Growth of B2B E-commerce 793

Potential Benefits and Challenges of B2B E-commerce 794

12.2 The Procurement Process and Supply Chains 795 Steps in the Procurement Process 795

Insight on Society: Where's My iPad? Global Supply Chain Risk and Vulnerability 796

Types of Procurement 798

Multi-Tier Supply Chains 799

Visibility and Other Concepts in Supply Chain Management 800

The Role of Existing Legacy Computer Systems and Enterprise Systems in Supply Chains 800

Trends in Supply Chain Management and Collaborative Commerce 801

Just-in-Time and Lean Production 802 Supply Chain Simplification 802 Supply Chain Black Swans: Adaptive Supply Chains 802 Accountable Supply Chains: Labor Standards 804 Sustainable Supply Chains: Lean, Mean, and Green 805

Electronic Data Interchange (EDI) • 806 Mobile B2B 808 B2B in the Cloud 809

Insight on Technology: Your Shoes Are in the Cloud 811 Supply Chain Management Systems 812

Collaborative Commerce 814 Collaboration 2.0: Cloud, Web, Social, and Mobile 815

Social Networks and B2B: The Extended Social Enterprise 816

Net Marketplaces 817 Characteristics of Net Marketplaces 817 Types of Net Marketplaces 818

E-distributors 819 E-procurement 820

12.3

12.4

Exchanges 822

Industry Consortia 824

12.5 Private Industrial Networks 826 Objectives of Private Industrial Networks 827

Private Industrial Networks and Collaborative Commerce 828

Insight on Business: Walmart Develops a Private Industrial Network 829 Implementation Barriers 832

12.6 Case Study: Elemica: Cooperation, Collaboration, and Community 833


Questions 841

Projects 842 References • 842

Index 845

Credits 905

Documents

GLOBAL EDITION - Bibliothekbusiness, technology, society. GLOBAL EDITION ELEVENTH E a I T I ( ) N Kenneth C. Laudon Carol Guercio Traver New York University Azimuth Interactive, Inc