2009
eBusiness & eCommerceManaging the Digital Value ChainAuthors:

• Prof. Dr. Andreas Meier,
• Dr. Henrik Stormer
• …show all 2hide
  

ISBN: 978-3-540-89327-1 (Print) 978-3-540-89328-8  (Online)



Managing the Digital Value Chain

Meier, Andreas, Stormer, Henrik
Translated by Gosselin, Elizabeth

2009, X, 222 p. 98 illus.


ISBN 978-3-540-89328-8

  Immediately available per PDF-download (no DRM, watermarked)

About this textbook
This textbook focuses on the members of the digital value chain for eBusiness and eCommerce and dedicates a separate chapter to each of them: eProducts and eServices, eProcurement, eMarketing, eContracting, eDistribution, ePayment, as well as eCustomer relationship management. In addition to business models and business webs, digital procurement and marketing processes such as electronic negotiation processes, security questions with digital signatures, as well as electronic supplier relationship management and customer relationship management are also addressed. The topics are described using explicit procedures and descriptive examples of their application. A case study describing the gradual creation of an electronic webshop for DVDs is developed over the course of the book.
The book is intended for students of economics at universities and technical colleges; it is also suitable for executives, project leaders, and company experts who deal with the digital value chain.

Contents
1 eBusiness Framework 1
1.1 Defining Electronic Business . . . . . . . . . . . . . . . . . . . . . 2
1.2 Case Studies on Electronic Business . . . . . . . . . . . . . . . . 4
1.2.1 Electronic Shop (B2C) . . . . . . . . . . . . . . . . . . . . 4
1.2.2 Electronic HealthMarket (B2B) . . . . . . . . . . . . . . 7
1.2.3 Electronic Voting and Elections (A2C) . . . . . . . . . . . 9
1.2.4 Knowledge Exchange via Electronic Books (C2C) . . . . . 11
1.3 Arguments for Internet Economics . . . . . . . . . . . . . . . . . 12
1.4 Value Chain and Chapter Overview. . . . . . . . . . . . . . . . . 14
1.5 Literary References . . . . . . . . . . . . . . . . . . . . . . . . . . 17
2 eProducts and eServices 19
2.1 Components of a BusinessModel . . . . . . . . . . . . . . . . . . 20
2.2 Anatomy of an Electronic Marketplace . . . . . . . . . . . . . . . 22
2.2.1 Horizontal Integration . . . . . . . . . . . . . . . . . . . . 23
2.2.2 Vertical Integration . . . . . . . . . . . . . . . . . . . . . 24
2.3 Classification of BusinessWebs According to Tapscott . . . . . . 26
2.3.1 Agora B-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 Distributor B-Web . . . . . . . . . . . . . . . . . . . . . . 35
2.4 Comparison and Valuation of Networks . . . . . . . . . . . . . . 37
2.5 The Price Formation Process . . . . . . . . . . . . . . . . . . . . 39
2.5.1 Options for Price Differentiation . . . . . . . . . . . . . . 39
2.5.2 Linear and Nonlinear Price Formation . . . . . . . . . . . 41
2.5.3 Forms of Price Bundling . . . . . . . . . . . . . . . . . . . 42
2.5.4 Dynamic Price Formation . . . . . . . . . . . . . . . . . . 43
2.6 ProfitModels for ElectronicMarkets . . . . . . . . . . . . . . . . 45
2.7 Literary References . . . . . . . . . . . . . . . . . . . . . . . . . . 46
3 eProcurement 49
3.1 Strategic and Operational Procurement . . . . . . . . . . . . . . 50
3.2 Information Support for Procurement . . . . . . . . . . . . . . . 51
x Contents
3.3 Basic Types of eProcurement Solutions . . . . . . . . . . . . . . . 53
3.3.1 MarketModels for eProcurement . . . . . . . . . . . . . . 53
3.3.2 Sell-SideModel . . . . . . . . . . . . . . . . . . . . . . . . 55
3.3.3 Buy-SideModel . . . . . . . . . . . . . . . . . . . . . . . 57
3.3.4 Marketplace . . . . . . . . . . . . . . . . . . . . . . . . . . 58
3.4 Catalog Management . . . . . . . . . . . . . . . . . . . . . . . . . 60
3.5 Standard Software for Desktop Purchasing . . . . . . . . . . . . . 65
3.6 Market for eProcurement Service Provider . . . . . . . . . . . . . 67
3.7 Literary References . . . . . . . . . . . . . . . . . . . . . . . . . . 68
4 eMarketing 69
4.1 The Path to IndividualMarketing . . . . . . . . . . . . . . . . . 70
4.2 Comparison of the CommunicationsMedia . . . . . . . . . . . . 72
4.3 The DevelopmentModel for Online Customers . . . . . . . . . . 73
4.3.1 The Online Surfer . . . . . . . . . . . . . . . . . . . . . . 73
4.3.2 The Online Consumer . . . . . . . . . . . . . . . . . . . . 74
4.3.3 The Online Prosumer . . . . . . . . . . . . . . . . . . . . 75
4.3.4 The Online Buyer . . . . . . . . . . . . . . . . . . . . . . 76
4.3.5 The Key Online Customer . . . . . . . . . . . . . . . . . . 77
4.3.6 Measuring Success with Online Customers . . . . . . . . . 78
4.4 Online Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
4.4.1 Push Principle vs. Pull Principle . . . . . . . . . . . . . . 80
4.4.2 ContentManagement . . . . . . . . . . . . . . . . . . . . 81
4.4.3 Types of Promotion . . . . . . . . . . . . . . . . . . . . . 83
4.5 Prospects for eMarketing . . . . . . . . . . . . . . . . . . . . . . 85
4.6 Literary References . . . . . . . . . . . . . . . . . . . . . . . . . . 87
5 eContracting 89
5.1 The Electronic Negotiation Process . . . . . . . . . . . . . . . . . 90
5.2 Generic Services for the Negotiation Process . . . . . . . . . . . . 91
5.3 The Digital Signature . . . . . . . . . . . . . . . . . . . . . . . . 93
5.3.1 Asymmetric Coding Procedures . . . . . . . . . . . . . . . 93
5.3.2 Generating Digital Signatures . . . . . . . . . . . . . . . . 94
5.3.3 Tasks of the Certification Site . . . . . . . . . . . . . . . . 96
5.3.4 Verification of Certificates . . . . . . . . . . . . . . . . . 97
5.4 XML and Electronic Contracts . . . . . . . . . . . . . . . . . . . 100
5.5 Legal Rights of the Information Society . . . . . . . . . . . . . . 101
5.6 Literary References . . . . . . . . . . . . . . . . . . . . . . . . . . 103
6 eDistribution 105
6.1 Components of a Distribution System . . . . . . . . . . . . . . . 106
6.2 Types of Distribution Logistics . . . . . . . . . . . . . . . . . . . 107
6.2.1 Online Distribution. . . . . . . . . . . . . . . . . . . . . . 107
6.2.2 Offline Distribution. . . . . . . . . . . . . . . . . . . . . . 109
6.2.3 Hybrid Distribution . . . . . . . . . . . . . . . . . . . . . 111
Contents xi
6.3 Supply Chain Management . . . . . . . . . . . . . . . . . . . . . 112
6.3.1 CyclesWithin the Sales Chain . . . . . . . . . . . . . . . 112
6.3.2 The SCOR ReferenceModel . . . . . . . . . . . . . . . . 114
6.3.3 On-Demand Production . . . . . . . . . . . . . . . . . . . 116
6.4 Electronic Software Distribution (ESD) . . . . . . . . . . . . . . 118
6.4.1 Architecture for Software Distribution . . . . . . . . . . . 118
6.4.2 ESD Functions and Services . . . . . . . . . . . . . . . . . 119
6.5 Protection Through DigitalWatermarks . . . . . . . . . . . . . . 121
6.6 Literary References . . . . . . . . . . . . . . . . . . . . . . . . . . 123
7 ePayment 125
7.1 Overview and Classification . . . . . . . . . . . . . . . . . . . . . 126
7.2 Credit Card-Based Procedures . . . . . . . . . . . . . . . . . . . 126
7.2.1 Credit Cards with Secure Sockets Layer . . . . . . . . . . 127
7.2.2 PayPal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
7.2.3 Secure Electronic Transaction (SET) . . . . . . . . . . . . 130
7.2.4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . 132
7.3 Asset-Based Procedures . . . . . . . . . . . . . . . . . . . . . . . 132
7.3.1 CASH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
7.3.2 Geldkarte . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
7.3.3 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . 133
7.4 Innovative ePayment Solutions . . . . . . . . . . . . . . . . . . . 134
7.4.1 eCash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
7.4.2 Millicent . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
7.4.3 PayWord andMicroMint . . . . . . . . . . . . . . . . . . 136
7.4.4 RandomPayment . . . . . . . . . . . . . . . . . . . . . . 136
7.4.5 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . 137
7.5 Solutions for Fee-Based Web Sites . . . . . . . . . . . . . . . . . 137
7.5.1 Firstgate Click & Buy . . . . . . . . . . . . . . . . . . . . 137
7.5.2 Allopass . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
7.5.3 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . 138
7.6 Comparison of ePayment Solutions . . . . . . . . . . . . . . . . . 138
7.7 Literary References . . . . . . . . . . . . . . . . . . . . . . . . . . 139
8 eCustomer Relationship Management 141
8.1 From Product Orientation to Customer Orientation . . . . . . . 142
8.2 The Customer Equity Model by Blattberg et al. . . . . . . . . . . 144
8.3 Analytical Customer RelationshipManagement . . . . . . . . . . 146
8.3.1 Rough Architecture of a Customer Data Warehouse . . . 146
8.3.2 Evaluation of a Multidimensional Data Cube . . . . . . . 148
8.3.3 Steps Involved in Outlining a Data Cube . . . . . . . . . 149
8.3.4 Data Mining Procedure . . . . . . . . . . . . . . . . . . . 151
8.3.5 Decision Trees for Customer Classification . . . . . . . . . 152
xii Contents
8.4 Operational Customer RelationshipManagement . . . . . . . . . 154
8.4.1 Customer Buying Cycle . . . . . . . . . . . . . . . . . . . 154
8.4.2 MultichannelManagement . . . . . . . . . . . . . . . . . . 157
8.4.3 Inbound and Outbound Customer Processes . . . . . . . 159
8.5 Use of CRMSystems . . . . . . . . . . . . . . . . . . . . . . . . . 160
8.6 Controlling Customer Relationship Management . . . . . . . . . 162
8.7 Literary References . . . . . . . . . . . . . . . . . . . . . . . . . . 163
9 mBusiness 165
9.1 Mobile Devices . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
9.2 Mobile Communication . . . . . . . . . . . . . . . . . . . . . . . 167
9.2.1 The GSMCell Phone Network . . . . . . . . . . . . . . . 167
9.2.2 Local Communication with Bluetooth . . . . . . . . . . . 169
9.3 Mobile Applications . . . . . . . . . . . . . . . . . . . . . . . . . 171
9.3.1 Mobile Payment . . . . . . . . . . . . . . . . . . . . . . . 171
9.3.2 Mobile Ticketing . . . . . . . . . . . . . . . . . . . . . . . 174
9.3.3 MobileWeb Sites . . . . . . . . . . . . . . . . . . . . . . . 176
9.3.4 Location-Dependent Services . . . . . . . . . . . . . . . . 181
9.3.5 Mobile Devices in theMedical Field . . . . . . . . . . . . 182
9.4 Literary References . . . . . . . . . . . . . . . . . . . . . . . . . . 183
10 eSociety 185
10.1 Change in theWorkingWorld . . . . . . . . . . . . . . . . . . . . 186
10.2 Changing Organizational andWork Structures . . . . . . . . . . 188
10.2.1 Virtual Organizations . . . . . . . . . . . . . . . . . . . . 188
10.2.2 Work Organization in eTeams . . . . . . . . . . . . . . . . 189
10.3 The KnowledgeWorker in a Knowledge Society . . . . . . . . . . 191
10.4 Measuring the Success of Intellectual Capital . . . . . . . . . . . 192
10.5 EthicalMaxim for eTeams . . . . . . . . . . . . . . . . . . . . . . 194
10.6 Literary References . . . . . . . . . . . . . . . . . . . . . . . . . . 196
Glossary 199
Bibliography 209
Index 219