Title
Copyright
Brief Contents
Contents
Preface
About the authors
Acknowledgements
Publisherโs acknowledgements
Part 1 Introduction
1 Introduction to digital business
Learning outcomes
Management issues
Links to other chapters
Introduction
The impact of digital communications on traditional businesses
Inbound marketing
Social media marketing
Trends update: Social media usage
Case Study 1.1: The Uber business model
Mobile commerce
Trends update: Mobile usage
What is the difference between a digital business and an e-commerce business?
E-commerce defined
Trends update: E-commerce growth rates
Digital business defined
Intranets and extranets
Different types of sell-side e-commerce
Digital marketing
Trends update: Social network usage
Options for organisations to reach a digital audience
Owned, earned and paid media options
The six key types of digital media channels
The social internet and user-generated content
Supply chain management
Business or consumer models of e-commerce transactions
Dot Gov defined
Digital business opportunities
Drivers of digital technology adoption
Cost/efficiency drivers
Competitiveness drivers
Barriers to the adoption of technology by digital business stakeholders
Evaluating an organisationโs digital business capabilities
Drivers of consumer technology adoption
Barriers to consumer digital adoption
Case Study 1.2: Amazon - the worldโs largest digital business?
Summary
Exercises
References
Web links
2 Opportunity analysis for digital business and e-commerce
Learning outcomes
Management issues
Links to other chapters
Introduction
Business and revenue models for e-commerce
Digital marketplace analysis
Case Study 2.1: How Boden grew from an eight-product menswear catalogue to an international brand with over ยฃ300 million in sales
Strategic agility
Case Study 2.2: Unilever demonstrates strategic agility
A process for digital marketplace analysis
Case Study 2.3: Macyโs - using omnichannel growth strategies to improve customer experience
1 Customer segments
2 Search intermediaries
3 Intermediaries, influencers and media sites
4 Destination sites
Location of trading in the marketplace
The importance of omnichannel marketplace models
Commercial arrangement for transactions
Different types of online intermediary and influencers
Summary of the types of intermediary
The importance of search engines
Business models for e-commerce
Revenue models
Online publisher and intermediary revenue models
Calculating revenue for an online business
Focus on Digital start-up companies
Assessing digital businesses
Valuing tech start-ups
1 Concept
2 Innovation
3 Execution
4 Traffic
5 Financing
6 Profile
Case Study 2.4: i-to-i - a global marketplace for a start-up
Summary
Exercises
References
Web links
3 Managing digital business infrastructure
Learning outcomes
Management issues
Links to other chapters
Introduction
Supporting the growing range of digital business technology platforms
Desktop, laptop and notebook platforms
Mobile phone and tablet platforms
Trends update: Mobile usage
Other hardware platforms
Augmented reality
Digital business infrastructure components
A short introduction to digital technology
Management issues in creating a new customer-facing digital service
Domain name selection
Uniform resource locators (URLs)
Domain name registration
Managing hardware and systems software infrastructure
Layer II - systems software
Managing digital business applications infrastructure
Focus on The development of customer experiences and digital services
Benefits of web services or SaaS
Application programming interfaces (APIs)
Challenges of deploying SaaS
Cloud computing
Examples of cloud computing web services
Virtualisation
Service-orientated architecture (SOA)
Selecting hosting providers
Managing service quality when selecting Internet service and cloud hosting providers
ISP connection methods
Issues in management of ISP and hosting relationships
Speed of access
Availability
Service level agreements
Security
Managing internal digital communications through internal networks and external networks
Intranet applications
Extranet applications
Encouraging use of intranets and extranets
Streaming TV
Voice over IP (VoIP)
Widgets
Technology standards
Examples of XML applications
Semantic web standards
Microformats
Focus on Internal and external governance factors that impact digital business
The Net neutrality principle
The Internet Corporation for Assigned Names and Numbers (ICANN, www.icann.org)
The Internet Society (www.isoc.org)
The Internet Engineering Task Force (IETF, www.ietf.org)
The World Wide Web Consortium (www.w3.org)
Telecommunications Information Networking Architecture Consortium (TINA-C, www.tinac.com)
How can companies influence or take control of Internet standards?
Open-source software
Case Study 3.1: Innovation at Google (2017 update)
Summary
Exercises
References
Web links
4 Key issues in the digital environment
Learning outcomes
Management issues
Links to other chapters
Introduction
Social factors
Legal and ethical factors
Economic factors
Political factors
Technology factors
Cultural factors
Factors affecting e-commerce buying behaviour
Understanding usersโ access requirements
Consumers influenced by using the online channel
Motivation for use of online services
Business demand for digital business services
E-commerce sales across the EU
Privacy and trust in e-commerce
Privacy legislation
Why personal data is valuable for digital business
Worldwide regulations on privacy and electronic communications
Viral email marketing
Other e-commerce legislation
1 Marketing your e-commerce business
2 Forming an electronic contract (contract law and distance-selling law)
3 Making and accepting payment
4 Authenticating contracts concluded over the Internet
5 Email risks
6 Protecting intellectual property (IP)
7 Advertising on the Internet
8 Data protection
Environmental and green issues related to Internet usage
Taxation
Tax jurisdiction
Freedom-restrictive legislation
Economic and competitive factors
Case Study 4.1: The implications of microlocalisation vs globalisation based on consumer attitudes
The implications of e-commerce for international B2B trading
Government and digital transformation
Internet governance
E-government
Technological innovation and technology assessment
Approaches to identifying emerging technology
Summary
Exercises
References
Web links
Part 2 Strategy and applications
5 Digital business strategy
Learning outcomes
Management issues
Links to other chapters
Introduction
Development of the social business
What is digital business strategy?
The imperative for digital business strategy
Digital channel strategies
Platform strategy
Strategy process models for digital business
Strategic analysis
Resource and process analysis
Stage models of digital business development
Application portfolio analysis
Organisational and IS SWOT analysis
Human and financial resources
Competitive environment analysis
Demand analysis
Assessing competitive threats
Competitive threats
Sell-side threats
Buy-side threats
Competitor analysis
Resource-advantage mapping
Strategic objectives
Defining vision and mission
VMOST
How can digital business create business value?
Case Study 5.1: Arriva Bus redesigns its m-ticket app and boosts revenue by over 17%
Objective setting
The online revenue contribution
Conversion modelling for sell-side e-commerce
Case Study 5.2: Setting the Internet revenue contribution at Sandvik Steel
The balanced scorecard approach to objective setting
Strategy definition
Selection of digital business strategy options
Decision 1: Digital business channel priorities
The diversification of digital platforms
Decision 2: Market and product development strategies
Decision 3: Positioning and differentiation strategies
Decision 4: Business, service and revenue models
Decision 5: Marketplace restructuring
Decision 6: Supply chain management capabilities
Case Study 5.3: Zappos innovates in the digital marketplace
Decision 7: Internal knowledge management capabilities
Decision 8: Organisational resourcing and capabilities
Strategy implementation
Failed digital business strategies
Digital business strategy implementation success factors for SMEs
Case Study 5.4: Boo hoo - learning from the largest European dot.com failure
Focus on Aligning and impacting digital business strategies
Elements of information systems (IS) strategy
Investment appraisal
Decisions about which business applications to invest in
The productivity paradox
Summary
Exercises
References
Web links
6 Supply chain and demand
Learning outcomes
Management issues
Links to other chapters
Introduction
Case Study 6.1: Fast-fashion retailer Zara uses its supply chain to achieve competitive advantage
Problems of supply chain management
What is supply chain management and e-procurement?
A simple model of a supply chain
Case Study 6.2: Shell Chemicals redefines its customersโ supply chains
What is logistics?
Push and pull supply chain models
Focus on The value chain
Restructuring the internal value chain
The value stream
Value chain analysis
Value networks
Options for restructuring the supply chain
Using digital business to restructure the supply chain
Technology options and standards for supply chain management
Case Study 6.3: Argos uses e-supply chain management to improve customer convenience
IS-supported upstream supply chain management
RFID and the Internet of Things
IS-supported downstream supply chain management
Outbound logistics management
IS infrastructure for supply chain management
Supply chain management implementation
Data standardisation and exchange
The supply chain management strategy process
Goal-setting and performance management for eSCM
Managing partnerships
Managing global distribution
Case Study 6.4: RFID - keeping track starts its move to a faster track
What is e-procurement?
Understanding the procurement process
Types of procurement
Participants in different types of e-procurement
Drivers of e-procurement
Examples of the benefits of e-procurement
Case Study 6.5: Honeywell improves efficiency through SCM and e-procurement
Focus on Estimating e-procurement costs
The impact of cost savings on profitability
Barriers and risks of e-procurement adoption
Implementing e-procurement
Integrating company systems with supplier systems
Focus on B2B marketplaces
Types of marketplace
The future of e-procurement
Summary
Exercises
References
Web links
7 Digital marketing
Learning outcomes
Management issues
Links to other chapters
Introduction
Chapter structure
What is digital marketing?
Marketing defined
Inbound marketing
Content marketing
Digital marketing planning
Is a separate digital marketing plan required?
Situation analysis
Customer demand analysis
Qualitative customer research
Competitor analysis
Intermediary or influencer analysis
Internal marketing audit
Objective setting
Case Study 7.1: The evolution of easyJetโs online revenue contribution
Strategy
Market and product positioning
Target market strategies
Content strategy
Focus on Characteristics of digital media communications
1 Interactivity
2 Intelligence
3 Individualisation
4 Integration
5 Industry restructuring
6 Independence of location
Tactics
Product
Case Study 7.2: Dell gets closer to its customers online
Price
Place
Promotion
People, process and physical evidence
Focus on Digital branding
Brand identity
The importance of brand online
Actions
Control
Summary
Exercises
References
Web links
8 Customer relationship management
Learning outcomes
Management issues
Links to other chapters
Introduction
Marketing applications of CRM
Case Study 8.1: How Warby Parker disrupted the eyewear industry
What is eCRM?
From eCRM to social CRM
Benefits of eCRM
Customer engagement strategy
Permission marketing
Customer profiling
Conversion marketing
The online buying process
Differences in buyer behaviour in target markets
Differences between B2C and B2B buyer behaviour
Influences on purchase
The net promoter score
Customer acquisition management
Focus on Marketing communications for customer acquisition, including search engine marketing, digital PR, online partnerships, interactive advertising, email marketing and social media marketing
The characteristics of interactive marketing communications
1 From push to pull
2 From monologue to dialogue
3 From one-to-many to one-to-some and one-to-one
4 From one-to-many to many-to-many communications
5 From โlean-backโ to โlean-forwardโ
6 The medium changes the nature of standard marketing communications tools such as advertising
7 Increase in communications intermediaries
8 Integration remains important
Assessing marketing communications effectiveness
Digital marketing communications
1 Search engine marketing (SEM)
2 Digital PR
Focus on Social media and social CRM strategy
3 Online partnerships
4 Digital advertising
5 Email marketing
6 Social media marketing
Customer retention management
Personalisation and mass customisation
Creating personalisation
Extranets
Opt-in email
Techniques for managing customer activity and value
Lifetime-value modelling
Focus on Excelling in e-commerce service quality
Improving online service quality
Tangibles
Reliability
Responsiveness
Assurance
Empathy
Customer extension
Advanced online segmentation and targeting techniques
Sense, Respond, Adjust - delivering relevant e-communications through monitoring customer behaviour
Recency, Frequency, Monetary value (RFM) analysis
Technology solutions for CRM
Types of CRM applications
Integration with back-office systems
The choice of single-vendor solutions or a more fragmented choice
Data quality
Case Study 8.2: Tesco.com increases product range and uses triggered communications to support CRM
Summary
Exercises
References
Web links
Part 3 Implementation
9 Customer experience and service design
Learning outcomes
Management issues
Links to other chapters
Introduction
Analysis for digital technology projects
Process modelling
Process mapping
Task analysis and task decomposition
Process dependencies
Workflow management
Flow process charts
Effort duration analysis
Network diagrams
Event-driven process chain (EPC) model
Validating a new process model
Data modelling
1 Identify entities
2 Identify attributes for entities
3 Identify relationships between entities
Big Data and data warehouses
Design for digital technology projects
Architectural design of digital business systems
Focus on User-centred site design and customer experience management
Customer experience management framework
Customer experience design
Implementation
Usability
Evaluating designs
Use-case analysis
Persona and scenario analysis
Stages in use-case analysis
Designing the information architecture
Card sorting
Blueprints
Wireframes
Customer orientation
Elements of site design
Site design and structure
Page design
Content design
Mobile design
Mobile site design option A. Responsive design
Mobile site design option B. Adaptive design
Mobile site design option C. HTML5
Mobile site design option D. Separate mobile domain (screen scrape)
Web accessibility
Case Study 9.1: Providing a better online user experience in a B2B market
Focus on Security design for digital business
Secure e-commerce transactions
Principles of secure systems
Approaches to developing secure systems
Digital certificates
Digital signatures
The public-key infrastructure (PKI) and certificate authorities (CAs)
Virtual private networks
Current approaches to e-commerce security
Secure Sockets Layer protocol (SSL)
Certificate authorities (CAs)
Reassuring the customer
Summary
Exercises
References
Web links
10 Managing digital business transformation and growth hacking
Learning outcomes
Management issues
Links to other chapters
Introduction
Case Study 10.1: Transforming an entire industry and supply chain: Spotify and Spotify Connect
Definitions of digital transformation
Definitions of digital business transformation
Why is digital business transformation not just about IT?
The applications portfolio - a precursor to digital business transformation
The emergence of digital transformation as a discipline
History of change and change management
The change in strategic position of digital versus technology
The need for digital transformation
Understanding the reasons for digital transformation
The opportunities provided by digital
Where does digital transformation occur?
Customer experience and service design
Customer insight
Adding value
Interfaces with customers
Business process
The business model
New business where digital is at the heart of the opportunity
Adapting the existing business to a digital opportunity
The framework of digital transformation
The process of review
What the digital opportunity is
How sure the organisation is of the opportunity
What level of digital the leadership of the organisation possesses
How mature as a digital business the organisation sees itself
The process of strategy
A focus on the objective for the future rather than solving an existing problem
The process of resourcing and planning
The design of the transformation
A programme for change
The process of deployment
The process of living with, and evaluating, digital transformation
What is growth hacking?
Defining goals and KPIs
How to use a single metric to run a start-up
Creating a growth hacking mindset
Ideal skill set of a growth hacking team
Use of Scrum, an agile methodology, in digital marketing
Scrum meetings
Sprint planning
Daily Scrum
Sprint review and retrospective
Developing agile marketing campaigns
The growth hacking process
1 Product/market fit (create an MVP - Minimum Viable Product)
Trigger
Action
Rewards
Investment
2 User data analysis
Main areas of user testing
3 Conversion rate optimisation
Key CRO elements
A/B and multivariate testing
Clickstream analysis and visitor segmentation
Budgeting
Case Study 10.2: Learning from Amazonโs culture of metrics
4 Viral growth
Inherent virality: Skype
Artificial virality: Giffgaff
Word-of-mouth virality: Zappos
Measuring virality
5 Retention and scalable growth
Creating the right environment for growth hacking
Bridging the digital and physical world
Best traditional marketing methods for growth hacking
Case Study 10.3: How Leon used PR to growth hack
Growth hacking framework
Twenty traction channels to test
Data analysis
Measuring implementation success
Focus on Web analytics: Measuring and improving performance of digital business services
Principles of performance management and improvement
Stage 1: Creating a performance management system
Stage 2: Defining the performance metrics framework
Focus on Measuring social media marketing
Stage 3: Tools and techniques for collecting metrics and summarising results
Collecting site outcome data
Selecting a web analytics tool
User testing prioritisation
Summary
Exercises
References
Web links
Glossary
Index