Digital Business and Electronic Commerce: Strategy, Business Models and Technology (Springer Texts in Business and Economics)

This textbook introduces readers to digital business from a management standpoint. It provides an overview of the foundations of digital business with basics, activities and success factors, and an analytical view on user behavior. Dedicated chapters on mobile and social media present fundamental aspects, discuss applications and address key success factors. The Internet of Things (IoT) is subsequently introduced in the context of big data, cloud computing and connecting technologies, with a focus on industry 4.0 and the industrial metaverse. In addition, areas such as smart business services, smart homes and digital consumer applications as well as artificial intelligence, quantum computing and automation based on artificial intelligence will be analysed. The book then turns to digital business models in the B2C (business-to-consumer) and B2B (business-to-business) sectors. Building on the business model concepts, the book addresses digital business strategy, discussingthe strategic digital business environment and digital business value activity systems (dVASs), as well as strategy development in the context of digital business. Special chapters explore the implications of strategy for digital marketing and digital procurement. Lastly, the book discusses the fundamentals of digital business technologies and security, and provides an outline of digital business implementation. A comprehensive case study on Google/Alphabet, explaining Google's organizational history, its integrated business model and its market environment, rounds out the book. Preface Contents About the Author Part I: Introduction 1: Foundations of Digital Business 1.1 Kondratieff Cycle 1.2 Structure of the Textbook 1.3 Basics of Digital Business Development of Information and Communication Applications The Five Phases of Digital Transformation Relevance of the Internet Economy and Digital Business Definition and Classification of Digital Business 1.4 Actors, Interaction Patterns, and Service Exchange Interaction Patterns in Digital Business Stages of Digital Business Development Digital Market Model of Internet Economy Activities of Digital Business 1.5 Development of Digital User Structure Digital User Characteristics Digital User Typologies 1.6 Success Factors of Digital Business Digital Innovation and AI Capability Strategic and Organizational Flexibility Networking, Integration, and Automation Capability Customer Orientation and Ease of Use 1.7 Summary Publication Bibliography 2: Mobile Business 2.1 Basics of Mobile Business Relevance of Mobile Business Infrastructure of Mobile Business Mobile Business Market 2.2 Definition and Classification of Mobile Business Selected Definitions of Mobile Business and Mobile Commerce Mobility, Accessibility, Localization, and Identification 2.3 Applications and User Structure of Mobile Business Mobile Applications Fields of Application Support Functions User Groups in Mobile Business 2.4 Success Factors of Mobile Business Customization and Mobile Networking Software Platform, Integration Degree, and AI Capability Absence of Media Disruption and Seamless Connection Bandwidth and Network Performance 2.5 Summary Publication Bibliography 3: Social Media Business 3.1 Basics of Social Media Business Relevance of Social Media Business Social Media Platforms 3.2 Definition and Classification of Social Media Business Definition of Social Media and Social Media Business Social Media Four-Factor Model 3.3 Applications and User Groups in Social Media Business Social Media Applications Social Media Microtargeting and Social Media Multiplier Effects Social Media Convergence and Integration Metaverse Development User Groups in Social Media Business 3.4 Digital Disinformation on Social Media News Consumption on Social Media Integrated Model of Digital Disinformation Governance of Digital Disinformation 3.5 Success Factors in Social Media Business Appropriate Handling of Data Protection Four-Factor Model and Social Media Success Business Potential of Various Social Media Tools 3.6 Summary Publication Bibliography 4: Digital Government 4.1 Basics of Digital Government Definition of Digital Government Actors and Advantages of Digital Government Development of Digital Government Country Ranking 4.2 Open Government and E-Participation Definition of Open Government Open Government Framework E-Participation 4.3 Smart Cities Development of Smart Cities Smart City Targets Smart City Concept and Services Smart City Demand Structure 4.4 Services and User Structure of Digital Government Digital Government Portal Use Digital Government Services and User Structure Digital Government Development Stages Digital Government Service Categories Service Channels 4.5 Success Factors of Digital Government User-Centered Success Factors IT Success Factors 4.6 Summary Publication Bibliography Part II: Technology, Digital Markets and Digital Business Models 5: Foundations of Internet Technology and Human-Machine Applications 5.1 Internet and Digital Business Architecture TCP/IP Reference Model Client-Server Interaction Task Distribution Between Client and Server Digital Business Architecture 5.2 Web Services and Web Development Classification of Internet Services Web Programming Languages Web Services Content Management Systems The Mobile Internet Communication Technologies 5G and 6G 5.3 Technology at the Human-Machine Interface Historical Development of the Human-Machine Interface Recent Development of the Human-Machine Interface 5.4 Human-Machine Interaction and Success Factors HMI Model of Human-Machine Interaction Success Factors of Human-Machine Interaction 5.5 Summary Publication Bibliography 6: Digital Payment Systems, Security, and Regulation 6.1 Digital Payment Systems and Applications Digital Payment Systems Digital Payment Process Digital Payment Success Factors 6.2 Security in Digital Business Cybersecurity Framework Typical Threats in Digital Business Management of Cyber Security Risks 6.3 Regulation of Digital Business Digital Markets Act, Digital Services Act, Data Governance Act ITU Approach and Internet Governance Approach 6.4 Summary Publication Bibliography 7: Internet of Things 7.1 Basics of the Internet of Things Relevance of IoT Definition of IoT and IoT IT Infrastructure 7.2 Applications of the Internet of Things Factories Human Worksites Cities Retail Environments Outside Smart Home Vehicles Offices Internet of Robotic Things: IoT, Robotics, and Industrial Automation Opportunities and Challenges of Industry 4.0 5G Network IoT, Big Data, Cloud Computing, and AI 7.3 Industrial Metaverse and Digital Twins Definition the Industrial Metaverse Relevance of the Industrial Metaverse Development of the Industrial Metaverse Structure of the Industrial Metaverse 7.4 IoT User Behavior Industry Consumers 7.5 Success Factors of IoT Digital Business Model Innovation/Diversification Competence System Technology Competence Integration Ability of Complex IoT Services Digital Intelligence Competence 7.6 Summary Publication Bibliography 8: Artificial Intelligence and Quantum Computing 8.1 Artificial Intelligence Concept Definition of Artificial Intelligence AI Development Stages AI Analytics Generative AI AI Companies Artificial Intelligence Framework 8.2 AI Applications and Use Cases Categories of AI Applications Market Aspects and Market Effects of AI 8.3 Opportunities and Risks of AI Opportunities of Artificial Intelligence Risks of Artificial Intelligence 8.4 Artificial Intelligence Governance Five-Stage Model of AI-Based Governance Strategic AI Governance Case Studies Artificial Intelligence: DeepMind and OpenAI 8.5 Quantum Computing Basics of Quantum Computing Quantum Computer Applications Quantum Computing Companies 8.6 Summary Publication Bibliography 9: Big Data, Cloud Computing, and Blockchain Technology 9.1 Big Data Applications and Uses of Big Data Analyses Big Data Architecture 9.2 Cloud Computing Basics of Cloud Computing Types of Clouds and Cloud Service Models Market Aspects of Cloud Computing 9.3 Blockchain Basics of Blockchain Technology Market Aspects of Blockchain Technology Case Study Blockchain: Bitcoin 9.4 Summary Publication Bibliography 10: Digital Automation and Robotics 10.1 Basics of Digital Automation and Robotics Definition of Automation Categories of Digital Automation 10.2 Development of Digital Automation and Robotics Development of Mechatronic and Software-Based Automation Market Aspects of Digital Automation 10.3 Applications of Digital Automation and Robotics Digital Software Automation Robot-Based Mechatronic Automation 10.4 Processes and Functionalities of Digital Automation and Robotics Stages of Digital Automation and Robotics Autonomous Driving System Architecture of Robot-Based Automation 3-Level Model of Human-Robot Interaction 10.5 The 5-Component Model of Digital Automation 4-Level Model of Digital Automation Intensity Capability Pyramid of Digital Automation 5-Phase Model of Digital Automation Strategy Types of Digital Automation 5-Component Model of Digital Automation 10.6 Opportunities, Risks, and Governance of Digital Automation and Robotics Opportunities and Risks of Digital Automation Governance of Digital Automation 10.7 Summary Publication Bibliography 11: Digital Platforms, Sharing Economy, and Crowd Strategies 11.1 Basics of Platform Economics Platform Components and Advantages of Platforms Case Study Platform Economy: Amazon 11.2 Sharing Economy Shareconomy and Sharing Strategies SSU Sharing Platform Model Applications of the Shareconomy Case Study Shareconomy: Airbnb 11.3 Crowd Strategies Crowdfunding Crowd Investing Social Trading Case Study Crowdfunding: Kickstarter 11.4 Summary Publication Bibliography 12: Digital Ecosystem, Disintermediation, and Disruption 12.1 Digital Ecosystem Definition of Digital Ecosystem Digital Ecosystem Structure 12.2 Digital Disintermediation Basics of Digital Disintermediation Opportunities and Risks of Digital Disintermediation Digital Disintermediation Case Study: HelloFresh 12.3 Digital Disruption Forms of Digital Disruption Nine-Level Model of Digital Disruption Value Creation Models in the Context of Digital Disruption Entrepreneurial Strategies for Digital Disruption Digital Disruption Case Study: Netflix 12.4 Summary Publication Bibliography 13: B2C Digital Business Models 13.1 Basics of the Performance System in Digital Business Core Assets and Core Competencies Value Chain Business Models Categorization of B2C Digital Business Models 13.2 Content The Content Value Chain Content Core Assets and Core Competencies Digital Information Digital Entertainment Digital Infotainment Digital Education Content Case Study: Wikipedia 13.3 Commerce The Commerce Value Chain Commerce Core Assets and Core Competencies E-Attraction E-Bargaining/E-Negotiation E-Transaction E-Tailing Commerce Case Study: eBay 13.4 Context The Context Value Chain Context Core Assets and Core Competencies Digital Search Digital Catalogs Social Bookmarking Context Case Study: Bing 13.5 Connection The Connection Value Chain Connection Core Assets and Core Competencies Intra-connection Interconnection Connection Case Study: LinkedIn 13.6 Hybrid Business Models Development of Hybrid Business Models Hybridization of Google’s Business Model 13.7 Summary Publication Bibliography 14: Digital B2B Business Models 14.1 Sourcing Private B2B-Exchange (One to One) Buy-Side B2B Exchange (One-to-Many) Sourcing Value Chain, Core Assets, and Core Competencies 14.2 Sales Private B2B-Sale (One to One) Sell-Side B2B-Exchange (One to Many) Sales Value Chain, Core Assets, and Core Competencies 14.3 Supportive Collaboration Collaborative R&D Collaborative Production Collaborative Sales Supportive Collaboration Value Chain, Core Assets, and Core Competencies 14.4 Service Broker Digital Information Digital Marketplaces Service Broker Value Chain, Core Assets, and Core Competencies 14.5 Summary Publication Bibliography Part III: Digital Strategy, Digital Organization and E-Commerce 15: Digital Business Strategy 15.1 Basics of Digital Business Strategy Definition of Digital Business Strategy 4-Forces Model of Digital Business 15.2 Convergence Different Levels of Convergence Convergence in the ICT Sector Convergence in Broadband Internet and Mobile Networking 15.3 Digitization and Innovation Dynamics Increase in the Speed of Innovation and Open Innovation Increase in the Level of Digitization 15.4 Market Complexity Increase in Market Transparency Fragmentation of Markets Reduction of Market Entry Barriers 15.5 Customer Empowerment and Social Networking Reduction of Switching Barriers Increase in the Market Power of Demand 15.6 Digital Business Value Activity System Digital Value Chain ITS Front Office Activities PSP Back Office Activities 15.7 Strategy Development in Digital Business Digital Business Target Plan Digital Business Analysis Digital Business Strategy Formulation Digital Business Strategy Implementation Digital Business Strategy Audit 15.8 Summary Publication Bibliography 16: Digital Transformation and Digital Organization 16.1 Digital Transformation 16.2 Digital Leadership Traditional Leadership vs. Digital Leadership 16.3 Digital Organization Development Stages of the Digital Organization Digital Technologies, Instruments, and Methods in Digital Organizations 16.4 Digital Teams Development Stages of Digital Teams Agile Working Methods 16.5 Summary Publication Bibliography 17: Digital Marketing and Electronic Commerce 17.1 Digital Marketing Strategy Customer Model of Determinants of Customer Value Market Segmentation/Target Group Analysis Measurement of Customer Value Design of the Digital Marketing Strategy 17.2 Digital Distribution and Multichannel Marketing Basics of Digital Distribution Key Parameters of Digital Distribution Opportunities and Risks of Digital Distribution Implementation of Digital Distribution Multichannel Marketing Case Study Digital Distribution and Multichannel Marketing: Otto Group 17.3 Digital Pricing Basics of Digital Pricing Key Parameters of Digital Pricing Opportunities and Risks of Digital Pricing Implementation of Digital Pricing Case Study Digital Pricing: eBay 17.4 Digital Products and Digital Services Basics of Digital Products and Digital Services Key Parameters of Digital Products and Digital Services Opportunities and Risks of Digital Products and Digital Services Implementation of Digital Products and Digital Services Case Study Digital Products and Digital Services: Spreadshirt 17.5 Digital Communication Basics of Digital Communication Key Parameters of Digital Communication Opportunities and Risks of Digital Communication Implementation of Digital Communication Case Study Digital Communication: Yahoo 17.6 Digital Customer Relationship Management (DCRM) Basics of Digital Customer Relationship Management Instruments of Digital Customer Relationship Management Performance and Control Variables of Digital Customer Relationship Management Case Study Digital Customer Relationship Management: Amazon 17.7 Summary Publication Bibliography 18: Digital Procurement 18.1 Basics of Digital Procurement Relevance of Digital Procurement Classification of Digital Procurement Definition of Digital Procurement 18.2 Structural Framework of Digital Procurement Typology of Procurement Goods Process of Digital Procurement Actors Involved in Digital Procurement Forms of Interaction in Digital Procurement Punch-Out Solution 18.3 Potentials of Digital Procurement Time Saving Potentials Further Advantages of Digital Procurement Challenges of Digital Procurement Potentials of Procurement via Digital Marketplaces 18.4 Digital Procurement Implementation Analysis Phase Implementation Phase 18.5 Summary Publication Bibliography 19: Digital Business Implementation 19.1 Pre-implementation Analysis Phase Step 1: SWOT Analysis Step 2: Benchmarking Step 3: Customer Demand and Preferences Step 4: Digital Business Strategy Concept 19.2 Implementation Phase Step 5: Definition of Digital Business Implementation Model Master Plan Step 6: Digital Business Implementation Model Option Selection Step 7: Digital Business Implementation Model Design/Development Step 8: Digital Business Data Migration, Pilot Testing, and Training Step 9: Digital Business Implementation Model Deployment Step 10: Digital Business Implementation Model Monitoring and Audit Success Factors of Digital Business Implementation 19.3 Digital Business 3+3 Audit and Evaluation System Assessment Areas: Design, Process, and Outcome Assessment Levels: Company, Digital Business Offer and Customer 19.4 Summary Publication Bibliography Part IV: Digital Case Studies and Outlook 20: Google/Alphabet Case Study 20.1 Google’s Organizational History and Development First Steps of Google 1998–1999 Extension by Various Services Development of Revenue and Net Profit 20.2 Google’s Integrated Business Model Google as an Internet Gatekeeper Core Competencies and Resources of Google Google’s Business Model Development Revenue Streams 20.3 Google’s Market Environment Market Share Market Competition 20.4 Case Analyses and Structure of Solutions Characteristics of Case Studies Analysis of Actual Situation and SWOT Analysis Specification of Problem Deduction of Strategic Courses of Action Determination of Crucial Success Factors Decision on Strategic Alternatives Deduction of Recommendations 20.5 Google Case: Questions and Solutions Questions, Key Aspects, and Hints for Solution Solution to Question 1 Solution to Question 2 Solution to Question 3 Solution to Question 4 Publication Bibliography 21: The Digital Future: A Brief Outlook Publication Bibliography