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<P>( 1999 Massachusetts Institute of Technology<br>All rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical<br>means (including photocopying, recording, or information storage and retrieval) without permission in<br>writing from the publisher.<br>This book was set in Times New Roman by Asco Typesetters, Hong Kong.<br>Printed and bound in the United States of America.<br>Library of Congress Cataloging-in-Publication Data<br>Westland, J. Christopher.<br>Global electronic commerce : theory and case studies / J.<br>Christopher Westland, Theodore H. K. Clark.<br>p. cm.<br>Includes bibliographical references (p. ) and index.<br>ISBN 0-262-23205-7 (hc : alk. paper)<br>1. Electronic commerce. I. Clark, Theodore H. K. II. Title.<br>HF5548.32.W47 1999<br>658.8000285–dc21 99-38199<br>CIP</P>
<P><br>Preface ix<br>1 Introduction to Electronic Commerce 1<br>The Foundations of Electronic Commerce 4<br>Electronic Commerce Infrastructure 6<br>Electronic Markets 6<br>Electronic Commerce Supporting Functions 7<br>Electronic Commerce Opportunities: Today and Tomorrow 7<br>Notes 8<br>2 Information Technology in the Post-Industrial Revolution 9<br>Digital Railroads 12<br>Channels and Intermediaries 15<br>Electronic Channels 22<br>Notes 24<br>Case Studies<br>Andersen Consulting: The Asia Intranet Opportunity, Peter Lovelock<br>and Theodore H. Clark 27<br>3 Rede&AElig;ning the Geography of Space, Time, and Money 53<br>The Hard Middle 62<br>The Problem with Innovation 63<br>Jobs and the Internet 64<br>Recommended Reading 69<br>Notes 69<br>Case Studies<br>Financial Times Syndication Services: Making Money on the Web,<br>Peter Lovelock and Theodore H. Clark 71<br>Security First Network Bank: The World's First Internet Bank,<br><a href="http://www.sfnb.com/" target="_blank" >http://www.sfnb.com</A>, Theodore H. Clark and John J. Sviokla 91<br>Global Electronics Manufacturing (HK) Ltd., Theodore H. Clark and<br>Alvin Chu 121<br>4 Supply Chain Management and Information Alliances 141<br>Transforming the Value Chain Using Information Technology 141<br>Strategic IT and the Value Chain beyond the Firm 145<br>The Beer Game and the Value of Information 146<br>Bene&AElig;ts and Challenges of Sharing Information 151<br>Interorganizational Systems and BPR 152<br>Developing and Maintaining IOS Partnerships 153<br>Wholesale Electronic Commerce: IOS and the Internet 154<br>Notes 155<br>Case Studies<br>H. E. Butt Grocery Company: A Leader in ECR Implementation,<br>Theodore H. Clark, David C. Croson, James L. McKenney, and<br>Richard L. Nolan 157<br>Procter &amp; Gamble: Improving Consumer Value through Process<br>Redesign, Theodore H. Clark and James L. McKenney 197<br>5 Telecommunications Infrastructure in Transition 221<br>Telecommunications Technology 221<br>Communications Media and Bandwidth 222<br>Telecommunications for Voice and Modems 223<br>ISDN and Packet-Switched Services 225<br>Synchronous and Asynchronous Transmission 228<br>Declining Costs of Digital Communications 228<br>The Rise of Computer Networks 229<br>The World Wide Web 232<br>Notes 233<br>Case Studies<br>China's Golden Projects: Reengineering the National Economy,<br>Peter Lovelock, Ben A. Petrazzini, Theodore H. Clark, and<br>John J. Sviokla 235<br>Philippines Telephone and Telegraph, J. Christopher Westland 259<br>6 Access to Electronic Commerce Services 273<br>The Roots of Electronic Commerce 273<br>The Internet 275<br>ISP Business Models 278<br>Notes 280<br>Case Studies<br>Asia Online: The Online Service for Asia, Theodore H. Clark 281<br>China Internet Corporation: <a href="http://www.china.com/" target="_blank" >http://www.China.Com</A>, Theodore H. Clark<br>and John J. Sviokla 299<br>Hong Kong SuperNet, Theodore H. Clark and Sarah Cook 315<br>7 Electronic Auctions and Intermediaries 343<br>Market Models 344<br>Internet Auctions 353<br>Notes 353<br>Case Studies<br>Experiences with Electronic Auctions in the Dutch Flower Industry,<br>Eric van Heck and Pieter M. Ribbers 355<br>E*Trade Securities, Inc., Rajiv Lal 367<br>8 Electronic Financial Markets 385<br>Financial Markets: First Movers in Electronic Commerce 385<br>Basics 387<br>Matching and Price Discovery 389<br>Notes 396<br>Case Studies<br>On-Line Trading at the Shanghai Stock Exchange,<br>J. Christopher Westland 399<br>The Moscow Stock Exchange, Martin Mendelson and<br>J. Christopher Westland 417<br>Electronic Securities Trading at the Bolsa de Comercio de Santiago,<br>J. Christopher Westland 429<br>9 Digital Storefronts 445<br>Digital Storefronts on the Web 447<br>Search Engines 449<br>The Web as an Advertising and Marketing Channel 452<br>Internet Dynamics 460<br>Integration 462<br>Notes 462<br>10 Secure Digital Payments 465<br>The Origin and Development of Cash 465<br>Microtransactions 470<br>The Resurgence of Barter 474<br>Authentication of E-Commerce Payments 474<br>Identi&AElig;cation of Individuals 477<br>Privacy 479<br>Controls 480<br>Encryption and Password Controls 484<br>Notes 490<br>Case Studies<br>Mondex Electronic Cash in Hong Kong, J. Christopher Westland 493<br>Access Security at McDonnell Douglas Aerospace Information<br>Services, J. Christopher Westland 515<br>11 Logistics and Service Opportunities and Issues 529<br>Competitive Advantage Using Logistics and Information Technology 531<br>Outsourced Logistics in the Supply Chain 533<br>Outsourced Logistics and Electronic Commerce for Physical Goods 534<br>Geographic Information Services and Logistics 535<br>The Internet and the Future of Logistics 535<br>Notes 536<br>Case Studies<br>Consolidated Freightways: The On-Board Computer Project,<br>Theodore H. Clark and James L. McKenney 537<br>12 Successful E-Commerce 557<br>Rede&AElig;ning the Marginal Cost/Marginal Revenue Equation 557<br>Turnkey E-Commerce and Site Management 558<br>Digital Storefronts 560<br>Another Network 562<br>From Hobby to Business 563<br>Information Retailers 564<br>Reintermediation: Travel Agents' Revenge 565<br>Where Multimedia Fails 566<br>Personalizing the Retail Cyberstore 566<br>Simple Auctions with Real-Time Price Quotes 567<br>Double-Auction Markets for Securities 568<br>Infrastructure 569<br>Design Assistance 569<br>Supply Chain Management 570<br>Consumer Durables 570<br>The Font of Future Wealth 571<br>Notes 572<br>Appendix 575<br>References 581<br>Index 587</P>

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