e-Business: Organizational and Technical Foundations / Edition 1

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Overview

Two significant factors combine to drive the phenomenon of e-Business. Competition constantly motivates companies in their marketplaces, while rapidly developing information technologies offer new opportunities and challenges.

For Mike Papazoglou and Piet Ribbers, both business and technology are integral to e-Business. They demonstrate here how a solid understanding of business, organization, management and technology is crucial to an understanding of what e-Business is today and how it is going to be shaped in the future.

e-Business: Organisational and Technical Foundations focuses on the development of e-Business between and within enterprises. In particular it addresses how enterprises collaborate, what coordination mechanism are necessary and how this is reflected at the technical infrastructure level.

It includes:

  • Abundant real-world examples to encourage readers to understand and appreciate real-life e-Business
  • An analytical and critical approach to understanding business issues, decision-making and technology use and development
  • Extensive end of chapter discussion questions and assignments for students
  • A companion website at www.wiley.com/go/ebusiness with additional exercises for students and PowerPoint slides and solutions for lecturers
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Product Details

  • ISBN-13: 9780470843765
  • Publisher: Wiley
  • Publication date: 4/28/2006
  • Edition description: New Edition
  • Edition number: 1
  • Pages: 750
  • Product dimensions: 7.50 (w) x 9.35 (h) x 1.69 (d)

Meet the Author

John Arnold is a professional marketer and marketing trainer. He developed training and certification programs for Coca-Cola, Constant Contact, and The Mobile Marketing Association. He also writes the "Marketing Tools & Technologies" column for Entrepreneur Magazine Online. He is coauthor of Web Marketing All-in-One For Dummies and Mobile Marketing For Dummies.

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Table of Contents

About the Authors xv

Foreword xvii

Preface xix

1. The World of e-Business 1

1.1 What is e-Business? 2

1.1.1 e-Business vs. e-Commerce 2

1.1.2 Some critical factors 3

1.2 Characteristics of e-Business 4

1.3 Elements of an e-Business solution 5

1.4 e-Business roles and their challenges 8

1.5 e-Business requirements 10

1.6 Impacts of e-Business 12

1.7 Inhibitors of e-Business 14

1.7.1 Management/strategy issues 14

1.7.2 Cost/financing issues 15

1.7.3 Security and trust issues 15

1.7.4 Legal issues 16

1.7.5 Technological concerns 17

1.7.6 Arguments against investment 17

1.8 Chapter summary 17

2. e-Business Strategy 21

2.1 What is e-Business strategy? 23

2.2 Strategic positioning 26

2.3 Levels of e-Business strategy 26

2.4 The changing competitive agenda: business and technology drivers 28

2.5 The strategic planning process 32

2.6 Strategic alignment 35

2.7 The consequences of e-Business: theoretical foundations 37

2.7.1 Theory of competitive strategy 38

2.7.2 The resource-based view 41

2.7.3 Transaction cost economics 42

2.8 Success factors for implementation of e-Business strategies 44

2.8.1 e-Business transformation as an ‘ill-structured problem’ 44

2.8.2 The need for program management 46

2.8.3 Design characteristics of program management 46

2.8.4 Change agentry 48

2.9 Chapter summary 49

3. Business Models 53

3.1 Pressures forcing business changes 55

3.2 Business models – definitions 57

3.3 Classifications of business models 60

3.3.1 Internet-enabled business models 61

3.3.2 Value Web business models 62

3.3.3 The e-Business-enabled business models 63

3.3.4 Market participants business model 66

3.3.5 Cybermediaries business model 69

3.4 Towards networked business models 70

3.5 Chapter summary 72

4. e-Business Relationships 75

4.1 Modeling interdependent business activities: the value chain 77

4.1.1 The business unit value chain 77

4.1.2 Value chain analysis 80

4.1.3 Value stream analysis 82

4.1.4 Unbundling the business unit value chain 83

4.1.5 The industry value chain 83

4.2 Business processes and their management 85

4.2.1 Business process management 87

4.2.2 Characteristics of business processes 88

4.2.3 Types of business processes 90

4.2.4 Role of IT in business processes 92

4.3 Types and characteristics of e-Business relationships 94

4.3.1 Types of e-Business relationships 95

4.3.2 Types of business relationships and information exchange 97

4.3.3 Characteristics of e-Business relationships 98

4.4 Electronic links and the value chain 100

4.5 Chapter summary 102

5. Governance Structures 107

5.1 Markets versus hierarchies: theoretical contributions 108

5.1.1 The transaction cost perspective 109

5.1.2 Transaction aspects: asset specificity, product complexity and frequency 110

5.1.3 Behavioural assumptions: bounded rationality and opportunism 111

5.1.4 The resource-based perspective 112

5.2 Networks 113

5.3 A supply chain perspective: value-adding partnerships 115

5.4 The effects of information technology on governance 116

5.4.1 The electronic market hypothesis 116

5.4.2 The move-to-the-middle hypothesis 118

5.4.3 A supply chain perspective 120

5.5 Chapter summary 121

6. e-Business Technological Infrastructure 125

6.1 Technical e-Business challenges 127

6.2 Basic infrastructure: client/server technology 129

6.3 Web technologies and applications 133

6.3.1 Web-based applications 135

6.3.2 Architectural features of Web-based applications 138

6.4 Collaborative technologies 143

6.4.1 Electronic Data Interchange (EDI) 143

6.4.2 Workflow systems 150

6.5 The role of Enterprise Information Systems in e-Business 162

6.6 Chapter summary 163

7. XML the Enabling Technology for e-Business 165

7.1 Brief overview of XML 166

7.2 Characteristics of XML documents 167

7.2.1 XML declaration 169

7.2.2 Element 170

7.2.3 XML namespaces 170

7.2.4 Well formed and valid documents 172

7.3 Defining structure in XML documents 173

7.3.1 Document Type Definition (DTD) 173

7.3.2 Overview of XML schema 176

7.4 Document presentation and transformation 186

7.4.1 Using XSL to display documents 188

7.4.2 Using XSLT to transform documents 188

7.5 Processing XML documents 190

7.6 XML, EDI and e-Business 192

7.7 Chapter summary 194

8. e-Markets 197

8.1 Electronic markets defined 199

8.1.1 How electronic markets work 201

8.1.2 Functional characteristics of business-to-business e-Markets 203

8.1.3 Classification of electronic markets 204

8.1.4 Market-making mechanisms 207

8.1.5 Biased or unbiased markets 207

8.2 The functions of electronic markets 208

8.3 How do electronic markets differ from traditional markets? 209

8.3.1 Personalization and customization 209

8.3.2 Information goods 210

8.3.3 Search 211

8.3.4 Transaction mechanisms 211

8.3.5 Price discovery 212

8.3.6 Facilitation 212

8.3.7 Electronic invoicing and payment 212

8.4 What are the effects of electronic markets? 214

8.4.1 The impact of the emergence of electronic markets 214

8.4.2 Stakeholders: buyers, suppliers, investors and service suppliers 215

8.5 Electronic market success factors 216

8.5.1 Context-related success factors 217

8.5.2 Process-related success factors 219

8.6 e-Market technology solutions 221

8.7 Chapter summary 223

9. e-Procurement 227

9.1 Introduction 228

9.2 The purchasing process 230

9.2.1 Modeling the purchasing process 231

9.2.2 Purchasing as part of supply chain management 233

9.3 Developments in purchasing 234

9.4 IT and purchasing 235

9.5 e-Procurement 235

9.5.1 e-Procurement models 239

9.5.2 The components of e-Procurement systems 241

9.5.3 Internet-based e-Catalog systems 242

9.5.4 Catalog aggregation 245

9.6 Auctions 245

9.7 e-Procurement solutions 246

9.8 Chapter summary 247

10. e-Business Networks 252

10.1 Introduction 252

10.2 Network organizations 254

10.2.1 Classifying networks 255

10.3 Interorganizational information systems and network organizations 259

10.3.1 System integration and business benefits 259

10.3.2 Interoperability: a matter of standards 262

10.3.3 Classifying interorganizational information systems 263

10.3.4 Limits to the reach of network organizations 266

10.4 Supply chains 267

10.4.1 Logistics – flow and network perspectives 269

10.4.2 Supply chain management 271

10.4.3 Technology solutions for supply chains 272

10.5 Integrated supply chains 275

10.5.1 Essential requirements of integrated value chains 276

10.6 Concluding remarks 278

10.7 Chapter summary 279

10.7.1 Network organization and their IOSs 279

10.7.2 Supply chains 281

11. Intermediaries in the Value Systems 285

11.1 Introduction 288

11.2 Definition and classification of intermediaries 288

11.2.1 Transactional intermediaries or infomediaries 289

11.2.2 Added value and functions 290

11.2.3 Services 292

11.3 Dynamics in the value system 293

11.3.1 Disintermediation 293

11.3.2 Are intermediaries threatened? 294

11.3.3 The intermediation–disintermediation–re-intermediation cycle 299

11.4 Chapter summary 301

12. e-Business Modeling 305

12.1 Business modeling 307

12.2 Business processes and collaborations 309

12.3 Business modeling with UML 310

12.3.1 Class diagrams 311

12.3.2 Activity diagrams 313

12.3.3 Use case diagrams 313

12.3.4 Sequence diagrams 316

12.3.5 Deployment diagram 316

12.3.6 Business process modeling with UML 2.0 316

12.4 Business process modeling methodologies 320

12.4.1 The Unifi ed Software Development Process 322

12.4.2 The Rational Unified Process (RUP) 323

12.4.3 The UN/CEFACT Modeling Methodology 325

12.5 The Supply-Chain Operations Reference (SCOR) model 331

12.6 Business Process Modeling Notation 335

12.7 Comparing BPMN with UML 339

12.8 The Model Driven Architecture (MDA) 340

12.9 Chapter summary 344

13. Security and Reliability for e-Business 349

13.1 Reliability and quality considerations 351

13.2 Quality requirements 353

13.3 Trust 357

13.4 e-Business risks 359

13.5 e-Business security 361

13.5.1 Application security requirements 362

13.5.2 Security mechanisms for e-Business 364

13.6 Realizing a secure e-Business infrastructure 367

13.6.1 Infrastructure availability 367

13.6.2 Network level security 368

13.6.3 Secure communications 372

13.6.4 Digital certification and trusted third parties 376

13.6.5 Trust services overview 378

13.7 Chapter summary 387

14. Approaches to Middleware 391

14.1 What is middleware? 392

14.2 Messaging 393

14.3 Remote Procedure Calls (RPCs) 396

14.4 Remote Method Invocation (RMI) 398

14.5 Message-Oriented Middleware (MOM) 400

14.5.1 Integration brokers 402

14.5.2 The Java Message Service 405

14.6 Data-access middleware 406

14.7 Transaction-oriented middleware 407

14.7.1 Transaction-processing (TP) monitors 408

14.7.2 Application servers 409

14.8 Distributed-object middleware 411

14.8.1 Object Request Brokers (ORBs) 412

14.8.2 The Enterprise Java Beans (EJB) component model 416

14.9 Newer generation frameworks 418

14.9.1 .NET 418

14.9.2 J2EE 420

14.10 Chapter summary 428

15. Component-based Development 431

15.1 What are components? 433

15.1.1 Component characteristics 436

15.2 Interfaces and contracts 438

15.3 Business components and entities 441

15.3.1 Business entities 442

15.3.2 Business components 442

15.4 Component models and compositions 444

15.4.1 Component models 444

15.4.2 Component compositions 445

15.5 Component frameworks and patterns 447

15.5.1 Characteristics and types of frameworks 447

15.5.2 Business patterns 449

15.6 Business component architecture 450

15.7 Business component-based design and development 452

15.7.1 Designing components 452

15.7.2 Developing components 459

15.7.3 Certifying components 460

15.8 Advantages and limitations of component-based development 460

15.9 Chapter summary 462

16. Leveraging Legacy Applications 465

16.1 Enterprise information systems and legacy enterprise assets 467

16.2 Strategies for modernizing legacy systems 469

16.3 Non-invasive approaches 471

16.3.1 Refacing 471

16.3.2 Repurposing 471

16.3.3 Presentation tier modernization techniques 472

16.4 Invasive approaches 474

16.4.1 Maintenance 474

16.4.2 Replacement 474

16.4.3 Re-engineering and transformation 475

16.5 Legacy modernization techniques 483

16.5.1 Legacy componentization 483

16.5.2 Requirements for componentization 486

16.6 Chapter summary 492

17. Enterprise Application Integration 495

17.1 The application integration imperative 497

17.1.1 Target applications 499

17.2 Operational and financial drivers 501

17.3 What is Enterprise Application Integration? 502

17.4 Typical topologies for enterprise application integration 504

17.4.1 Point-to-point topology 505

17.4.2 Publish/Subscribe (shared bus) topology 507

17.4.3 Hub and spoke topology 509

17.4.4 Conclusion 510

17.5 Types of application integration: passive vs. active 511

17.6 Layers of EAI integration 512

17.6.1 Transportation layer 512

17.6.2 Data integration layer 513

17.6.3 Application programming interface integration layer 517

17.6.4 Business process integration layer 518

17.7 Workflow, EAI, and BPM technologies: A comparison 524

17.8 When to use synchronous or asynchronous communication 525

17.9 Elements of the application integration architecture 527

17.10 Implementing business process-level EAI 529

17.10.1 Integration broker-based process-level integration 530

17.10.2 Application server-based process-level integration 534

17.11 Summary of application integration infrastructure functions 537

17.12 Chapter summary 538

18. e-Business Integration 543

18.1 Business processes and e-Business integration 545

18.2 Business process redesign 547

18.3 e-Processes 548

18.4 Overview of e-Business integration 549

18.4.1 Choosing the type of integration 551

18.4.2 The role of standards 553

18.4.3 Initial comparison between EAI and e-Business integration 554

18.5 Topologies for e-Business integration 555

18.6 Workflow, BPM, EAI and e-Business 559

18.7 Integration challenges: the semantic interoperability problem 561

18.7.1 Semantic issues at the data level 562

18.7.2 Semantic issues at the business-process level 563

18.8 Business integration patterns and their implications 567

18.8.1 Integrated enterprise business pattern 567

18.8.2 Brokered enterprise business pattern 569

18.8.3 Federated enterprise 570

18.9 e-Business integration requirements revisited 571

18.10 Wrapping up: the real differences between e-Business and EAI 573

18.11 Chapter summary 574

19. Loosely Coupled e-Business Solutions 579

19.1 Introduction 581

19.2 The concept of software as a service 584

19.3 What web services are 585

19.4 Web services: types and characteristics 588

19.5 The service-oriented architecture 590

19.5.1 Roles of interaction in the service-oriented architecture 591

19.5.2 Operations in the service-oriented architecture 592

19.6 The web services technology stack 593

19.7 Web services standards 595

19.7.1 SOAP: Simple Object Access Protocol 595

19.7.2 WSDL: Web Services Description Language 599

19.7.3 UDDI: Universal Description, Discovery, and Integration 607

19.8 Web services orchestration 612

19.9 Web services transactions 617

19.10 Web services security and policy considerations 620

19.11 EAI and web services 621

19.12 Chapter summary 623

20. Business Protocols 627

20.1 Introduction 628

20.2 Why are business standards and protocols needed? 629

20.3 XML technology stack for e-Business integration 630

20.3.1 Components in support of e-Business within a single value chain 631

20.3.2 Components in support of e-Business within an e-Market 632

20.4 RosettaNet 635

20.5 Electronic business XML 637

20.5.1 Conducting business via ebXML 638

20.5.2 Architectural model of ebXML 639

20.6 Convergence between Rosetta, ebXML and web services 654

20.7 Chapter summary 656

Glossary 661

References 681

Index 701

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