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1 Introduction to
Chapter at a glance
Main topics
The impact of the electronic
communications on traditional
businesses 6
What is the difference between
e-commerce and e-business? 9
E-business opportunities 29
Business adoption of digital
technologies for e-commerce and
e-business 30
E-business risks and barriers to
business adoption 35
Management responses to
e-commerce and e-business 39
Case studies
1.1 A short history of Facebook 17
1.2 North West Supplies extends its
reach online 33
1.3 eBay – the world’s largest
e-business 42
Web support
The following additional case studies
are available at
www.pearsoned.co.uk/chaffey
SME adoption of sell-side
e-commerce
Death of the dot-com dream
Encouraging SME adoption of
sell-side e-commerce
The site also contains a range of
study material designed to help
improve your results.
e-business and
e-commerce
Learning outcomes
After completing this chapter the reader should be able to:
Define the meaning and scope of e-business and e-commerce
and their different elements
Summarize the main reasons for adoption of e-commerce and
e-business and barriers that may restrict adoption
Outline the ongoing business challenges of managing e-business
and e-commerce in an organization.
Management issues
The issues for managers raised in this chapter include:
How do we explain the scope and implications of e-business and
e-commerce to staff?
What is the full range of benefits of introducing e-business and
what are the risks?
How do we evaluate our current e-business capabilities?
Links to other chapters
The main related chapters are:
Chapter 2 examines the principal e-commerce business and
marketplace models in more detail;
Chapter 3 introduces the technical infrastructure of software and
hardware that companies must incorporate to achieve
e-commerce;
Chapter 5 describes approaches to e-business strategy
introduced in Chapter 1.