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42 Part 1 Introduction

Activity 1.5 Applying the 7S framework to e-business initiatives

Purpose
To illustrate some of the key strategy issues of implementing e-business.
visit the
www Question
Take an organization you are familiar with and consider organizational changes that may
be required for each of the 7 Ss. Which factors do you feel are ignored by the 7 Ss?
Answers to activities can be found at www.pearsoned.co.uk/chaffey

Part 3: Implementation

E-business management is described in Part 3 of the book where we examine practical man-
agement issues involved with creating and implementing e-business solutions.
Chapter 10: Change management. How to manage the organizational, human and tech-
nology change required in the move to e-business.
Chapter 11: Analysis and design. We discuss the main issues of analysis and design raised
by e-commerce systems that need to be discussed by managers and solutions providers.
Chapter 12: Implementation and maintenance. How should e-commerce systems be
managed and monitored once they are live?

To complete this chapter, read Case Study 1.3 for the background on the success factors
which have helped build one of the world’s biggest e-businesses.

Case Study 1.3 eBay – the world’s largest e-business

This case summarizes the strategic approach used by 1 The eBay marketplaces (approximately 70% of net
eBay to take advantage of increased consumer adoption revenues in 2007). The mission for the core eBay
of the Internet. It summarizes its objectives, strategy and business is to ‘create the world’s online market-
proposition and some of the risks that need management. place’.The marketplace platforms include an average
of 100 million products for sale on each day! eBay’s
Context SEC filing notes some of the success factors for this
business for which eBay seeks to manage the func-
It’s hard to believe that one of the most celebrated dot-
tionality, safety, ease-of-use and reliability of the
coms has now celebrated its tenth birthday. Pierre
trading platform.
Omidyar, a 28-year-old French-born software engineer
2 PayPal (approximately 25% of net revenues in
living in California coded the site while working for another
2007). The mission is to ‘create the new global stan-
company, eventually launching the site for business on
dard for online payments’. This company was
Monday, 4 September 1995 with the more direct name
acquired in 2003.
‘Auction Web’. Legend reports that the site attracted no
3 Skype Internet telephony (5% of net revenues in
visitors in its first 24 hours. The site became eBay in 1997.
2007). This company was acquired in 2005. eBay has
suffered an ‘impairment charge’ from valuing the
Mission
company too highly, but more recently it has started
eBay describes its purpose as to ‘pioneer new com- to provide the service for MySpace users.
munities around the world built on commerce, sustained
Advertising and other net revenues represented 4% of
by trust, and inspired by opportunity’.
total net revenues during 2007. This case focuses on the
At the time of writing eBay comprises three major
best-known eBay business, the eBay marketplace.
businesses: