University of Illinois at Urbana-Champaign
MBA405(H)
Spring, 2001
E-Business and E-Commerce Strategy
Professor Mike Shaw
Course Objectives
Information technology (IT) has become the single largest area for corporate capital
investment in the U.S. That is not surprising because IT not only supports most value adding
activities, it increasingly is used to build the competitive advantages of firms. Moreover, new IT
developments in the e-business and e-commerce areas are accelerating at such rapid speeds that
the understanding of how to manage IT is getting to be an essential skill for both technical and
general managers. Moreover, we are witnessing a revolution in the business world due primarily
to explosion in information technology and the resulting rapid emergence of Electronic
Commerce and e-Business.
Commercial activities for information gathering, shopping, trading, brokering, banking,
accounting, auditing, financing, negotiating, collaborating, marketing, supplying, partnering,
training, meeting, scheduling, manufacturing, distributing, servicing, and retailing will all be
changed thanks to the capabilities of the new information technology. All companies, large and
small, will face the inevitable challenges brought about by these technological developments.
To help train students to be future managers who are knowledgeable about e-business and
e-commerce, this course discusses the important facets of managing e-business and e-commerce.
It emphasizes (1) the strategic perspectives of e-business management, (2) the evolving business
models for electronic commerce, and (3) the importance of matching business models with new
technologies.
The topics to be covered will be presented in the following structure:
 Introduction to e-Business and e-Commerce Management
 B2C e-Commerce for e-retailing and e-Services
 Web Marketing
 Economics of Digital Products
 The IT Service Providing Industry and e-Business Development
 Channel Management for e-Commerce
 IT for Channel Partnership: The Case of P&G and Walmart
 Supply-Chain Management
 Web-Based Procurement
 B2B e-Markets
 Enterprise e-Commerce Strategy
Dates
Topics
1. 3/19 (M) Introduction to e-Business and e-Commerce Management
Related Readings:
a. Ch 1, Turban.
b. “Building an E-business from Enterprise Systems,” M. Shaw, Information Systems Frontiers, 2:1, pp. 7-17,
January 2000.
2. 3/22 (Thu ) Digital Products, Transparent Pricing, and Versioning
The New Economics of Information and Business
Models. -network economics, -virtual communities
-technology lock-in, -pricing of information goods,
-versioning E-Commerce business models
Related Readings:
a. Cost Transparency: The Net’s Real Threat to Prices and Brands, Indrajit Sinha, Harvard
Business Review, pp. 3-8, March-April 2000.
b. Versioning: The Smart Way to Sell Information, Carl Shapiro and Hal R. Varian, Harvard
Business Review, pp. 106-114, November-December 1998.
c. “Portable Music is Here, But How Much Should it Cost?” J. Dodge, The Wall Street Journal,
Feb. 28, 2001.
3. 3/26 (M) Web Marketing
Case: P&G's Web Marketing Strategy
Speaker: Rich Lauf, P&G Interactive Marketing
Related Readings:
a. Ch. 3, 4 Turban
b. “Branding and Bonding Beyond the Banner,” Dennis Beausejour (P&G), Spring ’98 Ad-Tech
Conference.
c. “Can the Internet Hotwired P&G?” K. VanScoy, Smart Business, Jan. 2001, pp. 69-84.
4. 3/29 (Thu) B2C eCommerce for e-Retailing and e-Services,
E-Commerce Business Models
Critical Success Factors
Examples of e-Services in Auto, Travel, Airline industries
Impact of e-Commerce
Related Readings:
a. Ch 2 and 5, Turban
b. Handouts on e-Commerce Business Models
5. 4/2 (M) The IT Service Industry and e-Business Development
Guest Lecturer: Todd Miller, President, Revere Group
Related Readings:
a. “Building an E-business from Enterprise Systems,” M. Shaw, Information Systems
Frontiers, 2:1, pp. 7-17, January 2000.
b. In-Class Handouts from the Revere Group.
6. 4/5 (Thu) B2C e-Commerce: The Internet as a New Channel
The New Consumer Process
The Right Mix of Bricks and Clicks
Channel Management Issues
Customer Relationship Management
Related Readings:
a. Get the Right Mix of Bricks & Clicks, Ranjay Gulati and Jason Garino, Harvard Business
Review, pp. 107-114, May-June 2000.
b. Product Marketing and Channel Management in Electronic Commerce, Chandrasekar
Subramaniam, Michael Shaw and David Gardner, Information Systems Frontiers, 1:4, pp.
363-378, April 2000.
7. 4/9 (M) Case: P&G-Wal-Mart Case on Channel partnership
Guest Lecturers: Michele Halpin, P&G
Inter-Organizational Partnership and Coordination
Related Readings:
a. Supply-Chain Integration through Information Sharing: Channel Partnership between WalMart and Procter & Gamble, Michael Grean and Michael Shaw (available at the web
site: http://cistm.ai.uiuc.edu).
8. 4/12 (Thu) B2B E-Commerce: Supply-Chain Management
Case: “Ford Motor Company: Maximizing the
Business Value of Web Technologies”
E-Markets and E-Hierarchies
E-Hubs and B2B Exchanges
Related Readings:
a. Ch 6, Turban.
b. E-Hubs: The New B2B Marketplaces, Steven Kaplan and Mohanbir Sawhney, Harvard
Business Review, pp. 97-103, May-June 2000.
c. Case: Ford Motor Company: Supply-Chain Strategy
9. 4/16 (M) Web-Based Procurement and B2B eCommerce
Case: Caterpillar's e-Commerce Project
Guest Lecturers: David Cassel and Steve Blessin, Caterpillar
10. 4/19 (Thu) B2B e-Markets
a. Beyond the Exchange: The Future of B2B, Richard Wise and David Morrison, Harvard
Business Review, pp. 87-96, November-December 2000.
b. “B2B E-Commerce: The Biggest Gamble Yet,” CIO Magazine, April 15 2000, 11 pages
c. “The Napsterization of B2B,” A. McAfee, Harvard Business Review, Nov-Dec, 2000.
11. 4/23 (M) Enterprise E-Commerce Strategy Development and
Implementation
Case: Caterpillar’s e-Commerce Strategy
Guest Lecturer: Mike Hackerson, Caterpillar
12. 4/26 (Thu) Course Wrap-up
13. 4/30 (M) The Evolving E-Commerce Strategy
Guest Lecturer: Scott Whitsitt, President and CEO
One-to-One Service.com
14. 5/3 (Thu) Final Exam
IMBA 2001 E-Business Executive Speakers Series
3/26 (M)
Case: P&G's Web Marketing Strategy
Guest Lecturer: Rich Lauf, P&G Interactive Marketing
4/2 (M)
The IT Service Industry and e-Business Development
Guest Lecturer: Todd Miller, President, Revere Group
4/9 (M)
Case: P&G-Wal-Mart Case on Channel Partnership
Guest Lecturers: Michele Halpin, P&G
4/16 (M)
Web-Based Procurement and B2B eCommerce
Case: Caterpillar's e-Procurement Project
Guest Lecturers: David Cassel and SteveBailey, Caterpillar
4/23 (M)
Enterprise E-Commerce Strategy Development and Implementation
Case: Caterpillar’s e-Commerce Strategy
Guest Lecturer: Mike Hackerson and Steve Blessin, Caterpillar
4/30 (M) The Evolving e-Commerce Strategy
Guest Lecturer: Scott Whistsitt, One-to-One Service.com
Company Website: One-to-One Service.com
Text:
Electronic Commerce: A Managerial Perspective. Turban, E., et. al., Prentice
Hall, 2000.
Readings
1. Building an E-business from Enterprise Systems, Michael J. Shaw, Information Systems
Frontiers, 2:1, pp. 7-17, January 2000.
2. Get the Right Mix of Bricks & Clicks, Ranjay Gulati and Jason Garino, Harvard
Business Review, pp. 107-114, May-June 2000.
3. Cost Transparency: The Net’s Real Threat to Prices and Brands, Indrajit Sinha, Harvard
Business Review, pp. 3-8, March-April 2000.
4. Versioning: The Smart Way to Sell Information, Carl Shapiro and Hal R. Varian,
Harvard Business Review, pp. 106-114, November-December 1998.
5. Case: Supply-Chain Integration through Information Sharing: Channel Partnership
between Wal-Mart and Procter & Gamble, Michael Grean and Michael Shaw.
6. Case: Ford Motor Company: Supply-Chain Strategy
7. B2B E-Commerce: The Biggest Gamble Yet, CIO Magazine, April 2000, 11 pages.
8. E-Hubs: The New B2B Marketplaces, Steven Kaplan and Mohanbir Sawhney, Harvard
Business Review, pp. 97-103, May-June 2000.
9. Beyond the Exchange: The Future of B2B, Richard Wise and David Morrison, Harvard
Business Review, pp. 87-96, November-December 2000.
10. Branding and Bonding Beyond the Banner, Dennis Beausejour, Spring ’98 Ad-Tech
Conference.
11. Can the Internet Hotwired P&G? K. VanScoy, Smart Business, 2001, pp. 69-84.
12. Product Marketing and Channel Management in Electronic Commerce, Chandrasekar
Subramaniam, Michael Shaw and David Gardner, Information Systems Frontiers, 1:4,
pp. 363-378, April 2000.
13. Portable Music is Here, But How Much Should it Cost? J. Dodge, The Wall Street Journal, Feb.
28, 2001.
14. The Napsterization of B2B, A. McAfee, Harvard Business Review, Nov-Dec, 2000.
15.Globalism vs. Nationalism vs E-business: The World Debates, Martin Vander Weyer,
Policy, pp. 63-72.