1
The meteoric growth of Internet based E-commerce at the turn of the last century is truly baffling. During the last one decade, this market space has grown in several directions. In its first generation, it saw the emergence of portals and search engines. However, in due course more and more organisations began to cater to the Business-to-Customer ( B2C ) market. In the last three years, there is a significant growth in the Business-to-Business ( B2B ) segment.
As several organisations began to operate in the Internet market space, they innovated unique propositions to create value in the process. This course will help the students understand these unique propositions in a unified framework. The framework is collectively referred to as "Business Models". An Internet based business has several dimensions. However, this course is designed to address the following issues:

Management aspect that deals with the business strategies for value creation, growth and customer development and retention

Statutory and legal dimension that addresses various cyber laws dealing with security, crimes etc. and government policies for nurturing the Internet based E-commerce
Hence, knowledge of software and technology issues and programming skills is not expected.
However, a preliminary knowledge of the history of the Internet is assumed.
The objectives of the courses may briefly be stated as follows:

Explore the theoretical basis for various operational and strategic aspects of E Commerce

Illustrate alternative market structures emerging in the B2B market space

Briefly introduce modeling issues pertaining to strategic issues in E-Markets

Provide an understanding of the challenges in using E-Markets
1 This course content will undergo some changes at the time of offering on account of updating the material.

Session
No.
Topic
(Cases & Guest Lectures are indicated in parentheses)
Introduction to E Commerce
1
2
Sustaining Competitive Advantage: Role of E Commerce
Electronic Markets: Structure & Value Propositions
Economics of E Commerce
3 Transaction costs – Implications for E Markets
4
5
Information Economics: Relevance to E Commerce
Online Music Distribution in a Post-Napster World (Case)
6
7
Pricing Strategies for Informational Products
Intermediation in Electronic Markets
8 Dis-intermediation & Re-intermediation: Netflix (Case)
Understanding the emerging market structures in B2B
9 Emerging Market Structures in B2B E Commerce
10 Reverse Auctions in B2B Markets: e-Sourcing at Sun Micro
Systems (Case)
11 Modelling Supply Chain issues in E Markets
12 Mid Term Examination
13 B2B Markets in Emerging Economies: E Business Transformation at Me Online (Case)
14 E Procurement: Indian Experience (Guest Lecture)
15 Implementation issues & Challenges in E Governance: CARD
(Case)
B2C Market Space
16 Power of Online Communities: LinkedIn (Case)
17 Challenges of managing the B2C Markets (Guest Lecture)
18 Nike Channel Conflict (Case)
Issues in transacting in the e market
19 Taxation & Legal Issues (Guest Lecture)
20 Trust, Privacy & Security issues in E Markets
2

3
Session-wise course outline
Module A. Introduction to Internet Based E Commerce
1.
Sustaining Competitive Advantage – Role of E Commerce
Changing paradigms in Competitiveness of businesses
Readings:

Magretta, J. (1998), “Fast, Global, Entrepreneurial: Supply chain management,
Hong Kong Style”, Harvard Business Review , 76 (5), 103 – 114.

Ghemawat, P. (1986)
. “Sustainable advantage”,
Harvard Business Review , Sep. –
Oct. 1986, 53 – 58.
2.
Electronic Markets: Structure & Value Propositions
Readings:

Barua, A., Pinnell, J., Shutter, J. and Whinston, A.B. (1999), "Measuring

Internet economy: An exploratory paper ", Working paper series, University of
Texas, Austin, July, 1999,
Andal-Ancion, A., Cartwright, P.A. and Yip, G.S., (2003)
, “The digital transformation of traditional businesses”,
MIT Sloan Management Review , 44 (4),
34 – 41.
Module B. Economics of E Commerce
3.
Transaction costs: implications for Electronic Markets
Readings:

Bakos, J.Y. (1991), "A strategic analysis of electronic market places", MIS
Quarterly, 15 (3), 295 – 310.

Malone, T.W., Yates, J. and Benjamin, R.I. (1987), “Electronic Markets and
Electronic Hierarchies”, Communications of the ACM , 30 (6), 484 – 497.
4.
Information Economics - Relevance to E-commerce
Readings:

Choi, S-Y., Stahl, D.O. and Whinston, A.B., (1997), “The Economics of
Electronic Commerce”, Macmillan Technical Publishing, Chapter 2.

4
5.
Business Model issues for Informational Products
Readings

Evans, P.B. and Wurster, T.S. (1997), "Strategy and the new economics of information" . Harvard Business Review, 75 (5), 71 – 82.
Case: Online Music Distribution in the Post-Napster World
6.
Pricing Strategies for Informational Products
Readings

Varian, H.R. (1996).
“Differential pricing and efficiency”, First Monday , 1 (2).

Shapiro, C. and Varian, H.R. (1998) , “Versioning: the smart way to sell information”,
Harvard Business Review , 76 (6), 106 – 114
7.
Intermediation in Electronic Markets
Readings:

Spulber, D.F. (1996).
“Market microstructure and intermediation”, Journal of
Economic Perspectives , 10 (3), 135 – 152.
8.
Dis-intermediation & Re-intermediation
Readings:
 Chircu, A.M. and Kauffman, R.J. (2000). “
Re-intermediation strategies in business-to-business electronic commerce”, International Journal of E
Commerce , 4 (2) 7 – 42.
Case: Netflix
Module C. Understanding the emerging market structures in B2B
9.
Emerging market structures in B2B E Commerce
Readings:
 Mahadevan, B. (2000), "Business Models for Internet based E-commerce: An anatomy", California Management Review, 42 (4), 55 – 69.

Mahadevan, B. (2003), “Making sense of the emerging market structures in B2B
E Commerce”,
California Management Review , 46 (1), 86 – 100.

5
10.
Reverse Auctions in B2B markets
Readings:

Smeltzer, L.R. and Carr, A. (2003),
“Reverse auctions in industrial marketing and buying”, Business Horizons, 45 (2), 47 – 52.
Case: eSourcing at Sun MicroSystems
11.
Modelling Supply Chain issues in E-Markets
Readings:

Swaminathan, J.M. and Tayur, S.R., (2003),
“Models for supply chains in E-
Business”,
Management Science , 49 (10), 1387 – 1406.
 Hazra, J., Mahadevan, B. and Seshadri, S. (2004), “Capacity allocation among multiple suppliers in an electronic market”,
Production and Operations
Management Journal , 13 (2), 161 – 170.
12.
Mid Term Examination
13.
B2B Markets in emerging economies
Case: E Business transformation at Me – Online
Readings :

Gulledge, T., (2002),
“B2B eMarket places and small and medium-sized enterprises”,
Computers and Industry , 49 (1), 47 – 58.

Hempel, P.S. and Kwong, Y.K. (2001), “B2B e-Commerce in emerging economies: i-metal.com's non-ferrous metals exchange in China”, Journal of
Strategic Information Systems, 10 (4), 335 – 355.
 Kumar, K. and Mahadevan, B. (2003), “Evolution of business models in B2B
Ecommerce: The case of Fabmall”,
Management Review , 15 (4), 23 – 30.
14.
E Procurement: The Indian Experience
Guest Speaker: To be announced
Readings:

Tudler, R.V. and Mol. M. (2002),
“Reverse Auctions or auctions reversed: First experiments by Philips”, European Management Journal, 20 (5), 447 – 456.
15.
Implementation issues & challenges in E-Governance
Readings:

Ke, W. and Wei, K.K., (2004),
“Successful e-government in Singapore”,
Communication of the ACM , 47 (6), 95 – 99.

6

Basu, S., (2004),
“É-Government and developing countries: An overview”,
International Review of Law Computers and Technology , 18 (1), 109 – 132.

Alexander, E (2002), A day in the life of a Village Kiosk Operator
Case: CARD: An E Government Initiative in Andhra Pradesh
Module D. The B2C Market Space
16.
Power of Online Communities
Readings:

Hagel III, J. and Armstrong, A.J. (1997), “Economics of Virtual Communities”,
Chapter 3 in Net Gain, HBS Process , 41 – 81.
Case: LinkedIn
17.
The challenges in B2B Market Space
Guest Speaker: To be announced
18.
Channel Conflict
Case: Nike – Channel Conflict
Readings:

Maruca, R.F. (1999).
“Retailing: Confronting the challenges that face Brick &
Mortar Stores”,
Harvard Business Review, 77 (4), 3 – 12.

Heintz, S.
(2001).
“Channel Conflict Management: How to manage through it and win”,
White Paper, Frank & Lynn Associates.
Module E. Operational issues for Internet Based Businesses
19.
E-Commerce: Taxation & Legal Issues
Guest speaker: To be announced
Readings:
 Srinivasan, R. (2001), “E Commerce and Taxation”, Taxman, 116 , 116 – 124.

Hughes, J.F. and Glaister, K. (2001),
“Electronic Commerce and International
Taxation: A square peg in a round hole?”,
European Management Journal, 19 (6) ,
651 – 658.

Murray, A.W., Vick, D.W. and Wortley, S., (1999) , “Regulating E-commerce:
Formal transactions in the digital age”,
International Review of Law Computers &
Technology , 13 (2), 127 – 145.

7
20.
Trust, Privacy and Security issues in E-Commerce
Readings:

Mahadevan, B. and Venkatesh, N.S. (2000). “A framework for building online trust for business-to-business E Commerce: Issues & Challenges”, IT Asia
Millennium Conference, Mumbai, Nov. 2000.

Christopher M. Cassidy and Bongsug Chae, (2006), “Consumer information use and misuse in electronic business: An alternative to privacy regulation”,
Information Systems Management, Summer 2006 , 75 – 87.

Online music distribution in a post-Napster World

Netflix
 eSourcing at Sun Microsystems

Me Online

CARD: An E Government Initiative in Andhra Pradesh

LinkedIn

NIKE Channel Conflict
Mid Term : 30 Points
Case Analysis
End Term
Term Paper
Total
: 20 Points
: 30 Points
: 20 Points
: 100 points
The students will form themselves into groups of five and announce their group membership to the instructor at the beginning of week 2 of the course (third session in the course).
Each group will make a submission at the end of the term a written report that addresses the issues pertaining to any of the themes identified below:
1.
E Procurement: Status, Issues and Challenges in Indian Firms
2.
E Governance: Specific examples, implementation status, user experiences, future trends
3.
Role of E Markets in Cash crops (commodities trading such as Tea, Coffee, Rubber,
Silk worm): Key differences, current status, critical success factors
4.
Role of E Markets in Agro commodity marketing (excluding the E – Choupal example): Current level of activity, directions for growth, role of government and public policy in shaping the growth

8
5.
Addressing the bottom of the pyramid – Role of Internet market mechanisms:
Examples in operation, potential application areas, usage experiences, factors driving growth and policy implications
6.
Differences in usage patterns of E-markets mechanisms between public sector/government institutions and private/multi-national firms: Patterns of usage, observed differences and reasons thereof, growth projections and critical success factors
7.
Understanding the Eco-system for E-market growth: Types of technologies, enabling mechanisms, availability of eco-system components, reasons for differences between global/regional market mechanisms
8.
New Intermediaries in E-Markets: Types of intermediaries, role played by them, impact on e-market growth, trends and projections for the future
9.
Global diffusion of Electronic Market: An analysis of cross-geographical patterns, significant patterns in type and intensity of usage, projections for B2B and B2C market growths in global e-markets, reasons for observed differences and issues to be addressed in each region
10.
A comparative study of available e-market mechanisms today: Identifying type of markets in operation, the extent of usage, most popular and least popular applications and reasons thereof, key implications for practice
11.
Building Trust in Online environment: Issues that need consideration, importance of the topic in E-markets, initiatives taken by the industry and government to address this issue, long term implications and trends
12.
Dis-intermediation & Re-intermediation issues in Business due to electronic markets:
Impact of electronic markets on the existing supply chains and channels of trading partners, specific dis-intermediation trends in travel sector: trends, challenges, new initiatives required by the existing players, specific examples of new intermediation
Each group will choose any one from the above topics and do relevant research of the most recent status of the subject matter in the chosen theme and write a report. Internet market places constantly evolve. Therefore, the value of the report will be judged on three important parameters – (a) How recent are the issues and statistics covered in the report; (b) What is the level of depth in collection and analysis of data (c) How authentic is the research methodology as evidenced by the completeness of the references to the sources from which data and analysis are made
The conceptual details pertaining to each of the above themes will be adequately covered in the course. Therefore, the report need not dwell too much on the conceptual details. The emphasis of the report is more towards relevant data collection, synthesis, analysis and distillation of implications for practice and insights for practitioners.
The final report must be no more than 15 pages of typed running matter (single spacing, times new roman font 12, with 1” margin all sides in a A4sheet) and as many tables, figures and exhibits as is required. All references must be as per the norms established by IIMB
Management Review Journal (see a recent copy for format) and must be placed at the end of the report.