Objectives of knowledge management

Online value 
proposition (OVP)
A statement of the 
benefits of online 
services reinforces the 
core proposition and 
differentiates from an 
organisation’s offline 
offering and those of 
competitors.
Figure 1.13
A simple stage model for buy‑ side and sell‑ side e‑commerce
Stage 1
E-mail marketing
Stage 2
Brochureware site
Stage 3
Interactive site
Stage 4
Online ordering
Stage 5
Relationship building
Stage 6
Site optimisation
Sell-side e-commerce
Stage 1
Review suppliers
Stage 2
Stock availability
Stage 3
Online catalogues
Stage 4
Online ordering
Stage 5
Integrate databases
Stage 6 Supply
chain optimisation
Buy-side e-commerce
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34
Part 1
Introduction
a lower cost- base as they have lower staff and distribution costs than a retailer that runs a 
network of high- street stores. A simple price differential is a key approach to encouraging 
usage of online services. In the late 1990s, low- cost airline easyJet encouraged the limited 
change behaviour required to move from phone booking to online booking by offering a 
£2.50 discount on online flight bookings.
Note that the 7Cs of Rayport and Jaworski (2003) provide a similar framework of Context, 
Content, Community, Customisation, Communication, Connection and Commerce.
Barriers to consumer Internet adoption 
An indication of some of the barriers to using the Internet, in particular for consumer pur-
chases, is clear from a survey (Booz Allen Hamilton, 2002) of perceptions in different coun-
tries. It noted that consumer barriers to adoption of the Internet included: 
● 
No perceived benefi t
● 
Lack of trust
● 
Security problems
● 
Lack of skills
● 
Cost
This lack of demand for Internet services still present in every country needs to be taken into 
account when forecasting future demand. 
To complete this chapter, read Case study 1.2 for the background on the success factors 
which have helped build one of the world’s biggest digital businesses.
Case Study 1.2 
eBay – the world’s largest online business?
This case summarises the strategic approach used by 
eBay to take advantage of increased consumer adoption 
of the Internet. It summarises its objectives, strategy and 
proposition and key risks that need management. You 
will see that many of its success factors are similar to 
those for smaller retailers.