Purpose: The purpose of this paper is to outline a hierarchical model for developing essential e-textbook functionality and to offer important insight for e-textbook designers. Design/methodology/approach: Guided by the SAMR model, five hierarchical functional layers are proposed in the development process for e-textbook to enable more effective and efficient teaching and learning. Findings: Moving up from the substitution to transformation level, each layer extends the functionality of the underlying layers to unveil new features that support the learning processes and gradually transform e-textbooks from a self-directed informal learning tool to become a formal learning platform. Originality/value: The hierarchical model provides e-textbook designers and developers with a guideline on how to surpass the present state of e-textbooks and offer additional value-added features for learners. The required technologies for each layer are also discussed.