Technology Suggestions


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Technology Suggestions

  1. 2. Extranets
  2. 3. Extranets <ul><li>Extranets are external networks physically set up outside a company’s firewall that provides assistance with business strategy, ordering and product-delivery systems and customer support. </li></ul><ul><li>Extranets extend the benefits of particular company information to outside groups, such as partners, suppliers, and customers without compromising on organization’s strategy. </li></ul><ul><li>Extranets can be used to exchange large volumes of data, share product catalog, share news with trading partners, jointly develop and share training programs with other companies, and much more. </li></ul><ul><li>An extranet is a private network that uses internet protocols and the public telecommunication system to securely share part of a business’s information or operations with business partners. </li></ul><ul><li>It can be reached only by a limited number of people or entities because the extranet is protected by security protocols and various authentication methods such as user ID’s, and password. </li></ul>
  3. 4. Types of Extranets <ul><li>Supplier Extranets: A supplier extranet links store branches to their central store, in order to facilitate workflow and maintain the required level of stocks in the inventory. It reduces the possibility of rejecting orders due to shortage of stocks, in addition to providing many services related to inventory control. </li></ul><ul><li>Distributor Extranets: A distributor extranet gives different levels of authorization to various individuals, depending on the size of the dealings. It also provides services such as electronic order and automated settlements, as well as lists of new products and specifications. </li></ul><ul><li>Peer Extranets: A peer extranet promotes equal competition between the different companies in the business sector, as it links small and large companies and enables them to share product prices and specifications. This helps to improve the products and services of a company, and in curbing monopoly. </li></ul>
  4. 5. Advantages <ul><li>Lower Cost Of Goods </li></ul><ul><li>Many manual processes, paper and faxes can be eliminated </li></ul><ul><li>which can reduce costs dramatically at all levels of the supply </li></ul><ul><li>chain. </li></ul><ul><li>Attraction Of More Competitive Bids </li></ul><ul><li>Since purchasing is automated and done via extranets many </li></ul><ul><li>companies have attracted more competitive bids from a greater </li></ul><ul><li>diversity of suppliers. </li></ul><ul><li>Quicker Time To Market </li></ul><ul><li>Due to efficiencies gained from a more finely tuned supply chain, an </li></ul><ul><li>extranet allows for companies to bring new products to the market much </li></ul><ul><li>quicker than before. This allows them to gain first mover advantage or </li></ul><ul><li>match competitors’ offerings much quicker. </li></ul>
  5. 6. Advantages <ul><li>More Concise Asset Management </li></ul><ul><li>Companies have more opportunity to more closely track orders and </li></ul><ul><li>assets. Customers using an extranet for ordering will have an easier </li></ul><ul><li>time reviewing their past purchases. </li></ul><ul><li>Open Standards </li></ul><ul><li>Another advantage of an extranet is the internet’s open standards. </li></ul><ul><li>Companies that purchased their equipment from different vendor’s </li></ul><ul><li>will not be hurt because the extranet eliminates many compatibility </li></ul><ul><li>problems. </li></ul>
  6. 7. Advantages <ul><li>Employment Services </li></ul><ul><li>Extranets are used to linked students of universities and other </li></ul><ul><li>institutions to the labour force. Both sides benefit from this because </li></ul><ul><li>through extranets students will be able to communicate with </li></ul><ul><li>employers in the labour market. </li></ul><ul><li>Increased Communication In Workplace </li></ul><ul><li>Employers will be able to quickly share ideas and feedback to </li></ul><ul><li>employees in a more quick and efficient manor. This will increase </li></ul><ul><li>employee responsibility and therefore moral. </li></ul>
  7. 8. Disadvantages <ul><li>System Vulnerability </li></ul><ul><li>This concerns security and the internet the type of data that R&D </li></ul><ul><li>will transmit over the extranet (ie. Financial Data, Info for New </li></ul><ul><li>products) makes the network very appealing for hackers and other </li></ul><ul><li>competitors </li></ul><ul><li>Insufficient Support </li></ul><ul><li>Quality of service is a concern because it is difficult to provide </li></ul><ul><li>Adequate support for an extranet and it can also be costly </li></ul><ul><li>Human Factors </li></ul><ul><li>The technology is different than many info systems that directors </li></ul><ul><li>may be used to and therefore they might require additional training. </li></ul><ul><li>Employee’s who are regular user’s on the sight might also require </li></ul><ul><li>additional training. </li></ul>
  8. 9. Disadvantages <ul><li>Equipment Needed </li></ul><ul><li>The types of hardware and software used is extranets also varies </li></ul><ul><li>between companies. This equipment may also have high initial </li></ul><ul><li>costs which many some companies do not have the capital to </li></ul><ul><li>implement them, </li></ul><ul><li>Slow Links </li></ul><ul><li>The speed of an extranet is an issue because the net is usually only </li></ul><ul><li>as fast as it’s weakest link. Videoconferencing is also very slow. </li></ul><ul><li>Complexity </li></ul><ul><li>Extranets are far more complicated to establish than intranets. One </li></ul><ul><li>reason is because is that it is difficult to make a system interact </li></ul><ul><li>efficiently with other systems from other companies. </li></ul>
  9. 10. Disadvantages <ul><li>Legitimacy </li></ul><ul><li>Many people also question the legitimacy of information </li></ul><ul><li>exchanged through extranets. The traditional face-to-face business </li></ul><ul><li>relationship does not happen so when a company attempts to sell </li></ul><ul><li>supplies to a vendor, it does not always know that a bid that a </li></ul><ul><li>vendor has offered is legitimate. </li></ul><ul><li>Elimination Of Distribution </li></ul><ul><li>Eliminating of distributors may result in significant channel </li></ul><ul><li>distribution as a result of channel conflict between companies. </li></ul>
  10. 11. Recommendation <ul><li>When deciding weather or not to use an extranet it is </li></ul><ul><li>important that a company examine the decision thoroughly. </li></ul><ul><li>We have made that the following reccomendations as to </li></ul><ul><li>decide if an extranet is the best idea and if so, how to </li></ul><ul><li>implement it. </li></ul><ul><li>Define Why Extranet is being implemented and how you </li></ul><ul><li>will use it </li></ul><ul><li>Some companies have much more to gain than others by using an </li></ul><ul><li>extranet. We have to decide how many of our suppliers we want to </li></ul><ul><li>give access to our extranet. The more there is, the more sense an </li></ul><ul><li>extranet makes. This is because it will save move money and </li></ul><ul><li>make is easier to communicate with other companies. </li></ul>
  11. 12. Recommendation <ul><li>2)Consider your business partners and how they’ll benefit </li></ul><ul><li>The degree of collaboration between partners will ultimately </li></ul><ul><li>determine the success of the extranet. This means that partners </li></ul><ul><li>must also perceive a benefit to using it. </li></ul><ul><li>3) Consider Privacy and Security </li></ul><ul><li>What kind of data will you be displaying. How sensitive is it? </li></ul><ul><li>4) Develop A Clear Plan That Includes </li></ul><ul><li>-business problems to be addressed </li></ul><ul><li>-inventory of existing computer and communication devices </li></ul><ul><li>-cost of design, installation and implementation. Also, where are </li></ul><ul><li>you going to get the people who are going to do this. </li></ul>
  12. 13. Leverage and Risks <ul><li>The leverage of extranets is that offer lower overhead costs, a </li></ul><ul><li>more inefficient supply chain, better inventory management. </li></ul><ul><li>Another benefit of extranet’s is that it makes communication </li></ul><ul><li>between employees much easier. Employees can communicate </li></ul><ul><li>ideas without having to leave their desks. </li></ul><ul><li>The risks of using an extranet are security and privacy. Security is </li></ul><ul><li>an issue because a system that runs over the internet is very </li></ul><ul><li>vulnerable to invasions. No one has been able to come up with a </li></ul><ul><li>foolproof security plan. Privacy is a risk because companies has to </li></ul><ul><li>hire trust worthy people when it comes to the handling of sensitive </li></ul><ul><li>information. If this information becomes publicized it can have </li></ul><ul><li>very damaging effects on a company. </li></ul>
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