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Ecommerce Chap 07


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Ecommerce Chap 07

  1. 1. Chapter 7The Intranets and Extranets © Prentice Hall, 2000 1
  2. 2. Learning ObjectivesDescribe the relationship among the Internet, anintranet and an extranetDiscuss the role of firewalls for intranets andextranetsDiscuss the functions of intranetsDiscuss the applications of intranetsDescribe the industries that use intranetsDiscover typical cases of intranet applications © Prentice Hall, 2000 2
  3. 3. Learning Objectives (cont.)Identify the key element of extranetsIdentify the key technologies for tunnelingDiscuss the applications of extranetsDescribe typical industries that use extranetsDiscuss the business models for extranetapplicationsDescribe the concept of embedded extranets © Prentice Hall, 2000 3
  4. 4. Automotive Network Exchange - the Largest ExtranetCompanies in the automotive market swapsupply and manufacturing dataInvolve 10,000+ companiesInclude CAD/CAM file transfers, Electronic DataInterchange (EDI), e-mail, and groupwareThe network’s EDI element alone will slice $71from the cost of designing and building each carSavings of $1 billion a year for the Industry © Prentice Hall, 2000 4
  5. 5. Automotive Network Exchange - the Largest Extranet (cont.)Chrysler will pay for fewer T1 Lines and satelliteconnectionsStandardizing one protocol-IP will reducesupport costsThe time it takes to turn around an order will bemuch shorterThe faster the parts come in, the faster the carsleave the assembly line, the larger the customersatisfaction and manufacturer’s profitBusiness-to-business virtual private networks(VPN) are used © Prentice Hall, 2000 5
  6. 6. The InternetThe Internet is a public and globalcommunication network that provides directconnectivity to anyone via a Local Area Network(LAN) and an Internet Service provider (ISP).Access to the Internet is not restricted to anyone. This lack of control may result in an informationoverload. Due to its vast scope and openness,the information is difficult to locate. Users needeffective and efficient search engines to navigatethe sea of information . There is no centralizedcontrol of network and information. © Prentice Hall, 2000 6
  7. 7. The IntranetsAn intranet is a corporate LAN and/or Wide AreaNetwork (WAN) that is secured behind company’sfirewalls and it uses Internet technologies.Although intranets are developed using the sameTCP/IP protocol as the Internet, they operate asprivate networks with limited access. Onlyemployees who are issued passwords and accesscodes are able to use them. So, intranets arelimited to information pertinent to the company andcontain exclusive and often proprietary andsensitive information. Firewalls protect intranetsfrom unauthorized outside access. © Prentice Hall, 2000 7
  8. 8. The Intranet (cont.) ERP Servers Clients Legacy systemsPublic/External Intranet E-mailInternet Users servers Web Firewalls servers Databases © Prentice Hall, 2000 8
  9. 9. The ExtranetAn extranet implies an “extended intranet”, whichuses TCP/IP protocol networks (like the Internet) tolink intranets in different locations. Extranettransmissions are conducted over the Internet tosave money. But it offers no privacy or transmissionsecurity. By creating tunnels of secure data flowsusing cryptography and authorization algorithms,called VPNs, the security can be improved.Extranets provide secure connectivity between acorporation’s intranets and intranets of its businesspartners, material suppliers, financial services, andcustomers. © Prentice Hall, 2000 9
  10. 10. The Extranet (cont.) Extranet Suppliers Intranet VPN FirewallDistributors VPN Tunneling Internet Intranet VPNCustomers Firewall © Prentice Hall, 2000 10
  11. 11. Summary : Internet, Intranet, and Extranet Network Typical Type of Type Users Access Information Internet Any individual Unlimited, General, public with dial-up public; no and advertisement access or LAN restrictions Intranet Authorized Private and Specific, employees restricted corporate and ONLY proprietary Extranet Authorized Private and Shared in groups from outside authorized collaborating authorized collaborating companies partners group © Prentice Hall, 2000 11
  12. 12. FirewallsDefinition of Firewall Software and hardware that allows only those external users with specific characteristics to access a protected network Provides potential customers with secured account, credit card, and loan information Usually located at a gateway point and controls traffic between internal and external networks © Prentice Hall, 2000 12
  13. 13. Generic Functions of an IntranetCorporate/department/individual Web-pagesDatabase access: Web-based databasesSearch engines and directory: Assist key word-based searchInteractive communication: Chatting, audio and videoconferencingDocument distribution and workflow: Web-based download androuting of documentsGroupware: Enhanced e-mail and a bulletin boardTelephony: Intranets are the perfect conduit for computer-basedtelephonyIntegration with electronic commerce: Interface with Internet-based electronic sales and purchasingExtranet: Link geographically dispersed branches, customers andsuppliers to authorize sections of Internets. Can create happiercustomers, more efficient suppliers, and reduce operating costs © Prentice Hall, 2000 13
  14. 14. Categories of Intranet Application Purposes Product catalogs and manuals Purchase orders or order entry Document sharing Customer records Policies and procedures Legacy systems access Inventory Document routing Data warehouse Sales records Logistics and transportation Accounts receivable Accounts Payable 0 10 20 30 40 50 % of respondent Electronic Commerce: sales and purchasing online Customer Service: UPS, FedEx and other shippers have proved that information about product shipments and availability makes customers happier Reduced Time to Market: Easy online access for product development speeds teamwork © Prentice Hall, 2000 14
  15. 15. Categories of Intranet Application Purposes (cont.) Enhanced Knowledge Sharing: Web pages can enhance knowledge sharing Enhanced Group Decision and Business Processes: Web- based groupware and workflow is becoming the standard intranet platform Empowerment: All information should be available to everyone with the ability to know and act independently Virtual Organizations: Web technology at participating companies removes the barrier of incompatible communication technology Software Distribution: Using the intranet server as the application warehouse and avoid many maintenance and support problems Project Management: Share reports and monitor projects’ progress © Prentice Hall, 2000 15
  16. 16. Industry Specific Intranet Solutions Financial Services: Banking, brokerages and other financial services, insurance Information Technology Manufacturing: Chemicals and oil, consumer goods, food and beverages, general manufacturing, and pharmaceuticals Retailing Services: Construction and engineering, education, environmental, healthcare, media, entertainment, telecommunications, transportation, and utilities © Prentice Hall, 2000 16
  17. 17. Intranet Case Studies with ROI Analysis The cases are organized in the following format: Background of company Business challenges Before the intranet technology Intranet cost Intranet strategy After intranet technology Subjective (intangible) benefits (optional) Lessons learned Analyzing the ROI © Prentice Hall, 2000 17
  18. 18. Intranet Case Studies with ROI Analysis (cont.) Federal Express - Package Tracking 60 internal web sites allow communication worldwide between divisions and corporate headquarters on all issues of importance to the employees and customers The package tracking system allows customers to contact FedEx and go into the intranet to find the status of a package that they have shipped or one that they are expecting The intranet has gone to retailers that ship products directly to customers and set up computer systems that will place and ship orders © Prentice Hall, 2000 18
  19. 19. Intranet Deployment StrategyThe intranet server platform has to meet 10evaluation criteria 1. Scalability: The efficient transaction read/write capability should be ensured as the number of users and access increases. 2. Interoperability: Enterprise Web, data warehouse, message and mail manager, online transaction processing and other nodes will form the enterprise server platform cloud, which will require each node to have a high interoperability presence on the network. 3. Configurability: Vendors just provide a broadly configurable array of enterprise servers that do not require major box swaps as enterprise requirements change. Parts must be modular and offer commodity component substitution with other devices from third parties. © Prentice Hall, 2000 19
  20. 20. Intranet Deployment Strategy (cont.) The intranet server platform has to meet 10 evaluation criteria 4. Compatibility : The server family must not only meet expandable configuration requirements, but also standard industry specifications to protect application investment. 5. Manageability : As the trend increases, enterprise systems must be operational from any point on the network and address the major operational management problems concerning configuration, fault and problem diagnosis and installation. 6. Availability : As enterprise servers assume a larger role in the electronic channel and the enterprise wide Web, these systems must be able to sustain tens to hundreds of thousands of accesses and transactions with minimal downtime. 7. Reliability : The hardware reliability, data integrity, systems integration, and operational error immunity are essential. © Prentice Hall, 2000 20
  21. 21. Intranet Deployment Strategy (cont.) The intranet server platform has to meet 10 evaluation criteria 8. Distributeability: Whether in two- or three-tier client/server architectures, the enterprise server must embrace the client, assume a high degree of desktop affinity and must enable resources to be proportioned between server and client appropriately. 9. Serviceability : The increased value placed on uptime will mandate online serviceability through the use of hot-swappable components, remote diagnostics directly connected to vendor service centers and pre-failure predictive diagnostics. 10. Stability: The generation changes in technology, and architecture that may include changes to instruction sets, migration from 32-bit to 64-bit computing and operating- system enhancements for clustering and advanced symmetric multiprocessing must minimize upgrade disruption and preserve investment protection. © Prentice Hall, 2000 21
  22. 22. Basic Concept of Extranets Revisited Extranet Consumers Suppliers Enterprise Internet VPN Intranet VPN Remote Clients Intranet Employees VPN VPN VPN Intranet Distributors Intranet Intranet Business Partners© Prentice Hall, 2000 © Prentice Hall, 2000 22
  23. 23. Elements of ExtranetsComponents of Extranets Intranets Tunneling technology Web server Interface software Firewalls Business application Internet Service Provider (ISP)Methods to Configure Extranets They can be implemented using a direct leased line with full control over it, linking all intranets A secure link can be created across the Internet, which can be used by the corporation as a virtually private network (VPN) © Prentice Hall, 2000 23
  24. 24. Virtually Private Network (VPN)VPN is a secure network on the Internet using thetunneling schemesThe major objective of a VPN is to use the Internetas an inexpensive WAN backboneWhen two sites are connected across a VPN, eachmust have a VPN-capable router, firewall, or VPNaccess device installedWhen VPN is used to link mobile clients withInternet dial-up connections, the laptops must beequipped with VPN client software equipped withthe addresses and associated encryption keys forcorporate host sites © Prentice Hall, 2000 24
  25. 25. Four Categories of Extranet Products and ServicesExtranet development toolsExtranet hosting and networkconnectivityExtranet servicesVPNs © Prentice Hall, 2000 25
  26. 26. Categories of Extranet Application Enhanced Communications Improved internal communications Improved business partnership channels Effective marketing, sales, and customer support Collaborative activities support © Prentice Hall, 2000 26
  27. 27. Benefits of Extranet ApplicationProductivity Enhancements Just-in-time (JIT) information delivery Reduction of information overload Productive collaboration between workgroups Training on demand © Prentice Hall, 2000 27
  28. 28. Benefits of Extranet Application Business Enhancements Faster time to market Simultaneous engineering potential Lower design and production costs Improved client relationships New business opportunities © Prentice Hall, 2000 28
  29. 29. Benefits of Extranet ApplicationCost Reduction Reduced errors Improved comparison shopping Reduced travel and meetings expenses Reduced administrative and operational costs Elimination of paper publishing costs © Prentice Hall, 2000 29
  30. 30. Benefits of Extranet ApplicationInformation Delivery Low-cost publishing Leveraging of legacy systems Standard delivery systems Ease of implementation and maintenance Elimination of paper publishing and mailing costs © Prentice Hall, 2000 30
  31. 31. Uses and Users of the ExtranetsProduct catalogs and manualsPurchase orders or order entry Document sharing Users of Customer records Policies and procedures Extranets Legacy systems access Inventory Sales records All customers Data warehouse Top-tier customers Document routing Logistics and transportation Distributors Accounts receivable Dealers Accounts payable 0 10 20 30 40 50 60 All suppliers % of respondents Government regulators Franchises Information and 0 10 20 30 40 50 60 Services on the % of respondents Extranets © Prentice Hall, 2000 31
  32. 32. Industry Specific Extranet Solutions Information services Computers Financial services TravelIndustry/manufacturingBusiness & professional Real Estate Customer 0 5 10 15 20 25 30 % of respondent Percentage of Extranet Application Industries © Prentice Hall, 2000 32
  33. 33. Extranet CasesConnect Autodealers’ Kiosk: GeneralMotors Case Kiosks in dealerships and shopping malls Enable shoppers to purchase cars and trucks from anywhere © Prentice Hall, 2000 33
  34. 34. Extranet Cases (cont.)Distribute Tax News to Experts: Coopers andLybrand Case Tax News Network (TNN) extranet contains tax information from numerous sources, integrating internal and external, and even competing resources includes full text of various tax analyses, legislative tax codes, and major business newspapersHospital Alliance Purchase: VHA, Inc. Case allow members to purchase directly from suppliers chose IBM as its ISP © Prentice Hall, 2000 34
  35. 35. Extranet Cases (cont.)Reduced Product Development Cycle Time:Caterpillar, Inc. Customers can use the extranet to retrieve and modify detailed order information while the vehicle remains on the assembly lineLink the Worldwide Chains: Kinko’s, Inc. 900 stores about 25,000 employees Developed an extranet to offer Internet access and rental of PC computer time to its customers Each store connects to Internet with a 64-Kbps channel of an ISDN link © Prentice Hall, 2000 35
  36. 36. Managerial IssuesAre there new business opportunities utilizing theintranet and extranet?Consider whether the business requirements can best bemet by the intranet or the extranet.Consult the technical people inside and outside to findthe most secure and economical implementation plan.Review the current proprietary or leased network anddecide whether it can be replaced by intranet andextranet.If you are implementing the technologies of electroniccommerce, find out the niche market of intranet andextranet technology, possibly with a business model. © Prentice Hall, 2000 36