E-Commerce 07


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E-Commerce 07

  1. 1. Chapter 7 Intranet and Extranet 1
  2. 2. Intrabusiness E-Commerce at Toshiba America Problem Intranet doubled as dealer extranet 300 dealers needed parts quickly Orders placed by phone or fax by 2:00 in order to have next-day delivery Shipping fees expensive Cumbersome order-entry system created in 1993 with no significant improvement 2
  3. 3. Intrabusiness E-Commerce at Toshiba America Solution 1997, Toshiba created a Web-based order-entry system using extranet/intranet Dealers lace orders for parts until 5:00 for nextday delivery—matter of hours to shipping Physical warehouse in Memphis, TN near FedEx headquarters ensures quick delivery Dealers also: Check accounts receivable balances Pricing arrangements Read service bulletins, etc. 3
  4. 4. Figure 7-1 Toshiba’s Customer Service Process Source: Compiled from Jones(1998). Used by permission. 4
  5. 5. Intrabusiness and Business-to-Employee (B2E) E-commerce (cont.) Between and among corporate employees Large organizations have classified ads on the intranet where employees can buy and sell products and services from each other Especially popular in universities Interconnect their intranets to increase exposure Employees collaborate and communicate using EC technologies 5
  6. 6. Architecture of the Internet, Intranet and Extranet THE INTRANET— is a public and global communication network that provides direct connectivity to anyone over a local area network (LAN) or Internet Service Provider (ISP). The Internet is a public network that is connected and routed over gateways. An Intranet is a corporate LAN or WAN that uses Internet technology and is secured behind company’s firewalls. THE EXTRANET: An extranet, or “extended intranet,” uses the TCP/IP protocol networks of the Internet, to link intranets in different locations. Extranet provide secured connectivity between a corporation’s intranets and the intranets of its business partners, materials suppliers, financial services, government, and customers. 6
  7. 7. Characteristics of the INTERNET, Intranet and Extranet Network Type Typical Users Access Type of Information Internet Any individual with dialup access or LAN Unlimited public: no restrictions General, public, and advertorial Intranet Authorized employees only Private and restricted Extranet Authorized groups from collaborating companies Specific, corporate, and proprietary Private and Shared in authorized outside authorized partners collaborating groups 7
  8. 8. Intranets Intranet—network architecture designed to serve internal informational needs of a company using Web concepts and tools To build an intranet, we need Web server, browsers, web publishing tools, back-end databases, TCP/IP networks (LAN or WAN), and firewall. Provides: Internet capabilities Search engines Tools for communication and collaboration 8
  9. 9. Intranets (cont.) Cost of converting an existing network system to internal Web is relatively low Fairly safe within company firewalls Employees can get out on the Web easily Outsiders cannot get into the intranet Change organizational structures and procedures, help reengineer corporations 9
  10. 10. Figure 7-2 Architecture of an Intranet 10
  11. 11. Intranet Functionalities Intranet functionalities Corporate/department/individual Web pages Web-based database access for ease of use Search engines, indexing engines, directories assisted by keyword search Integration with EC: interface with Internet-based electronic sales and purchasing Interactive communication Chatting Audio support Videoconferencing 11
  12. 12. Intranet Functionalities (cont.) Document distribution and workflow Web-based downloading Routing of documents Groupware including Enhanced e-mail Bulletin boards Screen sharing Other group support tools Conduit for computer-based telephony system Extranet: linking geographically dispersed branches, customers, and suppliers to authorized sections of intranets creates happier customers, more efficient suppliers, and reduced staff costs. 12
  13. 13. Electronic Commerce Technologies 13
  14. 14. Intranet Applications Intranet application areas Electronic commerce Customer service Search and access to documents Personalized information Enhanced knowledge sharing Enhanced group decision and business processes 14
  15. 15. Intranets Applications (cont.) Intranet application areas (cont.) Empowerment Virtual organizations Software distribution Document management Project management Training Enhanced transaction processing Paperless information delivery Improved administrative processes 15
  16. 16. Intranet Functionalities Industry-specific intranet solutions Classified by industry instead of technology Development of business models is a critical concern for managerial success of intranets Top 100 intranet/extranet solutions classifications Financial services Information technology Manufacturing Retail Services 16
  17. 17. Intranet Application (Case Studies) Intranet case studies Moen-connected ERP Compaq Computer Corp.—investment assistant Silicon Graphics, Inc.—share huge internal Web sites Coopers & Lybrand—share knowledge among corporate employees 17
  18. 18. Extranets Extranet combine the privacy and security of intranets with the global reach of the Internet, granting access to outside business partners, suppliers, and customers to a controlled portion of the enterprise network. Extranets are becoming the major platforms for B2B EC replacing or supplementing EDI. 18
  19. 19. The Structure of Extranets ELEMENTS OF EXTRANET Extranets are comprised of a wide variety of components and participants, and there are several possible configurations. These include intranet, Web servers, Firewall, ISP’s tunneling technology, interface software and business applications. The tunneling means that data transmission across the internet can be made secure by authenticating and encrypting all IP packets. Extranets are configured by two basic methods: They can be implemented using a direct leased line with full control over it, linking all intranets. A secure link (tunnel) can be created across the Internet, which can be used by the corporation as a VPN, usually at a much lower cost. 19
  20. 20. Extranet Products and Services Four Categories of extranet products and services. 1. Extranet development tools: to design extranet servers, a clientbase, security, EC applications, and electronic catalogs. 2. Extranet hosting and network connectivity: provide secure ISP connections to Internet back bones and host extranet services for corporations. 3. Extranet services provide extranet design expertise with proprietary tools or turnkey services for building and operating extranet-based services for corporate clients. 4. Virtual private networks: provide components specifically design for connecting remote operators and creating IP WANs for corporations 20
  21. 21. Extranet tools and Services Providers 1. Consultants 2. Developers 3. System integration 4. Internet service provider 21
  22. 22. Applications of Extranets BENEFITS OF EXTRANETS 1. Enhanced communication Improved internal communication Improved business partnership channels Effective marketing, sales and customer support Collaborative activities support 1. Productivity enhancements Just-in-time information delivery Reduction of information overload Productivity collaboration between work groups Training on demand 22
  23. 23. Applications of Extranets BENEFITS OF EXTRANETS (Cont.) 3. Business enhancements Faster time to market Simultaneous engineering potential Lower design and production costs Improved client relationships New business opportunities 3. Cost reduction Reduced error Reduced travel and meeting Improved comparison shopping Reduced administrative and operational costs 23
  24. 24. Applications of Extranets BENEFITS OF EXTRANETS (Cont.) 5. Information delivery Low-cost publishing Leveraging of legacy systems Standard delivery systems Ease of maintenance and implementation Elimination of paper publishing and mailing costs. INDUSTRY SPECIFIC EXTRANET SOLUTIONS The application of extranets are classified by industry. The popularly applied industries are information services, computers, financial services, travel, Industry/ manufacturing, business and professional, real estate and customers. 24
  25. 25. Managerial Issues Find business opportunities by utilizing the intranet and extranet Analyze whether the connectivity requirement suits the intranet or extranet Plan the most secure and economical choice for implementation Select the best outsourcers for implementation Selling the intranet Finding intranet applications 25