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Chapter 7
Intranet and Extranet
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Intrabusiness E-Commerce
at Toshiba America
Problem
Intranet doubled as dealer extranet
300 dealers needed parts quicklyOrders placed by phone or fax by 2:00 inorder to have next-day delivery
Shipping fees expensive
Cumbersome order-entry system created in1993 with no significant improvement
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Intrabusiness E-Commerce
at Toshiba America
Solution1997, Toshiba created a Web-based order-entrysystem using extranet/intranet
Dealers lace orders for parts until 5:00 for next-day deliverymatter of hours to shipping
Physical warehouse in Memphis, TN near FedExheadquarters ensures quick delivery
Dealers also:Check accounts receivable balances
Pricing arrangements
Read service bulletins, etc.
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Figure 7-1
Toshibas Customer Service Process
Source: Compiled from Jones(1998). Used by permission.
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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 sellproducts and services from each other
Especially popular in universities
Interconnect their intranets to increase
exposure
Employees collaborate and communicate usingEC technologies
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Architecture of the Internet, Intranet
and Extranet
THE INTRANET is a public and global communicationnetwork that provides direct connectivity to anyone over a localarea network (LAN) or Internet Service Provider (ISP). TheInternet is a public network that is connected and routed over
gateways.An Intranet is a corporate LAN or WAN that uses Internettechnology and is secured behind companys firewalls.
THE EXTRANET: An extranet, or extended intranet, uses the
TCP/IP protocol networks of the Internet, to link intranets indifferent locations.
Extranet provide secured connectivity between a corporationsintranets and the intranets of its business partners, materialssuppliers, financial services, government, and customers.
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Characteristics of the INTERNET,
Intranet and Extranet
NetworkType
Typical Users Access Type ofInformation
Internet Any individual with dial-
up access or LAN
Unlimited public:
no restrictions
General, public,
and advertorial
Intranet Authorized employeesonly
Private andrestricted
Specific,corporate, andproprietary
Extranet Authorized groups fromcollaborating companies
Private andauthorized outsidepartners
Shared inauthorizedcollaboratinggroups
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Intranets
Intranetnetwork architecture designed to serveinternal informational needs of a company using Webconcepts and tools
To build an intranet, we need Web server, browsers,web publishing tools, back-end databases, TCP/IPnetworks (LAN or WAN), and firewall.
Provides:
Internet capabilities
Search engines
Tools for communication and collaboration
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Intranets (cont.)
Cost of converting an existing networksystem 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 andprocedures, help reengineer corporations
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Figure 7-2
Architecture of an Intranet
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Intranet Functionalities
Intranet functionalities
Corporate/department/individual Web pages
Web-based database access for ease of use
Search engines, indexing engines, directoriesassisted by keyword search
Integration with EC: interface with Internet-based electronic sales and purchasing
Interactive communication
Chatting
Audio support
Videoconferencingwww.prestonians.webnode.com
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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 ofintranets creates happier customers, more efficientsuppliers, and reduced staff costs.www.prestonians.webnode.com
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Electronic Commerce Technologies
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Intranet Applications
Intranet application areas
Electronic commerce
Customer serviceSearch and access to documents
Personalized information
Enhanced knowledge sharingEnhanced group decision and businessprocesses
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Intranets Applications (cont.)
Intranet application areas (cont.)
Empowerment
Virtual organizations
Software distributionDocument management
Project management
Training
Enhanced transaction processing
Paperless information delivery
Improved administrative processes
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Intranet Functionalities
Industry-specific intranet solutionsClassified by industry instead of technology
Development of business models is a criticalconcern for managerial success of intranets
Top 100 intranet/extranet solutions classifications
Financial services
Information technologyManufacturing
Retail
Services
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Intranet Application (Case Studies)
Intranet case studies
Moen-connected ERP
Compaq Computer Corp.investment assistant
Silicon Graphics, Inc.share huge internal Websites
Coopers & Lybrandshare knowledge amongcorporate employees
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Extranets
Extranet combine the privacy and securityof intranets with the global reach of the
Internet, granting access to outsidebusiness partners, suppliers, andcustomers to a controlled portion of theenterprise network.
Extranets are becoming the majorplatforms for B2B EC replacing orsupplementing EDI.
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The Structure of Extranets
ELEMENTS OF EXTRANETExtranets are comprised of a wide variety of componentsand participants, and there are several possibleconfigurations. These include intranet, Web servers,
Firewall, ISPs tunneling technology, interface softwareand business applications.
The tunneling means that data transmission across theinternet can be made secure by authenticating andencrypting all IP packets.
Extranets are configured by two basic methods:
They can be implemented using a direct leased line withfull 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 ata much lower cost.
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Extranet Products and Services
Four Categories of extranet products and services.
1. Extranet development tools: to design extranet servers, a client-base, security, EC applications, and electronic catalogs.
2. Extranet hosting and network connectivity: provide secure ISPconnections to Internet back bones and host extranet services forcorporations.
3. Extranet services provide extranet design expertise with proprietarytools 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 forcorporations
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Extranet tools and Services Providers
1. Consultants
2. Developers
3. System integration
4. Internet service provider
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Applications of Extranets
BENEFITS OF EXTRANETS
1. Enhanced communication
Improved internal communication
Improved business partnership channelsEffective marketing, sales and customer support
Collaborative activities support
2. Productivity enhancements
Just-in-time information delivery
Reduction of information overload
Productivity collaboration between work groups
Training on demand
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Applications of ExtranetsBENEFITS OF EXTRANETS (Cont.)
3. Business enhancementsFaster time to market
Simultaneous engineering potential
Lower design and production costsImproved client relationships
New business opportunities
4. Cost reduction
Reduced errorReduced travel and meeting
Improved comparison shopping
Reduced administrative and operational costs
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Applications of ExtranetsBENEFITS OF EXTRANETS (Cont.)
5. Information deliveryLow-cost publishingLeveraging of legacy systems
Standard delivery systemsEase of maintenance and implementationElimination of paper publishing and mailing costs.
INDUSTRY SPECIFIC EXTRANET SOLUTIONSThe application of extranets are classified byindustry. The popularly applied industries areinformation services, computers, financial services,travel, Industry/ manufacturing, business and
professional, real estate and customers.www.prestonians.webnode.com
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Managerial Issues
Find business opportunities by utilizing theintranet and extranet
Analyze whether the connectivity requirementsuits the intranet or extranet
Plan the most secure and economical choice forimplementation
Select the best outsourcers for implementationSelling the intranet
Finding intranet applications
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