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Chapter 7
The Intranets and Extranets



          © Prentice Hall, 2000   1
Learning Objectives

Describe the relationship among the Internet, an
intranet and an extranet
Discuss the role of firewalls for intranets and
extranets
Discuss the functions of intranets
Discuss the applications of intranets
Describe the industries that use intranets
Discover typical cases of intranet applications


                 © Prentice Hall, 2000             2
Learning Objectives (cont.)

Identify the key element of extranets
Identify the key technologies for tunneling
Discuss the applications of extranets
Describe typical industries that use extranets
Discuss the business models for extranet
applications
Describe the concept of embedded extranets


                 © Prentice Hall, 2000           3
Automotive Network Exchange -
       the Largest Extranet

Companies in the automotive market swap
supply and manufacturing data
Involve 10,000+ companies
Include CAD/CAM file transfers, Electronic Data
Interchange (EDI), e-mail, and groupware
The network’s EDI element alone will slice $71
from the cost of designing and building each car
Savings of $1 billion a year for the Industry


                 © Prentice Hall, 2000             4
Automotive Network Exchange -
     the Largest Extranet (cont.)

Chrysler will pay for fewer T1 Lines and satellite
connections
Standardizing one protocol-IP will reduce
support costs
The time it takes to turn around an order will be
much shorter
The faster the parts come in, the faster the cars
leave the assembly line, the larger the customer
satisfaction and manufacturer’s profit
Business-to-business virtual private networks
(VPN) are used © Prentice Hall, 2000                 5
The Internet
The Internet is a public and global
communication network that provides direct
connectivity 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 information
overload. Due to its vast scope and openness,
the information is difficult to locate. Users need
effective and efficient search engines to navigate
the sea of information . There is no centralized
control of network and information.

                 © Prentice Hall, 2000                6
The Intranets
An intranet is a corporate LAN and/or Wide Area
Network (WAN) that is secured behind company’s
firewalls and it uses Internet technologies.
Although intranets are developed using the same
TCP/IP protocol as the Internet, they operate as
private networks with limited access. Only
employees who are issued passwords and access
codes are able to use them. So, intranets are
limited to information pertinent to the company and
contain exclusive and often proprietary and
sensitive information. Firewalls protect intranets
from unauthorized outside access.

                © Prentice Hall, 2000                 7
The Intranet (cont.)
                                                                         ERP
                                                             Servers
                                         Clients

                                                                        Legacy
                                                                        systems
Public/External                                 Intranet               E-mail
Internet Users                                                         servers



                                                                        Web
                        Firewalls
                                                                       servers

                                                 Databases


                        © Prentice Hall, 2000                                     8
The Extranet
An extranet implies an “extended intranet”, which
uses TCP/IP protocol networks (like the Internet) to
link intranets in different locations. Extranet
transmissions are conducted over the Internet to
save money. But it offers no privacy or transmission
security. By creating tunnels of secure data flows
using cryptography and authorization algorithms,
called VPNs, the security can be improved.
Extranets provide secure connectivity between a
corporation’s intranets and intranets of its business
partners, material suppliers, financial services, and
customers.

                © Prentice Hall, 2000                   9
The Extranet (cont.)

                                       Extranet

 Suppliers                                            Intranet
                 VPN                       Firewall


Distributors   VPN   Tunneling Internet

                                                      Intranet
               VPN
Customers                                  Firewall




                          © Prentice Hall, 2000                  10
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
Firewalls

Definition 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
Generic Functions of an Intranet
Corporate/department/individual Web-pages
Database access: Web-based databases
Search engines and directory: Assist key word-based search
Interactive communication: Chatting, audio and videoconferencing
Document distribution and workflow: Web-based download and
routing of documents
Groupware: Enhanced e-mail and a bulletin board
Telephony: Intranets are the perfect conduit for computer-based
telephony
Integration with electronic commerce: Interface with Internet-
based electronic sales and purchasing
Extranet: Link geographically dispersed branches, customers and
suppliers to authorize sections of Internets. Can create happier
customers, more efficient suppliers, and reduce operating costs
                           © Prentice Hall, 2000                   13
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
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
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
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
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
Intranet Deployment Strategy
The intranet server platform has to meet 10
evaluation 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
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
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
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
Elements of Extranets
Components 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
Virtually Private Network (VPN)
VPN is a secure network on the Internet using the
tunneling schemes
The major objective of a VPN is to use the Internet
as an inexpensive WAN backbone
When two sites are connected across a VPN, each
must have a VPN-capable router, firewall, or VPN
access device installed
When VPN is used to link mobile clients with
Internet dial-up connections, the laptops must be
equipped with VPN client software equipped with
the addresses and associated encryption keys for
corporate host sites
                   © Prentice Hall, 2000              24
Four Categories of Extranet
  Products and Services


Extranet development tools
Extranet hosting and network
connectivity
Extranet services
VPNs

         © Prentice Hall, 2000   25
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
Benefits of Extranet Application


Productivity Enhancements
  Just-in-time (JIT) information delivery
  Reduction of information overload
  Productive collaboration between
  workgroups
  Training on demand



             © Prentice Hall, 2000          27
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
Benefits of Extranet Application


Cost 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
Benefits of Extranet Application

Information 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
Uses and Users of the Extranets

Product catalogs and manuals
Purchase 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
Industry Specific Extranet Solutions

   Information services

            Computers

     Financial services

                 Travel

Industry/manufacturing

Business & professional

            Real Estate

             Customer

                          0    5         10           15   20         25          30
                                                                % of respondent

          Percentage of Extranet Application Industries
                              © Prentice Hall, 2000                                    32
Extranet Cases


Connect Autodealers’ Kiosk: General
Motors Case
 Kiosks in dealerships and shopping malls
 Enable shoppers to purchase cars and
 trucks from anywhere




             © Prentice Hall, 2000          33
Extranet Cases (cont.)
Distribute Tax News to Experts: Coopers and
Lybrand 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 newspapers
Hospital Alliance Purchase: VHA, Inc. Case
  VHAsecure.net
    allow members to purchase directly from suppliers
    chose IBM as its ISP
                    © Prentice Hall, 2000                     34
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 line
Link 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
Managerial Issues

Are there new business opportunities utilizing the
intranet and extranet?
Consider whether the business requirements can best be
met by the intranet or the extranet.
Consult the technical people inside and outside to find
the most secure and economical implementation plan.
Review the current proprietary or leased network and
decide whether it can be replaced by intranet and
extranet.
If you are implementing the technologies of electronic
commerce, find out the niche market of intranet and
extranet technology, possibly with a business model.

                    © Prentice Hall, 2000                 36

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Ecommerce Chap 07

  • 1. Chapter 7 The Intranets and Extranets © Prentice Hall, 2000 1
  • 2. Learning Objectives Describe the relationship among the Internet, an intranet and an extranet Discuss the role of firewalls for intranets and extranets Discuss the functions of intranets Discuss the applications of intranets Describe the industries that use intranets Discover typical cases of intranet applications © Prentice Hall, 2000 2
  • 3. Learning Objectives (cont.) Identify the key element of extranets Identify the key technologies for tunneling Discuss the applications of extranets Describe typical industries that use extranets Discuss the business models for extranet applications Describe the concept of embedded extranets © Prentice Hall, 2000 3
  • 4. Automotive Network Exchange - the Largest Extranet Companies in the automotive market swap supply and manufacturing data Involve 10,000+ companies Include CAD/CAM file transfers, Electronic Data Interchange (EDI), e-mail, and groupware The network’s EDI element alone will slice $71 from the cost of designing and building each car Savings of $1 billion a year for the Industry © Prentice Hall, 2000 4
  • 5. Automotive Network Exchange - the Largest Extranet (cont.) Chrysler will pay for fewer T1 Lines and satellite connections Standardizing one protocol-IP will reduce support costs The time it takes to turn around an order will be much shorter The faster the parts come in, the faster the cars leave the assembly line, the larger the customer satisfaction and manufacturer’s profit Business-to-business virtual private networks (VPN) are used © Prentice Hall, 2000 5
  • 6. The Internet The Internet is a public and global communication network that provides direct connectivity 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 information overload. Due to its vast scope and openness, the information is difficult to locate. Users need effective and efficient search engines to navigate the sea of information . There is no centralized control of network and information. © Prentice Hall, 2000 6
  • 7. The Intranets An intranet is a corporate LAN and/or Wide Area Network (WAN) that is secured behind company’s firewalls and it uses Internet technologies. Although intranets are developed using the same TCP/IP protocol as the Internet, they operate as private networks with limited access. Only employees who are issued passwords and access codes are able to use them. So, intranets are limited to information pertinent to the company and contain exclusive and often proprietary and sensitive information. Firewalls protect intranets from unauthorized outside access. © Prentice Hall, 2000 7
  • 8. The Intranet (cont.) ERP Servers Clients Legacy systems Public/External Intranet E-mail Internet Users servers Web Firewalls servers Databases © Prentice Hall, 2000 8
  • 9. The Extranet An extranet implies an “extended intranet”, which uses TCP/IP protocol networks (like the Internet) to link intranets in different locations. Extranet transmissions are conducted over the Internet to save money. But it offers no privacy or transmission security. By creating tunnels of secure data flows using cryptography and authorization algorithms, called VPNs, the security can be improved. Extranets provide secure connectivity between a corporation’s intranets and intranets of its business partners, material suppliers, financial services, and customers. © Prentice Hall, 2000 9
  • 10. The Extranet (cont.) Extranet Suppliers Intranet VPN Firewall Distributors VPN Tunneling Internet Intranet VPN Customers Firewall © Prentice Hall, 2000 10
  • 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. Firewalls Definition 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. Generic Functions of an Intranet Corporate/department/individual Web-pages Database access: Web-based databases Search engines and directory: Assist key word-based search Interactive communication: Chatting, audio and videoconferencing Document distribution and workflow: Web-based download and routing of documents Groupware: Enhanced e-mail and a bulletin board Telephony: Intranets are the perfect conduit for computer-based telephony Integration with electronic commerce: Interface with Internet- based electronic sales and purchasing Extranet: Link geographically dispersed branches, customers and suppliers to authorize sections of Internets. Can create happier customers, more efficient suppliers, and reduce operating costs © Prentice Hall, 2000 13
  • 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. 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. 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. 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. 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. Intranet Deployment Strategy The intranet server platform has to meet 10 evaluation 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. 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. 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. 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. Elements of Extranets Components 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. Virtually Private Network (VPN) VPN is a secure network on the Internet using the tunneling schemes The major objective of a VPN is to use the Internet as an inexpensive WAN backbone When two sites are connected across a VPN, each must have a VPN-capable router, firewall, or VPN access device installed When VPN is used to link mobile clients with Internet dial-up connections, the laptops must be equipped with VPN client software equipped with the addresses and associated encryption keys for corporate host sites © Prentice Hall, 2000 24
  • 25. Four Categories of Extranet Products and Services Extranet development tools Extranet hosting and network connectivity Extranet services VPNs © Prentice Hall, 2000 25
  • 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. Benefits of Extranet Application Productivity Enhancements Just-in-time (JIT) information delivery Reduction of information overload Productive collaboration between workgroups Training on demand © Prentice Hall, 2000 27
  • 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. Benefits of Extranet Application Cost 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. Benefits of Extranet Application Information 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. Uses and Users of the Extranets Product catalogs and manuals Purchase 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. Industry Specific Extranet Solutions Information services Computers Financial services Travel Industry/manufacturing Business & professional Real Estate Customer 0 5 10 15 20 25 30 % of respondent Percentage of Extranet Application Industries © Prentice Hall, 2000 32
  • 33. Extranet Cases Connect Autodealers’ Kiosk: General Motors Case Kiosks in dealerships and shopping malls Enable shoppers to purchase cars and trucks from anywhere © Prentice Hall, 2000 33
  • 34. Extranet Cases (cont.) Distribute Tax News to Experts: Coopers and Lybrand 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 newspapers Hospital Alliance Purchase: VHA, Inc. Case VHAsecure.net allow members to purchase directly from suppliers chose IBM as its ISP © Prentice Hall, 2000 34
  • 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 line Link 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. Managerial Issues Are there new business opportunities utilizing the intranet and extranet? Consider whether the business requirements can best be met by the intranet or the extranet. Consult the technical people inside and outside to find the most secure and economical implementation plan. Review the current proprietary or leased network and decide whether it can be replaced by intranet and extranet. If you are implementing the technologies of electronic commerce, find out the niche market of intranet and extranet technology, possibly with a business model. © Prentice Hall, 2000 36