1. Chapter 7
Intranet and Extranet
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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
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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.
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4. Figure 7-1
Toshiba’s Customer Service Process
Source: Compiled from Jones(1998). Used by permission.
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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
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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.
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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
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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
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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
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10. Figure 7-2
Architecture of an Intranet
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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
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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.
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13. Electronic Commerce Technologies
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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
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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
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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
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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
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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.
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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.
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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
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21. Extranet tools and Services Providers
1. Consultants
2. Developers
3. System integration
4. Internet service provider
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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
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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
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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.
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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
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