+ Intranet is shared content accessed by members within a single organization. + Extranet is shared content accessed by groups through cross-enterprise boundaries. + Internet is global communication accessed through the Web. For better comprehension, take a look at this drawing: Network Diagram —~—-Y ItisaG al system of It is a Private network It is a Private network that uses interconnected computer | specific to an public network to share network. organisation information with suppliers and vendors. Not regulated by any It is regulated by an Itis regulated by multiple authority, organization. organization. Thus content in the Thus content in the The content in the network is network is accessible to network is accessible accessible to members of everyone connected, only to members of organization & external members organization. with access to network. Itis largest in terms of Itis small network with | The number of devices connected number of connected minimal number of is comparable with Intranet. devices connected devices. It is owned by no one. It is owned by single It is owned by single/multiple organization. organization. It is means of sharing It is means of sharing It is means of sharing information information throughout | sensitive information between members and external the world. throughout organization. | members. Security is dependent of | Security is enforced via Security is enforced via a firewall the user of device a firewall, that separates internet & extranet, connected to network. Example: What we are Example: TCS using Example: HP and Intel using normally using is internal network for its | network for business related internet. business operations. operations. Users can access Internet| Users should have valid | Users should have valid anonymously. username/password to username/password to access access Intranet. Extranet. Internet is unregulated | But Intranet is regulated Extranet is also regulated by and uncensored. by the organization contractual agreements between policies, organizations.Example: What we are normally using is internet. Example: TCS using internal network for its business operations. Example: HP and Intel using network for business related operations. Users should have valid username/password to access Extranet. Users should have valid username/password to access Intranet. Users can access Internet anonymously. Internet is But Intranet is Extranet is also regulated by unregulated and regulated by the contractual agreements uncensored. organization policies. between organizations. The Three Fundamental Roles of Information Systems in Business: Information Storage and Analysis At the date of publication, many companies no longer manage their data and information manually with registers and hard-copy formats. Through the adoption of information systems, companies can make use of sophisticated and comprehensive databases that can contain all imaginable pieces of data about the company. Information systems store, update and even analyze the information, which the company can then use to pinpoint solutions to current or future problems. Furthermore, these systems can integrate data from various sources, inside and outside the company, keeping the company up to date with internal performance and external opportunities and threats. Assist With Making Decisions The long-term success of a company depends upon the adequacy of its strategic plans. An organization’s management team uses information systems to formulate strategic plans and make decisions for the organization's longevity and prosperity. The business uses information systems to evaluate information from all sources, including information from external references such as Reuters or Bloomberg, which provide information on the general economy. This analysis of and comparison to market trends helps organizations analyze the adequacy and quality of their strategic decisions. Assist With Business Processes Information systems aid businesses in developing a larger number of value added- systems in the company. For example, a company can integrate information systems with the manufacturing cycle to ensure that the output it produces complies with the requirements of the various quality management standards. Adoption of information systems simplifies business processes and removes unnecessary activities. Information systems add controls to employee processes, ensuring that only users with the applicable rights can perform certain tasks. Further, information systems eliminate repetitive tasks and increase accuracy, allowing employees to concentrate on more high-level functions. Information systems can also lead to better project planning and implementation through effective monitoring and comparison against established criteria. Considerations Implementing information systems within an organization can prove to be costly. Implementation costs include not only installation of the systems but also employee training sessions. In addition, employees may see the adoption of information systems as an unwarranted change and, thus, may resist this change. Resistance to change can hinder business operations and can cause employee turnover. Companies should have leadership in place to assess the adequacy of the decision to have an information ~etem and to, guide the company through the transition phase and weigh inforr us against the potential benefits. Information Systems for Business Functio. 12.1 Supporting Business Functions in an Enterprise with InformationExample: What we Example: TCS using Example: HP and Intel using are normally using is internal network for its network for business related internet. business operations. operations. Users can access Users should have Users should have valid Internet anonymously. valid username/password to access Intranet. username/password to access Extranet. Internet is But Intranet is Extranet is also regulated by unregulated and regulated by the contractual agreements uncensored. organization policies. | between organizations. The Three Fundamental Roles of Information Systems in Business: Information Storage and Analysis At the date of publication, many companies no longer manage their data and information. manually with registers and hard-copy formats. Through the adoption of information systems, companies can make use of sophisticated and comprehensive databases that can contain all imaginable pieces of data about the company. Information systems store, update and even analyze the information, which the company can then use to pinpoint solutions to current or future problems. Furthermore, these systems can integrate data from various sources, inside and outside the company, keeping the company up to date with internal performance and external opportunities and threats. Assist With Making Decisions The long-term success of a company depends upon the adequacy of its strategic plans. An organization’s management team uses information systems to formulate strategic plans and make decisions for the organization's longevity and prosperity. The business uses information systems to evaluate information from all sources, including information from external references such as Reuters or Bloomberg, which provide information on the general economy. This analysis of and comparison to market trends helps organizations analyze the adequacy and quality of their strategic decisions. Assist With Business Processes Information systems aid businesses in developing a larger number of value added- systems in the company. For example, a company can integrate information systems with the manufacturing cycle to ensure that the output it produces complies with the requirements of the various quality management standards. Adoption of information systems simplifies business processes and removes unnecessary activities. Information systems add controls to employee processes, ensuring that only users with the applicable rights can perform certain tasks. Further, information systems eliminate repetitive tasks and increase accuracy, allowing employees to concentrate on more high-level functions. Information systems can also lead to better project planning and implementation through effective monitoring and comparison against established criteria. Considerations Implementing information systems within an organization can prove to be costly. Implementation costs include not only installation of the systems but also employee training sessions. In addition, employees may see the adoption of information systems as an unwarranted change and, thus, may resist this change. Resistance to change can hinder business operations and can cause employee turnover. Companies should have leadership in place to assess the adequacy of the decision to have an information ~=tem and to guide the company through the transition phase and weigh infor = msc against the potential benefits. Information Systems for Business Functio. 12.1 Supporting Business Functions in an Enterprise with InformationInformation Systems for Business Functions 12.1 Supporting Business Functions in an Enterprise with Information The principal business functions in a business firm are: 1. Marketing and sales 2. Production. 3. Accounting and finance 4, Human resources 12.2 Marketing Information Systems Marketing activities are directed toward planning, promoting, and selling goods and services to satisfy the needs of customers and the objectives of the organization. Marketing information systems support decision making regarding the marketing mix. These include: 1. Product 2. Price 3. Place 4. Promotion Sources of Data and Information for Marketing: Boundary-Spanning and Transaction Processing Subsystems ‘A marketing information system relies on external information to a far greater degree than other organizational information systems. It includes two subsystems designed for boundary spanning - bringing into the firm data and information about the marketplace. The objective of marketing research is to collect data on the actual customers and the potential customers, known as prospects. The identification of the needs of the customer is a fundamental starting point for total quality management (TQM). Electronic commerce on the WEB makes it easy to compile statistics on actual buyer behaviour. Marketing research software supports statistical analysis of data. It enables the firm to correlate buyer behaviour with very detailed geographic variables, demographic variables, and psychographic variables. Marketing (competitive) intelligence is responsible for the gathering and interpretation of data regarding the firm's competitors, and for the dissemination of the competitive information to the appropriate users. Most of the competitor information comes from corporate annual reports, media-tracking services, and from reports purchased from external providers, including on-line database services. The Internet has become a major source of competitive intelligence. Marketing Mix Subsystems The marketing mix subsystems support decision making regarding product introduction, pricing, promotion (advertising and personal selling), and distribution. These decisions are integrated into the sales forecast and marketing plans against which the ongoing sales results are compared. Marketing mix subsystems include: 1, Product subsystem 2. Place subsystem 3. Promotion subsystem 4. Price subsystem 5. Sales forecasting Product Subsystem The product subsystem helps to plan the introduction of new products. Continually bringing new products to market is vital in today's competitive environment of rapid change. The product subsystem should support balancing the degree of risk in the overall new-product portfolio, with more aggressive competitors assuming higher degrees of risk for a potentially higher payoff. Although decisions regarding the introduction of new products are unstructured, information systems support this process in several ways 1, Professional support systems assist designers in their knowledge work 2. DSSs are used to evaluate proposed new products 3. With a DSS, a marketing manager can score the desirability of a new product. 4. Electronic meeting systems help bring the expertise of people dispersed in space and time to bear on the problem 5. Information derived from marketing intelligence and research is vital in evaluating