COL MBA

AIOU

3RD SEMESTER
AUTUMN 2014

FAISAL SAFDAR KHAN

ROLL # AW565146

A
presentation
on
BLOCK 5
Introduction to Intranets & Extranets
by
Faisal Safdar Khan
Roll No AW565146
COL MBA

SEQUENCE OF PRESENTATION
Introduction
Hierarchical Framework of e-Business
o Technology based infrastructure
o Services
o Products & Structures

Corporate Strategies for Intra & Inter-OS

o Intranets
o Extranets

Issues in implementing IOS

o Organizational Issues
o Technical Issues
o Implementation Issues
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E-COMMERCE, BLOCK 5 (Introduction to Intra & Extranets)

OBJECTIVES
On completion of this module we shall be able to :
describe generic frameworks for ebusiness / e-commerce
discuss the strategic context for IOS
review the issues involved in IOS
implementation

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E-COMMERCE, BLOCK 5 (Introduction to Intra & Extranets)

HIERARCHICAL FRAMEWORK OF EBUSINESS

Framework tells about the detail of how ecommerce can take place.
It defines actually how e-commerce is implemented
/ how online trading or business can be done.
Information & Communication Technology (ICT)
dramatic redefinitions of the nature of
organization(s).
Complex business networks are defined by the
ability to get products to market with widest range
of consumers @ cheapest cost / fastest speed.
Leading to completely different set of problems,
changing models for intermediation and emphasis
on collaborative competition
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E-COMMERCE, BLOCK 5 (Introduction to Intra & Extranets)

HIERARCHICAL FRAMEWORK OF EBUSINESS

Its important to structure the large systems
as series of levels, lower ones providing
support to higher ones
Hierarchical framework defines important
meta levels and components that should be
present to do some transaction.
Following important meta levels are identified
(adapted from Zwass 1996) :
o Technological based Infrastructure
o Services
o Products and structures

(Table given in next slide)

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E-COMMERCE, BLOCK 5 (Introduction to Intra & Extranets)

HIERARCHICAL FRAMEWORK OF EBUSINESS

Meta Level
Products &
Structures

Lev
el
7

Function
e-Marketplaces &
e-Hierarchies

Examples
Electronic auctions, Brokerages,
Dealerships & Direct Search
Markets
IO SCM

Products &
Systems

Consumer Services over distanceretailing, banking, stock broking,

etc
Info & entertainment on demand,
educational svcs, fee-based
content sites
Supplier customer linkages
Online Marketing
E-benefit systems

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Intranet & Extranet collaboration

E-COMMERCE, BLOCK 5 (Introduction to Intra & Extranets)

HIERARCHICAL FRAMEWORK OF EBUSINESS

Meta Level
Services

Lev
el

Function

Enabling Services

Examples
Online catalogues, directories,
smart agents
Smart card systems, e-money
Digital authentication services
Traffic Audit

Technology
Based
Infrastructure

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Messaging
Services

EDI, e-funds transfer, e-mail

Hypermedia /
Multimedia
Object
Management

WWW with Java

Communication
Utilities

Value added networks and

Internet

Wide Area
Guided & wireless media
1 5 (Introduction
Telecomto Intra & Extranets)
E-COMMERCE, BLOCK
7

HIERARCHICAL FRAMEWORK OF EBUSINESS

TECHNOLOGICAL BASED INFRASTRUCTURE
Three basic levels:
Global Telecomm Networks link public & private
networks through computer controlled switching system
Information & Communication Technology
Communication Utilities:
o Value Added Networks (VANs) privately constructed / leased networks
( to make services available over & above the services offered by common
carriers)
o Internet inexpensive instrument for e-business

World Wide Web

o worldwide, hyperlinked database with password-protected and private
networks (Intra & Extranets) linked to it
o a medium for sale, distribution and presentation of info-based objects
o a platform-independent service
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E-COMMERCE, BLOCK 5 (Introduction to Intra & Extranets)

HIERARCHICAL FRAMEWORK OF EBUSINESS

SERVICES
Provides transfer of messages & enabling services for e-business
Robust & Inexpensive level of framework free sharing of info
Initially issues like lack of security, confidentiality,
authentication, etc.
but now addressed by
o
o

cryptography (a method of storing and transmitting data in a particular

form so that only those for whom it is intended can read and process it.),
internet tunneling (Tunneling is the transmission of data intended for
use only within a private, usually corporate network through a public
network in such a way that the routing nodes in the public network are
unaware that the transmission is part of a private network),
Secure Electronic Transaction (SET) layers ( a system for ensuring
thesecurityof financial transactionson the Internet), etc

Email, e-money, e-banking, online catalogues/directories,

smart card systems, etc
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E-COMMERCE, BLOCK 5 (Introduction to Intra & Extranets)

HIERARCHICAL FRAMEWORK OF EBUSINESS

PRODUCTS AND STRUCTURES
Structures include :
Electronic dealerships, auctions, brokerages,
direct search markets
Inter-organizational SCM, etc
Products and systems include :
Infotainment
Customer Supplier linkages
Intranets & Extranets, etc

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E-COMMERCE, BLOCK 5 (Introduction to Intra & Extranets)

11

Corporate Strategies for Intra & InterOS

Industrial organization growth vertical integration
for increased profits / reduced costs
e.g. Tire manufacturers, requiring constant supply
of rubber, might extend its operation by
o buying suppliers or
o establishing / buying own rubber plantation, etc

Growth increases the need of enhanced

communication systems
Emergence of Internet technologies changed the
face of both internal & external communication
o Intranet Communicating within company (Internal
Networks)
o Extranet Communicating with the internal networks of
other company
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12

Corporate Strategies for Intra & InterOS

Summary of Internet, Intranet, and Extranet
Users

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13

INTRANETS
What is INTRANET
An intranet delivers collaboration and coordination to
employees around the clock
o Communication system designed by technical staff
o A network of people, not of wired machines
o Focus is the message, not the media

An organization-wide software and information

distribution system that applies Internet technology and
standards to a closed network within the organization
Normally runs in a client/server environment and a local
area network configuration
Separated from other networks by firewalls, a means of
preventing unauthorized access to the companys
internal data or leaks of sensitive company information
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E-COMMERCE, BLOCK 5 (Introduction to Intra & Extranets)

14

INTRANETS
Applications
Employee handbook
Benefits information
Employee surveys
Internal/external recruiting
Candidate screening
Organization charts
Newsletters
Company calendar, etc
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15

INTRANETS
Primary & Secondary Effects
Primary effect is to enable corporate information
to be published more cost-effectively.
Secondary effect is to lead to new patterns of
online communication and the potential for the
online workplace.
Email, video conferences, online discussions are
a click away
Easier sharing of data and tasks
New strategies need to be developed to
accelerate migration of physical workplaces to
online workplaces
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16

INTRANETS
Information Sources
Formal Information
o Official information
o Normally reviewed for currency, accuracy, confidentiality, liability.
o Concerned with Formal Management

Project / Group Information

o
o
o
o

To be used within a specific group

May be protected by passwords
May be used to share ideas, coordinate activities etc
Generally not listed in organization-wide directories

Informal Information
o Shareable personal folder or directory, containing white papers, notes
and concepts, with common interests
o May become a powerful stimulus for the teamwork and development
of new concepts and ideas
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E-COMMERCE, BLOCK 5 (Introduction to Intra & Extranets)

17

INTRANETS
Technology Resources
Since intranets are Internet-like networks within
organizations, they depend on all of the
information technologies that make the Internet
possible. These include:
TCP/IP client/server networks
Hardware and software such as web browsers
and server suites
HTML web publishing software
Network management and security programs
Hypermedia databases

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18

INTRANETS
Putting in place
A number of questions required to be answered to assess
the achievement of implementation objectives of intranet
:
Provide for a communication link that is used?
Improve groups understanding of shared goals and
missions?
Do the re-engineered processes cut time to-market &
eliminate dysfunctional barriers?
Reduce time wrt travel / face to face meetings?
Distribute responsibility for knowledge production &
decentralize knowledge storage?
Encourage JIT delivery of info as & when reqd
Reduce time taken to prepare & distribute info?
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19

INTRANETS
Business Value / Advantages
Provide better access to financial reports and improve productivity, speed,
and control. Employees select from preformatted reports and create their
own subscription lists.
Access to engineering documents and information. Reduces paper costs
and increases speed of information transfer.
Global staffing tool for project teams. Able to find skilled staff and reduces
time and effort to complete projects.
Group intranet supports manufacturing, engineering, and marketing.
Allows for each document exchange and reduces paper costs.
Internal web site for sales and customer service. Reduces call volume and
increases sales with greater salesforce involvement.
Knowledge management and corporate communications system facilitates
collaboration on projects. Productivity increased via information exchange
and streamlining workflow.
Marketing, planning, and operations. Shares business information for
improved decision making, efficiency, and competitiveness.
Each area on the manufacturing has its own home page updated every 60
seconds. Improves process and quality.
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20

EXTRANETS
What is EXTRANET
Network links that use Internet technologies to
interconnect the intranet of a business with the
intranets of its customers, suppliers, or other
business partners
Companies can:
o Establish direct private network links between
themselves, or create private secure Internet links
between them called virtual private networks (VPNs).
o Use the unsecured Internet as the extranet link between
its intranet and consumers and others, but rely on
encryption of sensitive data and its own fire wall systems
to provide adequate security.

Basic Extranet Structur

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21

EXTRANETS
Thin vs Thick (Fat) Client
THIN CLIENT
Sun Microsystems
Designed to be especially small so that
the bulk of the data processing occurs
on the server.
A thin client is a network computer
without a hard disk drive. They act as a
simple terminal to the server and
require constant communication with
the server as well.
Thin
clients
provide
a
desktop
experience in environments where the
end user has a well-defined and regular
number of tasks for which the system
is used.
Thin clients can be found in medical
offices,
airline
ticketing,
schools,
governments, manufacturing plants
and even call centers. Along with being
easy to install, thin clients also offer a
lower total cost of ownership over thick
clients
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THICK (FAT) CLIENT

Microsoft
Performs the bulk of the processing
in client/server applications.
With thick clients, there is no need
for
continuous
server
communications as it is mainly
communicating
archival
storage
information to the server.
If applications require multimedia
components or that are bandwidth
intensive,
you'll
also
want
to
consider going with thick clients.
One of the biggest advantages of
thick clients rests in the nature of
some
operating
systems
and
software being unable to run on thin
clients. Thick clients can handle
these as it has its own resources.

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23

EXTRANETS
THIN CLIENT
Easy to deploy as they require no
extra
or
specialized
software
installation
Needs to validate with the server
after data capture
If the server goes down, data
collection is halted as the client
needs constant communication with
the server
Cannot be interfaced with other
equipment (in plants or factory
settings for example)
Clients run only and exactly as
specified by the server
More downtime
Portability in that all applications
are
on
the
server
so
any
workstation can access
Opportunity to use older, outdated
PCs as clients
Reduced security threat
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THICK (FAT) CLIENT

More expensive to deploy and
more work for IT to deploy
Data verified by client not
server (immediate validation)
Robust technology provides
better uptime
Only
needs
intermittent
communication with server
More expensive to deploy and
more work for IT to deploy
Require more resources but
less servers
Can store local files and
applications
Reduced server demands
Increased security issues

E-COMMERCE, BLOCK 5 (Introduction to Intra & Extranets)

24

EXTRANETS
Business Value
The business value of extranets is derived from several
factors:
Reduced Paper Cost
Eliminated Pvt Network charges
Process Efficiency
Outsourced functions
Reduced Customer Service Costs
Reduced Communication Costs (Phone / Fax)
Reduced Inventory
Reduced Procurement Time / Cost
Reduced Training Costs
Extended Life of legacy systems
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E-COMMERCE, BLOCK 5 (Introduction to Intra & Extranets)

25

ISSUES IN IMPLEMENTING IOS

Inter-organizational systems (IOS) are ICTbased systems that enable organizations to
share information and to electronically
conduct business across organizational
boundaries.
There are number of barriers in
implementation of IOS, mainly these issues
can be classified as:
Organizational Issues
Technical Issues
Implementation Issues
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26

ISSUES IN IMPLEMENTING IOS

ORGANIZATIONAL ISSUES
Obviously multiple organizations must have to consider for a
wider range of human & technical factors, as compared to a
single enterprise
To extend reach &/or effectiveness, organizations make use of
alliances, partnerships etc.
Such collaborations need establishment of closely tied
communication / info systems between them, including extranets
Different partners should have different resources variety of
resources, not the same.
Collaborations call for the resolution of wide range of strategic,
social and conflict management areas.
Justifiable Costs of communication / technology to all parties
There may be widely different views on the appropriate levels of
responsibility
Different choices of technology, need for conflict resolution
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27

ISSUES IN IMPLEMENTING IOS

TECHNICAL ISSUES
In todays world of technology, companies
reserve / spend huge percentage of IS/IT budget
on IOS, creating complex web of relationship
between companies, its suppliers, partners and
markets.
IT encourages to integrate whole value chains,
demanding high-end, specific and proprietary
technologies like EDI systems, VANs.
New less complex and less expensive
technologies are introduced, helping small
companies to derive large business benefits by
crossing the organizational borders.
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28

ISSUES IN IMPLEMENTING IOS

Technical Issues
Examples
E-mail
Conferencing systems
Video conferencing
Project management software
Financial or CAD models
Workflow management software
Shared databases, etc

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29

ISSUES IN IMPLEMENTING IOS

Technical Issues
Proprietary Technologies
Groupware computer tools helping people work
together and communicate effectively across time
or space boundaries.
Lotus Notes a distributed document database, an
electronic mail system, a replication mechanism to
synchronize databases on remote sites
Non-Proprietary Internet Technologies
Communication emails and discussion forums,
Resource sharing File Transfer Protocol (FTP)
Remote Terminal Emulation (Telnet) and
Navigation Tools WWW and Gopher

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30

ISSUES IN IMPLEMENTING IOS

IMPLEMENTATION ISSUES
IOS services are evolving continuously
Its almost impossible to foresee all opportunities
and weaknesses emerging from new or modified
systems
To remain flexible while encouraging / discussing
with partners & customers

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31

COL MBA
AIOU

3RD SEMESTER
AUTUMN 2014

Thank you

FAISAL SAFDAR KHAN

ROLL # AW565146