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Chapter 7The Intranets and Extranets

FEB: EBS 2053Electronic Commerce

Lecturer: Puan Asleena Helmi

(03/08/01)

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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

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• 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

Learning Objectives (cont.)

The Internet

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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.

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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.

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Public/ExternalInternet Users

Intranet

Clients

ServersERP

Legacy systems

E-mail servers

Web servers

Databases

Firewalls

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The Intranet (cont.)

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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.

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Tunneling Internet

Extranet

IntranetFirewall

Intranet

Firewall

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The Extranet (cont.)

SuppliersVPN

Distributors VPN

Customers

VPN

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Summary : Internet, Intranet, and Extranet

Network Typical Type of Type Users Access Information

Internet Any individual with dial-up access or LAN

Unlimited, public; no restrictions

General, public and advertisement

Intranet Authorized employees ONLY

Private and restricted

Specific, corporate and proprietary

Extranet Authorized groups from collaborating companies

Private and outside authorized partners

Shared in authorized collaborating group

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Firewalls• Definition of Firewall

Software and hardware that allows only those external users with specific characteristics to access a protected networkProvides potential customers with secured account, credit card, and loan informationUsually located at a gateway point and controls traffic between internal and external networks

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

11© Prentice Hall, 2000

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Generic Functions of an Intranet (Cont.)

• 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

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Categories of Intranet Application Purposes

0 10 20 30 40 50

Accounts Payable

Accounts receivable

Logistics and transportation

Sales records

Data warehouse

Document routing

Inventory

Legacy systems access

Policies and procedures

Customer records

Document sharing

Purchase orders or order entry

Product catalogs and manuals

% 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

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• 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

Categories of Intranet Application Purposes (cont.)

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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

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Intranet Case Studies with ROI Analysis

• The cases are organized in the following format:

Background of companyBusiness challengesBefore the intranet technologyIntranet costIntranet strategyAfter intranet technologySubjective (intangible) benefits (optional)Lessons learnedAnalyzing the ROI

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• Federal Express - Package Tracking

Intranet Case Studies with ROI Analysis (cont.)

60 internal web sites allow communication worldwide between divisions and corporate headquarters on all issues of importance to the employees and customersThe 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 expectingThe intranet has gone to retailers that ship products directly to customers and set up computer systems that will place and ship orders

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Intranet Deployment Strategy

• The intranet server platform has to meet 10 evaluation criteria

1. Scalability: The efficient transaction read/write capabilityshould be ensured as the number of users and access increases.

2. Interoperability: Enterprise Web, data warehouse, messageand mail manager, online transaction processing and othernodes will form the enterprise server platform cloud, which willrequire each node to have a high interoperability presence onthe network.

3. Configurability: Vendors just provide a broadly configurablearray of enterprise servers that do not require major box swapsas enterprise requirements change. Parts must be modular and offercommodity component substitution with other devices fromthird parties.

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Intranet Deployment Strategy (cont.)

4. Compatibilityexpandable configuration requirements, but also standardindustry specifications to protect application investment.

: The server family must not only meet

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 theelectronic channel and the enterprise wide Web, these systemsmust be able to sustain tens to hundreds of thousands ofaccesses and transactions with minimal downtime.

7. Reliability: The hardware reliability, data integrity, systemsintegration, and operational error immunity are essential.

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Intranet Deployment Strategy (cont.)

8. Distributeability: Whether in two- or three-tier client/serverarchitectures, the enterprise server must embrace the client,assume a high degree of desktop affinity and must enableresources to be proportioned between server and clientappropriately.

9. Serviceability : The increased value placed on uptime willmandate online serviceability through the use of hot-swappablecomponents, remote diagnostics directly connected to vendorservice centers and pre-failure predictive diagnostics.

10. Stability: The generation changes in technology, andarchitecture that may include changes to instruction sets,migration from 32-bit to 64-bit computing and operating-system enhancements for clustering and advanced symmetricmultiprocessing must minimize upgrade disruption andpreserve investment protection.

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Enterprise

ConsumersSuppliers

Clients

Business Partners

Distributors

VPN

Internet

Intranet

Extranet

IntranetIntranet

Intranet

Intranet

VPN VPN

VPN

VPN

RemoteEmployees

Basic Concept of Extranets Revisited

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Elements of Extranets• Components of Extranets

– Intranets– Web server– Firewalls– Internet Service Provider (ISP)

Tunneling technologyInterface softwareBusiness application

Methods to Configure ExtranetsThey can be implemented using a direct leased line with full control over it, linking all intranetsA secure link can be created across the Internet, which can be used by the corporation as a virtually private network (VPN)

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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

Four Categories of Extranet Products and Services

• Extranet development

tools • Extranet hosting and

network connectivity• Extranet services• VPNs

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Categories of Extranet Application

• Enhanced Communications

Improved internal communicationsImproved business partnership channelsEffective marketing, sales, and customer supportCollaborative activities support

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• Productivity Enhancements

Benefits of Extranet Application

Just-in-time (JIT) information deliveryReduction of information overloadProductive collaboration between workgroupsTraining on demand

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• Business Enhancements

Benefits of Extranet Application

Faster time to marketSimultaneous engineering potentialLower design and production costsImproved client relationshipsNew business opportunities

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• Cost Reduction

Benefits of Extranet Application

Reduced errorsImproved comparison shoppingReduced travel and meetings expensesReduced administrative and operational costsElimination of paper publishing costs

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• Information Delivery

Benefits of Extranet Application

Low-cost publishingLeveraging of legacy systemsStandard delivery systemsEase of implementation and maintenanceElimination of paper publishing and mailing costs

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Uses and Users of the Extranets

Information and Services on the

Extranets

0 10 20 30 40 50 60

Accounts payable

Accounts receivable

Logistics and transportation

Document routing

Data warehouse

Sales records

Inventory

Legacy systems access

Policies and procedures

Customer records

Document sharing

Purchase orders or order entry

Product catalogs and manuals

% of respondents

Users of Extranets

0 10 20 30 40 50 60

Franchises

Government regulators

All suppliers

Dealers

Distributors

Top-tier customers

All customers

% of respondents

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Industry Specific Extranet Solutions

0 5 10 15 20 25 30

Customer

Real Estate

Industry/manufacturing

Travel

Financial services

Computers

Information services

% of respondent

Business & professional

Percentage of Extranet Application Industries

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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.