Chapter 7: The Intranets and Extranets docx

❙ Extranets provide secure connectivity between a corporation’s intranets and intranets of its business partners, material suppliers, financial services, and customers... Summary : Inter

Chapter 7 The 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

❚ 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.)

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

❚ Chrysler will pay for fewer T1 Lines and satellite

leave the assembly line, the larger the customer

satisfaction and manufacturer’s profit

are used

Automotive Network Exchange -

the Largest Extranet (cont.)

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

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

Web servers Databases

Firewalls

The Intranet (cont.)

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

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

❚ 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

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

Categories of Intranet Application Purposes

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

❚ 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.)

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

Intranet Case Studies with ROI Analysis

❚ The cases are organized in the following format:

❙ After intranet technology

❙ Subjective (intangible) benefits (optional)

❙ Lessons learned

❙ Analyzing the ROI

❚ 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

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.

Intranet Deployment Strategy (cont.)

evaluation criteria

4 Compatibility

expandable configuration requirements, but also standard

industry 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 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.

Intranet Deployment Strategy (cont.)

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

Consumers Suppliers

Intranet Intranet

Basic Concept of Extranets Revisited

❚ 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)

❚ 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

connectivity

Categories of Extranet Application

❚ Enhanced Communications

❙ Improved internal communications

❙ Improved business partnership channels

❙ Effective marketing, sales, and customer support

❙ Collaborative activities support

❚ Productivity Enhancements

Benefits of Extranet Application

❙ Just-in-time (JIT) information delivery

❙ Reduction of information overload

❙ Productive collaboration between

workgroups

❙ Training on demand

❚ Business Enhancements

Benefits of Extranet Application

❙ Faster time to market

❙ Simultaneous engineering potential

❙ Lower design and production costs

❙ Improved client relationships

❙ New business opportunities

❚ Cost Reduction

Benefits of Extranet Application

❙ Reduced errors

❙ Improved comparison shopping

❙ Reduced travel and meetings expenses

❙ Reduced administrative and operational

costs

❙ Elimination of paper publishing costs

❚ Information Delivery

Benefits of Extranet Application

❙ Low-cost publishing

❙ Leveraging of legacy systems

❙ Standard delivery systems

❙ Ease of implementation and maintenance

❙ Elimination of paper publishing and

mailing costs

Uses and Users of the Extranets

Information and Services on the

0 10 20 30 40 50 60 Accounts payable

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

Industry Specific Extranet Solutions

Customer Real Estate

Industry/manufacturing

Travel Financial services

Computers Information services

% of respondent Business & professional

Percentage of Extranet Application Industries

Extranet Cases

❚ Connect Autodealers’ Kiosk: General Motors Case

❙ Kiosks in dealerships and shopping malls

❙ Enable shoppers to purchase cars and

trucks from anywhere

❚ 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

Extranet Cases (cont.)

❚ Hospital Alliance Purchase: VHA, Inc Case

❘ allow members to purchase directly from suppliers

❘ chose IBM as its ISP

❚ 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

Extranet Cases (cont.)

❚ 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

Managerial Issues

intranet and extranet?

met by the intranet or the extranet.

the most secure and economical implementation plan.

decide whether it can be replaced by intranet and

extranet.

commerce, find out the niche market of intranet and

extranet technology, possibly with a business model.