1. Elias M. Awad Third Edition ELECTRONIC COMMERCE From Vision to Fulfillment 1-1© 2007 Prentice-Hall, Inc ELC 200 Day 7

2. 1-2 © 2007 Prentice-Hall, Inc Agenda Assignment 2 is Due next Class Assignment 3 Posted –Due Feb 25 and covers Chap 5 Assignment 1 Results –5 A’s, 4 B’s, 3 C’s, 3 D, 4 F’s and 1 MIA –Saddle distribution – effort driven –Assignments requires assimilation of textbook information not regurgitation If the questions reference a section of the text, your answer should be reflexive of the information on that page –Be consistent Don’t tell me you selling widgets (a product) in Question 1 than say that you are a service provider in Question 4 –Value Chains have 5 primary activities and 4 support activities; I expected to see all 9 discussed as it relates to YOUR idea. –Answer the QUESTION and only the QUESTION! Extra “fluff” will cost you points When you “dance around” the question, it means you don’t know the answer and you are hoping the answer is in the shovel-full of whatever it is you provided as an answer Finish Discussion on Intranets and extranets

3. Elias M. Awad Third Edition ELECTRONIC COMMERCE From Vision to Fulfillment 1-3© 2007 Prentice-Hall, Inc Intranets and Extranets

4. 1-4 © 2007 Prentice-Hall, Inc The focus of this chapter is on several learning objectives The concept, strategic significance, and technical infrastructure of intranets How to plan for and install an intranet in the organization The many issues, uses, and abuse of e-mail via a company’s intranet A company’s extranet and how it links with its partners and vendors through SCM

5. 1-5 © 2007 Prentice-Hall, Inc What Is an Intranet? An intranet delivers collaboration and coordination to employees around the clock –Communication system designed by technical staff –A network of people, not of wired machines –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 company’s internal data or leaks of sensitive company information

6. 1-6 © 2007 Prentice-Hall, Inc Strategic Significance A cost-effective way of distributing information throughout an organization Links employees and managers around the clock and automates a lot of intra-organizational traffic Makes it possible for a company to gain better access to its primary resource - the knowledge and experience of decision makers Enables easier integration of processes

7. 1-7 © 2007 Prentice-Hall, Inc Applications - Human Resources Employee handbook Benefits information Employee surveys Internal/external recruiting Candidate screening Organization charts Newsletters Company calendar

8. 1-8 © 2007 Prentice-Hall, Inc Applications - Sales and Marketing Product information Market research Prospecting Managing sales contacts Sales training

9. 1-9 © 2007 Prentice-Hall, Inc Applications - Accounting and Finance Financial reports Expense reports Accounts receivable/payable processing Asset management Policies and procedures Payroll

10. 1-10 © 2007 Prentice-Hall, Inc Applications - Manufacturing and Operations Inventory control Production schedules Quality assurance Part order/requisition system

11. 1-11 © 2007 Prentice-Hall, Inc Other Applications for Intranets Real-time broadcasting of news, including medical information. Document management to minimize unnecessary paperwork and waste of paper. Customized application modules like a travel or document library. Complete e-mail for interoffice and intraoffice communication. Internal company office circulars can be routed electronically. Bulletin board service.

12. 1-12 © 2007 Prentice-Hall, Inc Other Applications for Intranets (cont’d) Real-time chat service that electronically logs all data for record keeping. Complete company staff, operations, and organizational chart directories. Channel for confidential exchange of data for electronic funds transfers (EFTs) and checks. A daily to-do list and assignments from a central desk to all connected desks. –Shared calendaring Foreign news and financial data broadcasting (running ticker) from direct feeds.

13. 1-13 © 2007 Prentice-Hall, Inc Does Every Company Need an Intranet? A company needs an intranet for the following reasons: –When it has a large pool of information to share among hundreds of employees <100 employees may not be cost effective –Intranets are cheap, robust, and fast. Any employee with access to an intranet can disseminate and publish information –Intranets operate across platforms –Information is available 24/7 to all employees at the click of a mouse –Information available on an intranet can be updated quickly

14. 1-14 © 2007 Prentice-Hall, Inc Intranet Design and Implementation Terms

15. 1-15 © 2007 Prentice-Hall, Inc Client/Server Basics Client/server architecture is a versatile, message- based, modular infrastructure intended to improve usability, flexibility, interoperability, and scalability as compared to centralized, mainframe, time-sharing computing

16. 1-16 © 2007 Prentice-Hall, Inc Types of Client/Server Architecture Two-Tier Architecture Components –User system interface –Processing management –Database management

17. 1-17 © 2007 Prentice-Hall, Inc Types of Client/Server Architecture Two-Tier Architecture (cont’d) Limitations associated with two-tier model –When the number of users grows, performance deteriorates –Implementation of processing management services using vendor proprietary database procedures restricts flexibility –There is limited flexibility in moving program functionality from one server to another without manually regenerating procedural code

18. 1-18 © 2007 Prentice-Hall, Inc Two-tier Client/Server Architecture

19. 1-19 © 2007 Prentice-Hall, Inc Types of Client/Server Architecture Three-Tier Architecture Middle tier is sandwiched between the user system interface client environment and the database management server environment Middle tier manages distributed database integrity in a two-phase process Third tier provides database management and is dedicated to data and file services Allows different tiers to be developed in different languages Improves performance for groups with a large number of users

20. 1-20 © 2007 Prentice-Hall, Inc Three-tier Server Architecture Design

21. 1-21 © 2007 Prentice-Hall, Inc Technologies that Enable Intranets Server PC Client PC Web Server Browser TCP/IP electronic mail Graphic and multimedia files

22. 1-22 © 2007 Prentice-Hall, Inc Using Firewalls Intranets can be protected from unauthorized access via firewalls A firewall is a hardware/software security system that can be programmed to prevent unauthorized access to a company’s intranet or the Internet Two primary types of firewalls: –Proxy is a go-between agent that acts on behalf of another –A packet filter checks each packet at the network level and stops any packets that might be a security risk Intranet security, properly designed by knowledgeable users and administrators, can ensure that the system is run properly

23. 1-23 © 2007 Prentice-Hall, Inc Planning an Intranet Plan ahead Provide justification Build in-house or outsource Form an intranet team Build and test a prototype Ensure effective maintenance

24. 1-24 © 2007 Prentice-Hall, Inc E-mail and the Intranet E-mail is what intranets are best known for Over 200 million in-boxes are active worldwide E-mail is becoming smarter: It now can direct specific messages to defined folders and be a place to check voice, text, and fax messages Intranets inherit Simple Mail Transport Protocol (SMTP) from the TCP/IP suite to operate e-mail E-mail is a potential threat for employers –Confidentiality breaches –Legal liability –Lost productivity –Damage to company reputation Important for a firm to create an e-mail usage policy and make sure the policy is actually implemented

25. 1-25 © 2007 Prentice-Hall, Inc Spamming and Appropriate E-mail Use Spamming is sending unwanted advertisements or literature through e-mail or the Internet Companies have been overwhelmed by e-mail traffic, and spam is out of control Spot checks are no longer adequate Trend is more toward systematic monitoring of e- mail traffic using content-monitoring software

26. 1-26 © 2007 Prentice-Hall, Inc Spamming and Appropriate E-mail Use (Cont’d) Spamming is nearly impossible to eliminate, but solutions exist: –Blacklist the sender; obtain a spammer’s address and block any e-mail from that address –Accept e-mail only from a list of approved addresses –Look for signs of spam –Use anti-spam software Maine Spam Law –http://janus.state.me.us/legis/statutes/10/title10sec1497.h tmlhttp://janus.state.me.us/legis/statutes/10/title10sec1497.h tml Federal Can Spam Law –http://www.ftc.gov/bcp/conline/pubs/buspubs/canspam.h tmhttp://www.ftc.gov/bcp/conline/pubs/buspubs/canspam.h tm

27. 1-27 © 2007 Prentice-Hall, Inc Personal Guidelines to Avoid Spam Stop giving away your e-mail address Do not “unsubscribe,” it only confirms your e-mail address is real Write to the Direct Marketing Association and credit bureaus Contact your credit card companies, credit union, and mortgage companies and tell them not to release your name, address and similar data Contact all organizations you belong to, schools, magazines you subscribe to, airline frequent flyer programs, your long- distance telephone carrier, and just about anyone who sends you a bill As a last resort, contact your phone company and change your listing in the phone book, or simply list your name with no address

28. 1-28 © 2007 Prentice-Hall, Inc E-mail and Privacy Companies have been wrestling with the issue of privacy versus liability for employee’s e-mail activity Firms must have a company policy that addresses privacy. Such a policy should state in writing: –That the company’s intranet and the networks that carry e-mail are company property, to be used for business purposes only –A clear definition of what is and what is not appropriate use –A clear message to all employees that e-mail of any kind cannot be private and that all e-mail may be monitored at any time International email privacy law –http://www.mofo.com/news/updates/files/update02051.ht mlhttp://www.mofo.com/news/updates/files/update02051.ht ml

29. 1-29 © 2007 Prentice-Hall, Inc E-mail Etiquette Sending an e-mail message to someone is one-to-one communication as if face-to-face E-mail etiquette mistakes to avoid: –Do not write when you’re in a bad mood or angry –Read what you write carefully –Do not use sarcasm in an attempt to be clever –Stay away from using all uppercase –Place the nature of the message in the subject line –Write short e-mails, normally less than two paragraphs –Think before you send –Watch your grammar, spelling, and vernacular –Remember to send your attachment when you say you will

30. 1-30 © 2007 Prentice-Hall, Inc Blogging Practices Four major motivators for blogging: –Maintaining community forums –Articulating ideas through writing –Airing out pent-up emotions –Documenting one’s life https://www.blogger.com/start DANGER: Assume that everything you write in a Blog is readable by everybody on the Internet; even if you delete the entry. This is also true for Facebook and MySpace

31. 1-31 © 2007 Prentice-Hall, Inc Instant Messaging Sometimes the rapid response of e-mail is not fast enough Instant messaging (IM) is one alternative medium IM is an electronic communication system that involves immediate correspondence between two or more users who are all online simultaneously

32. 1-32 © 2007 Prentice-Hall, Inc Extranets and SCM Intranets are localized within a firm and move data quicker than the more widely distributed extranets Extranets are already the backbone of the e-business future Extranet designers at each participating company must collaborate to make sure there is a common interface with the company they are dealing with The overall connectivity represents supply chain management Extranet-SCM and Enterprise Resource Planning (ERP) –ERP facilitates integration of company-wide information systems with the potential to go across companies –The Internet allows linking the Web sites to back-end systems like ERP, offering connections to a host of external parties like vendors and suppliers

33. 1-33 © 2007 Prentice-Hall, Inc Basic Extranet Layout

34. 1-34 © 2007 Prentice-Hall, Inc Key Considerations for Extranet Installation Identify the user(s). List the technology components. Specify the security requirements. Discuss the administration of the extranet. Understand the functions of the extranet.

35. 1-35 © 2007 Prentice-Hall, Inc Extranets and ERP Management support of extranets are changing how organizations share internal resources and interact with the outside business world The entire commitment should be viewed as a knowledge management asset A “champion” represents management support. This person is: –An advocate with the ability to build company-wide support. –Sells top management on the potential of the technology. –Demonstrates how an extranet can help the company meet its revenue goals. Extranets can be used to manage applications and tie applications into one integrated system for deriving real value

36. 1-36 © 2007 Prentice-Hall, Inc Management Implications Intranets are tools to manage corporate intelligence Change is closely related to employee satisfaction, and the effect of the intranet on the way employees do their jobs is important Another management implication is the strategy for recruiting qualified technical personnel

37. 1-37 © 2007 Prentice-Hall, Inc Chapter Summary An intranet is a network connecting a set of company clients using standard Internet protocols Benefits of intranets include linking employees and managers around the clock; companies gain access to their primary resources; and it is the foundation for developing an enterprise-wide information system The two types of client/server architecture are two-tier architecture and three-tier architecture Intranets can be protected from unauthorized access via firewalls

38. 1-38 © 2007 Prentice-Hall, Inc Chapter Summary (Cont’d) Planning an intranet is a six-step procedure E-mail is getting smarter An alternative to e-mail is instant messaging An extranet links two or more trading partners Intranets are tools to manage corporate intelligence