1. Chapter 7 The Intranets and Extranets
FEB: EBS 2053
Electronic Commerce
Chapter 7 The Intranets and Extranets
Lecturer: Puan Asleena Helmi
(03/08/01)

2. 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

3. Learning Objectives (cont.)
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

4. 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. 4
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5. 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. 5
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6. The Intranet (cont.) Intranet Clients Servers ERP Legacy systems
servers
Web servers
Databases
Firewalls
Public/External
Internet Users 6

7. 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. 7
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8. Extranet Tunneling Internet
The Extranet (cont.)
Extranet
Intranet
Firewall
Suppliers
VPN
Tunneling Internet
Distributors
VPN
Intranet
Firewall
Customers
VPN 8
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9. 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 9
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10. Firewalls 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

11. 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 and a bulletin board 11
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12. 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

13. Categories of Intranet Application Purposes10 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

14. Categories of Intranet Application Purposes (cont.)
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

15. 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

16. Intranet Case Studies with ROI Analysis
The cases are organized in the following format:
Background of company
Business challenges
Before the intranet technology
Intranet cost
Intranet strategy
After intranet technology
Subjective (intangible) benefits (optional)
Lessons learned
Analyzing the ROI

17. Intranet Case Studies with ROI Analysis (cont.)
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

18. 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.

19. Intranet Deployment Strategy (cont.)
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.

20. Intranet Deployment Strategy (cont.)
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
preserve investment protection.

21. Basic Concept of Extranets Revisited
Consumers
Suppliers
Clients
Business Partners
Distributors
VPN
Internet
Intranet
Extranet
Remote
Employees
Enterprise
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22. Elements of Extranets Components of Extranets Intranets Web server
Firewalls
Internet Service Provider (ISP)
Tunneling technology
Interface software
Business application
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)

23. 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

24. Four Categories of Extranet Products and Services
Extranet development tools
Extranet hosting and network connectivity
Extranet services
VPNs 24
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25. Categories of Extranet Application
Enhanced Communications
Improved internal communications
Improved business partnership channels
Effective marketing, sales, and customer support
Collaborative activities support

26. Benefits of Extranet Application
Productivity Enhancements
Just-in-time (JIT) information delivery
Reduction of information overload
Productive collaboration between workgroups
Training on demand

27. Benefits of Extranet Application
Business Enhancements
Faster time to market
Simultaneous engineering potential
Lower design and production costs
Improved client relationships
New business opportunities

28. Benefits of Extranet Application
Cost Reduction
Reduced errors
Improved comparison shopping
Reduced travel and meetings expenses
Reduced administrative and operational costs
Elimination of paper publishing costs

29. Benefits of Extranet Application
Information Delivery
Low-cost publishing
Leveraging of legacy systems
Standard delivery systems
Ease of implementation and maintenance
Elimination of paper publishing and mailing costs

30. Uses and Users of the Extranets
Information and Services on the Extranets 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 10 20 30 40 50 60
Franchises
Government regulators
All suppliers
Dealers
Distributors
Top-tier customers
All customers
% of respondents

31. Industry Specific Extranet Solutions5 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

32. 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.