Chapter 7 The Intranets and Extranets Prentice Hall

Chapter 7 The Intranets and Extranets © Prentice Hall, 2000 1

Learning Objectives z. Describe the relationship among the Internet, an intranet and an extranet z. Discuss the role of firewalls for intranets and extranets z. Discuss the functions of intranets z. Discuss the applications of intranets z. Describe the industries that use intranets z. Discover typical cases of intranet applications © Prentice Hall, 2000 2

Learning Objectives (cont. ) z. Identify the key element of extranets z. Identify the key technologies for tunneling z. Discuss the applications of extranets z. Describe typical industries that use extranets z. Discuss the business models for extranet applications z. Describe the concept of embedded extranets © Prentice Hall, 2000 3

Automotive Network Exchange the Largest Extranet z Companies in the automotive market swap supply and manufacturing data z Involve 10, 000+ companies z Include CAD/CAM file transfers, Electronic Data Interchange (EDI), e-mail, and groupware z The network’s EDI element alone will slice $71 from the cost of designing and building each car z Savings of $1 billion a year for the Industry © Prentice Hall, 2000 4

Automotive Network Exchange the Largest Extranet (cont. ) z Chrysler will pay for fewer T 1 Lines and satellite connections z Standardizing one protocol-IP will reduce support costs z The time it takes to turn around an order will be much shorter z The faster the parts come in, the faster the cars leave the assembly line, the larger the customer satisfaction and manufacturer’s profit z Business-to-business virtual private networks (VPN) are used © Prentice Hall, 2000 5

The Internet y. 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. © Prentice Hall, 2000 6

The Intranets y. 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. © Prentice Hall, 2000 7

The Intranet (cont. ) Servers ERP Clients Legacy systems Public/External Internet Users Intranet E-mail servers Web servers Firewalls Databases © Prentice Hall, 2000 8

The Extranet y. 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. y. Extranets provide secure connectivity between a corporation’s intranets and intranets of its business partners, material suppliers, financial services, and customers. © Prentice Hall, 2000 9

The Extranet (cont. ) Extranet Suppliers Intranet VPN Distributors VPN Firewall Tunneling Internet Intranet VPN Customers Firewall © Prentice Hall, 2000 10

Summary : Internet, Intranet, and Extranet Network Type Internet Typical Users Any individual with dial-up access or LAN Type of Access Unlimited, public; no restrictions Intranet Authorized employees ONLY Authorized groups from collaborating companies Private and restricted Extranet Private and outside authorized partners © Prentice Hall, 2000 Information General, public and advertisement Specific, corporate and proprietary Shared in authorized collaborating group 11

Firewalls z. Definition of Firewall y. Software and hardware that allows only those external users with specific characteristics to access a protected network y. Provides potential customers with secured account, credit card, and loan information y. Usually located at a gateway point and controls traffic between internal and external networks © Prentice Hall, 2000 12

Generic Functions of an Intranet z Corporate/department/individual Web-pages z Database access: Web-based databases z Search engines and directory: Assist key word-based search z Interactive communication: Chatting, audio and videoconferencing z Document distribution and workflow: Web-based download and routing of documents z Groupware: Enhanced e-mail and a bulletin board z Telephony: Intranets are the perfect conduit for computer-based telephony z Integration with electronic commerce: Interface with Internetbased electronic sales and purchasing z Extranet: Link geographically dispersed branches, customers and suppliers to authorize sections of Internets. Can create happier customers, more efficient suppliers, and reduce operating costs © Prentice Hall, 2000 13

Categories of Intranet Application Purposes Product catalogs and manuals Purchase orders or order entry Document sharing Customer records Policies and procedures Legacy systems access Inventory Document routing Data warehouse Sales records Logistics and transportation Accounts receivable Accounts Payable 0 10 20 30 40 50 % of respondent z Electronic Commerce: sales and purchasing online z Customer Service: UPS, Fed. Ex and other shippers have proved that information about product shipments and availability makes customers happier z Reduced Time to Market: Easy online access for product development speeds teamwork © Prentice Hall, 2000 14

Categories of Intranet Application Purposes (cont. ) z Enhanced Knowledge Sharing: Web pages can enhance knowledge sharing z Enhanced Group Decision and Business Processes: Webbased groupware and workflow is becoming the standard intranet platform z Empowerment: All information should be available to everyone with the ability to know and act independently z Virtual Organizations: Web technology at participating companies removes the barrier of incompatible communication technology z Software Distribution: Using the intranet server as the application warehouse and avoid many maintenance and support problems z Project Management: Share reports and monitor projects’ progress © Prentice Hall, 2000 15

Industry Specific Intranet Solutions z Financial Services: Banking, brokerages and other financial services, insurance z Information Technology z Manufacturing: Chemicals and oil, consumer goods, food and beverages, general manufacturing, and pharmaceuticals z Retailing z Services: Construction and engineering, education, environmental, healthcare, media, entertainment, telecommunications, transportation, and utilities © Prentice Hall, 2000 16

Intranet Case Studies with ROI Analysis z. The cases are organized in the following format: y. Background of company y. Business challenges y. Before the intranet technology y. Intranet cost y. Intranet strategy y. After intranet technology y. Subjective (intangible) benefits (optional) y. Lessons learned y. Analyzing the ROI © Prentice Hall, 2000 17

Intranet Case Studies with ROI Analysis (cont. ) z. Federal Express - Package Tracking y 60 internal web sites allow communication worldwide between divisions and corporate headquarters on all issues of importance to the employees and customers y. The package tracking system allows customers to contact Fed. Ex and go into the intranet to find the status of a package that they have shipped or one that they are expecting y. The intranet has gone to retailers that ship products directly to customers and set up computer systems that will place and ship orders © Prentice Hall, 2000 18

Intranet Deployment Strategy z 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. © Prentice Hall, 2000 19

Intranet Deployment Strategy (cont. ) z The intranet server platform has to meet 10 evaluation criteria 4. Compatibility : The server family must not only meet expandable configuration requirements, but also standard industry specifications to protect application investment. 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. © Prentice Hall, 2000 20

Intranet Deployment Strategy (cont. ) z The intranet server platform has to meet 10 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 operatingsystem enhancements for clustering and advanced symmetric multiprocessing must minimize upgrade disruption and preserve investment protection. © Prentice Hall, 2000 21

Basic Concept of Extranets Revisited Extranet Suppliers Consumers Enterprise Intranet VPN Intranet Clients VPN Intranet © Prentice Hall, 2000 Internet VPN Remote Employees VPN Distributors Intranet © Prentice Hall, 2000 Intranet Business Partners 22

Elements of Extranets z. Components of Extranets y. Tunneling technology y. Intranets y. Interface software y. Web server y. Business application y. Firewalls y. Internet Service Provider (ISP) z. Methods to Configure Extranets y. They can be implemented using a direct leased line with full control over it, linking all intranets y. A secure link can be created across the Internet, which can be used by the corporation as a virtually private network (VPN) © Prentice Hall, 2000 23

Virtually Private Network (VPN) z VPN is a secure network on the Internet using the tunneling schemes z The major objective of a VPN is to use the Internet as an inexpensive WAN backbone z When two sites are connected across a VPN, each must have a VPN-capable router, firewall, or VPN access device installed z 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 © Prentice Hall, 2000 24

Four Categories of Extranet Products and Services z. Extranet development tools z. Extranet hosting and network connectivity z. Extranet services z. VPNs © Prentice Hall, 2000 25

Categories of Extranet Application z. Enhanced Communications y. Improved internal communications y. Improved business partnership channels y. Effective marketing, sales, and customer support y. Collaborative activities support © Prentice Hall, 2000 26

Benefits of Extranet Application z. Productivity Enhancements y. Just-in-time (JIT) information delivery y. Reduction of information overload y. Productive collaboration between workgroups y. Training on demand © Prentice Hall, 2000 27

Benefits of Extranet Application z. Business Enhancements y. Faster time to market y. Simultaneous engineering potential y. Lower design and production costs y. Improved client relationships y. New business opportunities © Prentice Hall, 2000 28

Benefits of Extranet Application z. Cost Reduction y. Reduced errors y. Improved comparison shopping y. Reduced travel and meetings expenses y. Reduced administrative and operational costs y. Elimination of paper publishing costs © Prentice Hall, 2000 29

Benefits of Extranet Application z. Information Delivery y. Low-cost publishing y. Leveraging of legacy systems y. Standard delivery systems y. Ease of implementation and maintenance y. Elimination of paper publishing and mailing costs © Prentice Hall, 2000 30

Uses and Users of the Extranets Product catalogs and manuals Purchase orders or order entry Users of Extranets Document sharing Customer records Policies and procedures Legacy systems access Inventory All customers Sales records Data warehouse Top-tier customers Document routing Distributors Logistics and transportation Accounts receivable Dealers Accounts payable 0 10 20 30 40 50 % of respondents All suppliers 60 Government regulators Franchises Information and Services on the Extranets © Prentice Hall, 2000 0 10 20 30 40 50 60 % of respondents 31

Industry Specific Extranet Solutions Information services Computers Financial services Travel Industry/manufacturing Business & professional Real Estate Customer 0 5 10 15 20 25 30 % of respondent Percentage of Extranet Application Industries © Prentice Hall, 2000 32

Extranet Cases z. Connect Autodealers’ Kiosk: General Motors Case y. Kiosks in dealerships and shopping malls y. Enable shoppers to purchase cars and trucks from anywhere © Prentice Hall, 2000 33

Extranet Cases (cont. ) z. Distribute Tax News to Experts: Coopers and Lybrand Case y. Tax News Network (TNN) extranet xcontains tax information from numerous sources, integrating internal and external, and even competing resources xincludes full text of various tax analyses, legislative tax codes, and major business newspapers z. Hospital Alliance Purchase: VHA, Inc. Case y. VHAsecure. net xallow members to purchase directly from suppliers xchose IBM as its ISP © Prentice Hall, 2000 34

Extranet Cases (cont. ) z. Reduced Product Development Cycle Time: Caterpillar, Inc. y. Customers can use the extranet to retrieve and modify detailed order information while the vehicle remains on the assembly line z. Link the Worldwide Chains: Kinko’s, Inc. y 900 stores about 25, 000 employees y. Developed an extranet to offer Internet access and rental of PC computer time to its customers y. Each store connects to Internet with a 64 -Kbps channel of an ISDN link © Prentice Hall, 2000 35

Managerial Issues z Are there new business opportunities utilizing the intranet and extranet? z Consider whether the business requirements can best be met by the intranet or the extranet. z Consult the technical people inside and outside to find the most secure and economical implementation plan. z Review the current proprietary or leased network and decide whether it can be replaced by intranet and extranet. z If you are implementing the technologies of electronic commerce, find out the niche market of intranet and extranet technology, possibly with a business model. © Prentice Hall, 2000 36