E COMMERCE

FACILITATED BY: OBIRI-YEBOAH HANSON (MSC SCM,BSC IT,)

LO GISTICS AND PRO CUREMENT CONSULTANT

Chapter Objectives
1.

Understand how companies are using intranets and extranets for communications and collaboration, information publishing and sharing, and business operations and management.

2. Understand the hardware, software, data, and network components of an intranets information technology architecture.

3. Appreciate how intranets and extranets can provide cost savings or revenue benefits to a company.
4. Understand groupware tools for communications, conferencing, and work management.

E-Business EC Organizations
Brick-and-mortar (or old-economy) refer to pure physical organizations (corporations). Virtual (or pure-play) organizations are companies that are engaged only in EC . Click-and-mortar (or click-and-brick) organizations are those that conduct some e-commerce activities, yet their primary business is done in the physical world.

The Internet
The internet
A network of networks The internet transmits data from one computer (called a host) to another

Internet networks
Linked networks that work much the same way -- they pass data around in packets, each of which carries the addresses of its sender and receiver Internet: The internet is a global network of interconnected networks, connecting private, public and university networks in one cohesive unit.

Internet Discussion (1)

A global network connecting millions of computers. As of 1999, the Internet has more than 200 million users worldwide, and that number is growing rapidly. More than 100 countries are linked into exchanges of data, news and opinions.
Unlike online services, which are centrally controlled, the Internet is decentralized by design. Each Internet computer, called a host, is independent. Its operators can choose which Internet services to use and which local services to make available to the global Internet

Internet Discussion (2)

well.
There are a variety of ways to access the Internet. Most online services, such as America Online, offer access to some Internet services. It is also possible to gain access through a commercial Internet Service Provider (ISP). Note: York Universitys CCS (Computer and Communications Services) is an ISP.

How the Internet Works

Transport control protocol (TCP)
A protocol that operates at the transport layer and is used in combination with IP by most Internet applications Backbone An Internet high-speed, long distance communications links (like a bus; wire that connects nodes) Uniform resource locator (URL) An assigned address on the Internet for each computer E.g., http://www.yorku.ca/

Domain Affiliations
Domain arts com edu firm gov info mil nom net org rec store web net Affiliations cultural and entertainment activities business organizations educational sites businesses and firms government sites information service providers military sites individuals networking organizations organizations recreational activities businesses offering goods for purchase entities related to World Wide Web activities networking organizations

Internet Services
E-mail Telnet FTP Usenet and newsgroups Chat rooms Internet phone Internet videoconferencing Content streaming

Business Use of the Web

Uses:
Applications, E-mail, Product Display, Catalogs, Order placement

Products people are likely to buy on the Web

Software Books CDs Computer hardware Airline tickets Magazine subscriptions Concert/theater tickets Flowers 77% 67% 64% 63% 61% 53% 48% 45%

Intranets
Intranet
An internal corporate network built using Internet and World Wide Web standards and products that allows employees of an organization to gain access to corporate information Intranet: An intranet is a private enterprise network that uses internet and web technologies for information gathering and distribution within an organization

Intranet
Intranet reaching the Main Stream Market
Provides easy access to internal data by publishing the information on departmental intranets. Sets up employee self-service web sites for human resources, payroll, sales, marketing and training. More complex applications on the horizon:
Collaborative workflow managers, including scheduling, messaging, and discussion groups Inventory and logistic management systems Consumer help desk and knowledge management systems.

What is the 7% Principle?

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The Intranet

Prerequisites for the Successful Deployment of the Intranet:

Unified intranet strategy and architecture Secure and ubiquitous intra-enterprise connectivity Integration with legacy networks and applications Use of standards-based technology for network, security, and webauthoring. Common user interface based on a universal web client Implementation of enterprise-side policies on network access, security, content authoring, and management Management and user buy-in.

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Intranet Discussion
A network based on TCP/IP protocols (an internet) belonging to an organization, usually a corporation, accessible only by the organization's members, employees, or others with authorization. An intranet's Web sites look and act just like any other Web sites, but the firewall surrounding an intranet fends off unauthorized access.
Like the Internet itself, intranets are used to share information. Secure intranets are now the fastest-growing segment of the Internet because they are much less expensive to build and manage than private networks based on proprietary protocols.

Intranet Components
The Wide Area Network (WAN) Component contains:
The physical connection to the internet The physical connection to a frame relay cloud The WAN router and network addressing schemes

The configuration of frame relay Permanent Virtual Circuit on a WAN router

The configuration of Internet-based Virtual Private Network on a WAN router or WAN firewall The WAN network routing protocol like Border Gateway Protocol (BGP) for external connection and Open Shortest Path First (OSPF) for internal connection Any questions on these connection concepts?

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Intranet Components
The Local Area Network (LAN) Component consists of:
The LAN Technology (e.g., Ethernet) The LAN Topology (e.g., star, bus) The LAN router and network addressing scheme The LAN network routing protocol The LAN firewall and load-sharing components Any questions regarding these terms and concepts?

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Intranet Components
The Server and Application Software Component:
The intranet application servers and associated client servers The gateway server for protocol translation The high-resiliency design of the server component for high availability The backup server and associated backup hardware like the tape juke-box. ?

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Intranet Components
The Security Component:
Air gap and firewall security techniques:
Air gap- security by isolation; internal network is not connected to the external network Firewall: Filter that screens and accepts or rejects connection requests

The corporate security framework and the security policies for internal and external connectivity The LAN and WAN firewalls and VPN setup The secure configuration of the intranet application and the server operating system The encryption, authentication and data integrity check methodologies.
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Intranet Components
The Intranet Service Management Component:
The management of intracompany Service Level Agreements (SLAs) The management of SLAs with external service providers like Internet Services Providers (ISPs) and frame relay service providers. The internal network management and reporting systems The internal help desk and trouble ticketing system

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Applications of Intranets
Communications and Collaboration

Web Publishing and Intranet Management

Business Operations and Management

Important Issues to Build an Intranet

1. Determining your infrastructure requirements. 2. Determining your Web server needs. 3. Making a browser choice. 4. Deciding how to use use an intranet? 5. Determining the application development software you need. 6. Weeding through the pros and cons of a firewall. 7. Possibly changing the role of the Webmaster. 8. Determining what is needed to train employees.

EXTRANET
Extranet: An extranet is a community of interest created by extending an intranet to selected entities external to an organization.

Extranet
Extranet: Community of Interest created by extending the extranet to selected entities external to an organization
Deployed as private networks to develop business-to-business relationships between vendors, partners, and customers. Extranet applications:
Online ordering Marketing and product information *News and content * Legacy database access

Inventory management
Training, policy and standards E-mail and chat Billing and account historyINF406

* ERP; supply chain managemt.

* Customer service/self service *Bulletin boards and groups *On-line financial transactions
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Collaborative research and development * Collaborative scheduling

Extranet Discussion
A new buzzword that refers to an intranet that is partially accessible to authorized outsiders. Whereas an intranet resides behind a firewall and is accessible only to people who are members of the same company or organization, an extranet provides various levels of accessibility to outsiders. You can access an extranet only if you have a valid username and password, and your identity determines which parts of the extranet you can view.
Extranets are becoming a very popular means for business partners to exchange information.

Extranet Advantages
Advantages
Collaborative research and development (R&D) fosters better ties between partners and shorter time-to-market, thus reducing the product life cycle and increasing product competitiveness ERP and supply chain management streamline business processes Better customer support increases customer loyalty and weans customers from live representatives to cheaper self-help. Collaborative extranets foster team spirit among partners and customers, reduce cost of production, travel costs, and customer service, and improve the speed of communications speed. Customer/partner access to backend data improves efficiency Brings access to new markets through IP-based EDI participation
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Extranet Development Considerations

Keep in mind, when developing extranets:
Security exposure to internal and partner networks and systems Ease of use Interoperable technology

Ability to leverage legacy applications

High availability (as the extranet applications become mission critical, it is important to maintain the constant availability of these applications). Network and extranet application performance as it scales upward Set correct expectations of network performance Legal considerations of connecting multiple systems and the potential impact on the current operation due to new setup.

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Extranet Security
When two or more entities collaborate on the intranet:
Security has to cover all paths between parties (pp. 20-22) Access to the extranet application server can be restricted to the partners and suppliers by (two possible examples):
Using access control lists (ACLs) on the router, which is a part of the directory application.
Using an authenticated application proxy via the firewall server shown in figure 1.1. In this scenario, the application server would be connected to one of the interfaces on the firewall server, instead of an interface on the router.

The choice of the solution depends on the desired level of access control and audit tracking capability.
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Extranet Examples
Extranet Communities of Interests (COIs):
Vendors Partners Company
Customers drive relationships that the company establishes with vendors and partners
Customer service/product quality first; cost-cutting second.

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Extranet Examples
Supply Chain Process (SCP)
Since the SCP is almost completely automated. . .
Several departments get automatic notifications as a user request is processed through the chain For example, when the item is shipped from the supplier the production manager is notified of the arriving items, while the purchasing manager gets the shipping details and the invoice. When the item is received, the inventory is updated automatically.

SCP allows manufacturers to control inventory costs, while the procurement guys tighten forecasting and ordering SCP equally applicable to small or big purchases.

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Extranet Examples
Extranet Success Stories:
McDonnell Douglass inventory management extranet provides access to 500 suppliers and tracks 80,000 parts and assemblies. Shells extranet manages inventories for its customers Cisco Systems allows customers to track and order equipment online based on a pre-negotiated relationship DaimlerChrysler in Japan allow its dealers to process orders over the extranet (very little traffic on this extranet) Courtyard Marriott provides marketing reports and operating manuals to all of its operators in the U.S. Pharmaceutical manufacturers allow hospitals, retail stores, and clinics access to order processing and inventory tracking systems.
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Intranets, Extranets, and the Internet

Internet Web Sites

Internet Links Engineering Server Extranet Links Customers Marketing Server

CORPORATE INTRANET

Extranet Links
Legacy Data Server

Suppliers

H.R. Server Intranet Links

Other Company Locations

Business Value of Intranets

Impressive Returns Investment Cost Recovered

Quick Payback

Risk of Internet Project is Low

Extranets
Use of the Internet (network) and its technologies but in a secured way (people in general cannot access the web sites) for business-to-business transactions, customer service and support and communication.

Replaces traditional Electronic Data Interchange systems and networks in many cases.

Business Value of Extranets

Extranet technology such as web browsers make it easier and faster for customers and suppliers to access resources. Extranets enable a company to offer new kinds of interactive Web-enabled services to their business partners. Extranets are a way that a business can build and strengthen strategic relationships with its customers and suppliers. Extranets can enable and improve collaboration by a business with its customers and other business partners. Extranets facilitate an online, interactive product development, marketing, and customer-focused process that can bring better designed products to market faster.

Examples of Business Value of Internet/Extranet Applications

Publication Cost Savings

Training and Development Cost Savings

Customer Service Programs

Enterprise Collaboration
Communicate

Goal of Enterprise Collaboration Systems Coordinate Collaborate

Intranet Communications & Collaboration

Electronic Mail

Groupware

Intranet Communication and Collaboration within an Enterprise

Voice Mail

Faxes

Paging

Enterprise Collaboration Tools

Data Conferencing Discussion Forums

Voice Conferencing

Groupware Enterprise Collaboration Tools

Chat Systems

Videoconferencing

Electronic Meeting Systems

Groupware Tools for Electronic Communications

Groupware for Enterprise Collaboration

Electronic Communications Tools

Enterprise Conferencing Tools

Collaborative Work Management Tools

Summary
Intranets and extranets work and feel like the Internet. They enable and improve collaboration within a business, and with customers and other business partners.
In many respects, intranets, extranets and enterprise collaboration help a business gain and sustain a competitive advantage.