Transcript Document

Chapter 7
The Intranets and Extranets
© Prentice Hall, 2000
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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
© Prentice Hall, 2000
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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
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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
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Automotive Network Exchange the Largest Extranet (cont.)
Chrysler will pay for fewer T1 Lines and satellite
connections
Standardizing one protocol-IP will reduce
support costs
The time it takes to turn around an order will be
much shorter
The faster the parts come in, the faster the cars
leave the assembly line, the larger the customer
satisfaction and manufacturer’s profit
Business-to-business virtual private networks
(VPN) are used © Prentice Hall, 2000
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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.
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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.
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The Intranet (cont.)
Servers
ERP
Clients
Legacy
systems
Public/External
Internet Users
Intranet
E-mail
servers
Web
servers
Firewalls
Databases
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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.
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The Extranet (cont.)
Extranet
Suppliers
Intranet
VPN
Distributors
VPN
Firewall
Tunneling Internet
Intranet
VPN
Customers
Firewall
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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
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Information
General, public
and advertisement
Specific,
corporate and
proprietary
Shared in
authorized
collaborating
group
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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
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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 Internetbased 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
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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
 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
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Categories of Intranet Application Purposes (cont.)
 Enhanced Knowledge Sharing: Web pages can enhance
knowledge sharing
 Enhanced Group Decision and Business Processes: Webbased 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
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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
© Prentice Hall, 2000
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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
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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
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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.
© Prentice Hall, 2000
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Intranet Deployment Strategy (cont.)
 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.
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Intranet Deployment Strategy (cont.)
 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.
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Basic Concept of Extranets Revisited
Extranet
Consumers
Suppliers
Enterprise
Intranet
VPN
VPN
Intranet
Clients
VPN
Intranet
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Internet
VPN
Remote
Employees
VPN
Distributors
Intranet
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Intranet
Business Partners
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Elements of Extranets
Components of Extranets
Tunneling technology
Intranets
Interface software
Web server
Business application
Firewalls
Internet Service Provider (ISP)
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)
© Prentice Hall, 2000
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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
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Four Categories of Extranet
Products and Services
Extranet development tools
Extranet hosting and network
connectivity
Extranet services
VPNs
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Categories of Extranet Application
Enhanced Communications
Improved internal communications
Improved business partnership
channels
Effective marketing, sales, and
customer support
Collaborative activities support
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Benefits of Extranet Application
Productivity Enhancements
Just-in-time (JIT) information delivery
Reduction of information overload
Productive collaboration between
workgroups
Training on demand
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Benefits of Extranet Application
Business Enhancements
Faster time to market
Simultaneous engineering potential
Lower design and production costs
Improved client relationships
New business opportunities
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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
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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
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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
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10 20 30 40 50 60
% of respondents
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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
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Extranet Cases
Connect Autodealers’ Kiosk: General
Motors Case
Kiosks in dealerships and shopping malls
Enable shoppers to purchase cars and
trucks from anywhere
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Extranet Cases (cont.)
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
Hospital Alliance Purchase: VHA, Inc. Case
VHAsecure.net
allow members to purchase directly from suppliers
chose IBM as its ISP
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Extranet Cases (cont.)
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
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
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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.
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