Intranets & Extranets Companies that do not have the resources to invest in enterprise applications can still achieve some measure of information integration by using intranets and extranets. Intranets and extranets are used to increase integration and expedite the flow of information within the firm, and with customers and suppliers. Both intranets and extranets reduce operational costs for the firm. Intranets: Are internal networks built with the same tools and communication standards as the Internet Are used for the internal distribution of information to employees, and as repositories of corporate policies, programs, and data Typically centers on a portal that provides a single point of access to information from several different systems and to documents using a Web interface

Intranets & Extranets Extranets: Are private intranets with limited access extended to authorized users outside the company Expedite the flow of information between the firm and its suppliers and customers Allow different firms to work collaboratively on supply chain management, purchase orders, product design and development, marketing, production, training efforts, and other interorganizational work For example: SwissAir uses an extranet to provide travel agents with fare data from its intranet electronically. GUESS Jeans allows store buyers to order merchandise electronically from ApparelBuy.com, and the buyers can use this extranet to track their orders through fulfillment or delivery.

Intranet Definition: an internal network based on Internet and World Wide Web technology and standards Benefits: Connectivity: accessible from most computing platforms Can be tied to internal corporate systems and core transaction databases Can create interactive applications with text, audio, and video Scalable to larger or smaller computing platforms as requirements change Easy to use, universal Web interface Inexpensive (low start-up costs) Richer, more responsive information environment or online stored places for information that can be updated as often as required Reduced information distribution (such as paper and printing) costs

Functional Applications of Intranets

Intranet Applications Finance and accounting Providing an integrated view of financial and accounting information on-line in an easy-to-use format for decision making and performance measurement Human resources Online publishing of corporate policy manuals, job postings and internal job transfers, company telephone directories, and training classes Enrolling in healthcare, employee savings, and other benefit plans by employees Rapidly delivering information about upcoming events or company developments to employees using newsgroups or e-mail broadcasts

Intranet Applications (Cont.) Sales and marketing Overseeing and coordinating the activities of the sales force Updating on pricing, promotions, rebates, or customers, or obtaining information about competitors by sales staff Accessing presentations and sales documents and customize them for customers Manufacturing and production Developing intranets that integrate manufacturing data under a uniform user interface is more complicated than in other functional areas. Manufacturing information is often very time sensitive and difficult to retrieve because files must be continuously updated. By coordinating the flow of information within a production system, intranets can make manufacturing information more accessible to different parts of the organization, and increase precision and lower costs.

What is an Intranet? An intranet site is a web site that is viewable only to those within an organization’s network. An intranet is protected from the outside world either by not being connected to the outside or through a series of hardware and software obstacles known as a firewall (a security system with specialized software to prevent outsiders from entering private networks). An intranet may be as simple as two computers networked in a home office, or as complex as a network linking the offices of a global corporation. The reasons for having an intranet are to communicate among the members of the organization and to involve them in improving their effectiveness and collaboration.

Why Have an Intranet? Communication The intranet can replace newsletters, reports, lists of job openings, manuals, procedures, employee guidelines, meeting schedules, details of benefit plans, and lunch menus. The benefits of using the intranet are substantial as follows: An intranet document can be put up when convenient for the creator, and read when convenient for the reader. The documents can be simple text or full multimedia. The communication can be one-way, from the creator to the reader, or it can include forms and discussion boards to let the reader communicate back to the creator or to other readers. The documents can be easily indexed and searched, making the information they contain easier to find and use. Information can be shared over many different computers and workstations, not just PCs.

Why Have an Intranet? (Cont.) Productivity When critical documents are located in a central place, people can find them easily. Often one of the first applications built for intranets is a central repository of forms, in electronic format, so that users can find the form they need quickly, and print it at their convenience. Cost Reduction The intranet can be used in place of the telephone and the printer, and reduce costs for phone calls, faxes, and paper as well as the cost of distributing and delivering. It also helps decreasing the costs of missed opportunities, missed meetings, or misunderstandings. Employee Involvement If the intranet is perceived as a team effort, and everyone is given the chance to participate, they will use it often and take pride in its growth.

What Do You Put on an Intranet? Conducting a needs analysis A needs analysis is an analysis of what users need on the intranet in order to meet the intranet’s objectives. Before collecting information, a policy needs to be set on how open the company wants to be with its employees. Once the policy is established, specific documents and their priority have to be identified. For each document, the following questions should be answered: How wide an audience does it have? How often is it produced and revised? Does the addition of intranet features such as searching, forms, and hyperlinks make it more interesting?

Types of Intranets Decentralized intranets More than one group within an organization creates and services a web site. Some advantages are: Departments and groups have control over what content they want to put up in their area. They have believed it and are more influenced to use the entire intranet. The content of the intranet tends to change more quickly because more groups are involved in maintaining it. Some disadvantages are: Inconsistent design, inconsistent frequency of update, and inconsistent quality of information There might be several dispersed intranet servers that will eventually need maintenance.

Types of Intranets (Cont.) Centralized intranets One central group (or person) is responsible for developing the structure (both technical and informational) and maintaining the intranet. Some advantages are: A consistent interface design, which helps usability and navigability A consistent quality of information and frequency of updating that information Easier maintenance from a technical perspective, because usually there is only one server Some disadvantages are: Usage levels can be low due to lack of involvement in the development process. Site content can get out of date more easily if one group is trying to keep many different groups’ content up to date. Growth of the intranet can be slow.