Role of Internet and Intranet

THE ROLE OF INTRANETS IN INFORMATION SYSTEM What is an Intranet? An Intranet has been described as a enterprise-wide network which uses Internet technology as its underlying architecture.. Companies, universities and other organizations have been using computer networks for decades. The difference between an Intranet and any other network is its use of Internet technology. Moreover, an Intranet is more than just a network, it is an information system. Because Intranets rely on computer hardware and software for processing and disseminating information, Intranets meet the definition of computer based information systems. Depending on how they are used, an Intranet can be considered to be a strategic or competitive information system. This argument is strengthened by the part Intranets play in electronic commerce systems.Intranets run on Internet protocols, such as Transmission Control Protocol/Internet Protocol (TCP/IP), and HyperText Transfer Protocol (HTTP) for communications. These Internet protocols are common languages that can bridge different types of computers that run various operating systems. Many Intranets need to connect to legacy systems - hardware and databases that were built before the Intranet on pre-existing, sometimes proprietary systems and mainframes. One of the advantages of Intranets is their ability to provide access to documents created by unrelated legacy systems. Examples of legacy documents might include contracts or text documents developed with word processing programs; budgets created from spreadsheets; magazines and brochures created using desktop publishing software; and company logos and graphics which are incompatible with Internet graphics standards. Some of the methods used to connect legacy systems to Intranet include CGI programs (common gateway programs), and Java programming language which can be used on virtually any operating system. Intranets help to overcome some of the limitations of existing local and wide area networks LAN's and WAN's). The justifications for creating Intranets as enterprise-wide information systems include at least five core functions: (1) E-mail, (2) Sharing of files, knowledge, information and ideas, (3) Accessing databases, organizing directories, and the management and manipulation of information, (4) Searching and querying databases, and (5) Network management, maintenance and modification of the Intranet's characteristics, and user access. Although current networks provide each of these functions, they usually provide them in different platforms and interfaces, and not on an enterprise-wide basis. II. Limitations of Traditional Networks And Proprietary Systems Traditional LAN's and WAN's have problems that can be solved with the introduction of Intranet technology. The main problem with LAN=s and WAN's concerns the inability of different computers, programs and operating systems to communicate with each other. For example, file sharing might use IPX protocols (Internet packet exchange). Databases could be running on UNIX systems using TCP/IP. Mainframes generally use SNA protocol. These problems were the result of companies using separate incompatible legacy systems. The solution to this problem

required translation software or using a common denominator or protocol like TCP/IP on all systems. The architecture of traditional networks required users had to be trained on, and master software on each different system. Persons working in one department could not access information contained in the information system of other departments. Even if they could, individuals were trained only to use the applications and systems specific to their departments. Data redundancy and duplication wasted scarce resources. Out of date information was often stored in obsolete systems, and it was difficult to access vital business information in a timely manner. The problems boil down to having Atoo many isolated sources of information and too many copies of the same information in different locations in the network.. Other limitations of networks running proprietary systems include lack of uniform search capabilities, and the expense of proprietary software. III. Rationale for Intranets The rationale and approach used to determine whether a company will build or adopt an Intranet is similar to that used to determine whether any new information system will be brought in. These considerations include defining the project; studying the existing systems -- analyzing the problems/solutions to be achieved with the new system; designing the new system; programming or translating the design specifications into software code; installing the system; and post-implementation evaluation. One major difference between the development of an Intranet system and most other systems is that any company with an existing network already has most of the components already in place. Typical reasons given for introducing an Intranet include cost savings, ability to report company performance data, cross-functional information sharing, improved employee communications, information access, employee morale and enhancement, productivity enhancement, sales support, teamwork and group support functions, and use as a means for management to communicate directly with employees across an entire enterprise whether it is one location, global in scope. IV. Using an Intranet for Information Management An Intranet is designed to be an enterprise-wide information system. Any person with a web or Internet browser and access to the network can take part in information management on an Intranet. Most personal computers today come with web browsers pre-loaded. Intranets can provide a user interface for most applications today, as vendors continue to design programs for the Internet. Intranet information systems can retrieve virtually any document type on-line, display reports generated by external applications, support E-mail applications, support on-line real-time commercial transactions and automatically provide feedback on system usage.

Intranets are platform neutral and may be operated with legacy systems, existing databases and by departments that use different operating systems. Many application vendors are pouring resources into Web-based products. Thus, Intranet technology can be used to launch most specific application software. Because Intranet technology uses familiar graphical user

interfaces with off-the-shelf browser software used by most persons today, the technology is user friendly, and requires little or no training. It is point and click technology. Intranets permit communication both within and outside of an organization B using E-mail and electronic commerce. Because Intranets are used for electronic commerce, they are a type of transaction processing system. A Asecured server@ is often little more than an Intranet with restricted access. Mainframe vendors are responding to Intranet technology by producing Middleware - software that bridges the gap between mainframe legacy databases and desktop web browsers. Middleware is based on ODBC (Open Database Connectivity) standards. Both IBM and Oracle have developed similar programs. In fact, the Internet/Intranet technology is viewed as an opportunity for software makers to revitalize their businesses with new Web-based products.(9) Another advantage to the use of Internet technology is the availability of powerful search engines which allow data to be retrieved by anyone with access to that portion of the system. The process of simply entering search terms is contrasted with the conventional method of trying to find information on a particular server, in a specific directory or subdirectory, by a specific file name. Internet search engines are designed to retrieve data based on simple, user friendly keyword searches. Information that is accessible and timely is certainly a strategic asset. In terms of timely information, the process of updating pages on the Intranet no longer requires HTML authoring skills. Both Microsoft Word and Corel WordPerfect are shipped with HTML conversion and authoring capabilities. Intranets are used to facilitate document management functions. In most cases, document management functions are specific to particular departments, or hardware or software platforms. Since companies began to adopt Internet technology internally, the need for document conversion, publication, and information dissemination, and retrieval has increased. Intranets have become intertwined with the concept of data warehousing. A data warehouse is a database which includes reporting and querying tools that store current and historical data useful to managers. The data in a data warehouse is generally in a form that cannot be altered, but merely retrieved and organized into different reporting formats. Unlike conventional networks, an Intranet provides access what some consider the world's largest data warehouse the Internet. The advantages of data warehousing include simplicity, and better quality data. Most Internet or Intranet documents are written in Hypertext Markup Language (HTML). HTML's most prominent feature is the use of hypertext links which permit users to proceed from document to document, and site to site with no knowledge or programming nuances. There is some concern that the adoption of Intranets would require large volumes of data to be converted to HTML. This is not necessarily so. One way for companies to access non-HTML documents is to use a Gopher system. Gopher is a TCP/IP based system. Gopher was developed as a hierarchical, menu-based filing structure for storing files on the Internet. As such, it is not necessary for organizations to convert all of the documents to HTML format to be used with an Intranet. The documents can be retrieved in their native format just as they were prior to the installation of the Intranet, if need be. These documents can include text or image files. Other universal methods for transferring files over the Internet include File Transfer Protocol ( FTP), or Adobe's Portable Document Format (PDF).

Intranets also support multimedia, permitting both sound and video to be sent to employee's desktops. Among the challenges of managing legacy systems and Intranets is how to integrate them both into new dynamic databases. Without an integrated database, persons do not know where to look for information. Intranets are not used only for static HTML. HTML has continued to evolve. Newer versions of HTML emphasize interactivity. This is generally referred to as Dynamic HTML (DHTML). Information on DHTML pages is generated from a database in response to queries from end users. Properly designed web pages can be intelligent enough to connect to a database, retrieve the data, display it, and allow end users to add, delete, or update the data. More companies are relying on Intranets for (1) mission critical information and (2) accessing legacy databases, customized content, and other applications that are dependent on the availability of current data which can be manipulated to meet the needs of the user. Today, database vendors have developed programs to allow users to query and extract data from many legacy systems, including mainframes.(13) These programs include software such as ORACLE, SQL and Java. Intranet Security Issues. An Intranet, because it may contain a vast amount of proprietary and confidential information must be secure from unauthorized access from both outside and within. Like any network, an Intranet can be configured to restrict and grant access to those persons or departments who need specific information. This is even more sensitive with Intranets because they are often linked to the Internet which provides unrestricted access. The solution for Intranets is often referred to as a AFirewall@. Generally, a Firewall is erected between an Intranet and the Internet. A Firewall is a combination of software or hardware that permits persons from inside the Intranet to access the Internet, but which either prevents persons on the Internet from accessing the Intranet data or restricts that access (e.g.: when someone orders a product from the company's Intranet. This is typically achieved through the means of a proxy server, a server which is situated between the Internet and Intranet. The proxy server acts like a sentry, permitting access to authorized users and blocking access to others. Some of the major goals to security measures include (1) to prohibit access to the Intranet from unwanted outside visitors, (2) protection of confidential data, (3) protection from viruses, (4) the desire to ensure that internal information stays inside, (5) to restrict competitors access to data, and (6) to protect the system from internal hackers.

Among the security precautions that have been taken to protect Intranets include (1) data encryption, (2) Fire walls, (3) Multiple server locations (mirrors), (4) Password identification, and (5) Explicit policies with clear consequences for violations. Hardware Intranets run on the same hardware as other client/server networks. Networks need routers, switches, wires, cables and network interface devices, as well as client and server computers. Generally, servers have faster processors (Pentium 166 at a minimum) and large amounts of

hard disk storage. A server may be any type of computer mainframe or PC, running different operating systems (e.g.; Windows, UNIX or Macintosh). Current Windows NT software already supports networking. An Intranet may be established on any existing network that supports Transmission Control Protocols and Internet Protocols (TCP/IP). E-Commerce Electronic commerce, commonly known as e-commerce or eCommerce, or e-business consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks. The amount of trade conducted electronically has grown extraordinarily with widespread Internet usage. The use of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at some point in the transaction's lifecycle, although it can encompass a wider range of technologies such as e-mail as well. A large percentage of electronic commerce is conducted entirely electronically for virtual items such as access to premium content on a website, but most electronic commerce involves the transportation of physical items in some way. Online retailers are sometimes known as e-tailers and online retail is sometimes known as e-tail. Almost all big retailers have electronic commerce presence on the World Wide Web. Electronic commerce that is conducted between businesses is referred to as business-tobusiness or B2B. B2B can be open to all interested parties (e.g. commodity exchange) or limited to specific, pre-qualified participants (private electronic market). Electronic commerce that is conducted between businesses and consumers, on the other hand, is referred to as businessto-consumer or B2C. This is the type of electronic commerce conducted by companies such as Amazon.com. Online shopping is a form of electronic commerce where the buyer is directly online to the seller's computer usually via the internet. There is no intermediary service. The sale and purchase transaction is completed electronically and interactively in real-time such as Amazon.com for new books. If an intermediary is present, then the sale and purchase transaction is called electronic commerce such as eBay.com. Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of the business transactions. History Early development The meaning of electronic commerce has changed over the last 30 years. Originally, electronic commerce meant the facilitation of commercial transactions electronically, using technology such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT). These were both introduced in the late 1970s, allowing businesses to send commercial documents like purchase orders or invoices electronically. The growth and acceptance of credit cards, automated teller machines (ATM) and telephone banking in the 1980s were also forms of

electronic commerce. Another form of e-commerce was the airline reservation system typified by Sabre in the USA and Travicom in the UK.

From the 1990s onwards, electronic commerce would additionally include enterprise resource planning systems (ERP), data mining and data warehousing. An early example of many-to-many electronic commerce in physical goods was the Boston Computer Exchange, a marketplace for used computers launched in 1982. An early online information marketplace, including online consulting, was the American Information Exchange, another pre Internet[clarification needed] online system introduced in 1991. In 1990, Tim Berners-Lee invented the WorldWideWeb web browser and transformed an academic telecommunication network into a worldwide everyman everyday communication system called internet/www. Commercial enterprise on the Internet was strictly prohibited until 1991.[1] Although the Internet became popular worldwide around 1994 when the first internet online shopping started, it took about five years to introduce security protocols and DSL allowing continual connection to the Internet. By the end of 2000, many European and American business companies offered their services through the World Wide Web. Since then people began to associate a word "ecommerce" with the ability of purchasing various goods through the Internet using secure protocols and electronic payment services. Timeline 1979: Michael Aldrich invented online shopping 1981: Thomson Holidays, UK is first B2B online shopping 1982: Minitel was introduced nationwide in France by France Telecom and used for online ordering. 1984: Gateshead SIS/Tesco is first B2C online shopping and Mrs Snowball, 72, is the first online home shopper 1985: Nissan UK sells cars and finance with credit checking to customers online from dealers' lots. 1987: Swreg begins to provide software and shareware authors means to sell their products online through an electronic Merchant account.[citation needed] 1990: Tim Berners-Lee writes the first web browser, WorldWideWeb, using a NeXT computer. 1994: Netscape releases the Navigator browser in October under the code name Mozilla. Pizza Hut offers online ordering on its Web page. The first online bank opens. Attempts to offer flower delivery and magazine subscriptions online. Adult materials also become commercially available, as do cars and bikes. Netscape 1.0 is introduced in late 1994 SSL encryption that made transactions secure.

1995: Jeff Bezos launches Amazon.com and the first commercial-free 24 hour, internet-only radio stations, Radio HK and NetRadio start broadcasting. Dell and Cisco begin to aggressively use Internet for commercial transactions. eBay is founded by computer programmer Pierre Omidyar as AuctionWeb. 1998: Electronic postal stamps can be purchased and downloaded for printing from the Web. 1999: Business.com sold for US $7.5 million to eCompanies, which was purchased in 1997 for US $149,000. The peer-to-peer filesharing software Napster launches. ATG Stores launches to sell decorative items for the home online. 2000: The dot-com bust. 2002: eBay acquires PayPal for $1.5 billion. Niche retail companies CSN Stores and NetShops are founded with the concept of selling products through several targeted domains, rather than a central portal. 2003: Amazon.com posts first yearly profit. 2007: Business.com acquired by R.H. Donnelley for $345 million. 2009: Zappos.com acquired by Amazon.com for $928 million.[4] Retail Convergence, operator of private sale website RueLaLa.com, acquired by GSI Commerce for $180 million, plus up to $170 million in earn-out payments based on performance through 2012. 2010: US eCommerce and Online Retail sales projected to reach $173 billion, an increase of 7 percent over 2009. Business applications Some common applications related to electronic commerce are the following: Email Enterprise content management Instant messaging Newsgroups Online shopping and order tracking Online banking Online office suites Domestic and international payment systems Shopping cart software Teleconferencing

Electronic tickets Government regulations In the United States, some electronic commerce activities are regulated by the Federal Trade Commission (FTC). These activities include the use of commercial e-mails, online advertising and consumer privacy. The CAN-SPAM Act of 2003 establishes national standards for direct marketing over e-mail. The Federal Trade Commission Act regulates all forms of advertising, including online advertising, and states that advertising must be truthful and non-deceptive. Using its authority under Section 5 of the FTC Act, which prohibits unfair or deceptive practices, the FTC has brought a number of cases to enforce the promises in corporate privacy statements, including promises about the security of consumers personal information. As result, any corporate privacy policy related to e-commerce activity may be subject to enforcement by the FTC. The Ryan Haight Online Pharmacy Consumer Protection Act of 2008, which came into law in 2008, amends the Controlled Substances Act to address online pharmacies. Forms Contemporary electronic commerce involves everything from ordering "digital" content for immediate online consumption, to ordering conventional goods and services, to "meta" services to facilitate other types of electronic commerce. On the consumer level, electronic commerce is mostly conducted on the World Wide Web. An individual can go online to purchase anything from books or groceries, to expensive items like real estate. Another example would be online banking, i.e. online bill payments, buying stocks, transferring funds from one account to another, and initiating wire payment to another country. All of these activities can be done with a few strokes of the keyboard. On the institutional level, big corporations and financial institutions use the internet to exchange financial data to facilitate domestic and international business. Data integrity and security are very hot and pressing issues for electronic commerce today. Impact on markets and retailers Economists have theorised that e-commerce ought to lead to intensified price competition, as it increases consumers' ability to gather information about products and prices. Research by four economists at the University of Chicago has found that the growth of online shopping has also affected industry structure in two areas that have seen significant growth in e-commerce, bookshops and travel agencies. Generally, larger firms have grown at the expense of smaller ones, as they are able to use economies of scale and offer lower prices. The lone exception to this pattern has been the very smallest category of bookseller, shops with between one and four employees, which appear to have withstood the trend. Enterprice Resource Planning: Enterprise Resource Planning or ERP is actually a process or approach which attempts to consolidate all of a company's departments and functions into a single computer system that

services each department's specific needs. It is, in a sense, a convergence of people, hardware and software into an efficient production, service and delivery system that creates profit for the company. While the idea is easy to grasp in theory, the reality has been different. Most companies have a conglomeration of different systems and procedures (as well as hardware and software) designed 'specifically' for their own needs. Employee records (including payroll, medical and other benefits) are held by Human Resources. Financial data and processing, which includes payroll computations and employee compensation as well as invoicing and billing for company products and services, are held by the Finance Department. Production data is held by manufacturing. Inventories are held by warehousing. Customer orders are held by Customer Relations, and so on. The 'dream' of ERP is to have a single software solution integrating the different functions and activities into a seamless whole where information needed for decision-making is shared across departments, and the action taken by one department results in the appropriate follow-up action up and down the line. The most often-cited example of an ERP software is customer ordering and delivery where a customer's order moves smoothly from Sales, where the 'deal' is consummated, to Inventory and Warehousing, which retrieves and packages the order for delivery, to Finance, where invoicing, billing and payments are handled, and on to Manufacturing, where replacement of the bought-and-paid-for product is done. Primary Benefit Prior to ERP, each department may be considered an independent fiefdom. Once a department's particular function is completed, it no longer cares for what happens afterwards. A customer following up with Sales for his product will be told, "Check with Warehouse", who will then say, "Check with Delivery", who can tell the customer, "Please check with Finance to see if your invoice has been cleared". Efforts to integrate the system before always met with the stumbling block of different software and procedures. A sales person could not access the finance database to find out the customer's billing status, nor can he easily access the warehouse, inventory or delivery to find out the status of the customer's order. With ERP, all elements in the supply and production chain can be easily accessed by all those who need the information. This leads to efficiency in customer management and perceived company effectiveness in delivering on customer expectations. Other Advantages An oft-overlooked advantage in having a workable and efficient ERP system in place is savings in relation to energy consumption and data management. Having an ERP system in place implies having a single hardware system to handle the different requirements, translating into reduced power consumption operating off a single database which translates into savings on storage.

The savings generated from a minimum of hardware and storage, coupled with operational efficiencies created from a single system across all departments, translates into measurable profit for the company.