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Module 15: The Internet

1999, Cisco Systems, Inc.

Agenda
What Is the Internet? The New Business Model Intranets Extranets E-Commerce Technology Implications of Internet Applications
www.cisco.com
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The Internet: A Network of Networks

CSE: Networking FundamentalsInternet

www.cisco.com

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Internet Hierarchy
Boston

ISP POP

ISP POP

Backbone
NAP NAP

San Francisco

Routers and circuits Multiple paths Adaptive routing


www.cisco.com
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CSE: Networking FundamentalsInternet

The New Business Model

Presentation_ID

1999, Cisco Systems, Inc. 1999, Cisco Systems, Inc.

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The Internet Is Changing the Way Everyone Does Business


The Internet is driving acceleration of technology adoption. Compression of:
Time Distance Business cycles

Internet

Market turbulence

Networked business
Rapid transformation
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www.cisco.com

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Forces Driving Change

Compressed Product Lifestyle

Need to Do More with Less

Blurring of Geographical Boundaries


CSE: Networking FundamentalsInternet

Blurring of Industries
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www.cisco.com

Traditional Business Model Versus New Business Model


Traditional
Closely held knowledge base Limited access to information
Costly duplication of effort Limited hours to conduct business
CSE: Networking FundamentalsInternet

New
Widely distributed among partners, suppliers Ubiquitous access to information by employees Removal of redundancy through cost justification and analysis Global 24 x 7 access
www.cisco.com
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Todays Internet Business Solutions

Intranets Extranets E-commerce

CSE: Networking FundamentalsInternet

www.cisco.com

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Intranets

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What Is an Intranet?
An internal network based on Internet and WWW technology that delivers immediate, upto-date information and services to networked employees
Platform independent
Quick to implement Global reach

CSE: Networking FundamentalsInternet

www.cisco.com

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Typical Intranet Applications

Employee self-service Distance learning Technical support Videoconferencing

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www.cisco.com

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Example: Employee Self-Service


What can you do with employee self-service?
Business management and planning Internal communications Human resources; benefits, training, 401K, payroll Internal IT services Budgeting, sales and revenue forecast EIS/daily operations management and enterprise reporting Corporate travel Market intelligence
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www.cisco.com

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Benefits of Intranets
Increase employee productivity Provide easy access to information Improve design productivity and compress time to market Improve global communications Minimize downtime and cut maintenance costs Realize cost savings

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www.cisco.com

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Extranets

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What Is an Extranet?
An extension of the company network, facilitating secure collaborative connections with:
Key customers Suppliers Partners

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www.cisco.com

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Typical Extranet Applications



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Supply-chain management Customer communications Distributor promotions Online continuing education/training Customer service Order status inquiry Inventory inquiry Account status inquiry Warranty registration Claims Online discussion forums
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Example: Supply Chain Management

Distributors/ Suppliers Manufacturers Wholesalers Retailers Consumers

From my suppliers suppliers to my customers customers


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www.cisco.com

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Benefits of Extranets
Provide access to specific company information, and facilitate closer working relationships
Streamline day-to-day operations with your partners and suppliers Reduce inventories and cycle times Improve channel performance

Reduce costs
Improve customer satisfaction

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www.cisco.com

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E-Commerce

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E-Commerce Market Growing Rapidly


349 327 97% of companies conducting e-commerce have less than 499 employees 71% of them have less than 49 employees!

Business to Consumer Business to Business Total 123 131 25 31

0.5 0.6 1.1

8 2000

22
2002

1996
Source: Forrester Research
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1998

www.cisco.com

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Typical E-Commerce Applications


Online catalog Order entry

Configuration
Pricing Order verification Credit authorization Invoicing Payment and receivables Inventory management
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www.cisco.com

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Benefits of E-Commerce

Increase revenues
Sell into global markets Improve customer satisfaction with self-service application Manage inventory levels more effectively Decrease costs

CSE: Networking FundamentalsInternet

www.cisco.com

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Technology Implications of Internet Applications

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Technology Implications of Internet Applications


Higher bandwidth requirements
Security Potential of Virtual Private Networks EDI

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www.cisco.com

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Applications Need Bandwidth


Kbps
Leased Line, 1544 Frame Relay, XDSL 128 64 56K

Video, Multimedia

Simple Video, Voice


ISDN, FR

Web Browsing
New Modem

28.8

E-Mail, File Transfer


Old Modem

19.2
9.6

Telnet

Minimum Bandwidth for Application per User


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www.cisco.com

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Internet Security Solutions


Headquarters Sales Office
Mainframe

Gateway Internet

Firewall Campus Backbone Public Web Server

ISDN
PSTN

3178454

Firewalls Network Address Translation (NAT) Encryption: IPSec, DES, 3DES Token cards AAA
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Intranet Servers

AAA Server

Token Card

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Virtual Private Network


IP Packet (Private, Encrypted) IP Header (Public)

Extends private network through public Internet Lower cost than private WAN Relies on tunneling and encryption

Internet

Geneva

Frankfurt

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www.cisco.com

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Electronic Data Interchange (EDI)


Internet

Boston San Francisco EDI Format Purchase Order (Encrypted)

Public IP Packet

Trading partners send and receive documents Proprietary formats are converted into partner-agreed EDI standards Reduces time, cost, and errors
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www.cisco.com

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Summary
Internet business solutions create competitive advantage

Employees

Customers

Higher customer satisfaction Lower costs Partners Competitive agility Accelerated time-to-market Higher employee efficiency
CSE: Networking FundamentalsInternet

Suppliers Ubiquitous connectivity where the business runs on the network

www.cisco.com

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