Chapter 7

Intrabusiness,
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Learning Objectives
Define intrabusiness e-commerce and
describe its major activities
Describe the intranet and its use in
organizations
Understand the relationship between
corporate portals and the intranets
Describe e-government to citizens (G2C)
and to business (G2B)
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Learning Objectives (cont.)

Describe various e-government initiatives
Understand how peer-to-peer technology
works in intrabusiness, B2B, and in C2C ecommerce

Discuss online publishing and e-books.

Describe e-learning and virtual
universities
Describe knowledge management and
dissemination
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E-Learning at Cisco
The Problem
Cisco Systems sells devices that connect
computers and databases to the Internet and
other networks
Products continuously being upgraded or
replaced

Extensive training is needed for:

Employees
Business partners
Independent students

In-house training 6 to 10 times a year was

expensive and
ineffective
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Hall, 2003

E-Learning at Cisco (cont.)

The Solution
Implemented e-learning programs allow students
distance-learning of new software, hardware,
procedures
Encourages its employees to use e-learning, by:
Nonthreateninganonymous testing and
scoring
Additional incentives and rewards for elearners
Makes e-learning a mandatory for employees
Offers easy access to e-learning tools

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E-Learning at Cisco (cont.)

The Results
Return on investment:
Saves $1,200 per SE
first offeringrecovered
development costs and saved $8,000

By 2002, Cisco developed 75 e-learning

courses and was planning to develop
more
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Intrabusiness and
Business-to-Employee E-Commerce
Intrabusiness ECe-commerce activities
conducted within an organization
Between a business and its employees
Between units within the business
Among employees in the same business

Business-to-employees (B2E)
intrabusiness in which an organization
delivers products or services to its
employees
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Intrabusiness and B2E EC (cont.)

Training and education provided over intranets
Electronically order supplies and material needed
for work
Buy discounted insurance, travel packages, etc.,
on corporate intranet
Corporate stores sell companys products at a
discount
Businesses disseminate information on the
intranet
Employees manage fringe benefits take classes
and more

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Activities Between Units

Within a Business
Large corporations consist of independent
units that sell or buy materials,
products, and services from each other
These transactions can easily be
accomplished over the intranet
Network constructed to link dealerships
owned by the corporation
Support communication
Collaboration
Execution of transactions

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Intrabusiness E-Commerce
at Toshiba America
At Toshiba:
300 dealers needed parts quickly
Orders placed by phone or fax by 2:00 in
order to have next-day delivery
Shipping fees expensive
Cumbersome order-entry system created
in 1993 with no significant improvement
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Toshiba America (cont.)

1997, Toshiba created a Web-based orderentry system using extranet/intranet
Dealers place orders for parts until 5:00 for
next-day deliverymatter of hours to
shipping
Physical warehouse in Memphis, TN near
FedEx headquarters ensures quick delivery
Dealers also:
Check accounts receivable balances
Pricing arrangements
Read service bulletins, etc.
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Activities Among
Corporate Employees
Large organizations have classified ads
on the intranet where employees can buy
and sell products and services from each
other
Especially popular in universities
Interconnect their intranets to increase
exposure
Employees collaborate and communicate
using EC technologies
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Intranets
Intraneta corporate LAN or wide area
network (WAN) that uses Internet
technology and is secured behind a
companys firewalls; designed to serve the
internal informational needs of a company
Provides Internet capabilities, search
engines, tools for communication and
collaboration
Cost of converting an existing network
system to internal Web is relatively low
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Intranets (cont.)
Fairly safe within company firewalls
Employees can get out on the Web easily
Outsiders cannot get into the intranet

Change organizational structures and

procedures, help reengineer corporations
More intranet examples:
Business intelligence
Public services
Corporate information
Customer service
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Wireless LANs Speed

Hospital Insurance Payments
Bridgetona holding company
operating four hospitals in New Jersey
Uses wireless LANs:
To process insurance documentation
To reduce the number of denied claims

Via notebook computers, nurses

aggregate all the documents needed by
the insurance company and submit them
electronically
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Wireless LANs Speed

Hospital Insurance Payments (cont.)
Network environment :
Supports an intranet
Broadcasts data 120 feet from nursing
workstations
Enable nurses to maintain a connection in
patient rooms
Radio card in the notebook computer goes into a
roaming mode similar to a cellular phone

Wireless environment enabled changes in

business processes
Faster
Fewer errors

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Wireless LANs Speed

Hospital Insurance Payments (cont.)

Good return on investment

Savings in six-figure dollar amounts
Moderate cost of setting up the network
$200 for each notebook computer
radio card
$750 for each of 28 wireless access
points
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Building Intranets
To build an intranet, a company needs:
Web servers
Browsers
Web publishing tools
Back-end databases
TCP/IP networks (LAN or WAN)
Firewalls

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Exhibit 7.1
Architecture of an Intranet

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Intranet Functionalities
Intranet functionalities
Web-based database access for ease of use
Search engines, indexing engines, directories
assisted by keyword search
Interactive communicationchatting, audio
support, videoconferencing
Document distribution and workflow
Groupware
Conduit for computer-based telephony system
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Intranet Application Areas

Intranet application areas
Search and access
to documents
Personalized
information
Enhanced
knowledge sharing
Individual decision
making
Software
distribution

Document
management
Project management
Training
Enhanced transaction
processing
Paperless information
delivery
Employees control
their own information

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Benefits of an Extranet
When intranets are combined with an
external connection to create an
extranet, benefits occur:
Much cheaper
Electronic commerce
Customer service
Enhanced group decision making and
business processes
Virtual organizations
Improved administrative processes
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Industry-Specific Intranet Solutions

Classified by industry instead of
technology
Top 100 intranet/extranet solutions
classifications
Financial services
Information technology
Manufacturing
Retail
Services

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Enterprise (Corporate) Portals

Corporate (enterprise) portala gateway for
entering a corporate Web site, enabling
communication, collaboration, and access to
company information
Provide single-point access to specific enterprise
information and applications available on:
Internet
Intranets
Extranets

Companies may have separate portals for

outsiders and for insiders

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Exhibit 7.2
Corporate Portal as a Gateway to
Information

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Corporate Portals Applications

Knowledge bases and
learning tools
Business process
support
Customer facing sales,
marketing, services
Collaboration and
project support
Access to data from
disparate corporate
systems
Personalized pages for
users

Effective search and

indexing tools
Security applications
Best practices and
lessons learned
Directories and bulletin
boards
Identification of
experts
News
Internet access

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Exhibit 7.3
Corporate Portal Framework

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Intranet/Portal Example:
Cadence Design Systems
Business challenge
Support customers entire product
development cycle
Sales
Delivery

Needed a real understanding of

organizations issues while interacting with
customers
Coordination
Communication

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Cadence Design Systems (cont.)

The solution: intranet and portal technology
Corporate portalWeb-based single point of
information supporting sales process
OnTrack uses home page with links to other
pages
Unified tool provides all information and data
needed

All creators of information are responsible for

maintaining information in OnTrack
Custom tools make it easy to add a message to
the daily newsletter, modify a step in sales
process, or update a customer presentation
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Cadence Design Systems (cont.)

Lessons learned
Difficult task to balance cost of training
against return
Key to successunifying technology with
process
Design structure to satisfy 80% instead of
100% of process
Outsourced creation of application
Shortened training time for new sales
reps
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E-Government: An Overview
E-governmentthe use of IT and e-commerce
to provide access to government information
and delivery of public services to citizens and
business partners
Efficient and effective method of conducting
business transactions
Opportunity to improve the efficiency and
effectiveness of the functions of government
Make government more transparent to citizens
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Government-to-Citizens (G2C)
Government-to-citizens (G2C)e-government
category that includes all the interactions
between a government and its citizens
Citizens can:
Find all the information they need on the Web
Ask questions and receive answers
Pay tax and bills
Receive payments and documents
Electronic benefits transfer (EBT) is an
example of G2C applications
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Government-to-Business (G2B)
Government-to-business (G2B)egovernment category that includes
interactions between governments
and businesses (government selling
to businesses and providing them
with services, and businesses selling
products and services to government)

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Government-to-Business (cont.)
E-procurement
Large amounts of MROs and materials
direct from many suppliers
Uses basically a reverse auction system

E-auctions
Auction surpluses from vehicles to real
estate
May use 3rd-party site
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Contract Management in Australia

Western Australian (WA) government
agency CAMS Online focus is to
develop online contract management
solutions for the public sector
Government agencies can search
existing contracts to access the
commonly used contracts
Government suppliers can view the
current tenders (bids)
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Contract Management in Australia (cont.)

Provides government departments
with expert advice on:
E-commerce
Internet
Satellite services
How-tos on building a bridge between the
technological needs of the public sector
and the expertise of the private sector

Offers various types of support for

government procurement activities
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Contract Management in Australia (cont.)

Support of e-commerce activities
Government electronic market provides
ProcureLink
SalesNet

Training online
Westlink delivers adult training and educational
programs to remote areas and schools
Videoconferencing service offers two-way video
and audio links
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Government-to-Government (G2G)
Government-to-government (G2G)
e-government category that includes
activities within government units and
those between governments
Government-to-employees (G2E)
e-government category that includes
activities and services between
government units and their employees
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G2E in the U.S. Navy

The U.S. Navy uses G2E to improve
the flow of information to sailors and
their families
Quality-of-life information includes:
Self-help
Deployment support
Stress management
Parenting advice
Relocation assistance
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G2E in the U.S. Navy (cont.)

Lifelines2000.org
reaches overseas
personnel using:
Internet
Simulcasting
Teleconferencing
Cable television
Satellite
broadcasting

Other e-services to
navy personnel:
Online banking
Personal finance
services
Insurance
Education
Training

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Implementing E-Government:
Transformation Process
Stage 1: information
publishing/dissemination
Individual government departments set up
their own Web sites that provide:
Information about them
Range of services available
Contacts for further assistance

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Transformation Process (cont.)

Stage 2: official two-way transactions
Using legally valid digital signatures and
secure Web sites, customers:
Submit personal information
Conduct monetary transactions

Customers must be convinced that:

System keeps their information private
System is free of piracy
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Transformation Process (cont.)

Stage 3: multipurpose portals
Customer-centric governments enhance
service delivery
Customer needs can cut across
department boundaries, portal allows
customers to use single point-of-entry to:
Send and receive information
Process monetary transactions across
multiple departments
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Transformation Process (cont.)

Stage 4: portal personalization
Customers can access a variety of services
at a single Web site
Customers can customize portals with their
desired features
Requires sophisticated Web programming
allowing interfaces
Added benefit is that governments get a
more accurate read on customer preference
Electronic services
Non-electronic services

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Transformation Process (cont.)

Stage 5: clustering of common services
All real transformation of government
structure takes shape here
Customers see a unified package instead
of once-disparate services
Distinction between departments begins to
blur
Recognize groups of transactions instead
of groups of agencies
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Transformation Process (cont.)

Stage 6: full integration and enterprise
transformation (see next slide)
Digital encyclopedia is now:
Full-service center
Personalized to each customers
needs and preferences

Old walls defining services are torn down

Technology integrated across new
government structure bridging gap
between front and back offices
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Exhibit 7.4
The Stages of E-Government

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E-Government in the State of

Victoria, Australia
Maxi (Maxi.com.au) is Victorias
e-government initiative with more
than 30 government-related services
Register vehicles
Obtain drivers licenses
Order birth certificates
Notify government of changes of address
Pay utility bills and fines
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Victoria, Australia (cont.)

Internet portal features four service
areas:
1. General information about Maxi
2. Bill payment and services by agencies
3. Life events (change of address, getting
married, turning 18)
4. A business channel
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Victoria, Australia (cont.)

Maxi kiosks are located in:
Shopping centers
Libraries
Government offices
Other public locations around Victoria

SecureNet Certificates provide:

Digital certificates of authenticity
Public keys for digital signatures
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Victoria, Australia (cont.)

To encourage greater use, Maxi offered
a lucky draw to users
Customer adoption of Maxi has
exceeded the governments
expectations
First year24,000 transactions/month
40% of transactions occur outside normal 9to-5 business hours
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Implementation Issues
Transformationchange is very slow
Implementing G2B
Build customer trust by increasing:
Privacy
Security
Confidentiality

Plan technology for growth and customer

friendliness
Manage access channels to optimize value
Weigh in-sourcing vs. outsourcing
Include strong change management program
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Implementing E-Government (cont.)

Security issuesconcerns include:
Data about citizens stays secure
Privacy of individuals is maintained

Non-Internet e-government
Emergency situations like the Federal
Emergency Management Agency (FEMA)
paperless help for California earthquake victims
Auctions conducted over private, secured lines
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Customer-to-Customer Applications
Customer-to-customer e-commerce
(C2C)e-commerce in which both the
buyer and the seller are individuals (not
businesses);involves activities such as
auctions and classified ads
Classified ads
Personal services
Exchanges
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Peer-to-Peer
Networks & Applications
Peer-to-peer (P2P)a network architecture
in which each workstation (or PC) has
similar capabilities; the networked peers
share data and processing with each other
directly rather than through a central server
Each workstation (PC) has similar capabilities
Benefit of P2P expands the universe of
information accessible
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Peer-to-Peer Networks (cont.)

Characteristics of P2P systems
User interface loaded outside the Web browser
User computers act both as clients or as
servers
Overall system is easy to use
System includes tools to support users wishing
to create content or add functionality
System provides connection with other uses
System does something new or exciting
Supports cross-networking protocols

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Exhibit 7.5
Peer-to-Peer Networks

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Peer-to-Peer Applications
P2P applications in C2C
C2Cusers sell digital goods directly from
their computers rather than go through
centralized servers
Computer resources and data file sharing
in modern office setting disk drives and
printers are shared

Intranet business applicationsP2P

facilitates internal collaboration
File sharing and swapping
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Peer-to-Peer Applications (cont.)

Business-to business
People can share
information but are
not required to
send it to an
unknown server
Companies use P2P
architecture as a
base for speeding
up business
transactions

Companies can
deliver two-way
collaborative
interactions that
are:
Dynamic
In real-time
Collaborative
Cost-effective
Client-focused

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Peer-to-Peer Applications (cont.)

Business-to-consumercombining P2P with
collaborative filtering for product searches
1. User enters search keyword
2. Keyword is sent to 100 peers, which search
local indices of Web pages
3. Those computers also relay query to 100 to
100 to 100 of their peers until 1,000,000
computers are queried
4. Resulting URLs are returned to the user,
weighted in favor of most recently visited
pages and peers with similar interests
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Online Publishing
Online publishingthe electronic
delivery of newspapers, magazines,
news, music, videos, and other
digitizable information over the Internet
Mainly used for disseminating information
and for conducting sales transactions
interactively
Includes customized material that the reader
will receive free, or for a fee
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Online Publishing (cont.)

Publishing Modes
Newspapers

Magazines
News
Textbooks
Music
Artwork
Video clips
Movies

Publishing Methods
Online archive
New medium
Publishing
intermediation
Dynamic or justin-time

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Online Publishing (cont.)

Content providers and distributors
Challenges moving into areas with lessdeveloped infrastructures
Issues of intellectual property is a
consideration
Akamai.com
Digisle.com
Edgix.com

Digimarc.com provides a tool for linking

print publications with the Web
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Online Publishing (cont.)

Publishing music, videos, and games
Major issue is payment of intellectual
property fees
Peer-to-peer (P2P) modelpeople swap
files
3rd-party organizer are in violation of
copyright laws (Napster)

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Online Publishing (cont.)

Edutainmentcombination of education
and entertainment, often through games
Goal: encourage students to become active
learners
Managerial issues
Educational games delivered as CD-ROMs
Distance-learning format

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Exhibit 7.6
A New Content Delivery Model

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Electronic Books
E-booka book in digital form that can
be read on a computer screen
Human readers must have an e-book
reader:
Adobe Acrobat eBook Reader
Microsoft Reader

Portable and convenient to carry70 ebooks on one CD-ROM

Can be updated frequently
Contain up-to-the-minute information
Are easy to search
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E-Learning
E-learningthe online delivery of information
for purposes of education, training,
knowledge management, or performance
management
Challenges of e-learning
Learners challenge is to change the mindset
of how learning typically takes place
Content providers challenge is to make
learning more interactive and engaging

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E-Learning (cont.)
Benefits of e-learningthe great equalizer
Eliminates barriers of time, distance,
socioeconomic status
Individuals take charge of their own lifelong
learning experience

E-learning provides a new set of tools that

add value to traditional learning modes
Does not replace the classroom setting, but
enhances it
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E-Learning (cont.)
E-learning also used in the business
environment
Provides a superior learning and
communication model that:
Increases access to learning
Provides clear accountability for all
participants
Reduces costs

Equips employees with the knowledge and

information needed to help increase
customer satisfaction
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E-Learning (cont.)
Drawbacks of e-learning
Need for instructor retraining
Equipment needs and support services
Lack of face-to-face interaction and
campus life
Assessment
Maintenance and updating
Protection of intellectual property
Computer literacy
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E-Learning (cont.)
Distance learningformal education
that takes place off campus, usually,
but not always, through online
resources
Virtual universityan online university
from which students take classes from
home or other off-site location via the
Internet
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E-Learning (cont.)
Virtual universities offer classes worldwide
May soon see integrated degrees, where
students can customize a degree that will best
fit their needs and take courses at different
universities

Online Training
A large number of organizations are using online
training on a large scale
digitalthink.com
click2learn.com
smartplanet.com

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Exhibit 7.7
Effects of E-Commerce Forces on
Education

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Knowledge Management
Knowledge management (KM)the process of
capturing or creating knowledge, storing it,
updating it constantly, and interpreting and
using it whenever necessary
Knowledge basethe repository for an
enterprises accumulated knowledge
Promotes an integrated approach to the process
of identifying, capturing, retrieving, sharing,
evaluating enterprise information assets:
Documented
Tacit expertise stored in individuals heads

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Online Advice and Consulting

Medical advice
Management consulting
Legal advice
Gurus
Financial advice

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Portal Speed R&D at Amway

For effective R&D, Amway must develop
new products in a streamlined and costefficient manner
To support design activity the need fast
and easy access to:
Product specifications Formulas
Design criteria
Production schedules
Costs
Sales trends
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Amway (cont.)
Artemisa business intelligence and
knowledge management portal
Easier access to corporate knowledge
Browser-based intranet application that
enables R&D to:
Quickly find the information and
knowledge they require
Collaboration tools
Database for locating company experts
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Amway (cont.)
Lotus Notes/Domino search agent
enables employees to:
Pull data from disparate corporate sources
Generate dynamic reports
Work in a highly secured environment

Time required to access information:

Dropped from days to minutes or seconds
Enabling fast what-if investigations
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Managerial Issues
Whos in charge of our intranet content?
Who will design the corporate portal?
How can we sell the intranet to users?
Who can access the intranet from the
outside?
What are the connectivity needs?
What intranet applications?
Are there e-government opportunities?
Are there P2P applications?
How well are we managing our knowledge?
Are there e-learning opportunities?
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Summary
Intrabusiness EC definedall EC initiatives
conducted within one organization
The intranet and its use in organizationsused for
internal communication, collaboration, and discovery
of information in various internal databases
The relationship between the corporate portal and
the intranetgateway through which users access
the various applications conducted over the intranet,
E-government to citizensgovernments providing a
large variety of services to citizens over the Internet

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Summary (cont.)
Other e-government activitiesusing EC
applications for great savings (e.g., eprocurement using reverse auctions)
Applications of peer-to-peer technologyallows
direct communication for sharing files and for
collaboration
Online publishing and e-books is growing rapidly
E-learning, virtual universities, and knowledge
management and disseminationis the delivery
of educational content via electronic media
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