Business Value of Telecommunication Networks:Internet Revolution and Business value of Internet, Intranet and Extranet.
Information and networking technologies are transforming the dynamics of business, economics, education, government, and even international relations. Traditional business strategies are losing out to new unconventional tactics. Relationships among customers, suppliers, employees, and competitors are changing. New businesses are popping up on the net. Businesses have become networked enterprises. The Internet, the Web, intranets and extranets are networking business processes and employees together, and connecting them to their customers, suppliers, and other business stakeholders. Through telecommunications, companies and workgroups can:
• Collaborate more creatively
• Manage their business operations and organizational resources more effectively
• Compete successfully in today’s fast-changing global economy
Many organizations today could not survive without a variety of interconnected computer networks to service their information processing and communications needs.
Information technology, especially in telecommunications-based business applications, helps a company overcome barrier to business success. Four strategic capabilities of telecommunications and other information technologies include:
• Overcome geographic barriers
• Overcome time barriers
• Overcome cost barriers
• Overcome structural barriers
The Internet Revolution
The explosive growth of the Internet and the use of its enabling technologies have revolutionized computing and telecommunications. The Internet has become the key platform for a rapidly expanding list of information and entertainment services and business applications, including enterprise collaboration, electronic commerce, and other e-business systems. The explosive growth of the Internet is the revolutionary technology phenomenon of the 1990s. The Internet has become the largest and most important network of networks today, and is evolving into the information superhighway of tomorrow. When this network of networks began to grow in 1991,
it had about 10 servers. In 2012, the internet was estimated to have more than two billion users with websites in 34 languages.
The internet is constantly expanding as more and more businesses and other organisations and their users, computers and networks join its global web. Thousands of business, educational and research networks now connect millions of computer systems and users in more than 200 countries.
The Internet is a global network of computers, working as servers or clients to exchange information. The Internet enables employees to gain remote access to the company’s internal systems through its Web site. They are able to better service customers and suppliers, improve operational efficiency, increase productivity, lower operational costs, have a broader market base, and reach more individual customers on a global scale by establishing a Web presence. The cost of e-mail and other Internet services tend to be far lower than equivalent voice, postal, or over night delivery costs, making the Internet a very inexpensive communication medium. It is also a very fast method of communication, with messages arriving anywhere in the world in a matter of seconds or minutes.
The Internet is a vast network of computers that connects millions of people all over the world. The Internet uses the client/server model of computing and the TCP/IP network reference model. Every computer on the Internet is assigned a unique numeric IP address. No one owns the Internet, and it has no formal management organization. However, worldwide Internet policies are established by organizations and government bodies, such as the Internet Architecture Board and the World Wide Web Consortium.
When a user sends a message to another user on the Internet, the message is first decomposed into packets using the TCP protocol. Each packet contains its destination address. The packets are then sent from the client to the network server and from there on to as many other servers as necessary to arrive at a specific computer with a known address. At the destination address, the packets are reassembled into the original message.
Though security and frauds are big concerns for the Internet world, but it being a global information superhighway makes it very popular among masses of all ages. It is a key platform for a list of information, business applications and entertainment services.
Distinguishing features of the Internet include:
• The Net does not have a central computer system or telecommunications center. Instead each message sent on the Internet has a unique address code so any Internet server in the network can forward it to its destination.
• The Net does not have a headquarters or governing body.
• The Net is constantly expanding
Internet Applications
• The most popular Internet applications are e-mail, instant messaging, browsing the sites on the World Wide Web, and participating in newsgroups and chat rooms.
• Internet browser software enables millions of users to surf the World Wide Web by clicking their way to the multimedia information resources stored on the hyperlinked pages of businesses, government, and other websites.
• Websites are the launch sites for electronic commerce transactions between businesses and their suppliers and customers.
• The Internet provides electronic discussion forums and bulletin board systems formed and managed by thousands of special-interest newsgroups.
• Other applications include downloading software and information files and accessing databases provided by thousands of businesses, governments, and other organizations.
• Hold realtime conversations with other Internet users.
• Gathering information through online services using Web browsers and search engines.
Business Use of the Internet
Business use of the Internet has expanded from an electronic information exchange to a broad platform for strategic business applications. Major business uses of the Internet includes:
• Collaboration among business partners
• Providing customer and vendor support
• Electronic commerce
• Marketing and sales
• Customer relationship management applications
• Cross-functional business applications
• Applications in engineering, manufacturing, human resources, and accounting
• Buying and selling products and services
• Enterprise communications and collaboration
• Strategic business alliances
The Internet presents a unique channel for business characterized by -
• Almost instant communication through email, chat and sharing of audio, video and text
• Ease of broadcasting instantly
• Lower costs of communication
• Ability to search huge amounts of information
Hardware and Software Requirements for Internet connection
1. Computer -
The basic need is a Computer (client) capable of handling number of multiple data types. For normal E-Mail applications standard PC of good speed is adequate. If application requires multimedia capability, PC shall have all multi media features such as sound card, speakers, PC video camera, etc.
2. Modem
. It is termed as MODULATOR-DEMODULATOR as it modulates and demodulates the signals coming in. It is a Device that enables two computers to communicate with one another through phone lines. When an internet account is open, the modem installed at
the system, communicate through modem installed at internet service provider (ISP). VSNL, MTNL, MSN, SIFY and many more are the ISP’s. MODEM has a speed, which is measured in bits per second (Bps). Higher the Bps faster the modem.
3. Two types of software to enable PC as an Internet PC
i. Communication software to establish the TCP/IP connection to the server.
ii. Client software for each activity such as browsing, e-mail, news and so on.
With Hardware and Software in place, an Internet Service Provider who provides a gateway to Internet is also required. The large ISPs are VSNL, MTNL, BSNL who have their own gateways. These ISPs, through their partners will provide total service to make the PC an internetPC.
Type of Internet Connections
a. Dial-up - Mainly for home users
b. Digital Dial-up (ISDN) - Dedicated connectivity for commercial users
c. Leased Line -High speed dedicated link. Point to point for commercial users
Intranets
Businesses are installing and extending intranets throughout their organizations to: (1) improve communications and collaboration among individuals and teams within the enterprise; (2) publish and share valuable business information easily, inexpensively, and effectively via enterprise information portals and intranet websites and other intranet services; and (3) develop and deploy critical applications to support business operations and decision making.
An intranet is a network inside an organization that uses Internet technologies to provide an Internet-like environment within the enterprise for information sharing, communications, collaboration, and the support of business processes. In other words Intranet is essentially an internal company network that uses internet standards; namely HTML, HTTP and TCP/IP. The network (LAN/WAN) when loaded with these standards and supported by Web Server and Web Browser becomes Intranet for the organization. Only computers connected to the internal network can connect to the Intranet.
• An intranet is protected by security measures such as passwords, encryption, and fire walls, and thus can only be accessed by authorized users through the Internet.
• A company’s intranet can also be accessed through the intranets of customers, suppliers, and other business partners via extranet links.
• Since intranets are Internet-like networks within organizations, they depend on all of the information technologies that make the Internet possible. These include:
• TCP/IP client/server networks
• Hardware and software such as Web browsers and server suites
• HTML Web publishing software
• Network management and security programs
• Hypermedia databases
Intranet increases the workforce productivity, besides it time is saved and communication is easier over the passage. Intranet is used extensively in business operations and management.
But despite it having so many advantages, some of its prominent disadvantages make it unfit for regular usage within organizations. The disadvantage being talked about is: the loss of control of the material being provided on the intranet by the management. Other factors affecting growth of intranet are intranets may cause "information overload", delivering too much information to handle, and security concerns with who accesses the intranet, plus abuse of the intranet by users.
The Business Value of Intranets
Major business uses of the Intranet include:
1) Communications and Collaboration
Intranets can significantly improve communications and collaboration within an enterprise. Examples include:
• Intranet browser and PC or NC workstation are used for sending and receiving E-mail, voicemail, paging, and faxes to communicate with others within the organization, and externally through the Internet and extranets.
• Improves team and project collaboration with services such as discussion groups, chat rooms, and audio and videoconferencing.
2) Web Publishing
The advantages of developing and publishing hyperlinked multimedia documents to hypermedia databases accessible on World Wide Web servers has moved to corporate intranets. The comparative ease, attractiveness, and lower cost of publishing and accessing multimedia business information internally via intranet websites has been one of the primary reasons for the explosive growth in the use of intranets in business. Examples include:
• Company newsletters, technical drawings, and product catalogs can be published in a variety of ways including hypermedia and Web pages, E-mail, net broadcasting, and as part of in- house business applications.
• Intranet software browsers, servers, and search engines helps to navigate and locate the business information easily.
3) Business Operations and Management
Intranets are being used as the platform for developing and deploying critical business applications to support business operations and managerial decision making across the internetworked enterprise. Employees within the company, or external business partners can access and run such applications using Web browsers from anywhere on the network whenever needed. Examples include:
• Many companies are developing customer applications like order processing, inventory control, sales management, and executive information systems that can be implemented on intranets, extranets, and the Internet.
• Many applications are designed to interface with, and access, existing company databases
and legacy systems. The software for such business uses (sometimes-called applets or crossware) is then installed on intranet Web servers.
• Employees within a company, or external business partners, can access and run applications using Web browsers from anywhere on the network whenever needed.
BASIC DIFFERENCE BETWEEN A SIMPLE NETWORK AND AN INTRANET
- Normal network is able to handle database applications in client / server architecture
- The same network when converted to Intranet can handle text and multimedia applications.
How to set up an Intranet?
1. Each client must get an IP Address i.e. the router as well as the domain server also gets an IP Address.
2. Install TCP/IP for server, clients and routers.
3. Select an Intranet web server. The web servers are WIN NT, NOVEL and IBM platforms. The servers have features of encrypting data or text, database connectivity, search engine and HTML tools. All servers do not give features in full scope at times. Server should be chosen as per the requirements.
4. Setup Security features, namely
• Access control through Authentication.
• Restrict access from certain addresses.
• Configure selective file access.
5. Select a web browser. The popular web browsers are IE and NETSCAPE.
6. Make Intranet operational.
a. Convert existing docs into intranet docs using conversion and editing tools. Ex: add graphics to web pages namely GIF, JPEG, etc.,
b. Provide links to other docs.
7. Connect Intranet to corporate data.
a. Provide links to corporate databases, if web enabled databases are not used. Such links give quick access to the data for checking, verification and for use in web application, if necessary.
Extranets
The primary role of extranets is to link the intranet resources of a company to the intranets of its customers, suppliers and other business partners. Extranets can also provide access to operational company databases and legacy systems to business partners. Thus, extranets provide significant business value by facilitating and strengthening the business relationships of a company with customers and suppliers, improving collaboration with its business partners, and enabling the development of new kinds of Web-based services for its customers, suppliers and others.
Extranet is an intranet that is restricted to an organization and authorized outside users like customers and suppliers. A company uses firewalls to ensure that access to its internal data is limited and remains secure.
Extranets are network links that use Internet technologies to interconnect the intranet of a business with the intranets of its customers, suppliers or other business partners. Extranet is an Intranet for outside authorized users using same internet technology. That is once authorized external users are allowed to connect to an Intranet, it becomes an Extranet. The outside users are the trusted partners of the organization who have access to information for their interest and concern. In another words, when Intranet crosses the logical boundary of the organization and provides secured access to selected data and information of the organization, the Intranet becomes Extranet. The security in Extranet depends on organization’s policy on information management. If the trusted partners are treated like any other normal user of the organization, then security can be ensured through access rights, authentication and certification procedure. Firewalls between outside users and Intranet will ensure no unlawful and unauthorized access to information.
- For ex: In auto industry spare parts manufacturers have access to inventory database and production schedules used to plan and ship the required spares to factory location.
- Dealer / Distributors have access to product files such as catalogues, product specifications, pictures, images, etc. to answer queries of the customer.
Both intranets and extranets reduce operational costs by providing additional connectivity for coordinating disparate business processes within the firm and for linking electronically to customers and suppliers. Extranets often are employed for collaborating with other companies for supply chain management, product design and development, and training efforts
With Extranets Companies can:
• Establish direct private network links between themselves, or create private secure Internet links between them called virtual private networks.
• Use the unsecured Internet as the extranet link between its intranet and consumers and others, but rely on encryption of sensitive data and its own firewall systems to provide adequate security.
Business Value of Extranets
The business value of extranets is derived from several factors:
• The Web browser technology of extranets makes customer and supplier access of intranet resources a lot easier and faster than previous business methods
• Extranets enable a company to offer new kinds of interactive Web-enabled services to their business partners. Thus, extranets are another way that a business can build and strengthen strategic relationships with its customers and suppliers.
• Extranets enable and improve collaboration by a business with its customers and other business partners.
• Extranets facilitate an online, interactive product development, marketing, and customer- focused process that can bring better designed products to market faster.
• Extranet finds its usage in the following areas: Ordering of products and services, checking the order status, requesting customer services, supply chain connection.
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