Intranets and Extranets

An intranet is the use of World Wide Web technology within organizations. Extranets extend the reach of intranets from internal-only communications to sharing documents and information for business-to-business transactions.

Intranets—Impact of Web Technology on Internal Operations

In essence, an intranet is a private Internet with a browser interface to corporate information. Employees use browsers on their PCs for applications such as collaboration on projects and looking up employee extension numbers. An intranet provides employees access to internal information. However, unlike the Internet, outside users cannot access intranet applications. Security is built into these applications such that only authorized users have access to the internal databases and documents. Internal users can access the public Internet through their browser.

The adoption of Web technology for corporate intranets is one example of the Internet's impact. New software commonly uses browser interfaces for administration. It makes training on using the software easier. Intranets have enabled enterprises to add new software without downloading the client piece of the software to each desktop (each PC). For example, users click on applications located on Web servers to access the program. This makes it faster for IT staffs to add applications.

The following are ways that organizations use intranets:

  • Project monitoring and updates

  • Publication of regulatory manuals and Internal telephone books

  • Internal job postings

  • Searching for information within the organization

  • Postings of sales presentations

  • Information on R&D projects

  • Postings of white papers (explanations of technology)

  • Newsletters

  • Benefits information

  • Distribution of custom-made software applications

  • Distribution of training schedules

  • Conference room scheduling

Portals are being developed for enterprises that organize information content for users in a similar fashion as public portals. However, access to corporate information is controlled by software restriction. Not everyone has access to all files.

Intranets add more traffic to already congested commercial, government and nonprofits' internal networks. Browsers are “bandwidth hogs.” They have color, sound and graphics capabilities. They add traffic to local area networks (LANs), campus connections between LANs and connections between LANs across countries and worldwide.

Extranets—Using Internet Technology with Customers, Partners and Vendors

Typically, extranet transactions are conducted with suppliers, vendors and trading partners. Placing orders is one application for extranets. Access to extranets is generally password protected.

Customers use passwords to log into suppliers' databases to check on availability and rates for products. They also place and check the status of orders via the Web. New business-to-business applications enable orders to be transmitted directly to order entry systems. The absence of human intervention eliminates the possibility of human errors in input.

Benefits of Web technology for extranets:

  • Decreased labor costs— Customers place their own orders.

  • Savings on paper— Customers print their own orders.

  • Shortened ordering cycles— Customers can access pricing, rates and delivery dates without waiting for salespeople or customer service representatives to give them the information.

Trouble ticket reporting is an example of an extranet function. Large organizations give customers the ability to report repair problems via the Internet. After a customer logs in with his customer ID and password, he fills out a form describing the repair problem. The trouble ticket assigns him a trouble ticket number for tracking purposes. Both the customer and maintenance organization now have an electronic timestamp of when the trouble was reported. The trouble ticket is automatically sent to the dispatch staff to be resolved.

A concern with extranets is security. Extranet applications give outside organizations access to portions of organizations' databases. Three ways that security issues are addressed on extranets are:

  • Authentication assures receivers that senders are who they claim to be and not hackers.

  • Integrity checks assure the sender that no third party has inserted third-party data such as viruses that damage corporate data. Integrity checks ensure that the data is what it claims to be and not something that can harm computer files.

  • Encryption scrambles the data sent so that no one except the intended recipient can read the data.

Because of these security concerns, many extranets are located at Web hosting sites. The customer has its own computer or a host-supplied computer located at the hosting company. High-speed T-3 or various OC-speed lines connect the hosting company to the Internet backbone. Often companies remotely upload or download information to their host-located computer via T-1 lines. T-1 lines run at 1.54 million bits per second (bps), T-3 runs at 44 million bps and OC (optical carrier) speeds start at 52 million bits per second. (See Chapter 6.) In addition to hosting companies such as, Genuity, Digex and Exodus, carriers such as Global Crossing, AT&T, Sprint and WorldCom offer hosting and extranet services. Application service providers also sell extranet services.

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