.Com Companies “The new survivors.” Pets.com died yesterday. ($60 M invested by Amazon.com) Pet foods are bulky to ship. Have narrow profit margins. Are a semi-commodity. 100 sites sell some pet products. Mothernature.com is also being liquidated. Furniture.com laid off 76 of its 88 employees. 85 dot.com companies have folded this year. More.com (drugstore) Living.com (furniture) Worth Thinking About “The Internet is not a business but a way to communicate with customers.” i.e. boot store in San Francisco is getting 50% of its sales from Internet customers. What will win: “Brick-and-mortar companies that have trusted brand names, huge buying power and off-line stores to accept returns.” “Or, those Internet-born companies with an early start and strong brand identity.” Chapter 9 Intranets, Extranets, and Enterprise Collaboration Chapter Objectives 1. Understand how companies are using intranets and extranets for communications and collaboration, information publishing and sharing, and business operations and management. 2. Understand the hardware, software, data, and network components of an intranet’s information technology architecture. 3. Appreciate how intranets and extranets can provide cost savings or revenue benefits to a company. 4. Understand groupware tools for communications, conferencing, and work management. Intranets, Extranets, and the Internet Internet Web Sites Internet Links Engineering Server Extranet Links Customers Marketing Server CORPORATE INTRANET Extranet Links Legacy Data Server H.R. Server Intranet Links Other Company Locations Suppliers Internet Technology Resources Web Browsers and Servers TCP/IP Client/Server Networks Hypermedia Database Management Systems HTML Web Publishing Software Network Management and Security Programs Applications of Intranets Communications and Collaboration Web Publishing and Intranet Management Business Operations and Management Business Value of Intranets Impressive Returns Investment Cost Recovered Quick Payback Risk of Internet Project is Low Extranets Use of the Internet (network) and its technologies but in a secured way (people in general cannot access the web sites) for business-to-business transactions, customer service and support and communication. Replaces traditional Electronic Data Interchange systems and networks in many cases. Examples of Business Value of Internet/Extranet Applications Publication Cost Savings Training and Development Cost Savings Customer Service Programs Enterprise Collaboration Communicate Goal of Enterprise Collaboration Systems Coordinate Collaborate Intranet Communications & Collaboration Electronic Mail Groupware Faxes Intranet Communication and Collaboration within an Enterprise Voice Mail Paging Enterprise Collaboration Tools Discussion Forums Data Conferencing Voice Conferencing Videoconferencing Groupware Enterprise Collaboration Tools Chat Systems Electronic Meeting Systems Groupware Tools for Electronic Communications Groupware for Enterprise Collaboration Electronic Communications Tools Enterprise Conferencing Tools Collaborative Work Management Tools Summary Intranets and extranets work and feel like the Internet. They enable and improve collaboration within a business, and with customers and other business partners. In many respects, intranets, extranets and enterprise collaboration help a business gain and sustain a competitive advantage. Possible Exam Questions 1. Why are companies installing intranets? 2. What is the goal of enterprise collaboration and how is that goal achieved? Intranets - Business Operations & Management Develop and deploy critical business applications to support business operations and managerial decision making. Companies are developing custom applications that can be implemented on intranets, extranets, and the Internet. Custom applications are designed to interface with and access existing company databases and legacy systems. Software (applets or crossware) are installed on intranet webservers. Employees and external business partners can access and run custom applications using web browsers from anywhere on the network whenever needed. Web Publishing Ease, attractiveness, and lower cost of publishing and accessing multimedia business information internally via intranet web sites. Used for products such as company newsletters, technical drawings, and product catalogs. Information publishing including hypermedia web pages, E-mail, net broadcasting, and as part of in-house business applications. Uses intranet software browsers, servers, and search engines to help users easily navigate and locate business information. Used to develop and publish hyper-linked multimedia documents to hypermedia databases accessible on Word Wide Web servers. Business Value of Extranets Extranet technology such as web browsers make it easier and faster for customers and suppliers to access resources. Extranets enable a company to offer new kinds of interactive Web-enabled services to their business partners. Extranets are a way that a business can build and strengthen strategic relationships with its customers and suppliers. Extranets can 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. Customer Relationship Management Customer Relationship Management (CRM) software is geared to address the consolidation and integration of all forms of communication with a customer to enable a company to better serve its key customers. Sun Microsystems’ Intranet Intranet : Book Definition An Internet-like network within an organization. Web browser software provides easy access to internal Web sites established by business units, teams, and individuals and other network resource and applications. Applications of an Intranet The basic applications of intranets include communications and collaboration, business operation and management, Web publishing and intranet management. Sun Microsystems, Inc. Sun Microsystems, Inc. has long been synonymous with leading edge technology. A leading provider of hardware, software and services for establishing enterprise-wide intranets and expanding the power of the Internet. After 18 years of telling the world "The Network is the Computer," Sun has become a leader in the emerging network-driven economy. Sun’s Intranet Applications and Services Views What’s new Library and education Marketing and Sales Product catalog HR and Benefits Engineering Information. Travel Sun Campus Execution Suite Construction Kit Summary Sun Microsystems was a pioneer in the creation and use of intranets in business in 1994. SunWeb has over 3,000 intranet web servers available to 20,000 employees worldwide. SunWeb has generated big cost savings versus publishing information in paper and other media. The ease and speed of sharing multimedia information on Web servers has also been credited with making people and teams much more productive and creative in their jobs and projects. Important Issues to Build an Intranet 1. Determining your infrastructure requirements. 2. Determining your Web server needs. 3. Making a browser choice. 4. Deciding how to use use an intranet? 5. Determining the application development software you need. 6. Weeding through the pros and cons of a firewall. 7. Possibly changing the role of the Webmaster. 8. Determining what is needed to train employees. Two Possible Exam Questions 1. What are major issues that you need to consider when building a intranet? 2. How has Sun used its intranet to support its daily business operations? Business Value of Extranets Extranet technology such as web browsers make it easier and faster for customers and suppliers to access resources. Extranets enable a company to offer new kinds of interactive Web-enabled services to their business partners. Extranets are a way that a business can build and strengthen strategic relationships with its customers and suppliers. Extranets can 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. Supply Chain Management What is Supply Chain Management? A management concept that integrates the management of supply chain processes with an objective to: • Develop value-added services • Improve performance • Cut costs • Increase profits Basic Business Objectives • Get the right product to the right place at the least cost. • Keep inventory as low as possible and still offer superior customer service. • Reduce cycle times. Supply-Chain Management Focus • Suppliers • Procurement • Manufacturing • Warehousing • Customer Order Fulfillment • Distribution Summary • Time management, profitability and collaboration are among the greatest challenges currently surrounding companies today. • The Internet provides the opportunity to address all three factors with a supply chain management approach. • To be effective, a supply-chain solution must achieve world-class information accuracy and velocity to meet market goals and stay ahead of product life cycles. Two Possible Exam Questions 1. What role does supply chain management play relative to electronic commerce? 2. In what ways does supply chain management influence the way businesses run their daily business operations? Extranet at Marshall Industries Avnet Marshall Industries • One of the largest distributors of electronic components to Original Equipment Manufacturers. (OEMs) Note: In the Semiconductor Industry you either buy directly from the manufacturer (if you are big enough) or from a distributor. • Marshall operates in 38 worldwide locations with about 1,300 employees, half of whom are sales people. • The CEO is Rob Rodin who was a major force in pursuing an extranet strategy beginning in 1993. Extranet Extranet = Business to Business Commerce using Internet technology. The successor of Electronic Data Interchange (EDI) which was and in some cases still is based on private networks or leased communications lines. Business to Business Commerce Business-to-business commerce is formenting a fundamental, if not evolutionary, transformation of trade. The Internet gives businesses three major elements for E-commerce: 1. An easily accessed customer interface. 2. A way to distribute information. 3. A worldwide pipe-line. Training in Multiple Languages Since they are a global company, Marshall offers technical support and education on the products that they sell in multiple languages via its extranet. What This Means To The Customer • Marshall's customers require timely information about part specifications and availability. • Since printed materials are often outdated before customers receive them, electronic distribution is a timely improvement. • A key dimension of Marshall’s success can be tied to the education provided and the technical support. • Easy and fast communication on any and how issues. Awards Received • CIO magazine named Marshall Industries as a recipient of the 1999 CIO 100 award. • Named Pulse Publications’ "Distributor of the Year" in May 2000 in recognition of outstanding performance in sales growth and customer base expansion. Summary Marshall Industries successfully expanded to a global distributor by doing business via an extranet. – A single worldwide source for a wide range of products. – Unmatched inventory available 24 x 7. – Knowledgeable specialists and the power to choose the service that fits a customer’s. Two Possible Exam Questions 1. What are some pro’s and con’s of an extranet business approach from Marshall’s perspective? 2. Customer Service has been a very important aspect of Marshall Industries. Why is this important to a customer that relies primarily on an internet-based company like Marshall Industries? Groupware Tools for Electronic Communications Groupware for Enterprise Collaboration Electronic Communications Tools Enterprise Conferencing Tools Collaborative Work Management Tools Electronic Communications Tools E-Mail Voice Mail Faxing Groupware Electronic Communications Tools Web Publishing Bulletin Board Systems Enterprise Collaboration Tools Discussion Forums Data Conferencing Voice Conferencing Videoconferencing Groupware Enterprise Collaboration Tools Chat Systems Electronic Meeting Systems Collaborative Work Management Tools Calendaring and Scheduling Task and Project Management Workflow Systems Groupware Collaborative Work Management Tools Other Joint Work Tools Knowledge Management The Clicks and Bricks Spectrum Wal-Mart and Barnes & Noble Spin -Off Kbkids.com Strategic Joint In-House Partnership Venture Division Rite Aid and Drugstore.com OfficeDepot.com Separation: Integration: • Greater focus • Established brand • More flexibility • Shared information • Access to venture funding • Purchasing leverage • Distribution efficiencies Right Answers? In business and in life, how do you come up with the right answers? You ask the right questions. E-Commerce Decision Process Separation Brand Integration Does the brand extend naturally to the Internet? Yes Yes Will we target a different customer segment or offer a different product mix on-line than in stores? Yes Will we need to price differently on-line than in stores to stay competitive? Operations Do our distribution systems translate well to the Internet? Do our Information Systems provide a foundation on which to build an Internet strategy? Does either system constitute a significant competitive advantage? Yes Yes Yes Management Integration Separation Do current executives have the skills and experience Yes needed to pursue an Internet approach? Are they willing to judge the Internet initiatives by a different set of business performance criteria? Yes Yes Yes Will there be a major channel conflict among management? Does the Internet fundamentally threaten the current business model? Equity Yes Is the business having trouble attracting or maintaining talented executives for the Internet division? Yes Does the business need outside capital to fund the venture? Is a certain supplier, distributor or other business Yes partner key to the venture’s success? Internet Technology Resources Web Browsers and Servers TCP/IP Client/Server Networks Hypermedia Database Management Systems HTML Web Publishing Software Network Management and Security Programs Components of an Enterprise Collaboration System Software Network Server Teams & Workgroups Enterprise Collaboration Databases Distance Learning Distance Learning Topics • Targeted educational levels. • Successful programs. • Distance learning architecture. • Conclusions. Definition Of Distance Learning According to University System of Maryland Institute for Distance Education, “Distance education represents a variety of educational models that have in common the physical separation of the faculty member and some or all of the students.” Distance Learning Traditional targeted students. Distance Education is an excellent option for a great many busy Americans who have a work life and a family life. Lamar Alexander former U.S. Secretary of Education Distance Learning Distance Learning Architecture Systems Architecture Network Client Features and Functions Server Features and Functions Course Material Targeted Use Instructional Support System Graduate Courses Content Structure Undergraduate Courses Content Guidelines Graduate Course Prerequisites Community College Articulated Courses Industry training and technical updates Industry Collaboration Distance Learning: Lots of Players Duke University - MBA Purdue University - M.S. in Engineering Tulane University - M.S. in Public Health California State University - B.A. Sociology, B.S. Nursing Cyberspace University - IT Training Over 300 U.S. Universities and Colleges, all fully accredited, offer degrees in over 800 different fields from Bachelor's to Doctorate's. Over 40% of all graduates from these fully accredited colleges and universities go directly to graduate schools. Distance Learning Model http://www.umuc.edu/ide/modlmenu.html Models of Distance Education A Conceptual Planning Tool Developed by University of Maryland University College for the University System of Maryland Institute for Distance Education. Seven Masters Degree programs. 62,000 students with over 20,000 outside the US. Models of Distance Education • Planning and design. • Development. • Implementation. • Delivery and support. Just like any computer-based system. Planning Issues Institutional policies and practices frequently need to be reexamined when two or more institutions are involved in distance education course delivery. Examples: 1. When the students register, whom do they pay? 2. Who pays for the cost of distributing materials? Evaluation of the Instructor When evaluating an instructor, information about personal characteristics of successful instructors should be factored into future planning and hiring decisions. Information about effective instructional strategies should be included in faculty training and support materials. Laboratory Experiences A challenging aspect of distance education is for faculty to determine how crucial a hands-on experience in a laboratory setting is in ensuring that students achieve the desired learning. Academic Systems A mountain-view company that has focused initially on college math courses. Different Ways to Learn • Maria learns from seeing a visual representation. ( a picture ) • Will learns by asking for an alternative explanation. • James asks how to do it. ( show a method ) • Lisa wants to know why does it work? Additional Content Guidelines • Provide motivators as well as teaching material. • Back up all lectures with audio. • Pacing of the material should be under the control of the student. • Provide a journal capability so that students can add their own notes to a personal file on the material. • Provide links in the evaluate and homework sections back to the explain section. Instructional Support • Allow the instructor to easily re-sequence the different lectures (chapters) and content within chapters. • Allow the instructor to add content and notes to the multiple content sections. • Allow the instructor to create constraints within the system to guide the student through the course material. e.g. Not able to log-off without taking a quiz or not able to log-off without picking up the homework assignment. Instructional Support • Provide a student and grade administration system that enables the instructor to monitor the progress of the entire class and of each individual student. This should include an email link to each student. • Provide a bulletin board for each course where the instructor or students can post questions and answers that are of general interest. • Provide a bulletin board where course assignment examples can be displayed on demand by students. Distance Learning Architecture • Support the ability to download from a master server to a local server. • Support both CD content and download capabilities for specific courses. • Base architecture on accepted IT standards. Possible Exam Questions 1. What student focus makes the most sense in terms of distance education? 2. Identify and discuss some educational and technical issues relative to distance learning. E-Learning Factor Many businesses are only beginning to witness the dramatic cost savings in transitioning from traditional training to elearning, yet a few forward-thinking companies already know this is old news. They have started ambitious measurement programs to prove e-learning's positive impact on customer service, productivity and sales. Metrics can deliver such proof, which is why Gartner Group estimates that about 30 percent of its e-learning clients use metrics to chart e-learning's impact on the company's performance. Gartner says the use of metrics to justify e-learning will expand as more companies use elearning to support high-priority business goals, rather than run training programs for training's sake. E-Learning Factor Many businesses are only beginning to witness the dramatic cost savings in transitioning from traditional training to elearning, yet a few forward-thinking companies already know this is old news. They have started ambitious measurement programs to prove e-learning's positive impact on customer service, productivity and sales. Metrics can deliver such proof, which is why Gartner Group estimates that about 30 percent of its e-learning clients use metrics to chart e-learning's impact on the company's performance. Gartner says the use of metrics to justify e-learning will expand as more companies use elearning to support high-priority business goals, rather than run training programs for training's sake. E-Learning Metrics Importance It's a valid question to ask what e-learning is used for, what is the good of e-learning? It is not just cost reduction. But how does this translate into metrics? At some point down the road, the new uses of e-learning will become even more interesting, and metrics are only one way to validate that the uses actually happened. Internet Significance? Why has the Internet been acclaimed as the most significant factor impacting businesses and business operations since the Industrial Revolution that was sparked by the steam engine.