Chapter 7: The Intranets and Extranets docx

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© Prentice Hall, 2000
Chapter 7
The Intranets and Extranets

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© Prentice Hall, 2000
Learning Objectives
❚
Describe the relationship among the Internet, an
intranet and an extranet
❚
Discuss the role of firewalls for intranets and
extranets
❚
Discuss the functions of intranets
❚
Discuss the applications of intranets
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Describe the industries that use intranets
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Discover typical cases of intranet applications

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Identify the key element of extranets
❚
Identify the key technologies for tunneling
❚

Discuss the applications of extranets
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Describe typical industries that use extranets
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Discuss the business models for extranet
applications
❚
Describe the concept of embedded extranets
Learning Objectives (cont.)
Automotive Network Exchange -
the Largest Extranet
❚
Companies in the automotive market swap supply
and manufacturing data
❚
Involve 10,000+ companies
❚
Include CAD/CAM file transfers, Electronic Data
Interchange (EDI), e-mail, and groupware
❚
The network’s EDI element alone will slice $71
from the cost of designing and building each car
❚
Savings of $1 billion a year for the Industry
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Chrysler will pay for fewer T1 Lines and satellite
connections
❚

Standardizing one protocol-IP will reduce support
costs
❚
The time it takes to turn around an order will be much
shorter
❚
The faster the parts come in, the faster the cars
leave the assembly line, the larger the customer
satisfaction and manufacturer’s profit
❚
Business-to-business virtual private networks (VPN)
are used
Automotive Network Exchange -
the Largest Extranet (cont.)
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The Internet
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❙
The Internet is a public and global
communication network that provides direct
connectivity to anyone via a Local Area Network
(LAN) and an Internet Service provider (ISP).
Access to the Internet is not restricted to anyone.
This lack of control may result in an information
overload. Due to its vast scope and openness,
the information is difficult to locate. Users need
effective and efficient search engines to navigate
the sea of information . There is no centralized
control of network and information.

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The Intranets
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An intranet is a corporate LAN and/or Wide Area
Network (WAN) that is secured behind company’s
firewalls and it uses Internet technologies.
Although intranets are developed using the same
TCP/IP protocol as the Internet, they operate as
private networks with limited access. Only
employees who are issued passwords and access
codes are able to use them. So, intranets are
limited to information pertinent to the company and
contain exclusive and often proprietary and
sensitive information. Firewalls protect intranets
from unauthorized outside access.
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Public/External
Internet Users
Intranet
Clients
Servers
ERP
Legacy
systems
E-mail
servers
Web
servers
Databases

Firewalls
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The Intranet (cont.)
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The Extranet
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An extranet implies an “extended intranet”, which
uses TCP/IP protocol networks (like the Internet) to
link intranets in different locations. Extranet
transmissions are conducted over the Internet to
save money. But it offers no privacy or transmission
security. By creating tunnels of secure data flows
using cryptography and authorization algorithms,
called VPNs, the security can be improved.
❙
Extranets provide secure connectivity between a
corporation’s intranets and intranets of its business
partners, material suppliers, financial services, and
customers.
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Tunneling Internet
Extranet
Intranet
Firewall
Intranet
Firewall
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The Extranet (cont.)
Suppliers

VPN
Distributors
VPN
Customers
VPN
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Summary : Internet, Intranet, and Extranet
Network Typical Type of
Type Users Access Information
Internet
Any individual
with dial-up
access or LAN
Unlimited,
public; no
restrictions
General, public
and advertisement
Intranet
Authorized
employees
ONLY
Private and
restricted
Specific,
corporate and
proprietary
Extranet
Authorized

groups from
collaborating
companies
Private and
outside
authorized
partners
Shared in
authorized
collaborating
group
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Firewalls
❚
Definition of Firewall
❙
Software and hardware that allows only those
external users with specific characteristics to
access a protected network
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Provides potential customers with secured
account, credit card, and loan information
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Usually located at a gateway point and controls
traffic between internal and external networks
Generic Functions of an Intranet
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Corporate/department/individual Web-pages
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Database access: Web-based databases
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Search engines and directory: Assist key word-based search
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Interactive communication: Chatting, audio and videoconferencing
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Document distribution and workflow: Web-based download and routing of
documents
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Groupware: Enhanced e-mail and a bulletin board
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Telephony: Intranets are the perfect conduit for computer-based telephony
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Integration with electronic commerce: Interface with Internet-based electronic
sales and purchasing
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Extranet: Link geographically dispersed branches, customers and suppliers to
authorize sections of Internets. Can create happier customers, more efficient suppliers,
and reduce operating costs
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Categories of Intranet Application Purposes
0 10 20 30 40 50
Accounts Payable
Accounts receivable

Logistics and transportation
Sales records
Data warehouse
Document routing
Inventory
Legacy systems access
Policies and procedures
Customer records
Document sharing
Purchase orders or order entry
Product catalogs and manuals
% of respondent
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Electronic Commerce: sales and purchasing online
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Customer Service: UPS, FedEx and other shippers have proved that
information about product shipments and availability makes customers happier
❚
Reduced Time to Market: Easy online access for product development
speeds teamwork

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Enhanced Knowledge Sharing: Web pages can enhance knowledge
sharing
❚
Enhanced Group Decision and Business Processes: Web-
based groupware and workflow is becoming the standard intranet
platform

❚
Empowerment: All information should be available to everyone with the
ability to know and act independently
❚
Virtual Organizations: Web technology at participating companies
removes the barrier of incompatible communication technology
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Software Distribution: Using the intranet server as the application
warehouse and avoid many maintenance and support problems
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Project Management: Share reports and monitor projects’ progress
Categories of Intranet Application Purposes (cont.)

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Industry Specific Intranet Solutions
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Financial Services: Banking, brokerages and other
financial services, insurance
❚
Information Technology
❚
Manufacturing: Chemicals and oil, consumer goods,
food and beverages, general manufacturing, and
pharmaceuticals
❚
Retailing
❚
Services: Construction and engineering, education,
environmental, healthcare, media, entertainment,

telecommunications, transportation, and utilities

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Intranet Case Studies with ROI Analysis
❚
The cases are organized in the following format:
❙
Background of company
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Business challenges
❙
Before the intranet technology
❙
Intranet cost
❙
Intranet strategy
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After intranet technology
❙
Subjective (intangible) benefits (optional)
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Lessons learned
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Analyzing the ROI

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❚
Federal Express - Package Tracking

Intranet Case Studies with ROI Analysis (cont.)
❙
60 internal web sites allow communication
worldwide between divisions and corporate
headquarters on all issues of importance to the
employees and customers
❙
The package tracking system allows customers
to contact FedEx and go into the intranet to find
the status of a package that they have shipped
or one that they are expecting
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The intranet has gone to retailers that ship
products directly to customers and set up
computer systems that will place and ship orders

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Intranet Deployment Strategy
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The intranet server platform has to meet 10
evaluation criteria
1. Scalability
: The efficient transaction read/write capability
should be ensured as the number of users and access increases.
2. Interoperability
: Enterprise Web, data warehouse, message
and mail manager, online transaction processing and other
nodes will form the enterprise server platform cloud, which will
require each node to have a high interoperability presence on

the network.
3. Configurability
: Vendors just provide a broadly configurable
array of enterprise servers that do not require major box swaps
as enterprise requirements change. Parts must be modular and offer
commodity component substitution with other devices from
third parties.

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Intranet Deployment Strategy (cont.)
❚
The intranet server platform has to meet 10
evaluation criteria
4. Compatibility
expandable configuration requirements, but also standard
industry specifications to protect application investment.
: The server family must not only meet
5. Manageability
: As the trend increases, enterprise systems
must be operational from any point on the network and address
the major operational management problems concerning configuration,
fault and problem diagnosis and installation.
6. Availability
: As enterprise servers assume a larger role in the
electronic channel and the enterprise wide Web, these systems
must be able to sustain tens to hundreds of thousands of
accesses and transactions with minimal downtime.
7. Reliability
: The hardware reliability, data integrity, systems

integration, and operational error immunity are essential.

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Intranet Deployment Strategy (cont.)
❚
The intranet server platform has to meet 10
evaluation criteria
8. Distributeability
: Whether in two- or three-tier client/server
architectures, the enterprise server must embrace the client,
assume a high degree of desktop affinity and must enable
resources to be proportioned between server and client
appropriately.
9. Serviceability
: The increased value placed on uptime will
mandate online serviceability through the use of hot-swappable
components, remote diagnostics directly connected to vendor
service centers and pre-failure predictive diagnostics.
10. Stability
: The generation changes in technology, and
architecture that may include changes to instruction sets,
migration from 32-bit to 64-bit computing and operating-
system enhancements for clustering and advanced symmetric
multiprocessing must minimize upgrade disruption and
preserve investment protection.

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Enterprise

Consumers
Suppliers
Clients
Business Partners
Distributors
VPN
Internet
Intranet
Extranet
Intranet
Intranet
Intranet
Intranet
VPN VPN
VPN
VPN
Remote
Employees
Basic Concept of Extranets Revisited
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Elements of Extranets
❚
Components of Extranets
❙
Intranets
❙
Web server

❙
Firewalls
❙
Internet Service Provider (ISP)
❙
Tunneling technology
❙
Interface software
❙
Business application
❚
Methods to Configure Extranets
❙
They can be implemented using a direct leased
line with full control over it, linking all intranets
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A secure link can be created across the Internet,
which can be used by the corporation as a
virtually private network (VPN)

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Virtually Private Network (VPN)
❚
VPN is a secure network on the Internet using the
tunneling schemes
❚
The major objective of a VPN is to use the Internet as
an inexpensive WAN backbone
❚

When two sites are connected across a VPN, each
must have a VPN-capable router, firewall, or VPN
access device installed
❚
When VPN is used to link mobile clients with Internet
dial-up connections, the laptops must be equipped with
VPN client software equipped with the addresses and
associated encryption keys for corporate host sites
Four Categories of Extranet
Products and Services
❚
Extranet development tools
❚
Extranet hosting and network
connectivity
❚
Extranet services
❚
VPNs
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