LECTURE NOTES
The
Internet and Business
Business use of the Internet is moving from an
electronic information exchange to a broad platform for strategic business
applications. Applications like
collaboration among business partners, researching competitors, providing
customer and vendor support, and buying and selling products and services have
become major business uses of the Internet.
Studies show the strong growth of cross-functional business applications,
and the emergence of applications in engineering, manufacturing, human
resources, and accounting.
Business-to-Business:
This category of
electronic commerce involves both electronic business marketplaces and direct
market links between businesses. Examples include:
1. Many companies offer the business community a variety of marketing
and product information on the World Wide Web.
2. Companies rely on electronic document interchange (EDI) via the Internet or extranets for direct computer-to-computer exchange of business transaction documents with their business customers and suppliers.
During the
industrial age, the primary unit of business was the corporation, and the
primary business activity, production.
The Internet has displaced both.
In the information age, the primary business unit is what we call the
business web, in which groups of firms come together over the Internet; the
primary business activity, fulfillment, in which firms seek not merely to
provide their customers with products but to build enduring relationships with
them.
The Intranets and Extranets in Business
·
The Intranet
Revolution
Many businesses realize that intranets enable them to
use Internet and World Wide Web technologies to support communication,
collaboration, and business processes throughout the internetworked enterprise.
Intranet
characteristics include:
1. An
intranet is a network inside an organization that uses Internet technologies
(such as web browsers and servers, TCP/IP network protocols, HTML hypermedia
document publishing and databases, and so on) to provide an Internet-like
environment within the enterprise for information sharing, communications,
collaboration, and the support of business processes.
2. An
intranet is protected by security measures such as passwords, encryption, and
fire walls, and thus can be accessed by authorized users throughout the
Internet.
3. A
company’s intranet can also be accessed through the intranets of customers,
suppliers, and other business partners via extranet links.
Applications
of Intranets:
Organizations are implementing a broad range of
intranet uses. Several common functional
intranet business applications include:
1. Marketing
2. Finance
3. Human
Resources
4. Sales
5. Manufacturing
6. Training
7. Customer
Information
Intranet
applications support communications and collaboration, web publishing, business
operations and management, and intranet management. These applications can be integrated with
existing IS resources and applications, and extended to customers, suppliers,
and business partners.
·
Communications and Collaboration
Intranets
can significantly improve communications and collaboration within an
enterprise. Examples include:
1. Using
an intranet browser and PC or NC workstation to send and receive E-mail,
voicemail, paging, and faxes to communicate with others within your
organization, and externally through the Internet and extranets.
2. Use
intranet groupware features to improve team and project collaboration with
services such as discussion groups, chat rooms, and audio and
videoconferencing.
·
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 web sites has been one of the
primary reasons for the explosive growth in the use of intranets in
business. Examples include:
1. Company
newsletters, technical drawings, and product catalogues 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.
2. Intranet
software browsers, servers, and search engines can help you easily navigate and
locate the business information you need.
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:
1. 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.
2. Many
applications are designed to interface with, and access, existing company
databases and legacy systems. The
software for such businesses uses (sometimes called applets or crossware) is
then installed on intranet web servers.
3. Employees
within a company, or external business partners, can access and run
applications using web browsers from anywhere on the network whenever needed.
Intranet
Technology Resources
Since intranets are Internet-like networks within
organizations, they depend on all of the information technologies that make the
Internet possible. These include:
1. TCP/IP
client/server networks
2. Hardware
and software such as web browsers and server suites
3. HTML/DHTML/XML
web publishing software
4. Network
management and security programs
5. Hypermedia
databases
The Business Value of Intranets
Studies
have shown that early adopters of Intranets has provided them with impressive
returns and high paybacks at low costs. Many corporate intranet users and
consultants to the global business community has been that companies should get
going fast on pilot intranet projects, or quickly expand any current intranet
initiatives.
Examples
of Business Value:
There
are several examples of how top-rated companies have been able to derive cost
savings or revenue benefits from their intranet applications. These include:
1. Provide
better access to financial reports and improve productivity, speed, and
control. Employees select from
preformatted reports and create their own subscription lists.
2. Access
to engineering documents and information.
Reduces paper costs and increases speed of information transfer.
3. Global
staffing tool for project teams. Able to
find skilled staff and reduces time and effort to complete projects.
4. Group
intranet supports manufacturing, engineering, and marketing. Allows for each document exchange and reduces
paper costs.
5. Internal
web site for sales and customer service.
Reduces call volume and increases sales with greater salesforce
involvement.
6. DataDoc
Online. Reflects daily changes on video
rentals, books, music, and software across 115 retail locations. Saves IS time and improves data accessibility
and accuracy.
7. KeyCorp’s
knowledge bank distributes job postings, information on best practices and
training, marketing, and newsletters.
8. Knowledge
management and corporate communications system facilitates collaboration on
projects. Productivity increased via
information exchange and streamlining workflow.
9. Marketing,
planning, and operations. Shares
business information for improved decision making, efficiency, and competitiveness.
10.Each area on the manufacturing has
its own home page updated every 60 seconds.
Improves process and quality.
Publication Cost Savings
Many
companies are replacing the publication of paper documents, company
newsletters, and employee manuals with electronic multimedia versions published
on Intranet web servers. Elimination of
printing, mailing, and distribution costs is a major source of cost
savings. Companies are also publishing:
1. Telephone
directories
2. Human
resource materials
3. Company
policies
4. Job
openings
5. Many
other former paper-based communications
Training and Development Cost
Savings:
Developing
information access and web publishing for an Intranet is a lot easier than many
traditional methods. Learning how to use
a web browser for the company intranet is fast and easy. Training and development costs for many
Intranet applications are low, especially for communication, collaboration, and
information sharing. Electronic versions
of training materials on Intranet web sites can reduce the amount of costly
classroom training in business.
Measuring Costs and Benefits:
Justifying
the initial cost of investing in an Intranet does not seem to be a problem for
many organizations. In many instances,
payback time is achieved within a relatively short period of time. The effectiveness of the Intranet can often
justify the cost of the project.
The Role of Extranets
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. Companies can:
1. Establish
direct private network links between themselves, or create private secure
Internet links between them called virtual private networks.
2. 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 fire wall
systems to provide adequate security.
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.
The Future of Intranets and
Extranets
Intranets and extranets will become even more
pervasive in the business future. One
recurring theme for the future of Intranets and extranets is the need to move
beyond information publishing applications.
Companies are planning more inquiry processing and transaction
processing applications that tie the Internet, Intranets, and extranets to mainframe
and other legacy systems and databases.
Though such applications are more costly and difficult to develop, many
companies are forging ahead. These
Internet-using companies are in the process of Web-enabling operational and
managerial support applications, including online transaction processing,
database integration, and executive information and decision support.
Enterprise Collaboration Systems
Enterprise
Collaboration:
Enterprise collaboration
systems provide tools to help us collaborate - to communicate ideas, share
resources, and co-ordinate our co-operative work efforts as members of the many
formal and information process and project teams and workgroups that make up
many of today’s organizations.
The goal of enterprise
collaboration systems is to enable us to work together more easily and
effectively by helping us to:
· Communicate -
sharing information with each other
· Co-ordinate - co-ordinating our individual work efforts and use of
resources with each other
· Collaborate - working
together co-operatively on joint projects and assignments
Teams, Workgroups, and Collaboration
There are many types of teams and workgroups, each
with its own work styles, agendas, and computing needs.
Workgroup - can
be defined as two or more people working together on the same task or
assignment.
Team - can be
defined as a collaborative workgroup, whose members are committed to
collaboration, that is, working with each other in a co-operative way that
transcends the co-ordination of individual work activities found in a typical
workgroup.
Characteristics of teams and workgroups:
1. Teams
and workgroups can be as formal and structured as a traditional business office
or department. Or they can be less
formal and structured like the members of process teams in a manufacturing
environment.
2. Teams
and workgroups can be as informal, unstructured, and temporary as an ad hoc
task force or a project team whose members work for different organizations in
different parts of the world.
3. Members
of a team or workgroup don’t have to work in the same physical location. They can be members of a virtual team, that
is, one whose members are united by the tasks on which they are collaborating,
not by geography or membership in a larger organization.
Enterprise Collaboration System Components
The
enterprise collaboration system is an information system. Therefore, it uses
hardware,
software, data, and network resources to support communication, coordination,
and collaboration among the members of business teams and workgroups.
Groupware for Enterprise
Collaboration
Groupware
can be defined as collaboration software that helps teams and workgroups work
together in a variety of ways to accomplish joint projects and group
assignments.
Groupware
is designed to make communication and coordination of workgroup activities and
cooperation among end users significantly easier, no matter where the members
of a team are located. Groupware helps
the members of a team collaborate on group projects, at the same or different
times, and at the same place, or at different locations.
Many
industry analysts believe that the capabilities and potential of the Internet,
as well as Intranets and extranets, are driving the demand for enterprise
collaboration tools in business. On the
other hand, it is Internet technologies like web browsers and servers,
hypermedia documents and databases, and intranets and extranets, that are
providing the hardware, software, data, and network platform for many of the
groupware tools for enterprise collaboration that business users want.
Groupware
provides software tools for:
·
Electronic
communication
·
Electronic
conferencing
·
Collaborative
work management
Electronic Communication Tools
Electronic communication tools include electronic
mail, voice mail, bulletin board systems, and faxing. They enable you to
electronically send documents and files in data, text, voice, or multimedia
form over computer networks. This helps
you share everything form short voice and text messages to copies of project
documents and data files with your team members.
Electronic Mail
E-mail has become a vital, fast, and convenient way
to communicate and build strategic relationships with each other in
business. E-mail has also become an
important medium for transporting electronic copies of documents, data files,
and multimedia content.
The downsize of the E-mail phenomenon is:
·
The information
overload
·
The torrent of
unsolicited junk E-mail (called spamming)
Internet Phone and Fax
You can use the Internet for telephone, voice mail,
faxing, and paging services. All you
need is a suitably equipped PC and software such as Internet Phone by
VocalTech, or Netscape Conference or Microsoft NetMeeting. The minimum PC requirements are a 75 MHZ
Pentium microprocessor, 28.8 KBPS modem, 16 megabytes of memory, a sound card,
speaker and microphone, and Windows 95 or Windows NT.
Web Publishing
Web publishing can be viewed as an important
electronic communications tool for enterprise collaboration. Application software suites and other
programs now enable you to publish hyperlinked documents in HTML directly to
Internet or Intranet web sites. Intranet
web publishing has become a much more efficient and effective way of
communicating among teams and workgroups than previous paper or electronic methods.
Electronic Conferencing Tools
Electronic conferencing tools helps people
communicate and collaborate while working together. A variety of conferencing methods enable the
members of teams and workgroups at different locations to exchange ideas interactively
at the same time, or at different times at their convenience. Electronic conferencing options also include
electronic meeting systems, where team members can meet at the same time and
place in a decision room setting.
Electronic conferencing tools include:
·
Data and voice
conferencing
·
Videoconferencing
·
Chat systems
·
Discussion
forums
·
Electronic
meeting systems
Data and Voice Conferencing
Voice
conferencing can be accomplished with Internet telephone software and groupware
that supports telephone conversations over the Internet or intranets on PCs.
Data
conferencing is also popularly called whiteboarding. In this method, a groupware package connects
two or more PCS over the Internet or intranets so a team can share, mark up,
and review a whiteboard of drawings, documents, and other material displayed on
their screens.
Videoconferencing:
Videoconferencing
is an enterprise collaboration tool that enables real-time video/audio
conferences among:
1. Networked
PCs, known as desktop videoconferencing
2. Networked
conference rooms or auditoriums in different locations, called
teleconferencing.
Characteristics
of videoconferencing:
1. Team
and enterprise collaboration can be enhanced with a full range of interactive
video, audio, document, and whiteboard communications among the online
participants.
2. Desktop
videoconferencing can now take place over the Internet, Intranets, extranets,
as well as public telephone and other networks.
3. Videoconferencing
over the Internet, Intranets, and extranets is proving to be an efficient,
economical, and effective way of supporting communications and collaboration
among physically displaced teams and workgroups.
4. Reduces
travel time and money to attend meetings results in increased team productivity
as well as cost and time savings.
Limitations
of desktop videoconferencing:
1. Jerky
motions of video images and the lack of nonverbal communications from “talking
heads” displays of videoconference participants
Teleconferencing is an important
form of enterprise collaboration.
Characteristics
of teleconferencing:
1. Team
and enterprise collaboration can be enhanced with a full range of interactive
video, audio, document, and whiteboard communications among the online
participants.
2. Sessions
are held in real time, with major participants being televised while
participants at remote sites may only take part with voice input of questions
and responses.
3. Teleconferencing
can also consist of using closed-circuit television to reach multiple small
groups, instead of using television broadcasting to reach large groups at
multiple sites.
4. Several
major communications carriers offer teleconferencing services for such events
as sales meetings, new product announcements, and employee education and
training.
Limitations
of teleconferencing:
1. Some
organizations have found that teleconferencing may not be as effective as
face-to-face meetings, especially when important participants are not trained
in how to communicate using their systems.
2. Cost
of providing teleconferencing services and facilities can be substantial and
make teleconferencing not as cost effective as expected.
Discussion Forums
This
category of collaboration tools includes Internet and intranet newsgroups,
discussion groups, and discussion databases.
Characteristics
of discussion forums:
1. Are
an extension of the earlier concept of online bulletin board systems (BBS)
which allowed users to post messages and download data and program files form
the online services, businesses, and individual BBS operators.
2. Are
an outgrowth of the long time and widespread use of newsgroups to provide a
forum for online text discussions by the members of special interest user
groups on the Internet and the major online services.
3. Can
be used by companies to create or encourage communities of interest or virtual
communities.
4. Discussion
forum groupware can keep track of the discussion contributions of each
participant, organize them by a variety of key word discussion topics, and
store them in a discussion database (threaded discussions, virtual discussion
groups, discussion tracking, and discussion databases). This creates threads of discussion
contributions on each topic over a period of time that can be tracked and
retrieved from the discussion database for analysis.
5. Discussion
forum groupware can be used to create a virtual discussion group where discussion forum groupware can create a
virtual discussion group by weaving together the threads of contributions on
the same topic by people, who had been participants in other online discussion
groups.
Chat Systems
Chat
enables two or more people to carry on online real-time text
conversations. Characteristics of chat
systems:
1. You
can converse and share ideas interactively by typing in your comments and
seeing the responses on your display screen.
2. Chat
is an important tool for enterprise collaboration on corporate Intranets,
especially where voice and videoconferencing have not been implemented. One advantage of chat is that it records and
stores the dialogues of all participants, so that other team members can review
them later.
3. Chat
rooms are also being added to Internet and intranet web sites as another way to
encourage participation and collaboration by customers or employees.
Electronic Meeting Systems
Organizations
frequently schedule meetings as decision-making situations that require
interaction among groups of people. The
success of group decision making during meetings depends on such factors:
1. The
characteristics of the group itself
2. The
characteristics of the task on which the group is working
3. The
organizational context in which the group decision-making process takes place
4. The
use of information technology such as electronic meeting systems
5. The
communication and decision-making processes the group utilizes
Information
technology can provide a variety of tools to increase the effectiveness of
group decision making. Known generally
as group support systems (GSS), these technologies include a category of
groupware known as electronic meeting systems (EMS).
Research
studies indicate that electronic meeting systems produce several important
benefits.
Computer
support makes:
·
Group
communications easier
·
Protects the
anonymity of participants
·
Provides a
public recording of group communications (group memory).
This significantly improves the efficiency,
creativity, and quality of communication, collaboration, and group decision
making in business meetings.
Collaborative Work Management
Tools:
Collaborative work management tools help people accomplish
or manage group work activities. This
category of groupware includes:
·
Calendaring and
scheduling tools
·
Task and project
management
·
Workflow systems
·
Knowledge
repositories
Calendaring and Scheduling
Calendaring
and scheduling tools are a groupware extension of many of the capabilities
provided by desktop accessory packages and personal information managers, and
mainframe office automation systems.
These packages enable you to use electronic versions of a variety of
office tools such as calendar, appointment book, address book, contact list,
and task to-do list.
Task and Project Management
Project
management and personal information packages can be used to do task and project
management on your PC.
Characteristics
of task and project management groupware:
1. Project
management groupware helps project teams work together and helps team members
keep track of the many tasks and timelines involved. These tools produce project schedules,
program reports, and automatic reminders of due dates for project tasks.
2. Task
and project management groupware also produces charts to help plan and track
projects. These charts include:
Gantt
Chart
Critical
Path Method (CPM)
Program
Evaluation and Review Technique (PERT)
Workflow Systems
Workflow
systems are related to task and project management, as well as a type of
electronic document processing called document image management.
Characteristics
of workflow systems:
1. Workflow
systems involve helping knowledge workers collaborate to accomplish and manage
structured work tasks within a knowledge-based business process.
2. Workflow
systems are typically based on rules that govern the flow of tasks and task
information contained in business forms and other documents.
Knowledge Management
Knowledge
management is a tool of enterprise collaboration that groupware packages use to
organize, manage, and share the diverse forms of business information created
by individuals and teams in an organization.
Groupware application software stores this information in document
libraries, discussion databases, knowledge repositories, and web site
hypermedia databases. These forms of
stored information help create a knowledge base or organizational memory of
strategic business information to be shared within the organization. Knowledge bases are part of the knowledge
management systems being developed and used by many companies.
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