ECOMMERCE

FUNDAMENTALS OF ECOMMERCE
BY
Dr. S SUBASREE, M.Tech,Ph.D

TOPICS

Fundamentals of E-Commerce
Frame Work of E-Commerce Types of E-Commerce Interdiciplinary Nature of E-commerce Advantages and Disadvantages of E-commerce Enabling Tools Internet Intranet Extranet WWW XML WML WAP

DEFINITION OF ECOMMERCE

E-commerce is an emerging medium where you can perform the process of selling and purchasing of services and information using internet. E-commerce use computer networks to search and retrieve information in support of human and corporate decision making.

E-commerce is association where buying and selling of information product and services via computer networks and it is called information super highway.

PERSPECTIVE OF ECOMMERCE

There are 4 different perspective of E-commerce. They are

1. Communication perspective
2. Business perspective 3. Service perspective 4. Online perspective

DEFINITION OF ECOMMERCE

E-commerce is an emerging medium where you can perform the process of selling and purchasing of services and information using internet. E-commerce use computer networks to search and retrieve information in support of human and corporate decision making.

E-commerce is association where buying and selling of information product and services via computer networks and it is called information super highway.

COMMUNICATION PERSPECTIVE

From a communication perspective, e-commerce is the delivery of information either by using local area network or by using wide area network. The information can be transferred from source to destination without any packet loss. The delivery of information may be a product, services and payments over a telephone line or computer networks on any other electronic means.

BUSINESS PERSPECTIVE

From a business perspective e-commerce is the application of technology towards the automation of business transaction and workflow (Sequence of work). It is planned to reduce the manual works. Because of online transaction of information speed up the delivery process. Paper based transactions reduce the maintenance work of hardcopy informations.

SERVICE PERSPECTIVE

From a service perspective, e-commerceis a tool that addresses the desire of firms, consumer and management to cut down the service cost while improving the quality of goods and increasing the speed of service delivery. Through online communication it reaches information to the receiver in faster manner. Because of this it will speed up the transactions. the

ONLINE PERSPECTIVE

From online perspective, e-commerce provides the capability of buying and selling product and information on the internet and other online services. Searching is very easy for the customers Purchase order is available by clikcing the button.

on purchasing, the payment transactions can be carried out easily by the customer using online payment system
Faster communication is possible with the vendor regarding sharing of informations.

FRAMEWORK OF E-COMMERCE

Public Policy Legal and Privacy Issues

Technical standards for Electronic documents Multimedia & Protocols

FRAMEWORK OF ECOMMERCE

E-commerce Applications: -Stocks -jobs -Online Transaction -Customer Service & Auctions Major Areas:

People- Buyer, Seller, Intermediate Person, Service information, System people management.
Public policy-taxes, Legal and privacy issues, Domain names. Technical Standards: For documents, security, network protocols, payments

FRAMEWORK OF ECOMMERCE

Organization: Partners, competitors, Association of government services. Infrastructure: Common Business Service infrastructure a) Security b) Payment c) Catalogs

Messaging and information Distribution - Email, Electronic Data Interchange (EDI).

Multimedia Network Publishing Infrastructure - Need HTML (for advertising using designs), java, www, Virtual Reality Markup language (VRML)

FRAMEWORK OF ECOMMERCE

Network Communication Infrastructure - Cable TV, Wireless medium, WAN, LAN, internet, intranet etc. Interface Infrastructure -w Connecting people - Customer, Buyer, Database application.

CLASSIFICATION OF ECOMMERCE

There are 3 broad categories of E-commerce

1. Electronic market 2. Inter Organizational System 3. Providing Services

ELECTRONIC MARKET

A market is a network of interaction and relationship where information, products, services and payments are exchanged. If the market place is a electronic medium then there is no physical building but rather it has network based location where business interaction occurs.

WORKING OF

ELECTRONIC MARKET

INTER ORGANISATIONAL SYSTEM

The communication will be taking place between organizations or it may be taking place the departments of a particular organization. It is used interact within the organisation and also it perform interaction with outside organisation. If the departments are located in different places and they want to share the information in secured way they use this IOS. The employee of that particular organisation have a special user name and password and they can alone share the information. Outside people of the organisation does not have this facilities. The predefined agreement is possible in IOS system but it is not possible in Electronic Market.

TYPES OF

INTER ORGAISATIONAL SYSTEM

1)

2)
3) 4) 5) 6)

Electronic Data Exchange(EDI) It uses value added network for B2B transaction. Extranet It connects internet with intranet. Electronic Fund Transfer (EFT) Payment for the products using e-market. Electronic Forms Paper based records can be converted to e-based. Integrated Messages Combining of FAX, email, EDI Shared Database It can be accessed from anywhere else.

DIFFERENCE BETWEEN

ELECTRONIC MARKET AND IOS

PROVIDING CUSTOMER SERVICE

Warranty period services - During this period the customer can be provided the services by the vendor. Guaranty period services During this period the customer can be provided the free services by the vendor. Customer services during repair works If the product is failed, then the vendor has to identify the problem and do the repair works. Subscription services For maintaining the products the customer has to pay some amount to the vendor so that they will do some service to the customer.

CLASSIFICATION OF ECOMMERCE ACCORDING TO TRANSACTION

Business-to- Business (B2B) [Eg.IOS] Business-to- Customer (B2C) [eg.EM] Customer- to- Customer (C2C) [eg.classified.com] Customer-to- Business (C2B) [Eg.car sales]

Non Business Ecommerce [Academic organization, Religious org]

Intra Business Ecommerce between Departments] [Within organization

CLASSIFICATION OF ECOMMERCE ACCORDING TO TRANSACTION

Business-to- Business (B2B)

It provide Inter-organisational interaction and transactions. This type of Ecommerce require two or more business entities interacting with each other directly or indirectly through intermediary. The intermediary may be market makers or directory service providers, who assist in matching buyers and sellers. B2B commerce can be a Supplier-Centric Buyer-Centric Intermediary-Centric

CLASSIFICATION OF ECOMMERCE ACCORDING TO TRANSACTION

Supplier-Centric Supplier set up the electronic marketplace Various customer/buyer businesses interact with the supplier with its marketplace. It is done by the dominant suppliers. The supplier can attract the customer by providing various pricing schemes. Differential price structure is dependent upon the volume and loyalty discount.

CLASSIFICATION OF ECOMMERCE ACCORDING TO TRANSACTION

Buyer-Centric In buyer centric major businesses with high volume purchase capacity create an electronic commerce marketplace for purchase and acquisition. The online Ecommerce marketplace is used by the buyer for placing Requests For Quotations (RFQs) and carrying out the entire purchase process. This kind of facility may be utilized by high volume and well recognised buyers.

Example will be United state Government and General Electric Trading process network are examples of buyer centric commerce.

CLASSIFICATION OF ECOMMERCE ACCORDING TO TRANSACTION

Intermediary-Centric Here the commerce third party set marketplace. up the electronic

It attract the buyer and seller businesses to interact The buyer and seller have increased option of pricing, quality, availability and delivery of goods. It act as a hub for both the buyer and seller where buyer can quote their quotations and seller can bid electronically leading the match will ultimately to a final transactions.

CLASSIFICATION OF ECOMMERCE ACCORDING TO TRANSACTION

Business to Customer Electronic Commerce

B2C commerce offer consumers the capacity to browse,select, and buy merchandise online, from a wider variety of sellers and at better prices. Two or more entities that interact with each other in this type. one is the customer and another one is seller.

In this type the seller and customer both benefited because the round the clock transaction is possible.

CLASSIFICATION OF ECOMMERCE ACCORDING TO TRANSACTION

The B2C model of electronic commerce transaction is ideally suited for the following types of merchandise:
Goods that can be easily transformed into digital format, such as books, music, clips, videos and software packages Items that follows the standard specifications, like printer ribbon and ink cartridges etc. Highly rated branded items with return security, such as Dell and Compaq computers, electronic gadgets from sony etc. Items sold in packets that cannot be opened even in physical stores eg. Kodak film rolls.

Relatively cheap items

Item that can be experienced online such as music,videos etc.

CLASSIFICATION OF ECOMMERCE ACCORDING TO TRANSACTION

Consumer to Business (C2B)

Here the transaction is originated by the customer He specify the specific price for the commodity,service or item. C2B enables a customer to determine the price of a product and service offered by a company. In this type, the consumer get a choice of a wise variety of commodities and services, along with the opportunity to specify the range of prices they can afford or willing to pay for a particular item, service, or commodity.

Because of that it reduces the bargaining time, increases the flexibility and creates ease at the point of sale for both the merchant and the consumer.

CLASSIFICATION OF ECOMMERCE ACCORDING TO TRANSACTION

Consumer to Consumer (C2C)

C2C is the electronic commerce activity that provides the opportunity for trading of products or services amongst consumers who are connected through the internet. In this category the electronic tools and internet infrastructure are employed to support transaction between individuals. Traditional economic activities like Classified advertisement and auctions of personal things are the basic categories. C2C allows the customer to customer in the internet. It can be conducted through both trading forums and intermediaries such as auctions, classified advertisements and collectible shows.

CLASSIFICATION OF ECOMMERCE ACCORDING TO TRANSACTION

Non Business Commerce

The it is run by the educational institutions having their web sites Here the transactions are carried out without the motivation of money. They provide service to society. For example, the web site of any college which provides details about the courses offered by them and also it shows the various syllabus and facilities which is available in their college.

CLASSIFICATION OF ECOMMERCE ACCORDING TO TRANSACTION

Intra Business Commerce

Here the transactions are taking place departments of the same organisations. between the

They can share the information within the organization For example, A company can have various divisions and these divisions are located in various cities then they can share the information through intranet.

INTERDISCIPLINARY NATURE OF E-COMMERCE

It Contains ten disciplines they are

Marketing : Whether the transaction is online or offline the advertisement is necessary. By viewing the advertisement more customers gather the information and they go for buying the product. Computer Science : The language and the communication products has to be upgraded frequently. Customer and Seller Behaviour : Customer behaviour is the key to the success of B2C trade Behaviour of seller is also taken care. Finance : The Financial market and banks are having more participation in E-commerce.

INTERDISCIPLINARY NATURE OF E-COMMERCE

It Contains ten disciplines they are

Econimics : E-commerce is influenced by economic force and have a major impact on world and country economy. Management Information System : The information System department covers the system analysis, system integration, planning, implementation, security and payment system. Accounting and Auditing : Online auditing is a challenge process. It reduce the paper based work and speed up the auditing process, so that the cost benefit justification can be done easily. Management : It is needed by the managementto have the control over the customer, seller and financial people.

INTERDISCIPLINARY NATURE OF E-COMMERCE

It Contains ten disciplines they are

Business Law : The rules and regulation has to be strictly followed by a business people in global market. Others :Robotics,sensor networks,management science,public policy and administration these are the other areas where E-commerce can be dominated.

BENEFITS OF E-COMMERCE

BENEFITS TO ORGANISATION :
The business transaction can be expanded from national to international level. Company can locate more customers, best sellers and suitable business partners. EC decreases the cost of creating, processing, distributing, storing and retrieving paper based information. Ability to create a specialized business. Eg: www.dogstoys.com Just In Time (JIT)[reduce the delay of transmission because there is a direct connection between the customer and manufacturer/seller and manufacturer] EC allows reducing inventories. Pull type Supply chain management.

BENEFITS OF E-COMMERCE

BENEFITS TO ORGANISATION :
Manufacturer

Customer

Seller(Dealer)

BENEFITS OF E-COMMERCE

BENEFITS TO ORGANISATION :
EC reduces the time between outlay of capital and receipt of product and services. EC initiates business process to Re-engineering the project. EC reduces the cost of communication because the Internet accessing cost is very cheaper. Others are improved images, improved customer services and new found of business partners, simplified process, compressed cycle and delivery time, Increased productivity, eliminating paper, expediating access to the internet, reduced transportation cost and increased flexibility.

BENEFITS OF E-COMMERCE

BENEFITS TO CUSTOMERS :
Since because of online transaction the customer can log on at anytime. More number of choices are there for customers. EC provides less cost for product because of the competition among sellers. EC provides the opportunity to compare prices before purchasing a product. Quick delivery of product is possible. The information about the product is also received in fast manner compared with paper transaction. EC allows for virtual options. Sharing of information between the customer is also possible.

BENEFITS OF E-COMMERCE

BENEFITS TO SOCIETY :
The people sitting in their home can make a transaction and because of this there is no traffic in the market and it reduces air pollution. The competition between sellers makes people to buy a luxurious item in discounts.

EC can provide services to the village people.

EC provides different type of public services like health care, online education and social awareness etc.,

LIMITATIONS OF E-COMMERCE

It is classified into two types o Technical Limitations o Non-technical Limitations

LIMITATIONS OF E-COMMERCE

TECHNICAL LIMITATIONS :
There is a lack of system security, reliability and communication protocol. There is in sufficient telecommunication bandwidth. The software development tools are skill evolving and changing rapidly. The integration of Internet and e-commerce software is difficult because of rapid changes. Vendors may need special web server and other infrastructure in addition to the network servers. Some EC software might not fit with the hardware or operating system or other components of customers.

LIMITATIONS OF E-COMMERCE NON-TECHNICAL LIMITATIONS : Cost and Specification: The cost of EC transaction is very high. Due to lack of experience there is a possibility of delay. He cannot say because of EC the profit is increased. Security and Privacy: It is important for the B2C commerce. The encryption technique is to be adapted in such a way the third party cant able to access the information for that a very long key has to be generated and processed because of long key it takes more time to process data. The seller cannot convince the customer for purchasing a product. Lack of trust and User Resistance: Customers do not believe a unknown faceless, seller, paperless transaction and e-money transfer. Switching between off-line and online transaction is difficult.

LIMITATIONS OF E-COMMERCE OTHER LIMITATIONS : Some people want to touch the product before getting the product. There may be a possibility of many unsolved issues. EC software changed frequently but people expect stable system.

The evaluation of EC is not there.

EC breakdown the human relationship. Accessibility of Internet is very high for some people.

Enabling Tools

INTERNET

INTRODUCTION

By the turn of the century, information, including access to the Internet, will be the basis for personal, economic, and political advancement. The popular name superhighway. for the Internet is the information

Whether you want to find the latest financial news, browse through library catalogs, exchange information with colleagues, or join in a lively political debate, the Internet is the tool The Internet shrinks the world and brings information, expertise, and knowledge on nearly every subject imaginable straight to your computer.

INTERNETWORK

An internetwork is a collection of individual networks, connected by intermediate networking devices, that functions as a single large network. Internetworking refers to the industry, products, procedures that meet the challenge of creating administering internetworks. and and

Below Figure illustrates some different kinds of network technologies that can be interconnected by routers and other networking devices to create an internetwork.

ARCHITECTURE OF INTERNETWORK

INTERNET

The Internet links are computer networks all over the world so that users can share resources and communicate with each other. Some computers, have direct access to all the facilities on the Internet such as the universities. And other computers, eg privately-owned ones, have indirect links through a commercial service provider, who offers some or all of the Internet facilities. In order to be connected to Internet, you must go through service suppliers. Many options are offered with monthly rates. Depending on the option chosen, access time may vary. The Internet is what we call a metanetwork, that is, a network of networks that spans the globe.

INTERNET

It's impossible to give an exact count of the number of networks or users that comprise the Internet, but it is easily in the thousands and millions respectively. The Internet employs a set of standardized protocols which allow for the sharing of resources among different kinds of computers that communicate with each other on the network. These standards, sometimes referred to as the Internet Protocol Suite, are the rules that developers adhere to when creating new functions for the Internet. The Internet is also what we call a distributed system; there is no central archives. Technically, no one runs the Internet. Rather, the Internet is made up of thousands of smaller networks.

HISTORY OF INTERNETWORKING

The first networks were time-sharing networks that used mainframes and attached terminals. Such environments were implemented by both IBM's Systems Network Architecture (SNA) and Digital's network architecture. Local-area revolution. networks (LANs) evolved around the PC

LANs enabled multiple users in a relatively small geographical area to exchange files and messages, as well as access shared resources such as file servers and printers.

HISTORY OF INTERNETWORKING

Wide-area networks (WANs) interconnect LANs geographically dispersed users to create connectivity.

with

Some of the technologies used for connecting LANs include T1, T3, ATM, ISDN, ADSL, Frame Relay, radio links, and others. New methods of connecting dispersed LANs are appearing everyday. Today, high-speed LANs and switched internetworks are becoming widely used, largely because they operate at very high speeds and support such high-bandwidth applications as multimedia and videoconferencing.

HISTORY OF INTERNETWORKING

Internetworking evolved as a solution to three key problems: isolated LANs, duplication of resources, and a lack of network management. Isolated LANs made electronic communication between different offices or departments impossible.

Duplication of resources meant that the same hardware and software had to be supplied to each office or department, as did separate support staff.
This lack of network management meant that no centralized method of managing and troubleshooting networks existed

DEVELOPMENT OF INTERNETWORKING

Internet was originally conceived by the Department of Defense as a way to protect government communications systems in the event of a military strike. The original network, dubbed ARPANet (for the Advanced Research Projects Agency that developed it) evolved into a communications channel among contractors, military personnel, and university researchers who were contributing to ARPA projects. The network employed a set of standard protocols to create an effective way for these people to communicate and share data with each other.

DEVELOPMENT OF INTERNETWORKING

ARPAnet's popularity continued to spread among researchers, and in the 1980's the National Science Foundation, whose NSFNet, linked several high speed computers, took charge of the what had come to be known as the Internet. In 1991, the U.S. High Performance Computing Act established the NREN (National Research & Education Network). NREN's goal was to develop and maintain high-speed networks for research and education, and to investigate commercial uses for the Internet. The rest, as they say, is history in the making. The Internet has been improved through the developments of such services as Gopher and the World Wide Web. Even though the Internet is predominantly thought of as a research oriented network, it continues to grow as an informational, creative, and commercial resource every day and all over the world.

INTERNET ADDRESSING
Internetwork addresses identify devices separately or as members of a group. Addressing schemes vary depending on the protocol family and the OSI layer. Three types of internetwork addresses are commonly used: data link layer addresses, Media Access Control (MAC) addresses, and network layer addresses.

DATA LINK LAYER ADDRESS

A data link layer address uniquely identifies each physical network connection of a network device. Data-link addresses sometimes are referred to as physical or hardware addresses. Data-link addresses usually exist within a flat address space and have a pre-established and typically fixed relationship to a specific device.

DATA LINK LAYER ADDRESS

End systems generally have only one physical network connection and thus have only one data-link address. Routers and other internetworking devices typically have multiple physical network connections and therefore have multiple data-link addresses. Figure illustrates how each interface on a device is uniquely identified by a data-link address. The following figure depict how a device can be identified using the data link layer address

DATA LINK LAYER ADDRESS

MAC ADDRESSES
Media Access Control (MAC) addresses consist of a subset of data link layer addresses. MAC addresses identify network entities in LANs that implement the IEEE MAC addresses of the data link layer. As with most data-link addresses, MAC addresses are unique for each LAN interface. The figure illustrates the relationship between MAC addresses, data-link addresses, and the IEEE sublayers of the data link layer.

MAC ADDRESSES

MAC ADDRESSES
MAC addresses are 48 bits in length and are expressed as 12 hexadecimal digits. The first 6 hexadecimal digits, which are administered by the IEEE, identify the manufacturer or vendor and thus comprise the Organizationally Unique Identifier (OUI). The last 6 hexadecimal digits comprise the interface serial number, or another value administered by the specific vendor. MAC addresses sometimes are called burned-in addresses (BIAs) because they are burned into read-only memory (ROM) and are copied into random-access memory (RAM) when the interface card initializes. The following Figure illustrates the MAC address format.

MAC ADDRESSES

MAPPING ADDRESSES

Because internetworks generally use network addresses to route traffic around the network, there is a need to map network addresses to MAC addresses. When the network layer has determined the destination station's network address, it must forward the information over a physical network using a MAC address. Different protocol suites use different methods to perform this mapping, but the most popular is Address Resolution Protocol (ARP).

MAPPING ADDRESSES

Different protocol suites use different determining the MAC address of a device.

methods

for

The following three methods are used most often. Address Resolution Protocol (ARP) maps network addresses to MAC addresses.
The Hello protocol enables network devices to learn the MAC addresses of other network devices. MAC addresses either are embedded in the network layer address or are generated by an algorithm.

MAPPING ADDRESSES
Address Resolution Protocol (ARP) is the method used in the TCP/IP suite. When a network device needs to send data to another device on the same network, it knows the source and destination network addresses for the data transfer. It must somehow map the destination address to a MAC address before forwarding the data. First, the sending station will check its ARP table to see if it has already discovered this destination station's MAC address. If it has not, it will send a broadcast on the network with the destination station's IP address contained in the broadcast. Every station on the network receives the broadcast and compares the embedded IP address to its own. Only the station with the matching IP address replies to the sending station with a packet containing the MAC address for the station. The first station then adds this information to its ARP table for future reference and proceeds to transfer the data.

MAPPING ADDRESSES
When the destination device lies on a remote network, one beyond a router, the process is the same except that the sending station sends the ARP request for the MAC address of its default gateway. It then forwards the information to that device.
The default gateway will then forward the information over whatever networks necessary to deliver the packet to the network on which the destination device resides. The router on the destination device's network then uses ARP to obtain the MAC of the actual destination device and delivers the packet.

MAPPING ADDRESSES
The Hello protocol is a network layer protocol that enables network devices to identify one another and indicate that they are still functional.
When a new end system powers up, for example, it broadcasts hello messages onto the network. Devices on the network then return hello replies, and hello messages are also sent at specific intervals to indicate that they are still functional. Network devices can learn the MAC addresses of other devices by examining Hello protocol packets.

MAPPING ADDRESSES
Three protocols use predictable MAC addresses. In these protocol suites, MAC addresses are predictable because the network layer either embeds the MAC address in the network layer address or uses an algorithm to determine the MAC address.
The three protocols are Xerox Network Systems (XNS), Novell Internetwork Packet Exchange (IPX), DECnet Phase IV.

NETWORK LAYER ADDRESSES

A network layer address identifies an entity at the network layer of the OSI layers. Network addresses usually exist within a hierarchical address space and sometimes are called virtual or logical addresses. The relationship between a network address and a device is logical and unfixed; it typically is based either on physical network characteristics End systems require one network layer address for each network layer protocol that they support. Routers and other internetworking devices require one network layer address per physical network connection for each network layer protocol supported. For example, a router with three interfaces each running AppleTalk, TCP/IP, and OSI must have three network layer addresses for each interface.

NETWORK LAYER ADDRESSES

The router addresses.

therefore

has

nine

network

layer

Figure illustrates must be assigned protocol supported.

how each a network

network interface address for each a

Each Network Interface Must Be Assigned Network Address for Each Protocol Supported.

NETWORK LAYER ADDRESSES

WHO PAYS FOR THE INTERNET?

There is no clear answer to this question because the Internet is not one "thing", it's many things.
No one central agency exists that charges individual Internet users. Rather, individuals and institutions who use the Internet pay a local or regional Internet service provider for their share of services. And in turn, those smaller Internet service providers might purchase services from an even larger network. So basically, everyone who uses the Internet in some way pays for part of it.

CLIENT / SERVER MODEL

The most popular Internet tools operate as client/server systems. You're running a program called a Web client. This piece of software displays documents for you and carries out your requests. If it becomes necessary to connect to another type of service--say, to set up a Telnet session, or to download a file--your Web client will take care of this, too. Your Web client connects (or "talks") to a Web server to ask for information on your behalf. The Web server is a computer running another type of Web software which provides data, or "serves up" an information resource to your Web client.

CLIENT / SERVER MODEL

All of the basic Internet tools--including Telnet, FTP, Gopher, and the World Wide Web--are based upon the cooperation of a client and one or more servers. In each case, you interact with the client program and it manages the details of how data is presented to you or the way in which you can look for resources. In turn, the client interacts with one or more servers where the information resides. The server receives a request, processes it, and sends a result, without having to know the details of your computer system, because the client software on your computer system is handling those details. The advantage of the client/server model lies in distributing the work so that each tool can focus or specialize on particular tasks: The server serves information to many users while the client software for each user handles the individual user's interface and other details of the requests and results.

READING AN IP ADDRESS
To use Internet e-mail successfully, you must understand how the names and addresses for computers and people on the Internet are formatted.
Mastering this technique is just as important as knowing how to use telephone numbers or postal addresses correctly. Fortunately, after you get the hang of them, Internet addresses are usually no more complex than phone numbers and postal addresses. And, like those methods of identifying a person, an organization, or a geographic location--usually by a telephone number or a street address--Internet addresses have rules and conventions for use.

READING AN IP ADDRESS
To use Internet e-mail successfully, you must understand how the names and addresses for computers and people on the Internet are formatted.
Mastering this technique is just as important as knowing how to use telephone numbers or postal addresses correctly. Fortunately, after you get the hang of them, Internet addresses are usually no more complex than phone numbers and postal addresses. And, like those methods of identifying a person, an organization, or a geographic location--usually by a telephone number or a street address--Internet addresses have rules and conventions for use.

Enabling Tools

INTRANET

WHAT IS INTRANET?

Intranet is a private network. It shares the information between some organization. i.e. An intranet is a corporate LAN or wide area network that uses Internet technology and is secured behind companys firewalls(a kind of access control server). The intranet links various servers,clients,databases and application programs like Enterprise Resource Planning(ERP).

Although intranets are developed on the same TCP/IP protocol as the Internet, they operate as a private network with limited access.
Only authorized employees are able to use it.

INTRANET

The firewalls protect the intranets from unauthorized outside access. The intranet can be used to enhance the communication and collaboration among authorized employees,customers,suppliers, and other business partners. Since the intranet allows access through the internet , it does not require any additional implementation of leased networks. This open and flexible connectivity is a major capability and advantage of intranets. Intranets provide the infrastructure for many intrabusiness commerce applications.

ARCHITECTURE OF INTRANET

Client

Server

Public/External Internet Users

Fire walls

Intranet

Email Legacy Server

Product Database

Web server

INTRANET SOFTWARE

To build an intranet,we need Web servers,Browsers,Web publishing tools,backend databases,TCP/IP networks(LAN or WAN) and firewalls. A firewall is software and/or hardware that allows only those external users with specific characteristics to access a protected network. Additional software may be necessary to support the webbased workflow ,groupware, Enterprise Resource Planning(ERP),depending upon the individual companys need.

APPLICATIONS OF

INTRANET

Corporate/department/individual Web pages Database access: Web-based database Search engines and directories: assist keywordbased search Interactive communication: chatting,audio and video conferences Document distribution and workflow: Web-based download and routing of documents. Groupware: fancy e-mail and bulletin board.

APPLICATIONS OF

INTRANET

Telephony: intranets are the perfect conduit for computerbased telephony. Integration with EC: interface with Internet-based electronic sales and purchasing. Extranet :linking geographically dispersed branches,customers,and suppliers to authorized sections of intranets creates happier customers,more efficient suppliers and reduced staff costs.

INTRANET APPLICATION AREAS

Electronic commerce: Sales and purchasing can be done online. Customer service: UPS,FedEx, and other pioneering companies have proved that information about product shipments and availability make customers happier. Reduced time to market: Easy online access for product development speeds teamwork. Enhanced knowledge sharing: Web pages can enhance knowledge sharing. Enhanced group decision and business process: Web-based groupware and workflow is becoming the standard intranet platform.

INTRANET APPLICATION AREAS

Empowerment: Everyting should be available to everyone with the right to know. Virtual organizations: Web technology at both ends removes the barrier of incompatible technology between businesses. Softtware distribution: Use the intranet server as the application warehouse and avoid many maintenance and support problems. Document management: Employers can access pictures,photos,charts,maps, and other documents regardless of where they are stored.

INTRANET APPLICATION AREAS

Project management: Share the reports and check the projects progress. Training: The Web page is a valuable source of providing knowledge to novices. Facilitate transaction processing: The data are entered efficiently through the intranet Web only once, and internal control can be applied consistently throughout the system. Eliminate paper-based information delivery: Eliminating the paper in a firm can result in lower cost,easier accessibility, and greater efficiency.

Industry specific INTRANET solutions

Intranet solutions are frequently classified by industry instead of technology, because the technology is no longer a bottleneck for implementation.
The intranet and extranet solutions can be classified by industry as follows: Financial services: banking,brokerages and other financial services,insurance. Information technology Manufacturing: chemicals and oil,consumer goods,food and beverage,general manufacturing and pharmaceuticals. Retail construction/engineering,education,environmental,health care,media,entertainment,telecommunications,transportation and utilities.

Enabling Tools

EXTRANET

WHAT IS EXTRANET?

An extranet or extended intranet, uses the TCP/IP protocol networks of the internet, to link intranets in different locations. Extranet transmission are usually conducted over the Internet, which offers little privacy or transmission security. Therefore, when using an extranet , it is necessary to improve the security of the connecting portions of the Internet. This is done by creating tunnels of secured data flows, using cryptography and authorization algorithms. The Internet with tunneling technology is known as Virtually private network(VPN).

ARCHITECTURE OF EXTRANET

Extranet

Suppliers intranet
Fire Walls

Distributors Tunneling Internet intranet Customers

Fire Walls

EXTRANET

Extranets provide secured connectivity between a corporations intranets and the intranets of its business partners ,materials suppliers,financial services,government, and customers. Access to intranets is strictly controlled and it is only available to authorized personnel. The protected environment of the extranet allows group to collaborate,sharing information and exchanging it securely. Since an extranet allows connectivity between businesses through the internet,it is an open and flexible platform suitable for supply chain management. To increase security,many companies replicate the databases and separate them physically from their regular intranets. The separated data need to be protected.This protection is provided by special architecture

BASIC CONCEPTS OF

EXTRANET
intranets

The extended intranet connects multiple through a secured tunneling Internet.

Extranets combine the privacy and security of intranets with the global reach of the Internet,granting access to outside business partners,suppliers and customers to a controlled portion of the enterprise network. Extranets are becoming the major platforms for B2B EC.

They provide the flexibility of serving internal and external users.

EXTRANET

SUPPLIERS intranet Enterprise intranet Internet

Consumers

VPN

VPN
Remote Employees

VPN
Business Client intranet

VPN

VPN
Business Partner Intranet

Distributors intranets

ELEMENTS OF

EXTRANET

Extranets are comprised of a wide variety of components and several possible configurations. These include intranets,Web servers,firewalls,ISPs,tunneling technology,interface software and business applications. The tunneling principle is the basic concept that makes the extranet possible. Tunneling means that data transmissions across the Internet can be made secure by authenticating and encrypting all IP packets. Several tunneling protocols are available,but IP Security proposed by IETF(Internet Engineering Task Force) is one of the more popular protocols.

Configuration of

EXTRANET

1. They can be implemented using a direct leased line with full control over it,linking all intranets. 2. A secure link(tunnel) can be created across the Internet, which can be used by the corporation as a VPN. The Effectiveness of an extranet depends on the degree to which it is Integrated with the legacy systems and databases.

Integrating with legacy systems involves integrating a System Network Architecture-the backbone of legacy systems in many corporations-with TCP/IP, the web backbone.

EXTRANET CATEGORIES AND SERVICES

1. Extranet development tools: provide the means and facilities to design extranet servers,a client-base,security,EC applications and electronic catalogs. 2. Extranet hosting and network connectivity: provide secure ISP connections to Internet backbones and host extranet services for corporations. 3. Extranet services: provide extranet design expertise with tools or services for building and operating extranet-based services for corporate clients. 4. Virtual private networks: provide components specifically designed for connecting remote operators and creating IP WANs for corporations.

EXTRANET TOOLS AND SERVICE PROVIDERS

The extranet development tools include a range of products from simple EC software to sophisticated catalog servers that combine software and hardware product.

There are four types of extranet service providers:

1. Consultants: who develop extranet networks for clients.

2. Developers: who are using generally available development tools or products. 3. System Integration firms: that provide turnkey solutions,including design,development,ISP connectivity etc. 4. Internet Service Providers: who already operate the Internet backbones.

EXTRANET BENEFITS

1. Enhanced Communications Improved internal communications Improved business partnership channels Effective marketing,sales, and customer support Collaborative activities support 2. Productivity enhancements Just-in-time information delivery Reduction of information overload Productive collaboration between work groups 3. Business enhancements Faster time to market Lower design and production costs Improved client relationships New business opportunities

EXTRANET BENEFITS

4. Cost reduction 5.Information delivery implementation mailing costs.

Reduced travel and meetings Reduced operational costs Elimination of paper publishing costs Standard delivery systems Ease of maintenance Elimination of paper publishing and and

Disadvantages of EXTRANET

1. Extranets can be expensive to implement and maintained within an organization. 2. Security of extranets can be a big concern when dealing with valuable information. 3. System access needs to be carefully controlled. 4. Extranets can reduce personal contact(face to face meetings) with customers and business partners.This could cause a lack of connections made between people and a company.