Intranet/Extranet

The first global electronic network was the Internet. Today there are also new Internet subsystems called an intranet and an extranet. While computer users may use all three systems throughout a single day, there are some similarities and differences among them that are important. To aid in understanding these three systems, let us use the example of a computer-using employee, Sally, in an automobile dealership. Sally might use the Internet to check flight schedules to plan for an upcoming sales meeting. Sally might also use the intranet to check on a shipment of cars for the automobile dealership. Sally could also use the extranet to check the latest wholesale pricing of tires.

DEFINITIONS AND RELATIONSHIPS

Internet Although the Internet has existed for more than a quarter of a century it is now used widely in schools, homes, and workplaces. The CMP Net Online Encyclopedia defines Internet as:

(1) A large network made up of a number of smaller networks. (2) "The" Internet is made up of more than 100,000 inter-connected networks in over 100 countries, comprised of commercial, academic and government networks. Originally developed for the military, the Internet became widely used for academic and commercial research… Today, the Internet has become commercialized into a worldwide information highway, providing information on every subject known to humankind.

Intranet The same work defines intranet as:

An in-house Web site that serves the employees of the enterprise. Although intranet pages may link to the Internet, an intranet is not a site accessed by the general public.

Note the important difference: The intranet is information that is available only to those who are "in-house," or some type of corporate partner. Some typical uses of an intranet include access to production schedules, inventory, meetings, and training. Thus if you worked for company A you could have ready access to the information posted on the company Website. However, most intranets also include an organization's partners. Let's say that company A manufactures computer monitors using cathode-ray tubes (CRTs) made by company B. Company A no doubt keeps an exact inventory of how many tubes it has in stock; and it is possible that company B is asked to monitor these numbers so that it can automatically ship CRTs to company A when needed. Of course, company B would not be granted access to other online data belonging to company A.

Extranet The CMP Net Online Encyclopedia defines extranet as:

A Web site for existing customers rather than the general public. It can provide access to paid research, current inventories and internal databases, virtually any information that is private and not published for everyone. An extranet uses the public Internet as its transmission system, but requires passwords to gain access.

While company A allows public access via the Internet to its Website, it does not include highly sensitive information there. It has an intranet that can be accessed only by employees and selected companies having certain partnerships with it. It also has an extranet website that only their customers can access.

APPLICATIONS AND ISSUES

Access Individual employee access to the Internet, intranets, and extranets varies. Today employees in many organizations may use all of the terms interchangeably, although many employees commonly use the term "Internet" (or "Netscape" or "Internet Explorer") for what would technically be located on an intranet or extranet. An important issue for network administrators (or Webmasters) is access. To enforce proper access, they must know exactly who has authorization to the Internet, intranet, and/or extranet. Organizational decisions makers also need to be familiar with policy issues to ensure that the "wrong" people do not gain access to sensitive information. This raises an important issue: Do the benefits of "liberal" access outweigh the possible negative consequences? However, as Gibson (1998) noted: "If you can't trust your business partners, you probably shouldn't be doing business with them."

Usage Restrictions An intranet or extranet can technically be set up in several ways. One way is to have only one Web site but to restrict user access, with usage access authorized on an individual basis. With this method, individuals who attempt to gain access to a site for which they do not have proper "rights," whether accidentally or intentionally, will receive a message like the following from their screen:

Not Found. The requested object does not exist on this server. The link you followed is either outdated, inaccurate, or the server has been instructed not to let you have it. Please inform the site administrator of the referring pages.

In this example, the Web page the individual requested actually exists, but it is available only to personnel who have the "clearance" to view the information. Totally separate Web sites are often designed for differing levels of access. Addition ally, add-in products to assist in constructing intranets are also available, such IntraNetics and "intranet-in-a-box," which come configured with links to specific electronic commerce sites, such as Staples and American Express Business Travel ("Intranets," 1999).

INTRANET INNOVATIONS

An organizations intranet can be used in many different ways. A typical use is for training, but many unforeseen uses also arise. This section contains examples of intranet uses within organizations.

Employee Training The Dow Chemical Company is implementing a broad training program by employing the intranet to supplant and possibly eliminate much of the one million hours of classroom training they now offer. Schwartz(1999) noted that Dow spends $80 million yearly to train employees and contractors (Dow University Online) in areas from environmental safety to health issues using TopClass presentation software (WBT Systems) on their Webservers.

Online Conferencing Using the intranet to move beyond storing and sharing static information, Bell Atlantic formed a partnership with IBM's Lotus Development to become more competitive in the communication industry (Trager, 1999). One Lotus application allows Bell Atlantic to easily create and customize a meeting-room simulation on-line (on-line conferencing) for use in its intranet or extranet. Trager also pointed out that Bell Atlantic is interested in Lotus's Sametime real-time collaboration and Learning Space for distance education.

Unexpected Outcomes Sharing information, such as inventories and shipping dates, via intranet with corporate partners has led to efficiencies. Additionally, other unplanned organizational changes have also evolved. According to Shachtman (1998):

Employees are using intranets to band together in far-flung groups of need and expertise that defy traditional corporate structure. Advanced intranets allow people to organize around information clusters, not hierarchical schemes, says Mike Gotta, program director at research firm the Meta Group. 'It's a move from a highly rigid workplace to a more organic workspace.'

Shachtman further explains that while knowledge has always been associated with power, the intranet is rapidly breaking down rigid organizational structures.

Portals Intranets are continually changing as more uses are found for Web-based information. A recent innovation is a "portal," a search engine that includes easy links to all kinds of resources, from weather to stock pricess to late-breaking news. The search engines Yahoo, Excite, AltaVista, Lycos and many others have evolved into "portals" in their ever-increasing quest to obtain more users. Now corporate portals are being developed so that when employees use their intranet they easily and quickly find relevant information. Guglielmo (1998) described a corporate portal:

The concept is simple: Corporate employees turn on their computers and, instead of going to Yahoo! or Excite, go to their company's browser-based internal portal, where they receive easy-to-navigate, highly detailed information to help them do their jobs. They also can make travel arrangements and order office supplies.

Some firms have already begun marketing specific software to create corporate portals. For example, Netscape Communications Corporation, the parent company of Yahoo, is licensing a customized version of its Netcenter portal site (Guglielmo, 1998). Marty Cagan, Netcenter's vice president of business-to-business services stated:

"Our strategy is to leverage our understanding of the portal market by turning our own portal, which during the business day is the busiest site in the world, into a platform that other customers can build on" (quoted in Guglielmo, 1998).

IMPLICATIONS AND IMPACT

Intranet access to information has already drastically altered the way organizations communicate and conduct business. Robert Moon, Chief Information Officer of Micros Systems, says, "In less than three years, we've gone from the Web being a novelty to a critical application. It's now our main focus" (quoted in Booker, 1999, p. 32). Indeed, the intranet concept will continue to alter the way organizations function both internally and externally in ways that cannot be imagined in the twentieth century.

BIBLIOGRAPHY

Booker, E. (1999). "ERP's Next Frontier." Internet Week March 15: 31-32.

CMP Net Online Encyclopedia. (1999). http://www.techweb.com/encyclopedia/.

Gibson, S. (1998). "Extranets' moment has come." PCWeek 133 (November 16): 31-32.

Guglielmo, C. Interactive Week Online. http://www.zdnet.com/. December 14, 1988.

Interactive Week Online. "Intranets." http://www.zdnet.com/. January 27, 1999.

Schwartz, J. (1999). "Dow Intranet Becomes Classroom." Internet Week January: 17.

Shachtman, N. (1999). "Group Think: Employees are Shattering the Traditional Corporate Structure with Intranets." Internet Week June 1:31-32.

Trager, L. Interactive Week Online. http://www.zdnet.com/. January 7, 1999.