Friday, June 7, 2019

The impact of the internet Essay Example for Free

The impact of the internet Essay1. INTRODUCTIONThe Internet has taken the product line community by storm since the early 1990s. When the community realised the po ten dollar billtiality of the Internet they hailed it as the most transforming invention in history. It has the ability to completely miscellanea the way business is being done. And, it is doing so at a feverish pace, turning business upside down and inside out (The Economist 1999). learning Technology (IT) experts went on to use the Internet technology to spin off the Intranet and Extranet to enhance business competition. Together with the Internet, their innovative implementations were able to provide competitive returns for a company.The Internet, Intranet and Extranet collectively have dramatic exclusivelyy affected business. A growing number of corporations believe in the technologys potential to lower cost, add value, improve productiveness and create impudent business opportunities (The Economist Intellige nce Unit 2001).So much has been written to the highest degree the Internet, Intranet and Extranet. What exactly are they? What are their impacts on certain business practices and activities?This report actualizeks to address these questions in the profession Process Network, a business tool that integrates the Internet, Intranet and Extranet technologies. First, the report introduces the Internet, Intranet and Extranet. Then, it goes on to provide a brief explanation of the Trading Process Network.Subsequently, the study proceeds to critically redirect examination the positive and negative impacts of the Trading Process Network on current business practices and activities. It concludes with virtually key findings resulting from the positive impact and thence provides some suggestions to overcome the negative impacts.2. INTERNET, INTRANET AND EXTRANET.The Internet technology has risen so fast in the last ten years that it is now considered a business necessity. The Star (2004) , a local newlyspaper, published the figure below summarising the history of the Internet.(source Star 2004) picture 1 invoice of the Internet.Presently, business corporations all over the installing are scrambling to implement this technology to take advantage of its impact on their business practices and activities.The InternetThe Internet is a dynamic group of com pitcher networks that interconnect computers around the human race (Comer 1997). It is a network of networks thus a powerful form of education and communication technology. underframe 2 illustrates the Internet setup.(source GE Lighting, www.gelighting.com)Figure 2 The Internet networkComputers linking to the Internet communicate by using a common Internet communications protocol to disseminate information across computers (Kambil 1995). Users of the Internet can communicate electronically, retrieve information and interact with other computers. thitherfore, Kambil (1995) said that the Internet is basically used for* electronic mail and news serve* File transfer to and from remote computers* World Wide vane* Telnet the ability to use remote computersThe World Wide Web is the information space for storing and retrieving hypertext documents on the Internet through a unique addressing scheme (Schaper Volery 2002). Often, the Internet is known as the World Wide Web or Information Superhighway because of its superior information reservoir. Any information placed on existence web servers can be viewed by anyone with Web approach path using a browser such as Netscape Navigator or Microsoft Internet Explorer (Bullock et al. 1997).The Intranet.The Intranet is an internal corporate communication networks riding on the transmitting control protocol / internet protocol (TCP/IP) (Szuprowicz 1997).(source GE Lighting, www.gelighting.com)Figure 3 The Intranet networkIt is designed for staff use only and does not to allow outsiders inlet. The intranet hooks into corporate informationbases giving the single(a) users access to all this data through the standard Web browsers that access Web pages on the Internet (Competia n.d. in Knowlegdepoint 2002).Although the Intranet until now allows company employees access to the Internet, outsiders are prevented from entering the internal corporate sites by security features (see Figure 3).The Extranet.An extranet is an extension of the Intranet that is partially accessible to authorised distributors, suppliers, guests and business partners ( spacious and Long 2005).Simply, an extranet is set up on the same TCP/IP network as the Intranet which allows outsiders access to that same internal corporate information (Bullock et al. 1997). Refer to Figure 4.(source GE Lighting, www.gelighting.com)Figure 4 The Extranet networkLike a private business club, the extranet centralises business transaction by using the same user-friendly technology that has made the Internet a ball-shaped network. Its members can include companies of all sizes resolved in virtually every corner of the world (GE Information service 1999).The Hierarchy.The Internet is the conceptual incubator of both intranets and extranets, and universal connectivity has liberated corporate communications practices (Franklin Jr. 1997). Though they are all Internet and Web found technologies, there are differences between them such as* The type of information each are designed to disseminate* The targeted group of people allow to access the information* SecurityTable 1 below compares some of the common differencesInformation Type Targeted Group SecurityInternet general general public lackingIntranet corporate employee moderateExtranet specific to business selected outsiders goodTable 1 Common differences between Internet and Web based technologiesWailgum (1998, p. 1) appropriately summed up the differences with this statementFirst there was the Internet, which is available for everyone to use. Then businesses got smart and started developing their own intr anets that used the same friendly Web interface but put up firewalls so that only employees could see the information on the site. Finally, the extranet was created. It finds itself somewhere in between. Theres still a firewall, but you allow only selected outsiders, such as business partners and customers, inside.Following the differences, the structural hierarchy can actually be illustrated as shown in Figure 5 below(source Bullock et al. 1997)Figure 5 The Internet hierarchyThe Internet, the World Wide Web and Internet-based technologies such as intranets and extranets provide global links to a businesss customers and suppliers. This allows electronic commerce (e-commerce) applications (Schaper Volery 2002).Phil Gibson, director of interactional marketing at National Semiconductor, is blunt about the importance of the Internet, Intranet and Extranet to the applications when he said, Without all the nets, you just cant do that. (Franklin Jr. 1997).3. THE TRADING PROCESS NETWORK.T he Trading Process Network ( total parenteral nutrition) is a technology that integrates the Internet, Intranet and Extranet into a package to revolutionise the waybusiness is done. It is pioneered by General Electric (GE), a well alter company with business in technology (aircraft engine, plastics, power generators and consumer electronics) and services (financial services, television broadcasting and medical and science services) (General Electric 2004).(source General Electric, www.ge.com)GEs drawing cardship in steering has long been recognised and progressive. Many of its successful business portfolio reignment, strategic planning, quality initiatives, employee empowerment and business process reengineering are business models for companies ecumenic ( 1997).Jack Welch, GE former chief executive officer, anticipated the potential threat of the Internet. He told the MRO Today magazine (Arnold 2001, p. 1) thatIts like any big change. You can look at it in one of two ways as an opportunity or as something to fear. You have to have a certain amount of fear to see the opportunities. The Internet is all about getting information from its source to the user without intermediaries. The new measurement is how fast information gets from its origin to users and how much unproductive data gathering, expediting, tracking orders and the like can be eliminated. Seeing reality today means accepting the fact that e-business is here. Its not coming. Its not the thing of the future. Its here. The challenge is to close issues in the context of the new Internet reality. Tentativeness in action can mean being cut out of markets, perhaps not by traditiona heelic competitors but by companies neer heard of 24 months ago.GEs challenge is to leverage the Internet technology as a strategic weapon at a corporate level to change its business practices and activities. It started developing the hyperalimentation in 1995 as just an internal GE Intranet using an Oracle7.2 database s erver with a Netscape communication theory commerce server and custom software developed by GE. One year later, it developed to include the Extranet.Full integration with the Internet occurred in 1998 when GE, doubting Thomas Publishing Company and Oracle together created a data registry accessible via the web to search out suppliers of such goods or services. The database lists over 60,000 products from about 6,000 vendors and it took six IT people three months to create ( 1997 1998 Linthicum 1996 1997 n.d.). Figure 6 shows a classifiable TPN concept.(source Bullock et al 1997)Figure 6 A typical Trading Process Network model.Basically, the TPN allows GE to call for tenders and manages bids from suppliers around the world via the web. Using the TPN Intranet software and other standard office applications, GE creates a set of tender documents with a response form. GE then searched the TPN Internet database for suppliers and decides whom it would like to receive a quotation.The tend er documentation is forwarded to the list of prospective suppliers through the TPN Extranet. Suppliers who are interested in bidding began to download the call for tender and passed back to the TPN upon completion. GE may then access and evaluate them any quantify ( n.d.).The TPN is so successful that many a(prenominal) corporations wasted no clock in emulating GEs initiative by creating their own version of the TPN. Today, many corporations have implemented the TPN system in one form or other. For example, Tesco developed the Tesco Information Exchange that linked the retailer with all its suppliers to outgrowth product availability and reduce wastage (GE Information Services 1999).Presently, GE is also commercially offering its TPN technology comprehensively to companies around the world ( n.d.). Its global implementation has impacted business practices and activities which shall be discussed shortly.4. POSITIVE IMPACT OF THE TPN ON BUSINESS.Since the TPN is a collaboration o f the three web-based technologies, it is essential to critically revue the positive impact of the three technologies on current business practices and activities separately. Many of the evidences presented here are taken from the impact on GEs business practices and activities. This is because as the world most admired company (General Electric 2004), GEs business practices and activities has been acknowledged and adopted globally as role models.The TPN Internet Impact.As an Internet response to conduct business electronically and simplify business processes like purchasing, selling and marketing, the TPN impacts business practices and activities in many ways (http//www.mngt.waikato.ac.nz/depts/mnss/courses/ 456/cases/geis.htm n.d.).Some of these impacts are listed on the Computing Insights website (, n.d.)* Instantaneous Communication.The Internet establishes immediate communication between companies and their prospects, customers, and employees without waiting and down time. It is a very fast and efficient method of communication, with messages arriving anywhere in the world in a matter of seconds (Schapel Volery 2002).By taking advantage of this the TPN enables GE to evaluate suppliers bids and award within the same day and orders may start arriving to the supplier within 24 hours ( 1997). Speed in despatching specialised information enhances service relationship thus providing superior service (Khambil 1995).* Global Access.The worldwide reach of the Internet opens the door to unlimited business opportunities by instantly placing it in any office or any home. Businesswebsites are doors to businesses that never close. Information about products and services are accessible anytime. The web is ideal for providing whole year round self-services ( 1998).GE Lightings 46 plants around the world stop up materials and parts from more than 25,000 suppliers globally. By utilising the TPN, GE Lighting has electronic access to this list. With only a set of catalog ues and documents GE Lighting obtained multiple feedbacks instantaneously ( 1997).Furthermore, the TPN provides global access to Gary Reiner, CIO of GE to monitor GEs mission operations once every 15 minutes across the companys 13 different businesses around the globe with different time zones (Lindorff 2002).* Instantaneous CustomisationThe Internet keeps businesses in the fast lane by offering goods and services in real time thus providing individual company the ability to tailor to the needs of customers.According to Barua et al. (n.d.), Dell Computer implemented an online supply chain management application which is somewhat similar to the TPN to help its component suppliers increase the accuracy of their forecasts by providing them access to direct customer order information. This way Dells suppliers can customised their products to Dell customers needs.Frantz (2000, p. 2) provided another example from GE Aircraft EnginesGE Aircraft Engines maintenance and overhaul market frequ ently requires decision on retention, rebuilding or discarding a worn part. Previously, the worn part was sent to the customer to be evaluated or the repairs had to wait until a customers representative could inspect it at GE, often taking many days. Today, a new customised part can be graphically transmitted over the TPN and quickly evaluated by the customer before installation.* New Distribution Channels.The Internet can rapidly reduce the time to market for new products because direct distribution shortens the path to markets. Electronic commerce can be used to find the best deal from distributors in equipment casualty of time and cost (Schapel Volery 2002).The TPN is a secure electronic commerce environment that supports the business-to- business buying and selling of goods and services. It provides GE the ability to find new distributors based upon the database records ( n.d.).Home Depot is one such distributor when it set up a TPN form of Internet application that enables GE appliances secured at Home Depot to be delivered directly to consumers homes from the nearest GE warehouse (Barua et al. n.d.).* E-ShoppingThe Internet enables many companies to create an electronic shopping environment that enables users to browse, review, select and purchase products instantly. It is a revolutionary business tool, guaranteed to attract new, web-knowledgeable customers who buy everything online (Schapel Volery 2002).This is the TPNs primary solution where the TPN Marketplace provides purchasing professionals access to a searchable catalogue of GE goods and services including pricing and contract terms in a standardised format (Mark 2001).The TPN Intranet Impact.By allowing company staff exclusive access to corporate information electronically, the TPN Intranet positively impacts current business practices and activities. Some of these impacts are mentioned in theVialogix website (Vialogix n.d.)* Increase productivity.The Intranet has the ability to increase staf f productivity. According to the Vialogix website, many companies have invested in intranets to boost productivity and encourage knowledge sharing.Its to have tools aimed at productivity, at letting employees do their jobs better and more efficiently, says Pam Wickham, e-business public relations motorbus and manager of GE (USA Today (Tech Report) 2001).Bill Snook, a sales manager at GE Energy Services in Canada said his TPN Intranet sales entry home page is the gateway to all the applications that he has. Anthes (2003, p. 2) reported Snook as sayingBefore I used to go from one application to another to search for things randomly and each required a separate sign-on and password. The new portal has made multitasking much more efficient and has increased face time with customers.In May 2001, IBM launched its TPN offshoot known as the WorldJam where its 52,600 employees worldwide convened online to swap ideas on how to work faster without undermining quality (Fast Company 2001 in Vi alogix n.d.).* rock-bottom paperwork.When employees communicate through the Intranet they effectively reduce the amount of paperwork required such as internal memos, invoices and printed company newsletters. Forbes (2001 in Vialogix n.d.) reported that GE processed 3.1 gazillion paper invoices in 2000. Today, half of those invoices are processed digitally.John Rice, the chief executive of GE Transportation system, confirmed this fact when he said that the 1 million pieces of paper GE faxes to supplierseach year are going to go away (GE Transportation System 2000).* More informed/empowered employees.There are many types of competitive or business intelligence information that can be included on an Intranet. Users can easily navigate and locate this information using the point-and-click hyperlinking technology (Linthicum 1996) to be informed and empowered.General Electric uses the TPN to manage its business intelligence by keeping its globally outspread workforce informed. In a sur vey by the Society for Human Resource Management, more than 85% said the intranet is useful for disseminating information (USA Today (Tech Report) 2001)Szuprowicz (1997, p. 7) found out that the information available in the TPN areAnnual report of the company, financial data and business information designed to allow employees to manage their own investments. In addition, GE provides employees direct access to the GE travel centre which allows them to schedule their own business trips.* Savings in expenditure.Companies exploit the cheesy Intranet web technology for in-house applications. Since the web applications use only a single browser, training is less. Moreover, implementation costs are considerably low due to a single interface, protocol and middleware architecture (Linthicum 1996).In a 1997 survey, American Express discovered the magnitude of the savings (Fast Company 2001 in Vialogix n.d.)It was found that at a typical company where paper still predominated, the average co st of handling a single expense account was 36 or more. After work shift to a similar TPN approach the cost reduced to as little as $8 peraccount.* Connects users across different platforms.The TPN Intranet is a new dynamic client/server application development platform for corporate applications that uses open standards such as TCP/IP, HTTP, HTML, CGI, ODBC and Java to connect heterogeneous database (Linthicum 1996).Venki Rao, an IT leader in GE Power Systems, said that the TPN sales portal software has an open architecture and is flexible, making it especially easy to connect all the different platforms (Anthes 2003).USA Today (Tech Report) (2001, p. 1) reported that after GE revamped its Intranet last year, 10 million visitors a week used itBy connecting all its disparate platforms through the TPN, GE employees can now create personalised pages, read industry-specific news or check the weather. They also can download tax forms and review benefits information. An online marketpl ace offers discounts on GE appliances, Dell computers and other products.

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