Chapter 7

Intrabusiness, E-Government, C2C, E-Learning, and More

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Learning Objectives
Define intrabusiness e-commerce and describe its major activities Describe the intranet and its use in organizations Understand the relationship between corporate portals and the intranets Describe e-government to citizens (G2C) and to business (G2B)
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Learning Objectives (cont.)

Describe various e-government initiatives Understand how peer-to-peer technology works in intrabusiness, B2B, and in C2C ecommerce

Discuss online publishing and e-books. Describe e-learning and virtual universities Describe knowledge management and dissemination
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E-Learning at Cisco
The Problem
Cisco Systems sells devices that connect computers and databases to the Internet and other networks
Products continuously being upgraded or replaced

Extensive training is needed for:

Employees Business partners Independent students

In-house training 6 to 10 times a year was expensive and ineffective

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E-Learning at Cisco (cont.)

The Solution
Implemented e-learning programs allow students distance-learning of new software, hardware, procedures Encourages its employees to use e-learning, by:
Nonthreateninganonymous testing and scoring Additional incentives and rewards for e-learners Makes e-learning a mandatory for employees Offers easy access to e-learning tools
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E-Learning at Cisco (cont.)

The Results
Return on investment:
Saves $1,200 per SE first offeringrecovered development costs and saved $8,000

By 2002, Cisco developed 75 e-learning courses and was planning to develop more

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Intrabusiness and Business-to-Employee E-Commerce

Intrabusiness ECe-commerce activities conducted within an organization
Between a business and its employees Between units within the business Among employees in the same business

Business-to-employees (B2E)intrabusiness in which an organization delivers products or services to its employees

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Intrabusiness and B2E EC (cont.)

Training and education provided over intranets Electronically order supplies and material needed for work Buy discounted insurance, travel packages, etc., on corporate intranet Corporate stores sell companys products at a discount Businesses disseminate information on the intranet Employees manage fringe benefits take classes and more
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Activities Between Units Within a Business

Large corporations consist of independent units that sell or buy materials, products, and services from each other These transactions can easily be accomplished over the intranet Network constructed to link dealerships owned by the corporation
Support communication Collaboration Execution of transactions
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Intrabusiness E-Commerce at Toshiba America

At Toshiba:
300 dealers needed parts quickly Orders placed by phone or fax by 2:00 in order to have next-day delivery Shipping fees expensive Cumbersome order-entry system created in 1993 with no significant improvement

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Toshiba America (cont.)

1997, Toshiba created a Web-based order-entry system using extranet/intranet Dealers place orders for parts until 5:00 for nextday deliverymatter of hours to shipping Physical warehouse in Memphis, TN near FedEx headquarters ensures quick delivery Dealers also:
Check accounts receivable balances Pricing arrangements Read service bulletins, etc.
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Activities Among Corporate Employees

Large organizations have classified ads on the intranet where employees can buy and sell products and services from each other Especially popular in universities Interconnect their intranets to increase exposure Employees collaborate and communicate using EC technologies
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Intranets
Intraneta corporate LAN or wide area network (WAN) that uses Internet technology and is secured behind a companys firewalls; designed to serve the internal informational needs of a company Provides Internet capabilities, search engines, tools for communication and collaboration Cost of converting an existing network system to internal Web is relatively low
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Intranets (cont.)
Fairly safe within company firewalls
Employees can get out on the Web easily Outsiders cannot get into the intranet

Change organizational structures and procedures, help reengineer corporations More intranet examples:
Business intelligence Public services Corporate information Customer service
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Wireless LANs Speed Hospital Insurance Payments

Bridgetona holding company operating four hospitals in New Jersey
Uses wireless LANs:
To process insurance documentation To reduce the number of denied claims

Via notebook computers, nurses aggregate all the documents needed by the insurance company and submit them electronically
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Wireless LANs Speed Hospital Insurance Payments (cont.)

Network environment :
Supports an intranet Broadcasts data 120 feet from nursing workstations Enable nurses to maintain a connection in patient rooms Radio card in the notebook computer goes into a roaming mode similar to a cellular phone

Wireless environment enabled changes in business processes

Faster Fewer errors
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Wireless LANs Speed Hospital Insurance Payments (cont.)

Good return on investment
Savings in six-figure dollar amounts Moderate cost of setting up the network
$200 for each notebook computer radio card $750 for each of 28 wireless access points

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Building Intranets
To build an intranet, a company needs:
Web servers Browsers Web publishing tools Back-end databases TCP/IP networks (LAN or WAN) Firewalls

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Exhibit 7.1 Architecture of an Intranet

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Intranet Functionalities
Intranet functionalities
Web-based database access for ease of use Search engines, indexing engines, directories assisted by keyword search Interactive communicationchatting, audio support, videoconferencing Document distribution and workflow Groupware Conduit for computer-based telephony system
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Intranet Application Areas

Intranet application areas
Search and access to documents Personalized information Enhanced knowledge sharing Individual decision making Software distribution Document management Project management Training Enhanced transaction processing Paperless information delivery Employees control their own information
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Benefits of an Extranet
When intranets are combined with an external connection to create an extranet, benefits occur:
Much cheaper Electronic commerce Customer service Enhanced group decision making and business processes Virtual organizations Improved administrative processes
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Industry-Specific Intranet Solutions

Classified by industry instead of technology Top 100 intranet/extranet solutions classifications
Financial services Information technology Manufacturing Retail Services
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Enterprise (Corporate) Portals

Corporate (enterprise) portala gateway for entering a corporate Web site, enabling communication, collaboration, and access to company information
Provide single-point access to specific enterprise information and applications available on:
Internet Intranets Extranets

Companies may have separate portals for outsiders and for insiders
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Exhibit 7.2 Corporate Portal as a Gateway to Information

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Corporate Portals Applications

Knowledge bases and learning tools Business process support Customer facing sales, marketing, services Collaboration and project support Access to data from disparate corporate systems Personalized pages for users Effective search and indexing tools Security applications Best practices and lessons learned Directories and bulletin boards Identification of experts News Internet access

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Exhibit 7.3 Corporate Portal Framework

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Intranet/Portal Example: Cadence Design Systems

Business challenge
Support customers entire product development cycle
Sales Delivery

Needed a real understanding of organizations issues while interacting with customers

Coordination Communication
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Cadence Design Systems (cont.)

The solution: intranet and portal technology
Corporate portalWeb-based single point of information supporting sales process
OnTrack uses home page with links to other pages Unified tool provides all information and data needed

All creators of information are responsible for maintaining information in OnTrack Custom tools make it easy to add a message to the daily newsletter, modify a step in sales process, or update a customer presentation
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Cadence Design Systems (cont.)

Lessons learned
Difficult task to balance cost of training against return Key to successunifying technology with process Design structure to satisfy 80% instead of 100% of process Outsourced creation of application Shortened training time for new sales reps
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E-Government: An Overview
E-governmentthe use of IT and e-commerce to provide access to government information and delivery of public services to citizens and business partners
Efficient and effective method of conducting business transactions Opportunity to improve the efficiency and effectiveness of the functions of government Make government more transparent to citizens
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Government-to-Citizens (G2C)
Government-to-citizens (G2C)e-government category that includes all the interactions between a government and its citizens Citizens can:
Find all the information they need on the Web Ask questions and receive answers Pay tax and bills Receive payments and documents Electronic benefits transfer (EBT) is an example of G2C applications
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Government-to-Business (G2B)
Government-to-business (G2B)egovernment category that includes interactions between governments and businesses (government selling to businesses and providing them with services, and businesses selling products and services to government)

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Government-to-Business (cont.)
E-procurement
Large amounts of MROs and materials direct from many suppliers Uses basically a reverse auction system

E-auctions
Auction surpluses from vehicles to real estate May use 3rd-party site

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Contract Management in Australia

Western Australian (WA) government agency CAMS Online focus is to develop online contract management solutions for the public sector
Government agencies can search existing contracts to access the commonly used contracts Government suppliers can view the current tenders (bids)
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Contract Management in Australia (cont.)

Provides government departments with expert advice on:
E-commerce Internet Satellite services How-tos on building a bridge between the technological needs of the public sector and the expertise of the private sector

Offers various types of support for government procurement activities

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Contract Management in Australia (cont.)

Support of e-commerce activities
Government electronic market provides ProcureLink SalesNet

Training online
Westlink delivers adult training and educational programs to remote areas and schools Videoconferencing service offers two-way video and audio links
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Government-to-Government (G2G)
Government-to-government (G2G) e-government category that includes activities within government units and those between governments Government-to-employees (G2E) e-government category that includes activities and services between government units and their employees
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G2E in the U.S. Navy

The U.S. Navy uses G2E to improve the flow of information to sailors and their families Quality-of-life information includes:
Self-help Deployment support Stress management Parenting advice Relocation assistance
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G2E in the U.S. Navy (cont.)

Lifelines2000.org reaches overseas personnel using:
Internet Simulcasting Teleconferencing Cable television Satellite broadcasting

Other e-services to navy personnel:

Online banking Personal finance services Insurance Education Training

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Implementing E-Government: Transformation Process

Stage 1: information publishing/dissemination
Individual government departments set up their own Web sites that provide:
Information about them Range of services available Contacts for further assistance

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Transformation Process (cont.)

Stage 2: official two-way transactions
Using legally valid digital signatures and secure Web sites, customers:
Submit personal information Conduct monetary transactions

Customers must be convinced that:

System keeps their information private System is free of piracy
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Transformation Process (cont.)

Stage 3: multipurpose portals
Customer-centric governments enhance service delivery Customer needs can cut across department boundaries, portal allows customers to use single point-of-entry to:
Send and receive information Process monetary transactions across multiple departments
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Transformation Process (cont.)

Stage 4: portal personalization
Customers can access a variety of services at a single Web site
Customers can customize portals with their desired features Requires sophisticated Web programming allowing interfaces Added benefit is that governments get a more accurate read on customer preference Electronic services Non-electronic services
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Transformation Process (cont.)

Stage 5: clustering of common services
All real transformation of government structure takes shape here Customers see a unified package instead of once-disparate services Distinction between departments begins to blur Recognize groups of transactions instead of groups of agencies
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Transformation Process (cont.)

Stage 6: full integration and enterprise transformation (see next slide)
Digital encyclopedia is now:
Full-service center Personalized to each customers needs and preferences

Old walls defining services are torn down Technology integrated across new government structure bridging gap between front and back offices
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Exhibit 7.4 The Stages of E-Government

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E-Government in the State of Victoria, Australia

Maxi (Maxi.com.au) is Victorias e-government initiative with more than 30 government-related services
Register vehicles Obtain drivers licenses Order birth certificates Notify government of changes of address Pay utility bills and fines
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Victoria, Australia (cont.)

Internet portal features four service areas:
1. General information about Maxi 2. Bill payment and services by agencies 3. Life events (change of address, getting married, turning 18) 4. A business channel

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Victoria, Australia (cont.)

Maxi kiosks are located in:
Shopping centers Libraries Government offices Other public locations around Victoria

SecureNet Certificates provide:

Digital certificates of authenticity Public keys for digital signatures
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Victoria, Australia (cont.)

To encourage greater use, Maxi offered a lucky draw to users Customer adoption of Maxi has exceeded the governments expectations
First year24,000 transactions/month 40% of transactions occur outside normal 9to-5 business hours

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Implementation Issues
Transformationchange is very slow Implementing G2B
Build customer trust by increasing:
Privacy Security Confidentiality

Plan technology for growth and customer friendliness Manage access channels to optimize value Weigh in-sourcing vs. outsourcing Include strong change management program
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Implementing E-Government (cont.)

Security issuesconcerns include:
Data about citizens stays secure Privacy of individuals is maintained

Non-Internet e-government
Emergency situations like the Federal Emergency Management Agency (FEMA) paperless help for California earthquake victims Auctions conducted over private, secured lines
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Customer-to-Customer Applications
Customer-to-customer e-commerce (C2C)ecommerce in which both the buyer and the seller are individuals (not businesses);involves activities such as auctions and classified ads
Classified ads Personal services Exchanges

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Peer-to-Peer Networks & Applications

Peer-to-peer (P2P)a network architecture in which each workstation (or PC) has similar capabilities; the networked peers share data and processing with each other directly rather than through a central server
Each workstation (PC) has similar capabilities Benefit of P2P expands the universe of information accessible
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Peer-to-Peer Networks (cont.)

Characteristics of P2P systems
User interface loaded outside the Web browser User computers act both as clients or as servers Overall system is easy to use System includes tools to support users wishing to create content or add functionality System provides connection with other uses System does something new or exciting Supports cross-networking protocols
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Exhibit 7.5 Peer-to-Peer Networks

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Peer-to-Peer Applications
P2P applications in C2C
C2Cusers sell digital goods directly from their computers rather than go through centralized servers Computer resources and data file sharingin modern office setting disk drives and printers are shared

Intranet business applicationsP2P facilitates internal collaboration

File sharing and swapping
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Peer-to-Peer Applications (cont.)

Business-to business
People can share information but are not required to send it to an unknown server Companies use P2P architecture as a base for speeding up business transactions

Companies can deliver two-way collaborative interactions that are:

Dynamic In real-time Collaborative Cost-effective Client-focused

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Peer-to-Peer Applications (cont.)

Business-to-consumercombining P2P with collaborative filtering for product searches
1. User enters search keyword 2. Keyword is sent to 100 peers, which search local indices of Web pages 3. Those computers also relay query to 100 to 100 to 100 of their peers until 1,000,000 computers are queried 4. Resulting URLs are returned to the user, weighted in favor of most recently visited pages and peers with similar interests
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Online Publishing
Online publishingthe electronic delivery of newspapers, magazines, news, music, videos, and other digitizable information over the Internet
Mainly used for disseminating information and for conducting sales transactions interactively Includes customized material that the reader will receive free, or for a fee
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Online Publishing (cont.)

Publishing Modes
Newspapers

Publishing Methods
Online archive New medium Publishing intermediation Dynamic or just-intime

Magazines News Textbooks Music Artwork Video clips Movies

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Online Publishing (cont.)

Content providers and distributors
Challenges moving into areas with lessdeveloped infrastructures Issues of intellectual property is a consideration
Akamai.com Digisle.com Edgix.com

Digimarc.com provides a tool for linking print publications with the Web
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Online Publishing (cont.)

Publishing music, videos, and games
Major issue is payment of intellectual property fees Peer-to-peer (P2P) modelpeople swap files 3rd-party organizer are in violation of copyright laws (Napster)

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Online Publishing (cont.)

Edutainmentcombination of education and entertainment, often through games

Goal: encourage students to become active learners Managerial issues
Educational games delivered as CD-ROMs Distance-learning format

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Exhibit 7.6 A New Content Delivery Model

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Electronic Books
E-booka book in digital form that can be read on a computer screen
Human readers must have an e-book reader:
Adobe Acrobat eBook Reader Microsoft Reader

Portable and convenient to carry70 e-books on one CD-ROM Can be updated frequently Contain up-to-the-minute information Are easy to search
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E-Learning
E-learningthe online delivery of information for purposes of education, training, knowledge management, or performance management
Challenges of e-learning
Learners challenge is to change the mindset of how learning typically takes place Content providers challenge is to make learning more interactive and engaging

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E-Learning (cont.)
Benefits of e-learningthe great equalizer
Eliminates barriers of time, distance, socioeconomic status Individuals take charge of their own lifelong learning experience

E-learning provides a new set of tools that add value to traditional learning modes Does not replace the classroom setting, but enhances it
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E-Learning (cont.)
E-learning also used in the business environment
Provides a superior learning and communication model that:
Increases access to learning Provides clear accountability for all participants Reduces costs

Equips employees with the knowledge and information needed to help increase customer satisfaction
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E-Learning (cont.)
Drawbacks of e-learning
Need for instructor retraining Equipment needs and support services Lack of face-to-face interaction and campus life Assessment Maintenance and updating Protection of intellectual property Computer literacy
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E-Learning (cont.)
Distance learningformal education that takes place off campus, usually, but not always, through online resources Virtual universityan online university from which students take classes from home or other off-site location via the Internet
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E-Learning (cont.)
Virtual universities offer classes worldwide
May soon see integrated degrees, where students can customize a degree that will best fit their needs and take courses at different universities

Online Training
A large number of organizations are using online training on a large scale
digitalthink.com click2learn.com smartplanet.com
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Exhibit 7.7 Effects of E-Commerce Forces on Education

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Knowledge Management
Knowledge management (KM)the process of capturing or creating knowledge, storing it, updating it constantly, and interpreting and using it whenever necessary
Knowledge basethe repository for an enterprises accumulated knowledge Promotes an integrated approach to the process of identifying, capturing, retrieving, sharing, evaluating enterprise information assets:
Documented Tacit expertise stored in individuals heads
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Online Advice and Consulting

Medical advice Management consulting Legal advice Gurus Financial advice

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Portal Speed R&D at Amway

For effective R&D, Amway must develop new products in a streamlined and cost-efficient manner To support design activity the need fast and easy access to:
Product specifications Design criteria Costs Formulas Production schedules Sales trends
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Amway (cont.)
Artemisa business intelligence and knowledge management portal
Easier access to corporate knowledge Browser-based intranet application that enables R&D to:
Quickly find the information and knowledge they require Collaboration tools Database for locating company experts
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Amway (cont.)
Lotus Notes/Domino search agent enables employees to:
Pull data from disparate corporate sources Generate dynamic reports Work in a highly secured environment

Time required to access information:

Dropped from days to minutes or seconds Enabling fast what-if investigations
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Managerial Issues
Whos in charge of our intranet content? Who will design the corporate portal? How can we sell the intranet to users? Who can access the intranet from the outside? What are the connectivity needs? What intranet applications? Are there e-government opportunities? Are there P2P applications? How well are we managing our knowledge? Are there e-learning opportunities?
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Summary
Intrabusiness EC definedall EC initiatives conducted within one organization The intranet and its use in organizationsused for internal communication, collaboration, and discovery of information in various internal databases The relationship between the corporate portal and the intranetgateway through which users access the various applications conducted over the intranet, E-government to citizensgovernments providing a large variety of services to citizens over the Internet
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Summary (cont.)
Other e-government activitiesusing EC applications for great savings (e.g., e-procurement using reverse auctions) Applications of peer-to-peer technologyallows direct communication for sharing files and for collaboration Online publishing and e-books is growing rapidly E-learning, virtual universities, and knowledge management and disseminationis the delivery of educational content via electronic media
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