The impact of the internet Essay Example

are in place to prevent outsiders from accessing the internal corporate sites (see Figure 3).

An extranet, on the other hand, is an extension of the Intranet that allows authorized distributors, suppliers, customers, and business partners to access certain parts of it (Long and Long 2005).

The extranet is a part of the same TCP/IP network as the intranet, granting outsiders access to internal corporate information (Bullock et al.997). Figure 4 illustrates the extranet network, which functions similarly to a "private" business club and centralizes business transactions using user-friendly technology (GE Information Services 1999). Companies of all sizes from various locations around the world can be included as members. The internet and web-based technologies, including intranets and extranets, are derived from the concept of the internet, allowing for universal connectivity and revolutionizing corporate communication practices (Franklin Jr.1997) (p. 1). While they are Internet and web-based technologies, there are differences among them concerning the type of information they disseminate, the targeted group allowed access to the information, and the security measures involved (Table 1). The Internet is used to disseminate general information to the general public, while the intranet is designed for corporate employees with moderate security measures in place. Wailgum (1998) summed up these differences by stating that the Internet is available for everyone to use.

Businesses began creating their own intranets that featured firewalls to restrict access to only employees. Eventually, the concept of an extranet arose, functioning as a midpoint between the internet and intranet. The extranet utilizes a firewall to allow selected outsiders, such as business partners and customers, to access the site. According to Bullock et al. (997), the internet, intranets,

and extranets are essential for global connectivity in the business world. These technologies enable e-commerce applications. Phil Gibson, the director of interactive marketing at National Semiconductor, emphasizes the importance of the internet, intranet, and extranet in various applications, stating that without them, certain tasks cannot be accomplished (Franklin Jr.1997). In addition, the Trading Process Network (TPN) is a revolutionary technology that combines the internet, intranet, and extranet into a comprehensive package to transform business operations.General Electric (GE) is a diverse company involved in various industries including technology (such as aircraft engines, plastics, power generators, and consumer electronics) and services (including financial services, television broadcasting, and medical and science services) (General Electric 2004). GE has been recognized for its leadership in management and has implemented successful business models in portfolio management, strategic planning, quality initiatives, employee empowerment, and business process reengineering, which are often emulated by companies worldwide (1997). According to a statement in the MRO Today magazine by an individual associated with GE (Arnold 2001, p.1), the internet should be seen as both an opportunity and something to be feared. He emphasized the importance of getting information directly from its source to the user without any intermediaries. The focus should be on speeding up the transmission of information while minimizing unproductive activities like data gathering, expediting, and tracking orders. It is necessary to recognize that e-business is already a reality and not just something of the future. Failure to adapt to this new reality could lead to being displaced from the market by companies that emerged in a short span of time.GE's goal is to use the Internet technology strategically to bring about change in

its business practices. The company began developing the Trading Process Network (TPN) as an internal Intranet in 1995, using an Oracle7.2 database server and a Netscape Communications commerce server. Custom software was also developed by GE. Over time, the TPN expanded to include an Extranet. In 1998, GE, Thomas Publishing Company, and Oracle collaborated to create a web-accessible data registry for finding suppliers. Currently, the TPN database lists over 60,000 products from about 6,000 vendors. It took six IT personnel three months to create this database. The TPN model, as shown in Figure 6, allows GE to solicit bids from suppliers worldwide through the web. With the help of the TPN software and other office applications, GE generates tender documents and sends them to prospective suppliers through the TPN Extranet. Interested suppliers download the call for tender, complete it, and submit it back to the TPN.GE may access and evaluate the TPN anytime (n.d.). Many corporations have followed GE's example by creating their own version of the TPN (n.d.). For instance, Tesco developed the Tesco Information Exchange to connect with its suppliers. Currently, GE offers its TPN technology to companies worldwide (n.d.). The global implementation of the TPN has affected business practices and activities (n.d.). The positive impact of the TPN on business can be examined by reviewing the three web-based technologies separately (n.d.). The evidence presented here is mostly based on the impact on GE's business practices and activities as a globally recognized role model (General Electric, 2004). The TPN as an Internet solution simplifies business processes such as purchasing, selling, and marketing, thereby impacting business practices and activities in various ways (http://www.mngt.waikato.ac.nz/depts/mnss/courses/ 456/cases/geis.htm;,

n.d.).

Some of the impacts listed on the Computing Insights website include instantaneous communication. The Internet enables fast and efficient communication, allowing messages to be delivered worldwide in seconds. This has been beneficial for GE, as they have been able to evaluate suppliers' bids and award them within the same day, with orders arriving at suppliers within 24 hours. Speed in dispatching specialized information also enhances service relationships and provides superior service. The global access provided by the Internet allows businesses to have unlimited opportunities by being accessible in any office or home. Business websites are always open, providing information about products and services at any time. GE Lighting's 46 plants around the world have been able to obtain multiple feedback instantaneously using only catalogues and documents.

Additionally, the TPN allows Gary Reiner, CIO of GE, to monitor GE's mission operations every 15 minutes across the company's 13 different businesses worldwide, each in a different time zone (Lindorff 2002). This global access provided by the TPN enables GE to customize products and services to meet the needs of their customers in real-time (Barua et al., n.d.). For example, Dell Computer implemented an online supply chain management application similar to the TPN, allowing component suppliers to access direct customer order information and adjust their forecasts accordingly. This allows Dell's suppliers to customize their products to meet the specific needs of Dell customers (Barua et al., n.d.). Another example is GE Aircraft Engines, where the TPN is used to transmit custom part designs for quick evaluation by customers before installation, eliminating the need for physical evaluation and reducing maintenance and overhaul time (Frantz, 2000, p.2). Furthermore, the internet

also offers new distribution channels that shorten the time it takes to bring new products to market by directly reaching consumers (Frantz, 2000).Electronic commerce, as mentioned by Schapel & Volery (2002), can be utilized to find the most favorable deal from distributors in terms of time and cost. The TPN (Trusted Partner Network) serves as a secure environment for electronic commerce, specifically supporting business-to-business transactions for buying and selling goods and services. According to an unidentified source (n.d.), it empowers GE to discover new distributors through database records. One example of such a distributor is Home Depot, who implemented a TPN-based Internet application. This allows GE appliances purchased at Home Depot to be delivered directly to consumers' homes from the closest GE warehouse (Barua et al., n.d.). Another aspect of electronic commerce is the ability for users to browse, review, select, and instantly purchase products through e-shopping. Schapel & Volery (2002) state that this revolutionary business tool is guaranteed to attract new customers who are knowledgeable about online shopping. The TPN also offers a solution known as the TPN Marketplace, providing purchasing professionals with access to a searchable catalog of GE goods and services, complete with pricing and contract terms in a standardized format (Mark, 2001). Additionally, the TPN Intranet has a positive impact on current business practices and activities by granting exclusive access to corporate information for company staff. This leads to increased productivity among employees, as mentioned on the Vialogix website (Vialogix, n.d.).According to Vialogix, many companies have invested in intranets to enhance productivity and foster knowledge sharing. Pam Wickham, the e-business public relations manager and manager of GE, states that these tools

aim to improve employees' job performance and efficiency (USA Today (Tech Report) 2001). Bill Snook, a sales manager at GE Energy Services in Canada, describes his TPN Intranet sales portal home page as the central hub for all his applications (Anthes 2003, p.2). Previously, Snook had to navigate multiple applications with different sign-on requirements, but the new portal has streamlined multitasking and increased customer interaction. In 2001, IBM launched WorldJam as an online platform for its worldwide workforce to share ideas on improving efficiency without compromising quality (Fast Company 2001 in Vialogix n.d.). By using the Intranet for communication, employees have significantly reduced paperwork such as internal memos, invoices, and printed newsletters. Forbes (2001 in Vialogix n.d.) reported that GE digitally processed half of its 3.1 million invoices in 2000.John Rice, the CEO of GE Transportation System, confirmed the importance of having an informed and empowered workforce (GE Transportation System 2000). Utilizing the point-and-click hyperlinking technology, users on the Intranet can easily access and navigate various types of competitive or business intelligence information (Linthicum 1996). The TPN, utilized by General Electric, efficiently manages their business intelligence, keeping their globally dispersed employees well-informed. According to a survey by the Society for Human Resource Management, over 85% of respondents found the intranet useful in disseminating information (USA Today (Tech Report) 2001). Szuprowicz (1997, p.) discovered that the TPN provides information such as annual reports, financial data, and business information to help employees manage their investments. Additionally, GE grants employees direct access to the GE travel center for scheduling business trips. The cost-saving benefits of utilizing Intranet web technology for in-house applications are well recognized. With a single

browser utilized in web applications, training is simplified, and implementation costs are low due to a single interface, protocol, and middleware architecture (Linthicum 1996).In a 1997 survey, it was discovered that the average cost of handling a single expense account at a company where paper was still predominant was $36 or more. However, after switching to a similar TPN approach, the cost reduced to as little as $8 per account. The TPN Intranet is a dynamic client/server application development platform that connects users across different platforms using open standards such as TCP/IP, HTTP, HTML, CGI, ODBC, and Java to connect databases. GE Power Systems' IT leader, Venki Rao, mentioned that the TPN sales portal software has an open architecture and is flexible, making it easy to connect all different platforms. With 10 million visitors a week, GE employees can now use the TPN to create personalized pages, access industry-specific news, check the weather, download tax forms, review benefits information, and enjoy discounts on GE appliances, Dell computers, and other products through an online marketplace. The Extranet technology is rapidly evolving to facilitate complex processes like document sharing between companies. Collaborative Extranets are seen as the future in this field (GE Information Services 1999).1997), investigated the positive impacts on current business practices and activities. The TPN Extranet allows for interactive sharing of data and planning information with suppliers, reducing redundant ordering processes and enabling the sharing of the latest parts and design changes. This facilitates quicker response times to suppliers' issues and inquiries. Suppliers can utilize the Extranet site to receive proposals, submit bids, provide documents, and collect payments (Wailgum 1998). GE Transportation Systems suppliers, for

instance, have access to all purchase orders and production forecasts related to their products (n.d.). Patrice Bourgeois, global marketing manager for Internet security at GE Global exchange Services, stated that customers can use the GE commercial Extranet service to accelerate their information planning with GE through document sharing on the Web. Most importantly, GE and its trading partner now have easy access to all necessary information (Verisign 2003).