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Benefits of Intranets

Benefits of Intranets. Uniformity on all platforms Low hardware cost Low connection cost Easy interface Familiarity (confidence) Customization Ubiquitous connections. columbusgroup.com. Examples of Intranet Applications. Corporate, Manufacturing, Legacy databases

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Benefits of Intranets

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  1. Benefits of Intranets • Uniformity on all platforms • Low hardware cost • Low connection cost • Easy interface • Familiarity (confidence) • Customization • Ubiquitous connections columbusgroup.com

  2. Examples of Intranet Applications • Corporate, Manufacturing, Legacy databases • Quality Assurance Systems • Human Resource Systems • Written Documentation • Research Reports • Order Entry (expense reports, requisitions) • Memoranda, Letters, E-mail From net-work.com

  3. Survey: Why Intranets? • Share online policies, procedures, etc (80%) • Make available information (52%) • Facilitate cross-platform work (15%) • Support decision-making (15%) • Provide personalized information (10%) • Support mobile users (9%) • Tie together disparate systems (7%) • Re-engineer (5%) • Downsize from mainframe, mini (2%) C. Comaford, PC Week 5-20-96

  4. Intranets: Annual Costs per 1,000 Users • $9,500 help desk and related activities • $6,700 hardware, software problems • $6,300 messaging management • $4,600 directory maintenance • $3,900 monitoring • $2,500 directory synchronization • $1,800 backup and related activities • $35,200 total PC Week, 4-28-97

  5. Intranet Survey: Unexpected Costs • Hardware, network upgrades (59%) • Hiring a graphic designer (18%) • Hiring a content librarian (10%) • Hiring consultants for tuning, site structure, data access assistance (5%) • Training/education (5%) • Software upgrades, acquisitions (3%) C. Comaford, PC Week 5-20-96

  6. IDC Intranet Survey: Big ROIs • Returns of 1,000% are not uncommon • Why? • Many firms already have infrastructure • Users already have desktop PCs • Free or cheap browser & server software • High-level tools speed development • Few hidden costs (highest: network upgrades)

  7. Intranet ROIs • Meta Group study: 41 U.S. Companies • 32 published documents (18% ROI) • many provided groupware [Notes or Exchange] (40% ROI) • 3 provided database access (68% ROI) • 2 provided inventory mgmt (52% ROI) • Enterprisewide is best level to shoot for. Infoworld 4-13-98

  8. Intranet Case Study 1: Nissan • In its first year, Nissan’s Intranet saved • $750K in staff time and • $72K in printing costs --> growing to $210K • 661% ROI (cost: $178,500) • Contains press releases, employee anniversaries, company fitness center schedules, up-to-the-minute internal news, management tips, databases of stories on competitors, $5 brochure, mouse pad • The 2,500 employees average 34 hits apiece/week PC Week, March 9, 1998

  9. Intranet Case Study 2: JD Edwards • Focus is on Knowledge Management: “Knowledge Garden” • Serves 3,500 employees in 95 countries • Designers are non-technical, having no interest in hardware or programming • Studied the pathways to information during all phases of customer interaction • Structured content by cycle, not producer! Web Week, 12-1-97

  10. The Knowledge Garden • 1. Employee Resource Center • Company News • Company Events • Library • Benefits/Career Planning • Departments & Area Offices

  11. The Knowledge Garden • 2. Product Center • Worldwide Customer Support • Development • Training • Technical Messages • Client Services • Documentation

  12. The Knowledge Garden • 3. Sales & Marketing Center • Marketing • Sales Force Support • Strategic Alliances & Business Partners • Analyst Relations • Competitive Intelligence

  13. Bottom Line: JD Edwards • Cost: $1 million • Savings: $5 million in time saved • 36% of respondents saved 7-10 hrs/month • Chief focus: “to give easy access to frequently used documents in the sales process.” • 100 Knowledge authors update the content

  14. Knowledge Management • Definitions differ, but it usually means: • Capturing/finding best practices • Retaining tacit knowledge of individuals • Enabling firms to react more quickly and decisively. • Common tools: Lotus Notes/Domino or Exchange Server + data warehousing tools • As you solve problems, type them in for storage, categorization. PC Week, 8-24-98

  15. What is Knowledge? • Data = discrete chunks (facts, etc.) • Information = data with meaning (connect facts with significance) • Knowledge = information with comparisons, consequences, connections, values, beliefs, actions

  16. Explicit Articulable Teachable Observable in use Schematic Simple Documented Dimensions of Knowledge • Tacit • Not teachable • Not articulated • Not observable in • use • Rich • Complex • Undocumented

  17. TACIT AND EXPLICIT KNOWLEDGE • Tacit knowledge and explicit knowledge operate together in a stereo effect • All forms of knowledge have both, combined holistically and almost inseparable • Must manage both together but each in its own way. (O. El Sawy)

  18. KM and KM Systems • Knowledge Management is the organizational process for acquiring, organizing, and communicating both tacit and explicit knowledge so that others may use if to be more effective and productive. • Knowledge Management Systems are information systems designed to facilitate codifying, collecting, integrating, and disseminating organizational knowledge

  19. KM SYSTEMS • What is new is use of modern IT to systematize, facilitate, and expedite firm-wide knowledge management • Technologies include: • Internet • intranets • browsers • data warehouses • software agents • doc. mgmt systems

  20. Approaches: Legacy Data • Four options: • Turn the mainframe into a Web server • Rewrite mainframe applications to deliver Web content • Make Web applications use old mainframe standards (eg., CICS) • Use “screen scrapers” to trigger a screen, pull data from it, then reformat it to HTML Internet World, 8-10-98, p. 24

  21. Extranets: Extended Intranets • Usually link outsiders to databases • Examples: • Sales (with access to Inventory levels or service locations: Prudential) • Delivery tracking (FedEx, UPS) • Customer service (KB: Microsoft) • There are few in place • You’ll hear more about LDAP & encryption

  22. Extranet Payback Network World, Feb. 16, 1998

  23. Comparison of all Three

  24. Business-to-Business E-Commerce • Biggest Internet successes • Roots are in EDI

  25. B to B Exchange Business Models • Aggregators – offers product catalogs of many suppliers in one place/format (e-Chemicals) • Trading Hubs – build buyer & seller communities, sometimes with auctions (FreeMkts, Shop2gether) • Post and Browse – bulletin board offering postings and negotiations later (Catex) • Auction Markets – Multiple buyers & sellers bid (e-Steel) • Fully-automated exchanges – Centralized market for standardized products (e-Steel) B2B Exchanges, Scully & Woods, 1999

  26. Common Features • Centralized market space • Neutrality • Standardized contracts, documents, products • Pre-qualifications & regulation of users • Price quotes, post-trade info, pricing history B2B Exchanges, Scully & Woods, 1999

  27. Common Features (cont’d) • Maintenance of integrity of the market • Transparency • Self-regulation of market and pricing mechanism • Clearing & settlement or fulfilment svcs • Confidentiality/anonymity • An exchange community (meeting place) B2B Exchanges, Scully & Woods, 1999

  28. Net Effects • Markets operate at fraction of physical cost • Low cost of getting connected globally • Higher pricing efficiency (auctions) and increased volumes • Automated trading and anonymity • Transparency: Centralized markets generate trading and pricing information B2B Exchanges, Scully & Woods, 1999

  29. EDI and B to B Commerce • Need for B to B electronic commerce became obvious in 1970s & 1980s • EDI was the first effort • EDI over VANs: • $150 billion in ‘97 from order to payment* • $500 billion in ‘97 initiated electronically** • Now B to B is the fastest-growing aspect of electronic commerce • Procurement is an obvious area *Input survey ** Granada Research estimate

  30. Procurement Costs • Why is it expensive? • Complex, multi-step process • find suppliers who meet volume, delivery, quality, price requirements • Send detailed drawings, specs to supplier • Send P.O to supplier for specific quantity • Receive confirmation • Receive notice and invoice when shipped • Try to match invoice to P.O. Some of this is from “The Emerging Digital Economy,” Dept. of Commerce, 1998

  31. How to Lower Costs • Consolidate purchases • Develop relationships with key suppliers • Send all information electronically to reduce labor, printing, and mailing costs • EDI: Electronic Data Interchange

  32. Analysis of Market Opportunities • Patterns of Interaction Model • Customer Decision Process • Customer Service Life Cycle

  33. Patterns of Interaction

  34. Customer Decision Process • Prepurchase • Origination • Information Gathering • Evaluation • Purchase – Purchase Decision • Postpurchase – Postpurchase Evaluation and Behavior Rayport & Jaworski, chap 2

  35. Customer Service Life Cycle • Customers go through 4(+1) phases • (Awareness) * • Requirements • Acquisition • Ownership • Retirement Galletta/Choudhury addition

  36. Awareness • Advertising (obviously) • But some customers find you through shopping agents

  37. Requirements • Help customers figure out their needs • How does it look (FTD ) • Is a new one available yet? (Amazon.com ) • Will I like it? (CD Now ) • How much do I need? (Best Buy ) • Is it compatible? (Best Buy )

  38. Acquisition • Help customers acquire your product or service • Locate a sales point (Penney, Best Buy) • Place an order (Alamo, Hilton) • Pay for it (Mondex, Cybercash) • Check status (Federal Express, UPS) • Take possession (Netscape, Microsoft)

  39. Ownership • Support the customer while he/she owns the product or uses the service • Assembly & Installation (Bush Furn.) • Training (SUN) • Use (SW Airlines,) • Tracking (Fedex, UPS) • Maintenance (Apple, Silicon Graphics) • Upgrade, Update (Microsoft, DEC)

  40. Retirement • Help customers complete their ownership and move on • Can be profitable...sometimes • Help here is rare indeed! • Retiring (AltaVista) • Returning • Reselling (Hotel Discounts) • Recycling (HP) • Accounting for

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