The Network Oriented Technology

When addressing IT matters, the temptation of manichean oversimplification is big. Some consultants pretend that the technologies currently in use within companies must be immediately removed because Internet technology is less expansive and more efficient. We should, however, think in terms of pragmatic changes and help companies to start their projects step by step and use their background. The priority is to understand what is this Internet technology and all network solutions implied?

The network oriented technology

D-1 Internet technology, 10 basics features

The Internet is a global matrix of interconnected computer networks using the Internet Protocol (IP) to communicate with each other. For simplicity, the term ‘Internet’ is used throughout this paper to encompass all such data networks and hundreds of applications such as the World Wide Web and e-mail that run on those networks, even though some electronic commerce activities may take place on proprietary or other networks that are not technically part of the Internet, e.g., AOL (America on line) which is classified as a proprietary network.

The easiest way of describing the Internet technology is probably to describe all the tools which, when added together, form the Internet technology. That is the aim of the following table with all protocols, and possible applications :

Features

Protocols

Applications

ØElectronic mail

ØForums

ØOn line chats

ØFiles transfer

ØComputer to computer connection

ØMultimedia servers

ØVisio conferencing

ØTelephone

ØMusic

ØVideo

SMTP / POP 3

NNTP

IRC

FTP

Telnet

HTTP

Real Time Streaming

Proprietary

MP3

Proprietary

qEudora / Netscape…

qNetscape / Free Agent

qIRC, ICQ….

qCUTE FTP / Netscape

qCRT

qNetscape / Mosaic Internet Explorer

qSee Tou See Me / CU See Me

qI-Phone / Win Phone

qReal Audio

qStream Works

The use of the word Internet has become widespread thanks to traditional media. Very few people, however, understand the features, standardised protocols and applications that are actually used by the Internet. This network of networks is actually nothing more than the addition of these ten basic tools. In other words, the latter remain exactly the same tool for the extranet, intranet and Electronic commerce applications. Therefore we can talk about a global solution.

This technology can be divided into three parts: features, protocols, and applications and these parts will in turn have an impact on companies on three levels :

Intranet technology proposes services the client-server structure could not offer. The most basic tool is Email and the most sophisticated one is Intranet Workflow.

With a successful implementation of Intranet, companies that have chosen this technology are going to be able to improve exchanges with people outside the company in a substantial way. Extranet will permit them, under some conditions, to give remote access to their information system to external partners, such as suppliers.

Finally, the next step to further use this technology is opening a permanent access to the company for the market through an electronic commerce web site. The first action would most likely be to use the Internet simply in order to display products or services. A further action would be to allow on-line product selection and payment.

The investment involved in the above mentioned solutions is considered to be elusive or temporary by some businesspeople whereas others can see the durable long-term benefits. Knowing that their company must become an active structure in order to belong to this new environment, they decide to invest in the network of networks to allow continuous change with the world thanks to their intelligent information system.

D-2 Intranet approach

Before studying the way to implement this technology, it is necessary to define the term Intranet. This term which replaced the older expression "corporate Internet,"was first heard in 1992 and Steven Tellen must be the author (at that time he was working at Amdahl Corporation).

John A Quelch and Lisa R. Klein define the term Intranet in the Sloan Management HARWARD Review, 1996 the following way "While the early audiences for most web sites have been external customers, the potential for serving internal customers (the staff) may be equally as great. Creating internal networks to facilitate communications and transactions among employees, suppliers, independent contractors, and distributors may be the Internet's principal value for MNCs”. This point of view is quite relevant to introduce the definition. The interesting point that is quite seducing is the fact that it implies that there is actually an internal user that should be well treated. The internal user is the client of the information system department. The product delivered to her is actually information. The webmaster needs to be aware of the needs of each person, to allow her to find the right quantity of accurate information she needs at the right time. If this goal is not achieved, the company will hardly be able to meet its goal and the final customer will have to wait or will get the wrong product too. The Forrester Report of 1995 analysed Intranet technology to be : "Internal corporate TCP/IP (Transmission control protocol / Internet Protocol) networks that carry Internet-developed applications like the web - and its future cousins." Actually, the Intranet comes from the evolution of both Internet and its IP protocol and client-server technology. It is by taking the best of these two worlds that the Intranet is imposing itself. The Intranet is considered to be the company's network using all Internet technologies and especially the IP basic protocol.

The IP basic protocol, however, is not enough to define intranet since Unix computers also use this protocol. Therefore, it would mean that any network based on a Unix computer system would be an Intranet, which is not true. An Intranet uses an http server and that makes the difference. In this matter, Netscape is being more precise, stating that the Intranet is a combination of LAN (Local Area Network) and Internet technologies used within the same organisation. If the Intranet implementation is done successfully, information delivery, no matter what the quantity, will be possible for each single user at a minimal cost, in the right time, and with a minimum effort.

Another positive fact about the introduction of this technology is the fact that it really gets people involved in the company’s organisation and goal selection. Since the environment is changing quickly, people need good information to update their knowledge about the situation. They should become problem solvers as Michel Albert explained in Capitalism against capitalism. It is worth investing in this Intranet technology. The staff becomes much more important than previously with other system. In the end, people have more access to information and understand the importance of their work according to the whole information system. Jean Rancoule, French internal communications manager at Essilor recently said the following: Intranet helps people to become more responsible and helps them to handle their career. (01 Informatique, 1998).

D-3 The Intranet technology services

On the following table, a summary of all services encompassing this technology are presented from top to bottom. The basic onesjust like for the communication standard (OSI) are the transport services. Administrative as well as security services are used to control the platform. All services are directly user-oriented. The latter is involved in its creation.

Services for access to information and applications

Applications development services

Address book

Communication services and co-operative work

Services to share information

Security services

Administrative services

Transport services

Transport services :

Intranet uses the same IP (Internet Protocol) as all other standards protocols used by the Internet. This offers new communication possibilities within MNCs between all platforms and places. These services are :

Administrative services :

Just as the Internet network is supervised, the company can control its Intranet with :

Each part of the network will be controlled : routers, networks, software, printers, computers thanks to the SNMP standard (Simple Network Management Protocol). Each event is transmitted by SNMP to the administrative platform.

The network activity can be viewed with a browser from a distant place but with a secure access. The webmaster of the company can stay at home and still control the company’s Intranet with a “PC Anywhere” for example.

When two different users try to view the same page, if the LAN uses an HTTP Proxy server, each computer won’t need to call the page on the Internet. Actually only the first one will have to do it. The second time, the computer will view the same page quickly because it will come from the proxy server.

Security services :

Three security services belong to the Intranet :

This process allows the identification of users with software like secure ID. We can permit remote access only under certain circumstances and on the LAN we can limit people’s access to some parts of the network.

This technology ensures that data are transmitted properly. Therefore messages cannot either be read or changed. Information is usually encrypted at two levels: on the computer and during the transport.

This includes the use of a firewall. In this case, different actions are possible such as allowing a band or an IP (a single computer) to transfer files. (maybe - such as banning an IP (a single computer) from transferring files)

Services to share information :

In order to organise all the data within the company, three types of actions are possible :

The FTP (File Transfer Protocol) is used to transfer data between two computers.

These are often web servers and allow the users to have access to all documents within a company and to search for information with keys words just like we do on the Internet with search engines.

SQL Database server is one of the most popular. To create and organise all databases needed within the company. IT is now possible to have access to this database with a simple browser. (Oracle web server)

In order to publish any kind of information on this corporate network, the use of a software allows users to save their documents as HTML file. Then with search engines like the one from Verity or Fulcrum, the word processor document is automatically transformed into a HTML document. Thus, users have access to the document they were looking for with a simple browser. They can even make changes through their browser. The life of users is further simplified since they only need to know how to use a simple browser to perform all the work.

Communication services and co-operative work :

According to environmental constraints the company needs to be more and more reactive. That is the reason why the internal communication efficiency will allow both the prompt success or failure of a company. The Intranet information system offers a lot of different communication applications, here are a few of them :

This has become so popular that it does not need to be explained. The protocols used are : SMTP, POP3 and IMAP.

It is possible to organise the flow of a document within the company following a specific plan. Products like “Live Link” are available.

The origin of this service is a proprietary one. As usual the Internet technology being cheaper it will overwhelm the first one. Actually a simple ISDN access and video equipment that costs less than 400 Euros allows the salesperson of the company to start his remote conference.

It is an asychronic service that allows users to leave messages for each other with attached documents.

Address book :

There are also different types of directories for users, servers, services, applications, and information.

Applications development services :

Originally, in order to develop applications for the Intranet, both languages; C and Perl were used. They allowed interconnection between databases and web servers, they use the CGI standard for this action.

In any case, the real revolution comes from the use of Java language, created by SUN. This allows us to keep applications on the servers, making it possible for anyone to use applications developed on any system. However java implies a programming work more difficult then visual basic for instance.

The Intranet – A Universal client-server ?

The use of the browser is the maximum required by users to use the information system of the company. Therefore, the “client” becomes universal. Previously, users had the terrible task to get trained on every new applications. Let’s take the example of Lotus Notes, when a company choose to use this GroupWare which offer tools (feature such as : Agenda, address book….) new users have no choice but to learn with a book how this specific software can be used. It is hard task within companies to ask people to change the way they work and then to learn about a new tool. However, to use a browser and surf on Internet, there is very little to learn. Once one understood that the only thing he has to do to go to the next page is to click on the icon or button of his choice, he understood everything. To come back to our example of Lotus Notes which is quite hard to use for a beginner, there is a solution to simplify his life. Actually, with the Intranet technology, it is possible to give him an access to Lotus Notes through a browser such as Netscape navigator. He will have two advantages: first he won’t need to install the Lotus software on his computer, and then he won’t need to be trained, to click on button will be enough. Therefore it is not a long time to wait to see the browser becoming the universal client-server. This technology will ensure the technical homogeneity of all client software and server. The next activity the Intranet will conquers is the workflow.

D-4 Intranet, a less expensive information system

The cost of Intranet is less expensive this can be read in every specialised magazine and it is true at different level. In terms of investment, a research from IDC in 1997 has shown that a large company would need to spend 254 000 $ on a Lotus Notes solution that offers equally services and only 10 000 $ for an Intranet. This example is example is of course kind of extreme. The discrepancies are usually not that important. In terms of running costs, it less expansive and risky to develop applications with the java language for an Intranet. Basically programmers need three time less time and it is four times less expensive.

In terms of network, all users have access to all servers of the companies including servers in others places at a local communication cost. The quality of the telecommunication networks is not the best but it should soon evolve.

D-5 Next step of Intranet, the extended GroupWare

The current use of the Intranet is often limited to the use of Agenda and address book. However, all the above described tools are likely to be use quickly within companies. In addition, in the near future, this technology will be extended with the use of GroupWare on the Web. It is possible to use a working sharespace and a workflow system with a simple browser such as Netscape. The software solution is called : Quickplace made by Lotus and available beginning 1999. “Lotus QuickPlace Allows Distributed Teams to Establish a Rich Environment on the 'Net in Minutes for Fast, Easy and Secure Collaboration ». This software solution will be available through ISP hosting or in-house for company intranets and extranets.

Let’s describe the possibilities by taking an example of three people not from the same company but willing to work on the design of a product.All that's needed is a standard browser like Netscape to work with a group across the hall or around the world. Let’s say the three of them work in different places including Europe and Canada. Nospecific training or software is needed, a simple browser such as Netscape will do. One of them will connect first to the Quickplace website in order to create one virtual place where they will meet. He will create users, and passwords and register the two other person on the site. He will also customise the place, selecting options offered.(when you initially open the QuickPlace, the screen suggests you are in a building, from which you can almost effortlessly construct a comfortable setting, in a style that fits the personality and functions for the group). Then, the two other people connect to this virtual place with the password they already received by Email. They are all working on the same page. Let’s imagine the screen of their computer; on half of it we can see Netscape browser open, showing a white common interactive blackboard and on the other half of the screen, there are documents (on the desk). On this blackboard, each person can see what the others are writing. Then, when ready, they will all show their product design suggestion to the others. To execute this action, they simply need to select their document (on the hard disc) and drag into the Netscape window. The download last few seconds and the product picture can be seen by the three of them. They can give their opinion, improve it and eventually decide which is the best. They created a common document online.

Then, they can carry on working the following way: one of them can create a private room to deal about the contract. He can drop word document into the Netscape window in order to discuss the conditions with the person. When they both agree, they can decide of a procedure to have all people sign the contract. That’s what Lotus company call extended GroupWare. As we can see, the opportunity of distant collaborative work are numerous thanks to the merging of GroupWare technology and Internet technology. Lotus intend to offer a customised version of QuickPlace to all their subscribers and communities, according to www. Lotus.com.

D-6 A new culture way : The intrapreneurship

All technologies are not easily used by the staff. To help people understanding the advantage to use them, managers should first try to create an appropriate environment within the company, in other word an intrapreneurship, concept mentioned by Alexandra Masanes, ERP 1994.

Without spirits of creativeness, there would not be improvements and success within the company.Innovation must become a keyword in the internal communication. The creative team must be protected from the negative influence of bureaucrats. In addition, to ensure success of this policy, creative person must feel managers will trust them and new idea can be easily accepted. More practically, resources in terms of time or money can be given to the staff to try new projects. That is one of the way to lead the company towards knowledge management.

Knowledge management help organisation to “remember” events, people, actions, value added methods of work. This part of the intrapreunership. New technologies offer a real opportunity to work on the content. The latter can be of any project. Any Internet technologies can be used to reach this goal, like forums or web site. The work team will have to decide what are the most relevant subjects on which they should focus to create the use of the new tool. If this is implemented for the first time, it is recommended to analyse needs within the company. A lack of information on legal aspects of the company’s industry can be an example. The work team could simply decide to create a forum on specific legal information topics that directly deal with the defined subject. Each specialised person could give and leave messages and documents to start the use of the forum. Then, every person using this tool can leave questions or first find out if the subject was not already discussed. The first step are not easy cause the forum will be empty. However after a few years the company will have a new asset; a central source of information concerning all aspects of its legal issue. The new employee will be able to learn fast. However, person leaving, will automatically leave a part of their know-how in the company.

D-7 Electronic commerce in practice :

Three main areas in terms of technologies, as defined in the introduction, support electronic commerce :

In terms of web site creation, times have changed. The ISP (Internet Service Provider) cannot start this online sales adventure without these technologies. The three of them are the minimum required to achieved a successful commercial web site. In order to better describe this tool, we can present all the details of these three technologies with software solutions becoming popular on the market. Intershop for the front and back office and KLELine to ensure online payment.

The online management technology

There are several solutions on the market mainly from computer constructor such as IBM and operator such as France Telecom or solutions form Banks such as Cybermut in Alsace in France. Instead of listing all of them, we could describe more precisely only one of them which is certainly one of the best offer : Intershop and Cegetel. INTERSHOP Communications Inc. develops and distributes ecommerce software which integrates storefront creation tools, business management tools, and unlimited hosting capability. It includes :

Definition:It is composed of all web site features that the customers can see and use when he connects to the web site. .

Basket (to see the product ready to be purchased. This is probably one of the core competencies of this software solution).

Definition:It includes all actions that the website manager can perform from a distance on his web to manage the sales.

It is very important to find out the most appropriate solutions according to the needs of the company. The following criteria could be used to make the choice :

The online payment technology

There are a lot of solutions worldwide. We coul therefore describe only one of them but giving a clear explanation of its features.

KLELine is a financial company that specialises in management of secure business transactions on the Internet. Subsidiary of the Groupe Paribas and LVMH, KLELine is a European leader.

KLELine serves as a financial intermediary between Internet buyers and sellers by protecting confidential data, authenticating the participants, and providing a group of Back Office services (accounting using CDE, different currencies, technical support, etc.).

At present KLELine services are structured around two methods of secure payment.

The Klebox virtual wallet (must be downloaded – but it will be available as from September 1999 without downloading any program and with equal security), available to both the general public and corporations, can be used for making purchases for any amount, starting as low as one franc or the equivalent in the customer's currency. Inter-bank processes card numbers given directly to merchants (by SSL, e-mail, phone or fax). The other method not promoted by the company is the usual secured payment with SSL cryptology 40 bits requirements. According to KLELine dozens of virtual shopping malls and Web merchants across eight countries in Europe, Asia and America have chosen KLELine, and 80,000 consumers from over 130 countries already have Klebox software.

The other on-line payment solutions are : Netscape SSL (direct payment),payline(SG2), cybercash (Atos), Wanadoo, e-Comm.

It is therefore believed that for company, the next step will be to upgrade their information system using the Internet technology and network oriented solutions. According to Catherine Ledig, to simplify the impact of this new generation of information system, we can use the following diagram:

PART D Moving towards a solution