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Diana Jovin
Intranets are revolutionizing how internal organizations manage business processes. However, development of intranets is no trivial task. This chapter discusses the applications being built today, how the Web paradigm differs from client/server and the benefits it delivers, technical and operational issues, and the overall impact an intranet can have on a companys bottom line.
The Web is revolutionizing business practices. It provides a path to increased revenue and new customers while significantly lowering the cost of technology and the cost of doing business. Although much of the Internet hype has focused on what is visible that is, what companies are doing on their external sites the biggest impact is taking place behind the scenes, through intranets that are replacing paper and LAN applications as the vehicle for company and group communications.
Intranets play a key role in reducing costs and increasing effectiveness and efficiency of internal information management. Intranet applications serve as productivity, sales, service, and training tools that can be disseminated through the organization at much lower cost than traditional paper, client/server, or mainframe implementations. In addition, intranets enhance the capabilities of traditional applications by extending portions of the application to a wider audience within the organization.
Applications made available on an intranet tend to fall into one of two categories Web self-service and intranet reengineering. Web self-service applications make the process of information delivery more efficient by eliminating cost and redundancy from the information delivery cycle. Intranet reengineering applications, through the use of real-time information delivery, change existing business processes. These applications enable companies to offer new products and services and increase the effectiveness of the business decision-making cycle.
Web self-service applications allow users to access information more efficiently by eliminating an intermediary process or middleman whose sole function is facilitation of information access. These applications make information more readily available, accurate, and reliable. Examples include:
Intranet reengineering applications not only provide real-time information delivery, they also impact existing business processes and how decision making feeds into them. The following sections describe sample applications.
Web-based sales force systems provide the sales staff with immediate access to customer account status and activity. Whether in retail banking, brokerage, or other industries, viewing real-time status is a tool that the sales force can use to provide new products and better service. In some financial institutions, portfolio applications that make customer information immediately accessible to the sales force are replacing the practice of distributing customer account information in the form of monthly, paper-based reports.
Inventory systems that interface between manufacturer and distributors can significantly improve processes such as inventory location and price protection. An example application that manufacturers are providing to distributors is inventory tracking, which provides information on availability, price, and location. In industries with price volatility, Web applications allow manufacturers to respond more quickly to price protection issues by enabling distributors to enter sales and order information that is processed immediately rather than in batch mode.
Purchasing applications let employees submit purchasing requests directly from the Web. International companies can benefit from applications that provide the purchasing department with information on foreign exchange exposure and recommended cash position prior to purchase.
In these examples, real-time delivery of information can have significant impact on a companys product and service offering or its ability to respond more quickly to the customer. In some industries, the Web is redefining the competitive landscape. For example, banks, which have been losing share in back-office activities to software vendors such as Intuit, are using the Web to reclaim this space with applications that allow customers to enter request-for-quote or payment initiation directly over the Web with an easy-to-use interface.
The Web is compelling as an application platform because it provides both strategic and tactical benefits. Companies can harness the Web as a way to attract new customers and deliver new products and services. At the same time, companies can significantly reduce the costs of technology and doing business. These benefits combined make the Web an attractive platform over alternative implementations such as client/server or mainframe. Benefits include:
With benefits that contribute to both increased revenue and decreased cost, the potential impact on a companys bottom line can be huge.
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