The Internet: © 1999, Cisco Systems, Inc

Module 15: The Internet
1999, Cisco Systems, Inc.
Agenda
What Is the Internet? The New Business Model Intranets Extranets E-Commerce Technology Implications of Internet Applications
www.cisco.com
1999, Cisco Systems, Inc. 15-2
CSE: Networking FundamentalsInternet
The Internet: A Network of Networks
www.cisco.com
15-3
Internet Hierarchy
Boston
ISP POP
ISP POP
Backbone
NAP NAP
San Francisco
Routers and circuits Multiple paths Adaptive routing

www.cisco.com
The New Business Model
Presentation_ID
1999, Cisco Systems, Inc. 1999, Cisco Systems, Inc.
www.cisco.com
The Internet Is Changing the Way Everyone Does Business

The Internet is driving acceleration of technology adoption. Compression of:
Time Distance Business cycles
Internet
Market turbulence
Networked business
Rapid transformation
www.cisco.com
15-6
Forces Driving Change
Compressed Product Lifestyle
Need to Do More with Less
Blurring of Geographical Boundaries

Blurring of Industries
www.cisco.com
Traditional Business Model Versus New Business Model

Traditional
Closely held knowledge base Limited access to information
Costly duplication of effort Limited hours to conduct business
New
Widely distributed among partners, suppliers Ubiquitous access to information by employees Removal of redundancy through cost justification and analysis Global 24 x 7 access
www.cisco.com
Todays Internet Business Solutions
Intranets Extranets E-commerce
www.cisco.com
15-9
Intranets
1999, Cisco Systems, Inc. 1999, Cisco Systems, Inc.
www.cisco.com
What Is an Intranet?
An internal network based on Internet and WWW technology that delivers immediate, upto-date information and services to networked employees
Platform independent
Quick to implement Global reach
www.cisco.com
15-11
Typical Intranet Applications
Employee self-service Distance learning Technical support Videoconferencing
www.cisco.com
15-12
Example: Employee Self-Service

What can you do with employee self-service?
Business management and planning Internal communications Human resources; benefits, training, 401K, payroll Internal IT services Budgeting, sales and revenue forecast EIS/daily operations management and enterprise reporting Corporate travel Market intelligence
www.cisco.com
15-13
Benefits of Intranets
Increase employee productivity Provide easy access to information Improve design productivity and compress time to market Improve global communications Minimize downtime and cut maintenance costs Realize cost savings
www.cisco.com
15-14
Extranets
1999,Cisco Systems, Inc. 1999, Cisco Systems, Inc.
www.cisco.com
What Is an Extranet?
An extension of the company network, facilitating secure collaborative connections with:
Key customers Suppliers Partners
www.cisco.com
15-16
Typical Extranet Applications

Supply-chain management Customer communications Distributor promotions Online continuing education/training Customer service Order status inquiry Inventory inquiry Account status inquiry Warranty registration Claims Online discussion forums
www.cisco.com
Example: Supply Chain Management
Distributors/ Suppliers Manufacturers Wholesalers Retailers Consumers
From my suppliers suppliers to my customers customers

www.cisco.com
15-18
Benefits of Extranets
Provide access to specific company information, and facilitate closer working relationships
Streamline day-to-day operations with your partners and suppliers Reduce inventories and cycle times Improve channel performance
Reduce costs
Improve customer satisfaction
www.cisco.com
15-19
E-Commerce
www.cisco.com
E-Commerce Market Growing Rapidly

349 327 97% of companies conducting e-commerce have less than 499 employees 71% of them have less than 49 employees!
Business to Consumer Business to Business Total 123 131 25 31
0.5 0.6 1.1
8 2000
22
2002
1996
Source: Forrester Research
1998
www.cisco.com
15-21
Typical E-Commerce Applications

Online catalog Order entry
Configuration
Pricing Order verification Credit authorization Invoicing Payment and receivables Inventory management
www.cisco.com
15-22
Benefits of E-Commerce
Increase revenues
Sell into global markets Improve customer satisfaction with self-service application Manage inventory levels more effectively Decrease costs
www.cisco.com
15-23
Technology Implications of Internet Applications
www.cisco.com
Technology Implications of Internet Applications

Higher bandwidth requirements
Security Potential of Virtual Private Networks EDI
www.cisco.com
15-25
Applications Need Bandwidth

Kbps
Leased Line, 1544 Frame Relay, XDSL 128 64 56K
Video, Multimedia
Simple Video, Voice

ISDN, FR
Web Browsing
New Modem
28.8
E-Mail, File Transfer

Old Modem
19.2
9.6
Telnet
Minimum Bandwidth for Application per User

www.cisco.com
15-26
Internet Security Solutions

Headquarters Sales Office
Mainframe
Gateway Internet
Firewall Campus Backbone Public Web Server
ISDN
PSTN
3178454
Firewalls Network Address Translation (NAT) Encryption: IPSec, DES, 3DES Token cards AAA
www.cisco.com
Intranet Servers
AAA Server
Token Card
15-27
Virtual Private Network

IP Packet (Private, Encrypted) IP Header (Public)
Extends private network through public Internet Lower cost than private WAN Relies on tunneling and encryption
Internet
Geneva
Frankfurt
www.cisco.com
15-28
Electronic Data Interchange (EDI)

Internet
Boston San Francisco EDI Format Purchase Order (Encrypted)
Public IP Packet
Trading partners send and receive documents Proprietary formats are converted into partner-agreed EDI standards Reduces time, cost, and errors
www.cisco.com
15-29
Summary
Internet business solutions create competitive advantage
Employees
Customers
Higher customer satisfaction Lower costs Partners Competitive agility Accelerated time-to-market Higher employee efficiency
Suppliers Ubiquitous connectivity where the business runs on the network
www.cisco.com
15-30

The Internet: © 1999, Cisco Systems, Inc

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Module 15: The Internet

1999, Cisco Systems, Inc.

CSE: Networking FundamentalsInternet

The Internet: A Network of Networks

CSE: Networking FundamentalsInternet

1999, Cisco Systems, Inc.

Routers and circuits Multiple paths Adaptive routing

CSE: Networking FundamentalsInternet

The New Business Model

1999, Cisco Systems, Inc. 1999, Cisco Systems, Inc.

The Internet Is Changing the Way Everyone Does Business

1999, Cisco Systems, Inc.

Forces Driving Change

Compressed Product Lifestyle

Need to Do More with Less

Blurring of Geographical Boundaries

Traditional Business Model Versus New Business Model

Todays Internet Business Solutions

Intranets Extranets E-commerce

CSE: Networking FundamentalsInternet

1999, Cisco Systems, Inc.

1999, Cisco Systems, Inc. 1999, Cisco Systems, Inc.

CSE: Networking FundamentalsInternet

1999, Cisco Systems, Inc.

Typical Intranet Applications

Employee self-service Distance learning Technical support Videoconferencing

CSE: Networking FundamentalsInternet

1999, Cisco Systems, Inc.

Example: Employee Self-Service

1999, Cisco Systems, Inc.

CSE: Networking FundamentalsInternet

1999, Cisco Systems, Inc.

1999,Cisco Systems, Inc. 1999, Cisco Systems, Inc.

CSE: Networking FundamentalsInternet

1999, Cisco Systems, Inc.

Typical Extranet Applications

Example: Supply Chain Management

Distributors/ Suppliers Manufacturers Wholesalers Retailers Consumers

From my suppliers suppliers to my customers customers

1999, Cisco Systems, Inc.

CSE: Networking FundamentalsInternet

1999, Cisco Systems, Inc.

1999,Cisco Systems, Inc. 1999, Cisco Systems, Inc.

E-Commerce Market Growing Rapidly

Business to Consumer Business to Business Total 123 131 25 31

0.5 0.6 1.1

1999, Cisco Systems, Inc.

Typical E-Commerce Applications

1999, Cisco Systems, Inc.

CSE: Networking FundamentalsInternet

1999, Cisco Systems, Inc.

Technology Implications of Internet Applications

1999,Cisco Systems, Inc. 1999, Cisco Systems, Inc.

Technology Implications of Internet Applications

CSE: Networking FundamentalsInternet

1999, Cisco Systems, Inc.

Applications Need Bandwidth

Simple Video, Voice

E-Mail, File Transfer

Minimum Bandwidth for Application per User

1999, Cisco Systems, Inc.

Internet Security Solutions