Power and limitations of Intranets, extranets, e-collaboration tools and portals - Essay Example

Power and limitations of Intranets, extranets, e-collaboration tools and portals Power and limitations of Intranets, extranets, e-collaboration tools and portals The internet opened a wide range of connectivity opportunities for businesses and individuals since the 1990s. Access to information, collaboration, faster decision-making, and access to changing economic conditions, better management, and organization responsiveness are some of the aims of businesses and individuals in setting up connections via the internet. Some of the main connectivity mechanisms for individuals and corporations are extranets, intranets, e-collaboration, and portals. These tools provide several benefits to businesses but have certain limitations. This study aims at providing a comparison and contrast of extranets, intranets, portals, and e-collaboration power and limitations. An understanding of the power and limitations of each of these connectivity tools will be handy in connectivity decision-making for businesses and individuals. The power and limitations will also aid in making a Decision on having a combination of the internet connectivity tools or a single one depending on the use and number of users. Power and limitations of Intranets An intranet is internal company network using internet standards and software with the Internet standards including HTML, HTTP, and TCP/IP Protocols. Authorized persons have access to the intranet limiting information from being accessed by people outside the company with employees and management forming the main users of the intranet. Security layers allowing the optimum functioning of the intranet include firewall and public key security and encryption key for external and internal security respectively. An intranet is a powerful tool allowing the achievement of certain aims in an organization. The intranet provides an information distribution channel where employees access work instructions, templates, documents, and tools for efficient work performance on a single platform (Rajalampi, 2011). Details of departments, colleagues, and even subsidiaries are also available on the intranet providing employees an easy platform to contact and communicate with colleagues and share knowledge and resources for better work performance. The intranet offers corporations security, controlled access, and privacy compared to the internet allowing an employee to share information without fear of access by non-employees. The intranet is also a powerful tool in a business in terms of providing a platform for collaboration with staff accessing valuable information on human resource, new products, finance, and on-going projects. Staff also interacts with each other on collaborative projects providing for easy communication among team members and faster task completion. Information provision is the other power of intranets allows a company to provide members of staff, especially new employees, information on company structure, operation, policies, training, and human resource requirements. Intranets also provide companies with a platform to distribute circulars, telephone directories and launching departmental homepages augmenting communication effectiveness in the company. The power of intranets is also evidenced by increased productivity of employees owing to high collaboration levels and sharing knowledge, information, and expertise via the intranet. Intranets also provide for automation that augments the efficiency of operations at a company and increased access to information allows for better decision-making. Operation costs reduce the use of intranets in terms of internal communication requirements such as telephone bills and printing papers for posting on boards and offers a company competitive advantage. The limitations of intranets include lack of frequent management of information on the intranet owing to the requirement for constant updates, which may be time-consuming and involving. Unauthorized access and abuse of access are the security limitations of intranets where employees could use company information for personal benefit or share login information with third parties. High costs of setting up and running the intranet are the other limitations reducing the use and utilization by a lot of companies. The other limitation of extranets in a company is the lack of technology expertise requiring a business to outsource management and development of extranets of higher IT exports augmenting the costs of the business. The need for constant updates and improvement of software in an intranet is the other limitation since it could result in lost connections and redevelopment but is necessary to ensure up to date and current technology standards are used on a company’s intranet. Power and limitations of extranets Extranets use the similar configuration as intranets with the difference being that extranets allow users beyond the company’s firewall who are not employees to access company data and collaborate with employees in meeting company goals and objectives. Companies handle the management and supply of information to the employees, suppliers, partners, and customers of the organization in an extranet. Extranets power lies in the cost effectiveness it provides to a company owing to the provision of a platform for efficient communication with internal and external stakeholders of the company at a cheap rate. An example is the use of extranets by Li & Fung in connecting partners in sourcing, manufacturing, and distribution as it meets the demands of its clients including The Limited and Abercrombie & Fitch (McFarlan & Fred, 2000). The development of extranets using TCP/IP infrastructure is also cheaper making it less costly for companies to install and run extranets. Understanding of workings and mechanisms of the internet is high in organizations making training costs limited if not zero for companies and these companies save in terms of high efficiencies in many areas including marketing, customer service, and supply chain, among others. Travel costs in meeting customers and suppliers to provide information and check on the quality of supplies are also reduced with the use of extranets. Communication on the extranet between suppliers and the company and inspection of supplies before production is completed allow for improving designs and making necessary changes resulting in the improvement of product quality provided to the consumers. Consumers are also able to provide feedback and opinions on the quality and design of products resulting in improved quality and service provision of a company with the use of extranets. Extranets also provide companies with an easy mechanism for publication and sharing of information using web technology. The IT department in a company takes the responsibility for developing and posting documents on appropriate locations on the extranet easing access for internal and external stakeholders. Extranet provides a single location for information and links allowing for easier maintenance of information. The other power of extranets is scalability compared to proprietary technologies. A company can easily add new suppliers and customers to the extranet accessing information about the company with requirements being permission to access the extranet, internet connection, and a browser. For proprietary applications, extensive setting up of software and hardware would be required for scalability to be implemented. Scalability of an extranet is also evidenced by the ability to add new features easily and allow access to users without the need to update or reinstall programs. Monitoring is also easy with extranets that provide the ability to determine the content being accessed by an individual and the pathways used in accessing the content. Improvement of supply chain management (SCM) is the other impact of extranets with the benefits of extranets to SCM including cost savings, time reduction, improved communication, reliability, and accuracy of orders and delivery schedules (Stambro & Svartbo, 2002). Some of the companies and organizations that have used extranets successfully are Hong Kong Airport, Delta Airlines, and Brussels Airport. The limitations of extranets include content maintenance that requires an organization to create and maintain information provided on an extranet. Content maintenance is a costly process since the dedication of resources and time is required to ensure content provided on an extranet is timely, accurate, and reliable. The other limitation of extranets is the possibility of security violations that result in access to confidential information that could have negative impacts on the organization. Owing to the need to have technical knowledge in using extranets, suppliers and customers who are not conversant are disadvantaged when all information is provided through extranets. Extranets also have another limitation in terms of access and misuse of information by competitors negatively affecting the company. Faceless contact with customers may affect the development of long-term relationships with customers and reduces the chances of gaining insight from customers receiving one-on-one transactions. Power and limitations of e-collaboration Collaboration involves people working together on an intellectual, practical, or academic task. Electronic collaboration involves connection of individuals via the internet using email or via an access to sites on the World Wide Web (NIRE, 1999 and Kock & Nosek, 2005). Working together via the internet ensures individuals can communicate with each other anytime and from any global location. The internet connects individuals within a building, different states, country, or continent providing for the exchange of information, study together, collaborate on shared documents and ideas, and reflect on practices (NIRE, 1999). The power of e-collaboration is evidenced by the positive impact it has on the users including providing an opportunity for users to “communicate with people who share the same interests and experience the same challenges” (NIRE, 1999). E-collaboration allows for easy and fast file sharing among the participants as well as instant messaging providing for discussion and sharing of ideas necessary for reaching a consensus. The collaborators can edit documents in real-time with costs for the communication being minimal to zero owing to reduced or limited connectivity payments to access and use e-collaboration. One of the mostly used e-collaboration sites is Google Docs allowing collaborators to edit, share, and retrieve information wherever they are and in a convenient manner for each of them. E-collaboration improves supply chain management by allowing for the coordination of decisions and activities beyond transactions between supply chain partners through the internet (Rosenzweig, 2009). E-collaboration results in the improved productivity and quality in manufacturing firms owing to shared ideas, knowledge, and skills among the supply chain partners (Rosenzweig, 2009). Li & Fung has managed to have a very successful e-collaboration with mainly Abercrombie & Fitch and The Limited providing quality supplies within the agreed time. E-collaboration is mostly beneficial in education with teachers learning how to adapt to new curriculum changes and consider how colleagues are making the changes and reflect on their practices (NIRE, 1999). E-collaboration also allows teachers to connect with new colleagues, share experiences, and allow for the exchange of a larger range of opinions and resources promoting education and efficiently in teaching and curriculum implementation. E-collaboration also offers a business a chance to improve customer service through understanding customer requirements and using feedback generated by online communication and records to improve products as evidenced by Tesco’s use of Tesco card and feedback access mechanism. Travel expenses are also achieved with e-collaboration with business and partners or education practitioners having a platform to share ideas online without having to meet physically. Increase performance is also achieved with e-collaboration since it drives knowledge continuity and aids in facilitating decision-making owing to opinion sharing and idea formulation by different shareholders generating new perspectives. The limitations of e-collaboration include the potential loss of trust from the collaborators and the lack of added value inherent in face-to-face communication for example communication richness (Henriksson, A., & Neculau, 2009). The other limitation of e-collaboration is the presence of substantial costs in administration time, information systems, overhead, human relationships, and process changes negatively affecting the productivity of a company. Power and limitations of Portals Portals offer web users capabilities to access personalized content using different hardware and software frameworks to collect data from different sources and provided in a manner meeting the user’s needs. Portals effectiveness in meeting current needs requires that they have the possibility of working on numerous platforms including personal computers, mobile phones, and personal digital assistants. The power of portals is examined with Tesco used as case study. Examples of portals include business, agriculture, health, national, education, and information portal serving the aims of the different economic segments, but all have almost similar benefits (Dhindsa, 2013). An example of portals is customer portals that allow for effective communication between sales representatives and customer relations team with customers. The production of customer-centric products and services is the effect of the effective use of information gathered from a customer portal owing to insightful data as evidenced by Tesco’s Customer Club Card. Tesco has been able to manage customer service effectively and meet client needs more with the use of Tesco Club card and analysis of tons of data collected from customers. Portals also result in a decrease in operation costs especially when service telephone support is replaced by customer portals allowing for efficient communication at a lower cost. The customers also achieve a sense of involvement in the company’s operations and increase their engagement with the company in the achievement of goals and objectives resulting in high customer loyalty (Humby et al., 2008). Tesco has been at the forefront of using client information in the improvement of service delivery and making clients feel engaged in the development phase of products and services that has been one of the main reasons for its exponential growth over the years. Unique needs of the customers are effectively achieved with the use of customer portals. Customers provide information on their needs and requirements allowing a business to tailor product development and service provision to the meet differing consumer needs. The introduction of Click & Collect service at Tesco was as a result of the understanding of the needs of consumers and aided in achieving better service delivery at a short time and meet consumer convenience realized from analysis of consumer data from consumer portal. Portals also offer consumers a chance of interacting with key teams and people at a company allowing for increased customer experience. The benefits of portals on customer experience is summarized in the statement, “The capacity for consumers to communicate instantly with each other, with us and with other retailers is driving completely different expectations for service levels, choice, convenience, indeed the whole shopping experience” (Tesco, 2014). Other benefits of portals to organizations and individuals include access to business systems and information from a single point, user experience for staff in information systems and technology, information is tailored to individual staff, and reduction of multiple logins for accessing information. Portals have also revolutionized information access in institutions of higher learning with students and staff having a login to portals simplifying information delivery and access as evidenced by the University of New York portal (Olsen, 2002). Portals have certain limitations including high set up costs owing to the use of complex software allowing for identification and communication with specific users concurrently. High license fees and annual service fees characterize payments associated with installing and running a portal (Olsen, 2002). The costs of a portal are also related to having personnel with technical expertise in the maintenance and running of a portal to achieve the benefits aimed at an organization (Dhindsa, 2013). The other limitation with portals is the inability to provide reliable and timely information and data for access by different stakeholders owing to the time and resources required for maintenance and running of a portal (Dhindsa, 2013). Conclusion The internet has expanded the capabilities and possibilities that can be undertaken globally regardless of geographical location. The presence of intranets, extranets, e-collaboration, and portals has been effective in improving productivity, allowing global cooperation, and meeting the aims and aspirations of individuals, businesses, and corporations. The success of a business in the current era is more dependent on access to latest technology and use of features provided by the internet owing to competitive advantages and benefits to customers, suppliers, employees, and other stakeholders. It is imperative that business in the current century invests in a combination of internet capabilities and connectivity including intranet, extranet, e-collaboration, and portals to achieve global success. References Dhindsa, B., Narang, M., & Choudhary, K. (2013). Benefits And Challenges of E-Governance Portal. International Journal of Soft Computing and Engineering (IJSCE), 3 (5), 121-123. Henriksson, A., & Neculau, A. (2009). Towards Enhanced E-Collaboration In Academia A Holistic Model For Development Of E-Collaboration Software. Journal of Information Systems & Operations Management, 3(1), 63-79. Humby, C., Hunt, T., & Phillips, T. (2008). Scoring points how Tesco continues to win customer loyalty. London, Kogan Page Ltd. Kock, N., & Nosek, J. (2005). Expanding the boundaries of e-collaboration. Professional Communication, IEEE Transactions on, 48 (1), 1-9. McFarlan, F. W., & Fred Y. "Li & Fung (A): Internet Issues." Harvard Business School Case 301-009, October 2000. Northeast and Islands Regional Educational Laboratory at Brown University., National Schools Network (Australia), & Teacher Enhancement Electronic Community Hall (Project). (1999). Electronic collaboration: A practical guide for educators. Providence, Rhode Island: LAB at Brown University. Olsen, F. (2002). The power of portals. Chronicle of Higher Education, 48 (48), A32-A34. TESCO PLC. (2014). Annual Report and Financial Statements 2014. Retrieved on October 19, 2015 from www.tescoplc.com/ar2014 Stambro, R., & Svartbo, E. (2002). Extranet Use in Supply Chain Management. Lulea University of Science and Technology. Read More