Accounting Information Systems: The Processes and Controls, 2nd Edition

INTRANETS AND EXTRANETS TO ENABLE E-BUSINESS (STUDY OBJECTIVE 8)

In many cases, interaction between entities within the supply chain occurs between entities that are part of the same company. As an example, in the eGM vignette, GM was using e-business to enhance the engineering and manufacturing of vehicles. Therefore, engineers and plant personnel have interaction electronically. This interaction within the same company would use an intranet. Exhibit 14-7 depicts the three levels of network platforms—intranets, extranets, and the Internet—that are used in e-business.

An intranet is a private network accessible only to the employees of a company. The intranet uses the same common standards and protocols of the Internet. An intranet uses TCP/IP protocol and the same type of HTML Web pages as the Internet. However, the computer servers of the intranet are accessible only from internal computers within the company. The purposes of an intranet are to distribute data or information to employees, to make shared data or files available, and to manage projects within the company. For example, GM engineers located in several different offices across the United States may collaborate on the design of a new car. Those engineers can share project files and information by the use of the internal network, the intranet.

To engage in B2C e-commerce, a company must access the Internet, since it is the network platform that gives a wide range of customers access to B2C sales. For example, Amazon.com ...