Information Systems HW 4
Pg. 164 Project 1
Benefits of Extranets
An extranet is defined as “a secure network that uses the internet and web
technologies to connect intranets of business partners so communication between
organizations or between consumers is possible”. Extranets allow the same benefits
as intranets, but also include coordination, feedback, consumer satisfaction, cost
reduction and expedited communication as other advantages. There a number of
ways companies can use these, and many have brought them into their
organizations. For example, most banks now have an online service. My bank,
Citizens Bank, allows online banking along with a mobile app. Consumers can check
their balance and even make transfers online. This lowers cost for the company as
well since they don’t need as many employees for a mobile app, and can instead hire
them in a form of customer support. However, comprehensive security is absolutely
necessary for this so that only authorized users have access. Next, Toshiba America
has designed an extranet for timely order processing. Using this, it is possible for
over 300 dealers to place orders for parts until 5:00 pm for next day delivery. These
dealers can also check accounts receivable balances, pricing arrangements, and read
press releases among other things. Finally, Fed Ex uses an extranet to collect
information and make it available to customers online. Their tracking system makes
it possible for customers to enter the tracking number, which locates their package.
In addition, they are able to prepare and print shipping forms, get their tracking
numbers, and schedule pickups. Extranets can give a huge advantage to companies,
which can in turn increase profits. However, it can be challenging to design a
successful one. The main reasons are that they require a comprehensive security
system and proper management control. With having the proper technology in
place, companies can greatly benefit from extranets.
Project 4
Social Networking for Small Businesses
For any business, exposure to customers is key. Small businesses especially
must be constantly working for the awareness and recognition that creates a
successful image. In today’s day and age, social media is a highlight to do so. Social
networking is referred to as “a broad class of web sites and services that allow users
to connect with friends, family and colleagues online as well as meet people with
similar interests or hobbies.” Therefore, businesses use these types of sites as a way
to connect with their buyers.
The textbook states Americans spend an average of 16 minutes of every hour
spent online on social networks. In addition, a total of two billion consumers use
these sites, and this number is increasing every day. With these drastic numbers, it
is clear to see why businesses use these to showcase their businesses. Search
engines such as Google make it close to effortless for someone to find what they are
looking for, and businesses come up frequently in these searches. Once a site is
chosen for social, there are different uses. For example, Facebook is a popular choice
that businesses can create a fan page. Customers then “like” these pages, and can see
the activity (including posts and even photos) in their newsfeed. Twitter is another
one that can be used specifically so a business can connect with its customers in real
time. Pinterest can be used for a business to showcase their product offerings, and
YouTube is a video site that companies can create “how-to” videos. Since people
spend so much time on these websites, they have a high chance of stumbling upon a
business. When this happens, they can easily be prompted to other websites that
have a connection to the business.
Since small businesses often don’t have as much money as their potential
competitors, social media is a great alternative as a free way to advertise their
company. A big business is more likely to advertise their company in the form of
print, TV and radio ads, among other ways. Businesses that don’t yet have these
funds turn to other means, which can be social media. It is a free way to get their
image out in a way that is also easily accessible to people. They can place their links
to company websites or even use a pay-per-click method. Since today’s society uses
social media so frequently, being able to make purchases so easily is quite attractive.
More people prefer online shopping so that they can shop from the comfort of their
own home. Customers can also connect with businesses from a wider area than
conveniently going to a store would be. This increases the market for a business,
since someone could easily find a company they like but would have no interest in
or even means of traveling to.
The growing popularity of social networking for businesses changes the way
companies run, as well as the way consumers make decisions. Buyers can now do
much more online than they could just a few years ago. In addition, they create
judgments based upon the layout of a site, how user-friendly it is, and even how
many likes or followers it has. From a business standpoint, it can be cheaper to
advertise, they can connect with a broader spectrum of buyers, and they can have an
overall higher number of customers with increased online activity.