Chapter 4
Online File W4.1
Security Challenges of Wireless Computing and Mobile Commerce
Online File W4.2
A Closer Look: Examples of Intranet Applications and Portals
Online File W4.3
A Closer Look: How to Use the Internet, Intranets, and Extranets to Gain Competitive
Advantage
Online File W4.4
Enterprise Wiki Vendors
Online File W4.5
Evolution of Mobile Network Standards
Online File W4.6
A Closer Look: Manual Methods of Group Work
Online File W4.7
A Closer Look: Fila’s Collaboration Software Reduces Time-to-Market
Online Minicase W4.1 Safeway Collaborates in Designing Stores
Online Minicase W4.2 Network Computing at National Semiconductor Corporation
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ONLINE FILE W4.1
SECURITY CHALLENGES OF WIRELESS COMPUTING
AND MOBILE COMMERCE
• Physical security. Because of their size, mobile devices are easily stolen. A stolen
device can provide the thief with valuable data and digital credentials that can be
used to compromise corporate networks and databases.
• Carrier barrier. Since mobile devices receive service from a public carrier,
transactions can be intercepted, diverted, or altered and used for other illegal
purposes.
• Transactional issues. Since transactions may get routed over a public network,
security must be maintained not only by the carriers, but all the way through to
the server. This means that mobile commerce (m-commerce) not only has its own
security issues, but also is affected by many of the security issues facing the wired
world.
• Post-transaction issues. Given the need to provide digital receipts or some
other type of proof for problem resolution after a transaction has occurred, the
overall m-commerce system must provide some method of proving that a particular transaction has occurred (nonrepudiation).
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ONLINE FILE W4.2
A Closer Look
Examples of Intranet Applications and Portals
Intranet applications are highly cost effective to develop and
deploy because they do not require that software be installed
on each user’s computer and can be accessed from different
sites and locations. They can streamline processes, reduce
paper usage, and keep everyone informed and able to find
answers to their questions. With up to 90 percent of a typical
enterprise’s knowledge resource existing as unstructured data
in documents, reports, e-mail, graphics, images, and audio
and video files, intranets make them accessible and searchable. For a demo and screen shots of intranet applications,
visit adenin.com/DynamicIntranet.asp.
Intranet applications and portals include:
• Document and content management: e.g., HR policies and
forms, document templates, company documents that need
to be version- and access-controlled
• Performance dashboards that provide real-time metrics and
performance indicators on departmental portals
• Expense report management, time sheets, vacation planning, pay stubs
• Sales and lead tracking
• Status reports
• IT help desk
• Meeting planning
• Company directory
• Job vacancies and other announcements
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ONLINE FILE W4.3
A Closer Look
How to Use the Internet, Intranets, and Extranets to Gain
Competitive Advantage
1. Management systems. Managers view daily progress
reports from sales managers nationwide: invoke database
queries through self-explanatory menus: electronically distribute reports in HTML and/or publish from the original
database: post project assignments for collaborative viewing by workgroups; make team goals and management
charts available online, enterprisewide; post meeting minutes of various committees/teams for review by all interested employees.
2. Collaborative workgroups and interdepartmental communication. Planners, designers, engineers, and marketing
people interactively collaborate in designing or reengineering a product. Programmers access a list of toolkit
components for software design.
3. Online reference. Factory workers access instructions and
maintenance procedures. Sales representatives view the
latest product information, promotions, discounts, and
rebates, or read more details on specific customers, suppliers, or company policies. Employees view benefit programs or company policies.
4. Interactive communication. Researchers automatically distribute surveys to employees, customers, or suppliers, and
automatically gather the results into a database. Employees sign up for events immediately after reading an online
announcement.
5. Training. A medical student studies a training lesson that
includes a moving picture of a fetal ultrasound scan and
the sound of the child’s heartbeat. A new employee clicks
through an online orientation seminar and completes an
online quiz.
6. Customer support. A help desk operator views a centralized menu that provides direct, single-point, clickable
online access to all of the company’s printed documentation. A customer service representative views detailed customer or supplier information while on the phone, retrieves
invoices or purchase orders from an imaging database,
and views quick reference guides or written procedures for
specialized orders. A company presents a virtual trade
show with booths and exhibits that exist only on the Web
or an online version of a real trade show.
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ONLINE FILE W4.4
ENTERPRISE WIKI VENDORS
Confluence, atlassian.com/software/confluence/default.jsp
CustomerVision, customervision.com
eTouch, etouch.net
JotSpot, jot.com
Socialtext, socialtext.com
WikiTask, wikitask.com
Also see M. Choate. “What Makes an Enterprise Wiki?” CMS Watch, April 28, 2006, cmswatch.com/
Feature/145-Wikis-in-the-enterprise (accessed September 2006).
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ONLINE FILE W4.5
EVOLUTION
OF
MOBILE NETWORK STANDARDS
Generation
Characteristics
1G
First generation of wireless technology. It was an analog-based technology,
in effect from 1979 to 1992.
2G
Second generation of digital wireless technology. In existence today,
2G is based on digital radio technology and mainly accommodates
text.
2.5G
An interim technology based on GPRS (General Packet Radio
Services) and EDGE (Enhanced Data Rates for Global
Evaluation) that can accommodate limited graphics.
3G
Third generation of digital wireless technology started in 2001 in
Japan, reached Europe in 2002, and the United States in 2003.
Sprint based its 3G networks on EV-DO. With average download
speeds of 400 Kbps to 700 Kbps, the network offers enough bandwidth for customers to surf and download data from the Internet
anywhere they can get mobile phone reception. 3G cellular
technology brings wireless broadband data services to mobile
phones at speeds from 144 Kbps (roughly three times faster than a
56 K dial-up modem connection) to 2.4 Mbps (close to cablemodem speed). 3G networks enable streaming music video, video
on-demand programming, and videoconferencing, making a cell
phone close to that of a broadband connection on a computer.
4G
NTT-DoCoMo and Hewlett-Packard have announced that they are
jointly developing technologies for 4G wireless communications.
They named the technology platform MOTO-Media. Initially,
DoCoMo had planned to introduce 4G services in 2010, but moved
up the date to 2006. 4G is likely to enable the download of full
length songs, which may change the market response dramatically.
Additional broadband spectrum and development of new 4G technologies are becoming important as carriers add more bandwidthintensive applications such as mobile TV.
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ONLINE FILE W4.6
A Closer Look
Manual Methods of Group Work
The nominal group technique (NGT) is a group communication method that includes a sequence of activities: (1) silent
generation of ideas in writing. (2) round-robin listing of ideas
on a flipchart, (3) serial discussion of ideas, (4) silent listing
and ranking of priorities, (5) discussion of priorities, and (6)
silent reranking and rating of priorities. The rankings
obtained from the last activity are consolidated by the group
facilitator.
The Delphi method is used with a group of experts who
do not meet face-to-face and do not know who the other
group members are. The experts provide individually written
opinions on an issue, along with supporting arguments and
assumptions. These opinions are then distributed as anonymous feedback to all participants along with a second round
of questions. The questions and feedback continue in writing
for several rounds, becoming increasingly more specific, until
consensus among the panel members is reached, or until the
experts no longer change their positions.
Both methods take time and organizational resources
and require a trained facilitator or coordinator, and each eliminates only a few dysfunctions of the group process. So, their
success is limited.
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ONLINE FILE W4.7
A Closer Look
Fila’s Collaboration Software Reduces Time-to-Market
The sports-apparel company Fila uses PTC’s Web-based
product data management and collaboration software, called
Windchill, to reduce time-to-market and product costs while
improving product quality and information exchange. Windchill requires only a Web browser to use. The product helps
manufacturers streamline processes to optimize the management of their supply chains. The capabilities and benefits of
such a solution include:
• Connects with Arbortext Editor for XML authoring, and
Arbortext Publishing Engine for dynamic publishing
• Pure Internet architecture with embedded 3D visualization
of product information
• Interoperates with heterogeneous mechanical/electrical
CAD solutions, and provides end-to-end process support
to other enterprise systems
• Supports distributed product development and enables
real-time collaboration across firewalls
The solution enabled Fila to better manage and control
access to product data and images throughout its supply
chain. Fila vice president of global product and general manager Kristin Kohler explained that “As the industry matures,
consumer expectations increase in terms of brand and product, as well as the creation of a clear point of difference in the
marketplace. Fila’s goal in repositioning the brand in this environment is to align various processes in the organization to
successfully deliver against this challenge.”
The software will help Fila gain greater transparency and
collaboration in its product development process, a higher
level of product analysis, and a better focus on delivering the
right Fila product to the consumer. Fila will roll out the collaboration tool to its U.S., Italian, Hong Kong, and Guangdong
operations in both the footwear and apparel categories.
Sources: Compiled from PTC.com (2006) and Time-Compression
magazine (2005).
References for Online File W4.7
PTC.com, “Fila selects PTC® Retail, Footwear and Apparel solution as
company-wide PLM standard,” January 9, 2006, ptc.com/appserver/
wcms/standards/textsub.jsp?im_dbkey=34685&icg_dbkey=21
(accessed July 2006).
Time-Compression magazine, “Fila Selects PTC Retail,” Nov/Dec 2005,
time-compression.com/x/guideArchiveArticle.html?id=8320
(accessed July 2006).
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ONLINE MINICASE W4.1
Safeway Collaborates in Designing Stores
The Problem
Safeway PLC, a large food retailer in the U.K. (now a
subsidiary of Morrison Supermarkets), builds about 10
new stores every year and renovates over 100. Being in
stiff competition with other supermarkets, the company
must manage this construction carefully so it meets the
budget and time plans.This is not an easy job, given that
hundreds of the company’s employees must collaborate
with hundreds of vendors throughout the life-cycle of a
building, including design, construction, and ongoing
facility management.
In addition to stores, Safeway frequently builds
public structures, such as a school or bridge, which it
donates to a community in exchange for a parcel of land
for a store. The diversity of structures (there are four
types of stores plus community structures) adds to the
difficulties in managing the construction projects. Previously, communications were handled primarily through
the postal system and e-mail, an often slow and inefficient process, especially with stores scattered throughout England, Scotland, Wales, and Northern Ireland.
The Solution
By using an online project collaboration service, called
Buzzsaw (from Autodesk.com), Safeway can store and
share project information in a secure location that can
be accessed any time and anywhere (using a Webbased extranet). This online collaboration enhances
communication between internal departments and
outside partners (such as developers, planning consultants, architects, structural and mechanical engineers,
builders, repair staff, and building enforcement
ACC
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HRM
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MKT
POM
SVC
authorities). Key users can view drawings online,
mock up drawings, make changes, and post revisions
for other staff to view, all in real time (e.g., using
screen-sharing capability). Buzzsaw also automatically
tracks and logs what’s been changed. Even banks with
ATMs located in the stores can use Buzzsaw, since
their input is needed for designers.
The Results
The communication lag time plummeted from 2 to 3
weeks to 5 to 10 minutes. Another benefit is the
reduction in travel time and costs of architects and
structural and mechanical engineers, who can stay in
their offices collaborating electronically (10–15%
reduction). Printing costs of architectural drawings
have been reduced by 30 percent. Also, project turnaround time is shorter. Store modifications have been
reduced from 6 months to as little as 3 months. Design
changes are now transmitted in 5 to 10 minutes
instead of 1 to 2 days. Also, because the design
process is rapid, designs now include cutting-edge features; all supermarkets want the latest design. Buzzsaw is helping Safeway to be first to market with innovative new formats such as a design for Internet cafés
and for certain store departments.
Collaboration is taken to a better, more integrated level. Users can monitor crucial information
and the software, letting them know when decisions
are required. Finally, Buzzsaw provides enhanced email that helps users to prioritize the large number of
messages.
Source: Compiled from Parks (2004) and Business Wire (2002).
References for Online Minicase W4.1
Business Wire, “United Kingdom Supermarket Chain Implements New
‘Fresh to Go’ Initiative, Uses Autodesk Buzzsaw to Manage Massive
Store Refit and Extension Project,” November 18, 2002.
Parks, L., “Buzzsaw Keeps Safeway Store Design on the Cutting Edge,”
Stores, February 2004.
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ONLINE MINICASE W4.2
Network Computing at National Semiconductor Corporation
The Problem
The semiconductor (or chip) industry is one of the
most competitive global industries. The rivalry among
Japan, Korea, Taiwan, and the United States is fierce,
and prices are continuously being driven down. When
the economy is weak, demand for computers weakens, resulting in price cuts and losses to the chip manufacturers.
One way to survive is to customize products. National Semiconductor Corporation (NSC) (national.
com) has over 10,000 products. However, this creates
a problem for customers: When they need a chip,
customers provide specifications to several chip manufacturers, collect catalogs and samples from the
manufacturers, and then contact them for prices and
technical details. This takes a considerable amount of
time and effort.
Connectivity problems due to different hardware,
software, and communication standards had forced
NSC to resort to the telephone, fax, and regular mail
to communicate and collaborate with its customers.
The communication channels that were available
prior to the Internet were either regular telephone
lines or private communication lines, both of which
were expensive. Electronic data interchange (EDI)
was in use, but it was limited to transaction processing
and was carried on an expensive value-added network (VAN), so many customers refused to use it.
Transmission of pictures, charts, and diagrams, a
major part of the NSC product catalog, was a very difficult task. NSC found it just too expensive and cumbersome to handle communication and collaboration
with customers over its old system.
The Solution
NSC introduced an innovative solution. The company
posts detailed descriptions of its 10,000 products on its
corporate portal* (national.com). The portal allows NSC’s
customers to access product information 24 hours a
day. Browsing through the information, customers are
*The Internet terms italicized in this case are defined later in
this chapter, or in Technology Guide 5, or in Chapter 4. Another,
generic source for Internet terms that you do not know is the Web
site whatis.techtarget.com.
able to download the documents they need. The Web
site is also used by the company’s employees to search
out information quickly and accurately, and to receive
more direct feedback from customers.
NSC’s Web site visitors use a search engine that
helps them find a matching product, based on product
specifications in the online “Knowledge Base.” It also
uses custom software that can extract information
from existing databases and automatically format it in
the HTML programming language. (HTML helps in
preparing documents that appear on the Internet; see
Technology Guide 5.) Since 2002, National’s customers
also use a sophisticated open system customer interface based on WebMethods’ integrated platform and
B2B standards introduced by RosettaNet. This enables
fast search by customers for parts and components.
NSC customers can also build personalized Web
sites (titled “My Bill of Materials”). These personalized sites can host information related to customer
projects and their requirements, and any other pertinent information. Customers can select the information to be made accessible to NSC. Through the
personalized Web sites, NSC delivers the latest product
information of interest to individual customers. This
application is part of the corporate extranet system.
The arrangement also allows NSC to watch the inventory level of chips at customers’ facilities, and automatically ship products to them when the inventories are
low. For example, the Internet links enabled Tektronix
Inc. (a major customer) to discontinue paper files of
past and current inventory parts. Product specifications
and availability are automatically updated and linked
to Tektronix’s system. This in turn has enabled NSC to
reengineer its distribution system.
The search process is supported by an electronic
form that is easily filled in by customers, and by a menu
of hyperlinks to related products and services. The system is used both by customers and by NSC engineers.
Its benefits are the following: reducing the sampleordering process by days or weeks; expediting the
design of new products; increasing the exposure of
NSC products by a factor of 10 (customers now download 10 times as many documents as they did using just
e-mail); providing more information to customers; providing direct and expeditious feedback from customers; increasing quality and productivity; improving
W-76
the company’s relations with its business partners; and
increasing profitability and competitiveness.
The NSC Web site offers design assistants and simulators to guide customers in designing their products.
Using this facility, customers can input their system
specifications, find the devices that fit the specifications,
validate design by simulation, and order the required
parts. NSC also provides behavioral models and software to support the design process. NSC’s design-assistant tool kit was estimated to save National’s design
customers $50 million in the first year.
A visit to the site in May 2004 revealed many
new features. For example, the analog university provides many online seminars, and there are an online
technical journal, an online biweekly newsletter,
online research tools, a locator to find the nearest
distributors, a list of job openings, and much more.
Information is available in several languages.
The Results
The Internet solution enables NSC to use electronic
catalogs instead of paper ones, thus saving the com-
pany typesetting, printing, and mailing expenses.
The electronic catalogs also can be kept much more
current than paper catalogs. In addition, customers
can view catalogs and download detailed documents
in order to analyze products more closely. Large customers get customized catalogs. The e-mail capabilities
allow rapid communication between NSC engineers
and customers. The site also offers self-configuration
that helps customers to configure the chips they
need. Added software and hardware, such as videoconferencing and screen sharing, let NSC engineers
collaborate with customers electronically, allowing
them to work simultaneously on the same documents
from different locations. All this is done at a relatively
low cost.
NSC’s sales and profitability increased significantly immediately after the introduction of the Webbased applications and Internet solution. In 1998,
NSC earned the best extranet application award from
Internet Week and Network Computing. The system
also has enabled the company to minimize the damage caused by the slowdown of sales of new technology by 20 to 40 percent in 2002–2003.
References for Online Minicase W4.2
Joachim, D., “NatSemi Site Lets Customers Choose,” InternetWeek,
March 22, 1999, national.com (accessed September 2006).
National Semiconductor, “National Semiconductor Begins End-to-End
Supply Chain Management Using the Rosettanet Business Process
Standard,” National Semiconductor Press Release, October 10, 2000,
National.com/news/item/0,1735,560,00.html (accessed September
2006).
WebMethods, “WebMethods for RosettaNet: Allowing Customers to
Locate and Identify Information Easily and Quickly with WebMethods,” WebMethods National Semiconductor Success Story,”
2003, webmethods.com/PDF/National_Semi_ss. pdf#search=%22 WebMethods. com%20National%20Semiconductor%20success% 20Story
%22 (accessed September 2006).