What is Intranet and Extranet? Explain briefly about the Roll of Intranet and Extranet concept.

Answer 1

Intranet as the name refers it is an internal platform of the organization. It is accessible to a limited group of people within the organization inside the geographical parameter. The main purpose is to facilitate communication internally and collaborative platform for the employees. The network is connected through basic protocols to ensure connectivity and safety of data transmitted.  On the other hand extranet is refined form of intranet that has access as the name suggests beyond the internal organization and connects with parties that the organization has connected with. Not to be confused with the internet, extranet is a private network with selected external parties so they can share data and access files in between them.

 Extranet provides a closed platform for concerning parties to connect and share information and data. The uses of intranet and extranet define their role and importance in the business environment which are great and core to any company. The basic role of intranet is to facilitate internal communication between employees and improve the internal network of the company. It helps increase employee collaboration and monitoring of performance contributing to a healthy and competitive work place environment.  It aims at increasing employee engagement rate giving a rise to overall productivity. Other features like file sharing and telecommunicating in a secure online protocol internally helps increase the overall efficiency of work.

The sense of security and control over the intranet makes it a great contribution to the network of the organization. The use of extranet is beyond businesses and is being used by different schools, universities and different organizations to connect with the stake holders to increase information flow and feedback. Extranet is used in supply chain management and tracking.  Role of extranet is to provide a secure online platform for two stakeholders to connect and share information privately in a secure way. Customers can connect to the company in a more personalized and swift manner whereas the schools using it can use it to send circulars to parents about the children’s homework. Extranet helps reduce the email clutter and is more secure and locally catered to the organization’s needs.

Q Explain why online transaction Processing Systems is necessary nowadays. Also, explain all stages of the transaction processing cycle. 
Answer 2

The online transaction processing system is when information systems interact to carry on a business transaction. The online transaction processing system is a multilevel transaction system embedded into many of the common things we put to use in our everyday lives.  The online transaction processing system (OLTP) is basically when information systems integrate to facilitate transactions concerning data entry and retrieval through online secure protocols and recording.  There are different stages for different kinds of OLTP systems. They are known as stages of Data processing cycle that include:

Data Entry Activities:
This stage refers to the entry of data in the information system. Information is entered in this stage goes through validation

Transaction processing activities:
Validation happens in this stage and the user inputs validation key and enters the transaction command

File and database processing:
The file or the instructions are compared with parameters of database and transaction is processed

Document and report generation:
Depending on the input transaction is completed and generates report of the database

Inquiry processing activities :
The system inquires whether another transaction needs to be carried out or not

The cycle can be explained by an example of money withdrawal from an ATM machine. The user inserts the card and enters the PIN number (step one). The PIN number is validated and then he enters the withdrawal amount (step two).  The system checks the money if they are available in the account and authorizes the transaction if enough money is available (step three). Money comes out of the machine and relevant deduction happens in the account and a receipt is printed with new account details (step four). The machine asks the user if another transaction will be made or not (step four).

The simple example of ATM withdrawal is enough to know the important of OLTP nowadays as the world is heading towards a more IT oriented approach and businesses are working online.  It is important for secure payments and recording of data. The online e-commerce industry heavily relies on the OLTP. The OLTP is need of today’s time and generation as a better and smart transaction recording & processing system.

Q Explain why research shows that the major reason for CRM failure is: lack of understanding and preparation. Support your answer with example.

Answer 3

Customer Relationship Management (CRM) systems are a growing trend in the industry and many companies are adopting it. Let it be the retailers or the giants like Amazon; everyone is working on CRM systems to give a boost to their sales and PR management. But the sad part is not everyone has been able to understand the true meaning of the system and the systems are failing not yielding the desired results.  Research shows that the main reason that these systems fail and do not take off is lack of understanding and preparation regarding the system.  Many companies do not understand the purpose of CRM systems and to what extent it needs to be used. Hefty investments done in the CRM systems go to waste.

Many companies might not even require a CRM system at the current time and need to work on operations but they get the CRM system. Without the refining of core competencies the CRM is a fail. Lack of vision in implementing and handling the system is causing the failure.  Strategic planning is a key for successful CRM system implementation strategy; many companies fail to do so and just launch the system because it is in. This leads to failure and has contributed greatly so far to its failure. Many do not realize which departments at which degree require the CRM system. CRM system failure can also be accounted to the failure of not realizing the scope of CRM system and the doable it comes with.

The data produced by the CRM system is not processed or not taken in consideration when taking decisions. This makes the CRM system worthless and a liability to the organization.  People are not trained in using the system and it is not easy to use the CRM system, the support is not available 24/7 which affects overall work efficiency and is a reason of failure for the CRM systems at large. CRM systems implementation requires proper strategic analysis and planning before coming into play. Organizations need to know a CRM system will assist you in becoming successful but just introducing it won’t make you successful.

Q Why do many companies today make supply chain management (SCM) a top strategic objective?

Answer 4

In today’s competitive environment companies are looking forwards to develop strategies that add value to the operations and help them excel. Improved and streamlined supply chain management in this regard has become one of the most important strategic objectives of any company worldwide. Supply chain management is an important concern for the fact that it helps enhance the productivity and efficiency of the company.  Supply chain is basically a connected network of the supplier to the company and the company to the distributor to the customer.  Supply chain management helps manage the steps in the supply chain and refine which adds to the efficiency of production eventually increasing the overall productivity. Not only this but it helps forecast the distribution and adds to the CRM system within the organization.  

Companies nowadays are looking to save costs and better connectivity, both of this has been made possible by the strategic management of supply chain. The shared efficiency that the SCM brings in has made inventory holding less which saves a great deal of cost and operational expenses. Not only this SCM has made dealers and suppliers more connected. Supply Chain management helps track the distribution and base the order of supplies on demands which means virtually no inventory holding and the costs go down. The logistical support is optimized and is better integrated in the role of SCM due to better communication and insights pouring in from the SCM systems.

SCM is not only limited to the operational part but as part of strategic goals for the company as it helps achieve long term stability by keeping ties with the supplier and distributors.   Supply chain management has become a strategic objective as company’s other operations are dependent on how good or bad the supply chain is which has become a deciding factor in performance of the company. Companies are constantly evaluating and improving their supply chain management in order to outperform the competitors.  It is because of this reason many specialized companies have come in for the SCM and many firms or smaller businesses outsource the SCM to these specialized companies to save cost and achieve operational excellence.