Page 211 - Business Principles and Management

Unit 3

Firms with multiple locations have to send information to employees who
are geographically dispersed. A wide area network (WAN) is a network of
linked computers that covers a wide geographic area, such as a state or coun-
try. The LANs and the WANs and their servers are connected to a mainframe
computer. The servers are also channels through which individual workers
can use their computers to communicate with others inside and outside the
organization.

INTRANETS AND EXTRANETS

An intranet is a private company network that allows employees to share resources
no matter where they are located. An intranet works like the Internet. Users access
information through a browser, navigate with hyperlinks, and send e-mail through
the intranet. Usually the intranet even connects to the Internet, but it is sealed off
facts & from the general public to protect company information.
Intranets enable employees to accomplish many electronic tasks. Groups
figures of employees working on the same project can discuss, share, plan, and
implement ideas without having to leave their desks. These same employees
can use company records stored electronically to aid in performing their
tasks. Workers may use their computers to check employer-sponsored events,
Computer scientists, computer such as new training programs, or see choices of health care benefits and
engineers, and systems analysts the balance in their retirement plan. The easy accessibility of information
are expected to be some of the on an intranet reduces the time spent finding and thumbing through paper
fastest growing occupations documents.
through the year 2014. The Another type of network that operates similarly to the Internet is an extranet.
increase will be driven by the An extranet is a private network that companies use to share certain information
rapid expansion in computer with selected people outside the organization, such as suppliers and major cus-
and data processing services tomers. A supplier of raw materials for a manufacturer or merchandise for a
and software development. national retailer, for instance, could serve the company better by tracking the
company’s daily inventory balance. When inventory gets low, the supplier could
Why is information security deliver its goods just when the company needs them. An extranet enables the
such a critical issue? What are supplier to see the company’s inventory records without allowing access to other
some ways in which informa- company data.
tion can be protected?

INFORMATION SECURITY
One of the major concerns of chief information offi-
cers is information security. The CIO must do what-
PHOTO: © PRNEWSFOTO/SILEX TECHNOLOGY AMERICA, INC. by employees, customers, suppliers, and the public,
ever is necessary to make certain that hackers cannot
steal, destroy, or alter information. The penalty for
not controlling information may well be lawsuits

as well as the loss of critical company records.
Organizations also may violate business ethics
when they gather, and sometimes sell, information
about people who use the Internet to browse or buy
merchandise. Programs launched from Web sites can
track your travels from Web site to Web site. Where
you go frequently on the Web reveals your general
interests and what you buy. After collecting this in-

sell goods related to your interests. For example, if

198 formation, some firms may sell it to businesses that