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Lesson 2: Types of Information Systems
Systems and Technologies Supporting the Business
In addition to the five different types of information systems previously discussed, there are additional systems and technologies that businesses use today. Most of these are web-based and transform how businesses interact with their employees and the public. This section describes three different technologies that businesses use to make them more competitive and relevant in today's global economy.
The systems are intranets, extranets, and e-business, e-commerce, e-government.
Intranets
An intranet is an internal network that only authorized users can access. The company uses its intranet to share information with employees, clients, suppliers and other authorized entities. For example, consider Penn State's Canvas as an intranet. Only internal participants (students, instructors, and developers) have access to this system.
Extranets
An extranet is a restricted part of an organization's internal network that enables business to exchange information with stakeholders securely over the internet. Have you ever had to track a package online? This would be an example of using an extranet (Figure 2.6). The customer is using the internet to access part of the organization's internal intranet.
maicasaa / stock.adobe.com
E-business, E-commerce, and E-government
Each E stands for the word electronic. In this case, electronic refers to web-based. The web makes many business activities and business processes available:
- Electronic business (e-business) refers to the conduct of business via the Internet. The activities can range from filling out a job application to processing an order request.
- Electronic commerce (e-commerce) refers to any activities that involve the buying and selling of products and services online. E-commerce is a subset of e-business.
- Electronic government (e-government) refers to the online interaction between a government and any relevant party, such as another government, a citizen, an employee, or a business. Specific examples of activities in the e-government category include filing taxes electronically, applying for a government grant online, and renewing your driver's license online.