A01 chaf6542 06 se fm indd

SMS (short message 

services)

The formal name for text 

messaging.

Content 

management 

system (CMS)

Software used to manage 

creation, editing and 

review  of   web-  based 

content.

● 

BT’s implementation of e-procurement encompassed 95 per cent of all its 

goods – including desktop computing, stationery, clothing, travel and agency 

staff – so reduced the average purchasing transaction cost from £56 to 

£40 inside a year. Another example is the introduction of an online room book-

ing service some years ago. For a total development cost of £150,000, the ser-

vice initially reduced direct costs by about £450,000 p.a. The cost savings were 

achieved through the near elimination of a call centre that previously handled 

the bookings.

Source: Adapted from Member Briefing Paper, August, 2008 Published by the Intranet Benchmarking Forum 

www.ibforum.com, Digital Workplace Group.

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Part 1  Introduction

Hannon (1998) concurs, and also notes the relationship of extranets with intranets, describ-

ing an extranet as

any network connected to another network for the purpose of sharing information and 

data. An extranet is created when two businesses connect their respective intranets for 

business communication and transactions.

Dell Premier is an example of a business customer extranet for a large corporation. You can 

read how Dell positions the benefits in Mini case study 3.7. The system helps Dell encourage 

customer loyalty since once integration occurs customers are less likely to change suppliers 

due to switching costs. It is an example of ‘soft lock-in’ (which we introduced in Chapter 1). 

Dell also encourages consumers to make suggestions about new products through its 

IdeaStorm (www.ideastorm.com) service for which customers have to be registered to add 

comments, so could be considered as a form of extranet although Dell Premier is a better 

example since it shows how a service can be provided continuously.

Mini Case Study 3.7

Dell provides Premier.Dell.com (formerly Premier Pages) for its business customers. This is how Dell 

describes the service to customers:

Your unique Premier.Dell.com site offers a customized and dedicated interface tailored to your organiza‑

tion’s specific technology needs and standards.

● 

Easy Ordering – A custom online store ensures access to your products at your price.

● 

Easy  Tracking –   View  real-  time order status, online invoices and purchase history details.

● 

Easy Control – Custom access groups define what users can see and do within Premier.

It explains how Premier.Dell.com can be used for e-procurement as follows:

Dell integrates a customized Premier catalog with your Enterprise Resource Planning (ERP) system to give 

you more control over your purchasing process and to help ensure accurate and efficient transactions.