LEARNING UNIT 14

THE INTERNET, INTRANET AND

EXTRANET
Learning Unit Overview Video: Click on this link to watch a short
introductory video.

Contents

1 Introduction ...........................................................................................................................2
2 The Internet and how it works ...............................................................................................2
2.1 How the internet works .........................................................................................................2
3 Internet Applications .............................................................................................................3
3.1 The world wide web (WWW) .................................................................................................3
3.2 E-mail and instant messaging ...............................................................................................4
4 Intranets and Extranets .........................................................................................................4
5 Internet of Things ..................................................................................................................5
6 Summary ..............................................................................................................................9

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 The learning outcomes of this learning unit are the following:

• Explain what the internet is, how it works and some of its popular applications.

• Explain what an intranet and an extranet are and how they differ from the
internet.

• Describe what the internet of things is and how it operates.

1 Introduction
The internet is a global network of computer networks, which supports
communication and the sharing of data and offers vast amounts of information
through a variety of applications (services and tools).
In the previous learning unit, we looked at network configurations, distributed
processing, client server systems and cloud computing, where we mentioned the
internet.
This learning unit will deal with the internet, including internet applications (WWW
and e-mail), e-commerce and using the internet as a research tool. We will also
briefly discuss intranets and extranets.

2 The Internet and how it works

The internet is a network that connects millions of networks, big and small, across
the globe. The internet includes academic, corporate, government, public and
private computer networks, and is the world's largest network.

2.1 How the internet works

An internet service provider (ISP) is a company that provides access to the internet
to individual people and organisations. Examples include Cell C, MTN, Telkom and
Vodacom. The providers are already connected to the internet and provide a path
or connections for individuals to access (O’Leary et al, 2015). The internet uses the
standard Internet Protocol (IP) technology to link different networks together. An IP
is a communication standard or rules that define the way computers communicate
and exchange data and enables two networks to be connected, and an IP address
is a unique number used to identify computers on the internet.

The Domain Name System (DNS) was developed to allow the use of easier-to-
remember domain names, instead of IP addresses, to locate computers on the
internet. Domain names consist of words and letters. Domain names consist of two
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 parts. The first part names the host computer or organisation that registered the
domain name (also known as the second-level domain or SLD), where the second
part identifies the top-level domain (TLD). TLDs identify the type or nature of the
organisation using the address. The TLD includes

• .com commerce a organisations

• .gov governments
• .org non-profit organisations
• .ac or .edu academic or educational institutions
• .net networking organisations
• .int international organisations

Country code TLDs also exist. They appear to the right of the TLD, and include for
example

• .za South Africa

• .au Australia
• .uk the United Kingdom
• .us the United States

A Uniform Resource Locator (URL) is a unique address assigned to each computer

connected to the internet, which identifies the computer to other hosts. A URL
consists of the following parts: the scheme name, commonly called “protocol”,
followed by a colon. Depending on the scheme, a domain name or, alternatively,
an IP address follows (Booyse et al, 2017).

3 Internet Applications

Although many people think the internet and the World Wide Web (WWW) are the
same thing, they are not. The WWW is one of the many applications of the internet.
The WWW and e-mail and are some examples of internet applications that will be
discussed.

3.1 The world wide web (WWW)

The WWW, also simply known as the Web, is one of the services that run on the
internet. It is a collection of interconnected documents and other resources, linked

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 by hyperlinks and URLs. The Web is an application running on the internet. A web
browser may be used to view websites. To view a web page on the WWW, one
usually begins by typing the URL of the web page into a web browser. Another way
of doing so is to follow a hyperlink to the web page. In this regard, the web browser
sends a series of communication messages to retrieve and display the web page.
The web browser translates HTML so that the internet user is able to read the web
page (O’Leary et al, 2015).

3.2 E-mail and instant messaging

E-mail or electronic mail is a method of exchanging messages digitally over

computer networks between users. E-mail is also one of the services that operate
across the internet or other computer networks. Documents can be attached to e-
mail messages, allowing files to be transferred between users via the e-mail
protocol (O’Leary et al, 2015).

An even faster, instant method of communicating by using text is instant messaging

(IM). Using a computer or mobile device like a cell phone, a person can send text
messages and get immediate answers if the other person is online. The advantages
of instant messaging are that it is faster if the other person is available online, and
you do not have to click through the same number of steps, as you need to, with e-
mail. A well-known instant messaging provider is the WhatsApp messaging app
(Booyse, et al, 2017).

Using the internet as a research tool

The WWW can be compared to a library to which users donate documents;
however, in the absence of a classification system, it is difficult to find information.
Search engines are web search tools that searches the web for keywords. Google
is one of the most popular internet search engines freely available on the web.
Examples of information available on the web for research include journals,
encyclopedias, dictionaries, government reports, calendars, indexes, statistical
reports, research reports, books, manuals, manuscripts, video material, geographic
maps, unpublished material, previously published textbooks and interactive
communication (Booyse et al, 2017).

4 Intranets and Extranets

In the current business environment, organisations have to be able to communicate

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 more effectively, both internally with their employees and externally with their
trading partners and customers.

An intranet is an internal or private network that is under the control of a single

organisation. Intranets use IP standards and tools such as web browsers and file
transfer applications, allowing employees to gain access to the organisation’s
information, making internal communication easier and less expensive. Only
computers or users connected to the intranet can access the information available.
Typical applications include electronic telephone directories, e-mail addresses,
employee benefits information, internal job openings and much more. Employees
find surfing their organisational intranet easy compared to surfing the internet
(O’Leary et al, 2015).

An extranet is a private network that connects more than one organisation. It links
selected information and resources on an organisation’s intranet with trusted
customers, suppliers, or business partners. The purpose is to increase
efficiency and reduce costs. For example, an automobile manufacturer has
hundreds of suppliers for the parts that go into making a car. By having
access to car production schedules, suppliers can schedule and deliver
parts as they are needed at the assembly plants. In this way, operational
efficiency is maintained by both the manufacturer and suppliers (O’Leary et
al, 2015).

Secure intranet and extranet access applications usually require the use of
firewalls, user authentication, message encryption and the use of VPNs.

5 Internet of Things

The Internet of Things (IoT) can be described as the interconnection, via the
internet, of computing devices embedded in everyday objects, enabling them to
send and receive data. It is expected that, by 2030, there will be over one trillion
“connected” devices, all with multiple sensors, generating constant data about how
devices are used and performing (ACC_CIMAKP_E1_202201, 2021:190). The
Internet of Things (IoT) is greatly enhancing the creation of and access to data and
producing ever-increasing transparency (ACC_CIMAKP_E2_202201, 2021:31).

The Internet of Things is considered a network of smart devices with inbuilt sensors
and internet connectivity. They collect and transmit data constantly and are an
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 increasingly significant element of Big Data. The ability to make virtually any asset
a business owns and operate a “smart” asset by building in some relevant sensors
and internet connectivity, can lead to some very useful data. It should facilitate
better business planning and resource allocation, and will help to optimise
processes, minimise expenditure and give advanced warning of potential issues
(ACC_CIMAKP_E1_202201, 2021:171).

The growth in the Internet of Things, often termed “smart technology”, is fueled by
improvements in broadband connectivity and the development of 4G
communication networks. As governments look to roll out the next-generation 5G
networks, connectivity will be improved further. As people and businesses are
increasingly comfortable with the idea and operation of this smart technology, it is
anticipated that the Internet of Things will continue grow, becoming increasingly
central to how we live and work as new and innovative applications for the
technology emerge all the time (ACC_CIMAKP_E1_202201, 2021:150).

A c t i v i t y 14.1

Go to your e-tutor site / Discussion Forum (Discussion Forum: Activity 14.1

(unisa.ac.za)) and complete this activity.

The use of the internet has increased rapidly. Smart technology

has made it possible for all of us to connect online. Give ten examples of each and
explain how life can be transformed by the internet, search engines, and Internet
of Things.

The Internet of Things is considered a network of smart devices with inbuilt sensors and
internet connectivity. They collect and transmit data constantly and are an increasingly
significant element of big data. The ability to make virtually any asset a business owns
and operate a “smart” asset by building in some relevant sensors and internet
connectivity, can lead to some very useful data. It should facilitate better business
planning and resource allocation, and will help to optimise processes, minimise
expenditure and give advanced warning of potential issues.

In learning unit 6, you learnt that Big Data often includes more than simply financial
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 information and can involve other organisational data (both internal and external), which
is often unstructured. This learning unit also clarifies the following concepts:

a) The shift to Big Data relates to the amount of data which businesses must store
and interrogate, which is increasing at an exponential rate, requiring new tools
and techniques to utilise optimally. Leveraging this resource for visualisation,
structure and support, as well as optimal decision-making, has become a
commercialised privilege for many companies.
b) Data analytics is the process of collecting, organising and analysing large sets of
data (Big Data) to discover patterns and other information which an organisation
can use to inform future decisions.
c) The accounting and management accounting profession is no longer regarded
as bean counters. It is now perceived as a strategic partner with influence in
decision- making.

Go to the Discussion Forum for learning unit 14 (Discussion Forum:

Activity 14.1 (unisa.ac.za)) and discuss this with your fellow students. Within
the context of Internet of Things, and the application of internet, intranet,
extranet, including the three concepts provided above, analyse and explain
how businesses and management accountants (within those businesses) use the
Internet of Things to:

a) facilitate better business planning

b) facilitate resource allocation
c) optimise processes and minimise expenditure
d) give advanced warning of potential issues

Note: In your discussion, under each heading, clearly indicate at least five
steps that businesses and the accountants (respectively) can do.

Recap Questions

Consider the following recap questions:

The following is true regarding the internet: (select all that apply)
The networks it connects are both private and public and span many
1)
spheres like corporate entities, public entities, non-profit
organisations, etc.

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 It enables users to communicate and to share extremely large
amounts of information with each other.
It is a connection of millions of computer systems across the globe.

All of the above.

None of the above.

The following is true regarding the standard internet protocol: (select all that apply)
It sets the norms of how networks communicate and share
information.
It makes use of unique addresses that are allocated to every single
computer that connects to the internet.
2) The various networks that are joined to form the internet are joined
by it.
All of the above.

None of the above.

Communication through instant messaging requires that a user must be …………………………….

3) In order to be able to send messages. The speed of communication is faster when both users are

……………………………… .
An intranet is used by only one organisation while an extranet is used by more than one
organisation.
True
4)

False

The internet and the world-wide-web refer to the same thing, they are just two terms for the same
network.
True
5)

False

6)
The internet-of- things is also alternatively referred to as …………………………………………… .
A domain name consists of three parts that identify the organisation that registered the name
7)
(e.g., Unisa), the type of the organisation (e.g., AC because Unisa is an academic institution), and

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 the country in which it was registered (e.g., ZA for South Africa)
True

False

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6 Summary

In this learning unit, we looked at the internet: how it works, as well as various
internet applications, including the WWW and e-mail. You were also introduced to
concepts such as intranet, extranet, and Internet of Things.