DEFINITION
An extranet is a private network that uses Internet
technology and the public telecommunication system to securely share part of a
business's information or operations with suppliers, vendors, partners,
customers, or other businesses. An extranet can be viewed as part of a
company's intranet that is
extended to users outside the company. It has also been described as a
"state of mind" in which the Internet is perceived as a way to do
business with other companies as well as to sell products to customers.
An extranet requires
security and privacy. These can include firewall server management, the
issuance and use similar means of user authentication, encryption of messages, and the use
of virtual private networks through the public network.
Companies can use an extranet to:
·
Exchange large volumes of data using Electronic Data Interchange
(EDI)
·
Share product catalogs exclusively with wholesalers or those
"in the trade"
·
Collaborate with other companies on joint development efforts
·
Jointly develop and use training programs with other companies
·
Provide or access services provided
by one company to a group of other companies, such as an online banking
application managed by one company on behalf of affiliated banks
·
Share news of common interest exclusively with partner companies
Benefits
of an extranet
An extranet can offer a range of benefits to
your business from lowering costs, to producing faster results and improving
the quality of service to customers.
Advantages of
extranets
Benefits can depend to a large degree on your
reasons for introducing the extranet in the first place. However, the types of
benefits that organizations’ using extranets typically experience include:
·
more integrated supply chains through
the use of online ordering, order tracking and inventory management
·
reduced costs by making manuals and technical documentation available
online to trading partners and customers
·
more effective collaboration between business partners - perhaps
members of a project team - by enabling them to work online on common
documentation
·
improved business relationships with key trading partners because of the
close collaborative working that extranets support
·
improved customer service by giving customers direct access to
information and enabling them to resolve their own queries
·
a single user interface between you and your business partners
·
improving the security of
communications between you and your business partners, since exchanges can take
place under a controlled and secure environment
·
shared news of product development exclusively with partner companies
·
flexible working for your own staff, as an extranet
allows remote and mobile staff to access core business information 24 hours a
day, irrespective of location
Disadvantages
•
Extranets can be costly to apply and maintain within an organization.
• One of
big problem is the protection of extranets when dealing with precious
information. System access should be controlled and checked properly to protect
the system and information
•
Extranets can decrease personal face-to-face contact with clients and business partners. This
can cause a lack of communication between employees, clients and organization.
All in all, an extranet is
a private network that
uses Internet technology and the public telecommunication system to securely
share part of a business's information or operations with suppliers, vendors,
partners, customers, or other businesses.
BY
MDODO REBECCA, J
BAPRM-42614