IMPORTANCE OF EXTRANET TO ORGANIZATION

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