Extranets are network links that use Internet technologies to interconnect the intranet of a business with the intranets of its customers, suppliers or other business partners.
It use virtual private network technology to make communication over the internet more secure.
Or company can use the unsecured Internet as the extranet link between its extranet and consumers and others, but rely on encryption of sensitive data and its own fire wall system to provide adequate security.
The extranet is typically not available to the general public but rather it is limited to ‘strategic partners.’ These strategic partners may include involved on collaborative research and development.
Thus extranets enable customer, suppliers, consultants, subcontractors, business prospects, and others to access selected intranets websites and other company database. It enables partners to perform self-service activities such as checking inventory levels.
The role and importance of extranets appear to be increasing. The business value of extranets is derived from several factors.
First, the web browser technology of extranets are faster processes and information flow, improved order entry and customer service, lower cost and an overall improvement In business effectiveness.
Second, extranets enable a company to offer an efficient way and new kinds of interactive Web-enabled services to their business partners. Thus extranets are another way that a business can build and strengthen strategic relationship with its customers and suppliers. Extranets go beyond ordering and fulfillment processes by giving selected outsides access to internal information.
Extranets provide several strategic advantages for organization to extend their intranet applications to their business partners: business-to-business e-commerce, collaboration for research and development and internal efficiency.
Extranet facilitate an online, interactive product development, marketing, and customer focused process that can bring better designed products to market faster.
Business Value of Extranet
