Extranet
While an intranet is a scaled down version of the internet used inside an organisation, an extranet is typically the highly managed, secure extension of the corporate network out to business partners, suppliers and large customers.
Like the intranet it runs on internet and web based technologies and protocols, and operates within firewall security to provide private, selective and secure sharing of information or access to applications.
Growing relationships between organisations involved in the supply chain commerce has resulted in new levels of data flow required to speed up processes and ensure accurate up-to-date information is available even after hours and at weekends.
Corporate networks need to turn their focus outward and introduce finely-tuned access to information, supported by management tools and infrastructure that have previously been restricted for internal users.
The extranet can be viewed from any web browser. It is the ideal tool to by-pass complex proprietary systems and protocols ensuring data and transactions can be handled and viewed in a common format. However growing concerns about viruses and prying eyes mean the extranet by definition must be a highly secure environment with password restrictions - the level of data available depends on authorisation - digital certificates, encryption and other means of protection.
The extranet often uses virtual private networking to create a secure tunnel through the public network or uses dedicated lines between companies with firewalls at either end checking content, permissions and levels of access.
What are the benefits of an Extranet?
Extranets can provide a safe way to allow transactional business-to-business activities resulting in significant time and money savings. The automotive industry is a high profile user of Extranet technology to reduce complexity in its ordering processes and keep suppliers up to date on parts and design changes. This has resulted in quicker response times to suppliers seeking troubleshooting or questions about product. Suppliers can receive proposals, submit bids, provide documents, and collect payments through an extranet site.
Key benefits include:
- Faster, easier, more open communication and co-ordination, internally and externally across geographic boundaries.
- The ability to exchange large volumes of data using standards such as XML or Electronic Data Interchange (EDI).
- Collaborative product development, marketing, sales, service and support, reduced time to market, increased sales and lower product unit costs.
- Improved supply chain management, eg sharing catalogues with wholesalers to place order and allowing secure transactions.
- Improved learning, knowledge management and empowerment through knowledge sharing
- Individuals control their own information flow, finding what they need, when they need it.
- Significant cost savings and efficiencies, depending on use and application.
- Measurable ROI. Low cost development for communications and basic applications functions.
- Share news of common interest exclusively with partner companies
- The ability to exchange large volumes of data using standards such as XML or Electronic Data Interchange (EDI).
Who Should Consider an Extranet?
Any company with significant communication and collaboration needs with customers, suppliers, or business partners should consider the value an extranet can deliver. The approach can bring major savings and efficiencies across a range of medium to large sized businesses across most industries.
Once partner companies have agreed how they will access key information which is beneficial to trading efficiencies of all parties concerned the way is opened for significantly reducing the cost of doing business. This can be achieved by reduced time to market and faster access to partner information.
Key considerations
However, before a company can harness the capabilities and potential return on investment from deploying an Extranet they must first have a fully functioning intranet.
Extranets require a large amount of IS time and energy, significantly more than what it takes to get an intranet or Web site up and running. While the cost may initially seem a deterrent it is the long term benefits that are attractive and the fact that many companies are restricting their close business ties to those which can connect to a secure Extranet.
In setting up the extranet - even though it uses internet standards - there is still a need to ensure compatibility between applications, data formats, directories and company policies that cover information and systems access.
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