Extranet definition and its Business Value

Extranet definition and its Business Value

Extranets are network links that use Internet technology to interconnect the intranet of a business with the intranets of its customers, suppliers or other business partners. It 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.

Business value of extranets: The business value of extranets it’s deriving from several factors. These are as follows –

Firstly, the web browser technology of extranets makes customer and suppliers access to intranet resources a lot easier and faster than previous business methods.

Secondly, Extranets enables a company to Offer new kind of interactive, web-enabled services to their business partners. Thus, Extranets are another way that a business can build and strengthen a strategic relationship with its customers and suppliers. Also, Extranets can enable and improved collaboration by a business with its customers and other business partners.

Companies can use an extranet to Exchange large volumes of data using Electronic Data Interchange (EDI) and Collaborate with other companies on joint development efforts. It is restricted to select users through user IDs, passwords and other authentication mechanisms on a login page.