Extranet

An extranet is a private network that uses Internet protocols, network connectivity, and possibly 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 (eg: normally over the Internet). 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.

Briefly, an extranet can be understood as "a private internet over the Internet".

An argument has been made that "extranet" is just a buzzword for describing what institutions have been doing for decades, that is, interconnecting to each other to create private networks for sharing information.

Other very common use of the term "extranet" is to designate the "private part" of a website, where "registered on site people" can navigate. The "login page" and the authentication mechanisms enable them.

Security

An extranet requires security and privacy. These can include firewalls, server management, the issuance and use of digital certificates or similar means of user authentication, encryption of messages, and the use of virtual private networks (VPNs) that tunnel through the public network.

Industry uses

During the late 1990s and early 2000s, several industries started to use the term "extranet" to describe central repositories of shared data made accessible via the web only to authorised members of particular work groups.

For example, in the construction industry, project teams could login to and access a 'project extranet' to share drawings and documents, make comments, issue requests for information, etc. In 2003 in the United Kingdom, several of the leading vendors formed the Network of Construction Collaboration Technology Providers, or NCCTP, to promote the technologies and to establish data exchange standards between the different systems. The same type of construction-focused technologies have also been developed in the United States, Australia, Scandinavia, Germany and Belgium, among others. Some applications are offered on a Software as a Service (SaaS) basis by vendors functioning as Application service providers (ASPs).

Specially secured extranets are used to provide virtual data room services to companies in several sectors (including law and accountancy).

There are a variety of commercial extranet applications, some of which are for pure file management, and others which include broader collaboration and project management tools.

Advantages

Extranets can improve organisation productivity by automating processes that were previously done manually (eg: reordering of inventory from suppliers). Automation can also reduce the margin of error of these processes.
Extranets allow organisation or project information to be viewed at times convenient for business partners, customers, employees, suppliers and other stake-holders. This cuts down on meeting times and is an advantage when doing business with partners in different time zones.
Information on an extranet can be updated, edited and changed instantly. All authorised users therefore have immediate access to the most up-to-date information.
Extranets can improve relationships with key customers, providing them with accurate and updated information. ^*

Disadvantages

Extranets can be expensive to implement and maintain within an organisation (eg: hardware, software, employee training costs) - if hosted internally instead of via an ASP.
Security of extranets can be a big concern when dealing with valuable information. System access needs to be carefully controlled to avoid sensitive information falling into the wrong hands.
Extranets can reduce personal contact (face-to-face meetings) with customers and business partners. This could cause a lack of connections made between people and a company, which hurts the business when it comes to loyalty of its business partners and customers.^*

References

Stambro, Robert and Svartbo, Erik (2002), Extranet Use in Supply Chain Management, University of Technology^*

External links

NCCTP website

Examples of extranet products

Computer network security | Network architecture

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