Advantages and Disadvantages of Extranet

Advantages of Extranet

1) High Efficiency and Less Mistakes: Extranet helps in improve company efficiency and output by automating procedures that were done manually in the past. Automation can also decrease the scope of mistake.

2) Quick Working: Work is done quickly as compared to past manual systems.

3) Cutting down Meeting Time: Extranets permit company information to be analysed at period suitable for business customers, partners, suppliers, employees, and other stake-holders. This helps in cutting down the conference/meeting times and is also helpful when doing multinational business having with partners located in different countries and in different time zones.

4) Updated Information Immediately: Information can be modified, updated and changed immediately on an extranet. All approved members thus have instant access to the most advanced information.

5) Provide Improved Relationship: Extranets can help in improving relationships with main or potential customers by giving them correct, precise and efficient information.

Disadvantages of Extranet

1) Expensive: Extranets can be expensive to implement and maintain within an organization (e.g., hardware, software, employee training costs) – if hosted internally instead of via an ASP.

2) Low Security: 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.

3) Lack of Communication: 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.

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