Extranets Introduction and its Characteristics

Introduction

An Extranet is a private network that uses the internet protocol and the public telecommunication system to securely share part of business 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, usually via 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 a selected set of other companies (business-to-business, B2B), in isolation from all other Internet users. In contrast, business-to-consumer (B2C) models involve known servers of one or more companies, communicating with previously unknown consumer users.

According to Anandarajan, "Companies use the extranets to be in touch with customers, merchants, trading partners, suppliers and several other spectators who contribute to the operating effectiveness".

An extranets give the assistance to the firm to exchange and process the high volumes of business data from one computer to another. Extranet applications help to improve business efficiency by improving data flow and inaccuracy reduction and reduce the need to re-enter data from paper documents and thus prevent secretarial errors. It also reduces the need for human resources involved in orders and accounts processing.

Characteristics of Extranets

1) It is an extended internet-private business networks located outside of the corporate firewall.

2) It can be referred to an intranet that is partially accessible to authorized outsiders.

3) It is a network that uses the internet to link businesses with others that share the common goals.

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