Measuring Costs and Benefits:
Justifying the initial cost of investing in an intranet does not seem to be a problem for many organizations. In many instances, payback time is achieved within a relatively short period of time. The effectiveness of the intranet can often justify the cost of the project.
Extranets are network links that use Internet technologies to interconnect the intranet of a business with the intranets of its customers, suppliers, or other business partners. Companies can:
1. Establish direct private network links between themselves, or create private secure Internet links between them called virtual private networks.
2. Use the unsecured Internet as the extranet link between its intranet and consumers and others, but rely on encryption of sensitive data and its own fire wall systems to provide adequate security.
The business value of extranets is derived from several factors:
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The web browser technology of extranets makes customer and supplier access of intranet resources a lot easier and faster than previous business methods
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Extranets enable a company to offer new kinds of interactive Web-enabled services to their business partners. Thus, extranets are another way that a business can build and strengthen strategic relationships with its customers and suppliers.
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Extranets enable and improve collaboration by a business with its customers and other business partners.
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Extranets facilitate an online, interactive product development, marketing, and customer- focussed process that can bring better designed products to market faster.
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