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Exploring the Business Benefits of Extranets
BNH interviews Robert Vittori, vice president of technical services for Professional Network Services Inc., in Trumbull.
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Business New Haven
2/9/1998
By: Clement L. Russo
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What's the difference between an intranet and an extranet?
An intranet is a computer network that companies use to facilitate the exchange of data among employees internally. An extranet can do the same thing, but it also allows for communication with the outside world. They're both networks, but they have different boundaries. Whenever you develop an extranet, you're allowing customers, suppliers or vendors to gain access to your computer systems, though that access can be regulated to varying degrees and made secure.
How is an extranet deployed?
The easiest way to set up an extranet is through the Internet, because it's a network that anyone can connect to. But the Internet is like the public highway system: You never know how many people are going to be using it or where the traffic jams will be. So some companies set up private extranets with customers or suppliers, where they actually lease the phone lines involved, to guarantee accessibility and reliability or ensure a certain response time.
What are the benefits of developing an extranet?
It's really another vehicle you can use to get out information about your business and increase access to your company. Instead of purchasing your product from a salesperson or catalogue, for example, your customers can place their orders electronically, pay for them on-line, and track their delivery themselves. An extranet can help you cut costs by eliminating middlemen but, more importantly, it just makes it a lot easier for people to buy from you.
How are companies using extranets to improve employee productivity?
Extranets can help companies expand their telecommuting workforce, which the Clean Air Act of 1990 encourages. Why should you require an employee to drive 20 miles to sit in front of a computer and answer a phone, when they can do exactly the same thing at home through an extranet? For most local companies today, however, an extranet simply allows their people to get some work done when they can't make it in to the office because of bad weather, for example, or they have to stay home to take care of a sick child.
What kinds of companies benefit most from extranet technologies?
Just about any company of any size should consider setting up an extranet, but the ones that benefit most will be those that have a product that's fairly simple and straightforward to sell. You wouldn't want to market tax-consulting services through an extranet, for example. In general, the more commodity-like your product, the better an extranet will work for you. The more big-ticket or customized your product, the less effective an extranet will be.
How ought companies to determine whether or not they should invest in an extranet?
The most important question to ask is: Are we providing enough access to our product compared to our competitors? If you think an extranet will give you a competitive edge, then contact the vendors of extranet services or a networking consulting company. Most of them offer an initial sales call that's free and will conduct a cost-benefit analysis for you. If that shows that you can increase sales or worker productivity - and make back your investment in a reasonable period of time - then common sense will tell you that it's a smart thing to do.
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