What is Extranet? Examples, Working, Applications & Use Case!

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What is Extranet Network?

Definition: Extranet network is a secured collaborative network of any organization’s intranet. This design enables to control collaboration with external entities. With leveraging the internet technology, extranets serve the authorized users. This includes suppliers, customers, or business partners, with securing access to specific information, documents, and resources.

What is Extranet

They are incorporated with robust security measures such as encryption and user authentication to make ensuring data integrity. Extranets make the enhancement of communication, streamline collaborative efforts, and foster efficient information sharing in between organizations and their external stakeholders.

‘Extranet’ Tutorial Headlines:

In this section, we will show you all headlines about this entire article. You can check them as your choice; below shown all:

  1. What is Extranet Network?
  2. History of Extranet
  3. How Does Extranet Work?
  4. How to Implement of Extranet Network?
  5. Different Type of Extranet
  6. Extranet Examples and Use Cases
  7. Features of Extranet
  8. Advantages of Extranet
  9. Disadvantage of Extranet
  10. FAQs (Frequently Asked Questions)
  • What is extranet with example?
  • How does extranet differ from the internet?
  • Can extranets scalable for different business sizes?
  • Can an extranet be hosted on the cloud?

Let’s Get Started!!

History of Extranet

Here, we will introduce the brief history of extranet networking, like as:

Pre-Internet Era: Organizations used private networks for internal communication.

1980s-1990s: Widespread adoption of the internet.

1990s: Emergence of intranets for internal communication within organizations.

Late 1990s-Early 2000s: Recognition of the need for secure collaboration beyond organizational boundaries. Term “extranet” gains prominence.

Technological Advancements: Improvement in internet security, authentication, and encryption technologies.

Expansion of Business Networks: Extranets gain traction for secure communication and collaboration with external partners.

ERP Integration: Integration of extranets with Enterprise Resource Planning (ERP) systems for streamlined business processes.

2010s-Present: Evolution to provide mobile-friendly interfaces and leverage cloud technologies.

Current State (2020s): Extranets remain crucial for secure collaboration in the business landscape.

How Does Extranet Work?

Extranet serves as a private network leveraging internet technology to securely share specific organizational information along with external parties like as suppliers, customers, or partners. For getting to establish this network, organizations have to need set up servers, databases, and network infrastructure; as well as implementing robust user authentication and access control mechanisms.

working of Extranet

In the context of security, it measures some parameters like encryption, SSL/TLS, and firewalls ensuring secured data transmission. Users access the extranet through a designated platform, allowing them to collaborate, share documents, and communicate. Integration with internal systems ensures a seamless flow of information, while mobile accessibility caters to on-the-go collaboration.

How to Implement of Extranet Network?

To implement an extranet network, the following steps can be taken:

Also Read: What is Intranet? Examples, Applications, Uses, & Types!

Define Goals: It is important to define the goals of the extranet before investing in any technology. Decide what tasks and functionality to enable.

Determine Functionality: Once the end goals are clear, determine what tasks and functionality you want to (and can) provide to the extranet users, and aligns choices with those in mind.

Invest in Security: Robust security is critical when inviting third parties to access your internal data and systems. Involve your security team from the beginning to ensure data safety considerations are baked into the implementation.

Choose Tools: Choose the appropriate tools, design, and more based on the goals and functionality of the extranet.

Create Access Credentials: Create access credentials for authorized users only.

Train Users: Train users on how to use the extranet effectively.

Test and Launch: Test the extranet thoroughly before launching it.

Different Type of Extranet

There are various kinds of extranets as following them:

Also Read: Advantages and Disadvantages of Intranet

Project Extranets: Created when different parties are working on a project to maximize performance. They provide an easy way to update everyone on their tasks and progress, while keeping confidential information about the project within the group.

Logistics Extranets: Built to support production and distribution across the supply chain. They are integral for connecting different third parties and keeping logistical pathways open.

Financial Extranets: Used for financial transactions and coordination.

Employee Information Hubs: Provide employees with access to specific information, such as benefits, policies, and internal communications.

Customer Portals: Allow customers to access specific data and interact with the company, such as reviewing orders and accessing support.

Extranet Examples and Use Cases

Extranets are going to fulfil various objectives across different kinds of industries; and enhancing the communication, collaboration, and information sharing between organizations with their external partners. Here are some common applications of extranets:

Supply Chain Management: Facilitate efficient collaboration with suppliers, allowing real-time access to inventory levels, order status, and production schedules.

Customer Support and Service: Provide customers with secure access to support resources, product documentation, and order tracking, enhancing customer service.

Collaborative Project Management: Its streamline collaborative efforts in between the organizations and external partners with sharing project plans, timelines, and resources.

Document Sharing and Collaboration: Enable secure sharing of documents, files, and other resources, fostering collaboration on joint projects or business processes.

Joint Ventures and Alliances: Support secures information exchange and collaboration in joint ventures or strategic alliances between organizations.

Distributor Relationships: Improve communication and coordination with distributors by providing access to product information, pricing, and promotional materials.

Financial Transactions: Facilitate secure financial transactions and access to financial data between financial institutions and their clients.

Healthcare Information Exchange: Enable secure sharing of patient information, test results, and treatment plans among healthcare providers and insurance companies.

Educational Collaboration: Getting to support collaboration in between educational institutions that are allowing secure sharing of academic resources, research, and joint projects.

Legal Case Management: Enhance collaboration between law firms and clients by providing a secure platform for document sharing, case updates, and legal processes.

Government Collaboration: Improve communication and collaboration between government agencies and external entities, such as contractors or partners.

Remote Access for Employees: Allow employees to securely access organizational resources, applications, and data from remote locations, promoting flexibility in work arrangements.

Event Coordination: Streamline communication and coordination for events, conferences, or trade shows involving multiple organizations.

Regulatory Compliance: Ensure secure and compliant sharing of sensitive information, particularly in industries with stringent regulatory requirements.

Features of Extranet

Extranets offer a variety of features that enable secure communication and collaboration between organizations and their external partners. Here are some common features of extranets:

Also Read: Personal Area Network: Applications, Examples, & its Types

User Authentication and Access Control: Extranets typically include robust user authentication mechanisms to ensure that only authorized individuals can access the system. Access control features allow administrators to define and manage user permissions based on roles and responsibilities.

Secure Login: Users log in securely using credentials such as usernames and passwords. Some extranets may also incorporate multi-factor authentication for added security.

Encrypted Communication: Communication between users and the extranet is often encrypted to protect sensitive data from interception. Secure Sockets Layer (SSL) or Transport Layer Security (TLS) protocols are commonly used for encryption.

Document Sharing and Collaboration: Extranets provide a platform for sharing documents, files, and other resources securely. Collaborative tools may include version control, document editing, and commenting features.

Discussion Forums and Messaging: To facilitate communication and collaboration, extranets often include discussion forums, messaging systems, or chat features that allow users to communicate in real-time.

Calendar and Event Management: Many extranets include calendar functionality to help users schedule and track events, meetings, and deadlines. This can improve coordination and planning among stakeholders.

Task and Project Management: Extranets may offer task and project management tools to help teams organize, assign, and track tasks, ensuring that projects progress smoothly and deadlines are met.

Integration with Internal Systems: Extranets can be integrated with internal systems, such as Customer Relationship Management (CRM) or Enterprise Resource Planning (ERP) software, to provide a seamless flow of information across the organization.

Mobile Access: To accommodate users on the go, extranets often have mobile-friendly interfaces or dedicated mobile apps, allowing access from smartphones and tablets.

Audit Trails and Reporting: Extranets may generate audit trails and reports to track user activities, changes to documents, and system usage. This feature enhances accountability and provides insights into user behaviour.

Customization: Organizations often have the ability to customize the look and feel of their extranet to align with their branding and user preferences.

Notification and Alerts: Users can receive notifications and alerts about updates, changes, or important events within the extranet; helping them stay informed and engaged.

Backup and Data Recovery: Robust extranets include mechanisms for regular data backups and recovery procedures to safeguard against data loss or system failures.

Scalability: Extranets should be scalable to accommodate the growing number of users, increased data volume, and evolving organizational needs.

Advantages of Extranet

Here, some essential advantages of extranet network include:

Collaboration: Extranets facilitate collaboration among different organizations by providing a shared platform for communication, document sharing, and joint project management.

Improved Communication: Extranets enhance communication between business partners by providing a centralized platform for exchanging information, updates, and feedback in real-time.

Efficient Information Sharing: Extranets enable efficient sharing of information such as product catalogs, inventory levels, pricing, and other relevant data, leading to smoother business transactions.

Cost Savings: By streamlining communication and document sharing, extranets can contribute to cost savings by reducing the need for traditional communication methods like phone calls, faxes, and postal services.

Enhanced Security: Extranets typically include security measures such as encryption and user authentication to ensure that sensitive information is protected from unauthorized access.

Remote Access: Business partners can access the extranet from remote locations, promoting flexibility and allowing for collaboration across geographical boundaries.

Streamlined Processes: Extranets help streamline business processes by providing a central hub for data exchange, reducing the need for manual data entry and minimizing errors.

Improved Customer Service: Extranets allow businesses to provide better customer service by giving customers direct access to relevant information, order tracking, and support resources.

Increased Productivity: With easy access to shared documents and collaborative tools, businesses can improve productivity by enabling employees and external partners to work more efficiently together.

Easy Project Management: Extranets facilitate collaborative project workspaces and team workspaces, making project management simple and efficient.

Disadvantage of Extranet

There are various limitations and drawbacks of extranet as following them:

Security Concerns: Despite having security measures in place, extranets can still be vulnerable to security breaches. Businesses need to continually update and monitor security protocols to protect sensitive information.

Implementation Costs: Setting up and maintaining an extranet can involve significant initial costs for hardware, software, and security infrastructure. Ongoing maintenance and updates also contribute to the overall expense.

Complexity: Extranets can be complex to set up and manage, especially for organizations with limited IT resources. This complexity may result in a longer implementation time and higher training requirements for users.

Integration Challenges: Integrating an extranet with existing internal systems and workflows can be challenging. Compatibility issues may arise, leading to disruptions in business processes.

Dependency on Internet Connectivity: Extranets rely on internet connectivity, and any disruptions in connectivity can impede communication and access to shared resources.

Limited Control over External Systems: Organizations may have limited control over the security measures implemented by external parties accessing the extranet, potentially exposing vulnerabilities.

Resistance to Change: Employees and external partners may resist adopting new technologies, leading to challenges in getting everyone on board with using the extranet for collaboration.

Data Privacy and Compliance: Meeting data privacy regulations and compliance standards can be challenging, especially when sharing sensitive information across organizational boundaries. Organizations need to ensure that the extranet adheres to relevant regulations.

Scalability Issues: As the number of users and data volume increases, scalability becomes a concern. Organizations must plan for scalability to accommodate growth without compromising performance.

Maintenance Overhead: Regular maintenance, updates, and troubleshooting are essential for ensuring the smooth operation of an extranet. This maintenance can be resource-intensive and may require dedicated IT support.

FAQs (Frequently Asked Questions)

What is extranet with example?

Extranet is a private network allowing authorized external users, like business partners, to access specific resources or collaborate with an organization. Example: A supplier portal for order management.

How does extranet differ from the internet?

While the internet is a public network, an extranet is a private extension of a company’s intranet, providing secure access to authorized external parties.

Can extranets scalable for different business sizes?

Yes! Extranets can be tailored to the needs of various businesses, from small enterprises to large corporations, making them scalable and adaptable.

Can an extranet be hosted on the cloud?

Yes! Many organizations opt for cloud-based extranet solutions, offering flexibility, scalability, and accessibility from anywhere with an internet connection.

Final Words

Now, we can make ensuring that you have been fully understood about what is extranet network; involving with their working principle, applications, use cases and examples of extranet with ease. If this article is useful for you, then please share it along with your friends, family members or relatives over social media platforms like as Facebook, Instagram, Linked In, Twitter, and more.

Also Read: 20 Internet Applications & Examples

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