Computer Fundamentals - Extranet

Introduction

An extranet is a private computer network that allows controlled access to external users or organizations over the Internet. An extranet is a collaborative, internet-based network that makes it easier for companies to work together by connecting a company with its customers, suppliers, and other outside business partners.

The concept of the extranet emerged when organisations wanted to engage in collaboration with external partners, including suppliers, customers, and contractors. Extranets refer to non-public networks that transcend the confines of an organisation, encompassing certain external entities.

It serves as an extension of an organization's intranet. Extranets are safe computer networks for organisations or businesses to share business data and processes internally and with partners outside the company. They use internet-based apps and technology to do it and provide secure access to specific resources and information to authorized users outside of the organization, such as clients, partners, suppliers, or customers. An extranet is a safe and cooperative way for an organisation to connect its network to people outside the organisation.

It makes it easy for people outside the organisation to communicate, work together, and share data.

How extranet works?

An extranet works as a secure extension of an organization's internal network; it provides controlled access to external users such as clients, partners, suppliers, or other stakeholders.

Here's a breakdown of how an extranet typically functions −

Authentication and Access Control − External users access the extranet using usernames, passwords, or two-factor authentication. Access controls restrict users to information and features related to their role or relationship with the company. This is usually done through user roles, permissions, and access.
Secure Communication − Internal and external users can securely communicate and collaborate on the extranet. Messaging, chat, forums, and email integration are some common examples of this. Communication channels are encrypted to prevent eavesdropping.
Document Management and File Sharing − Users can upload, share, and collaborate on documents and files within the extranet environment. Document management features typically include version control, file organization, access permissions, and audit trails to track changes and maintain data integrity.
Project Management − Project management technologies on extranets help internal and external teams collaborate. Users can assign duties, set deadlines, measure progress, and share project documents and information.
Data Sharing and Exchange − Users can securely share sensitive files and information with others. Integration with cloud storage services may enable cross-platform data interchange and collaboration.
Collaboration and Workflow Automation − Extranets consolidate information, tools, and resources, simplifying collaboration and workflows. Alerts, reminders, and task automation help users stay organized and productive.
Reporting and Analytics − Reports and statistics reveal extranet usage, collaboration, and project performance. To increase efficiency and effectiveness, organizations can track KPIs, spot trends, and make data-driven choices.
Security and Compliance − To keep sensitive information safe and in line with regulations, stringent security measures are put in place, including firewalls, encryption, and access controls. Extranets may adhere to industry standards and best practices for data security and privacy, such as GDPR, HIPAA, or ISO certifications.

Features of Extranet

Secure Access − To prevent unauthorized individuals from accessing the platform, the extranet uses strong security measures. This includes multi-factor authentication and encryption protocols to safeguard sensitive information.
Document Management − Easy document upload, sharing, and collaboration with authorized users. With our intuitive folder structure and version control system, everyone can access the latest data while retaining organization and security.
Communication Tools − Built-in chat, texting, and forums keep you connected. The communication tools simplify collaboration and boost productivity for project tasks and updates.
Project Management − Task lists, timetables, and milestone tracking help you manage projects more efficiently. Assign tasks, create deadlines, and track progress to ensure that projects stay on track and goals are fulfilled efficiently.
Data Sharing and Exchange − Securely share data with clients and partners. A secure file-sharing technology interacts with various cloud storage services for easy data exchange.
Calendar and Events − Keep everyone informed about upcoming events, meetings, and deadlines with shared calendars and event scheduling features. Receive reminders and notifications to stay on top of important dates.
Reporting and Analytics − The reporting and analytics tools reveal platform usage, project progress, and collaboration indicators. Track KPIs and make smart decisions to succeed in business.

Types of Extranets

Extranets come in various types, each tailored to meet specific business needs and requirements. Here are some common types of extranets −

Supplier Extranet − An extranet for suppliers facilitates collaboration between organisations and their suppliers, vendors, and distributors. The system enhances the exchange of information about orders, inventory control, delivery timetables, and product requirements. Supplier extranets optimise procurement procedures, enhance supply chain transparency, and fortify supplier relationships.
Customer Extranet − A customer extranet provides a platform for organizations to interact with their customers and clients. It may encompass different functionalities, such as placing orders online, managing accounts, providing customer service, and accessing product information or technical documentation. Customer extranets have been found to have a positive impact on customer satisfaction, as they incorporate self-service features and promote consumer involvement and loyalty.
Partner Extranet − A partner extranet facilitates the ability of business partners, including joint venture partners, resellers, and co-marketing partners, to engage in collaborative efforts and exchange of information. It enhances the ability to engage in collaborative efforts, exchange sales and marketing materials, and synchronise cooperative endeavours. The use of partner extranets serves to enhance collaborations, facilitate effective communication, and foster collaborative decision-making processes.
Collaboration Extranet − The collaboration extranet functions as a platform that facilitates the sharing of ideas and resources between internal and external stakeholders, enabling them to engage in collaborative efforts. The system may encompass several functionalities such as document sharing, project management tools, a forum for deliberation, and real-time communication capabilities. Collaborative extranets promote synergy, enhance efficiency, and enable the exchange of knowledge beyond organisational borders.
Secure Access Extranet − A secure access extranet facilitates the provision of secure access to designated resources or services housed on an organization's network for authorised external users. Access to internal systems, apps, or databases may be necessary for distant employees, contractors, or partners. To guarantee the security and confidentiality of data, secure access extranets employ strong authentication, authorization, and encryption procedures.
Financial Extranet − Financial institutions, including banks, investment firms, and insurance companies, utilise a financial extranet to engage with clients, partners, and regulatory bodies. Online banking, trading, investment management, and regulatory reporting are facilitated by this technology. Financial extranets have a high emphasis on security, compliance, and data integrity to adhere to regulatory mandates and safeguard confidential financial data.

The aforementioned types of extranets represent limited types of extranets implemented by organisations to enhance collaboration, communication, and information dissemination with external entities. The specific features and functionalities of an extranet depend on the needs and objectives of the organization and its external stakeholders.

Benefits or Advantages of Extranet

Improved Collaboration − Remove obstacles to communication and work together effectively with stakeholders and partners.
Enhanced Productivity − To increase productivity and efficiency, simplify workflows, automate operations, and reduce manual processes.
Enhanced Security − Use cutting-edge encryption techniques and security measures to safeguard confidential information and intellectual property.
Enhanced Client Satisfaction − By offering a centralised platform for collaboration and information exchange, you can provide clients with superior service and support.
Flexibility and Scalability − To ensure long-term success and sustainability, our extranet is built to grow with your business's demands and change as necessary.

Intranet, Extranet and Internet: What’s the Difference?

Intranet, Extranet, and Internet are all types of networks, but they serve different purposes and have distinct characteristics. Some key differences between them are described graphically in below images −

Figure: Difference between Intranet, Extranet and Internet

Internet

Global network of interconnected computers
Allows users worldwide to access
Publicly accessible

Extranet

Extension of an intranet
Allows limited access to external users like clients, suppliers, or business partners
Secure way for authorized external users
Ensures that only authorized external users can access the designated resources

Intranet

A private network
Restricted to an organization or group of users
Used for internal communication, collaboration, and information sharing
Include features such as company news, employee directories, document repositories, and internal applications
Accessed from within the organization's premises or remotely via virtual private networks (VPNs) for off-site employees