IMPORTANCE OF EXTRANET IN CORPORATE COMMUNICATION

CHAMSHAMA DEBORA S.
BAPRM 42540

An extranet can be defined as a private network that uses internet technology and the public telecommunication system to securely share part of a business information or operation with trade partners, suppliers or other businesses. It is partially accessible to authorized person outside the organization. (D. Harris, 2009)

The advantages of extranet in corporate communication can be as follows;

More integrated supply chains through the use of online ordering, tracking and inventory management. Extranet enables the organizations to conduct business online because it saves the time. One organization can order goods to another organization in which they share the extranet instead of having to go personally to that particular organization.

It also reduces costs by making manuals and technical documentation available online to trading partners and customers. The trade partners are able to view different information about their partners and enable them to make decisions on what to purchase. Customers also through this system are able to get online information about the products they want to purchase.

It helps in improving the relationship between the organization and their customers. Through availability of information and information sharing to the customers by the organization good relationship is built because the organization has the opportunity to know what their customers are thinking and hence to work on their opinions. By satisfying your customers you build a good and strong relationship between them and the organization.

It enhances flexible working condition for your own staff as an extranet allows remote and mobile staff to access core business information anytime of a day irrespective of the location. Since the employees do not work in one pace all the time the extranet enables them to simplify their work all the places the go by having the access to the information about the company and their partners.

It improves the security of communications between you and your business partners since exchange can take place under a controlled and secure environment. Partners can access each other’s information and therefore no third part can access that information something which increase security of their partnership. People from outside cannot get a particular organization’s information and work can be done in a secure environment.

Enhances effective collaboration; trade partners through extranet develop trust among each other and strong relationship among the member parts. Communication becomes simplified through this system because trade partners do not have to meet face to face to discuss about their issues. All updates can be accessed through the extranet and hence partners develop trust and strong relationship.

Generally these technologies have one big disadvantage which is the threat to viruses. Viruses when entering to system can destroy all the information that has been uploaded. Due to this threat the company may get a loss if there is no other source of the materials that was present. Also low education may hinder the employees to access the information.