Page 457 - Encyclopedia of Business and Finance

eobf_I 7/5/06 3:04 PM Page 434

Intranet/Extranet

encyclopedia adds additional clarification as “The term as EXTRANET
originally coined in the preceding definition has become The CMP Media TechEncyclopedia defined extranet as:
so popular that it is often used to refer to any inhouse
LAN [local area network] and client/server system rather A Web site for customers rather than the general
public. It can provide access to research, current
than an HTTP-based Web server infrastructure.”
inventories and internal databases, virtually any
Note the important difference: The intranet contains
information that is private and not published for
information that is available only to those who are
everyone. An extranet uses the public Internet as
“inhouse” (but not necessarily physically “in-house,” the its transmission system, but requires passwords to
organization could have offices on multiple continents) gain entrance. Access to the site may be free or
or some type of corporate partner. Some additional typi- require payment for some or all of the services
cal uses of an intranet include access to production sched- offered.
ules, inventory, meetings, and training. The earlier
While companies may allow public access via the
example of Maria working at a Ford dealership is meant
to be typical of a smaller organization. An establishment Internet to their Web site, this does not include links to
sensitive information, but an intranet connection may
with global locations, however, could have a very com-
plex intranet. allow access to much, but not all private data. According
to Sanna Kallioranta and Richard Vlosky (2004), “An
extranet serves as a bridge between the public Internet and
INTRANET USES
the private intranet.”
An organization’s intranet may be used in many different As an example, Company A manufactures computer
ways. Besides data, ordering, and other uses that may well
monitors using liquid crystal displays (LCDs) made by
have been used prior to using Internet standards, today’s
Company B. Company A no doubt keeps an exact inven-
intranet is frequently used for training and videoconfer- tory of how many it has in stock; and it is possible that
encing.
Company B is asked to monitor these numbers so that it
can automatically ship LCDs to Company A when
Employee Training. The American Society for Training needed. As noted previously, Company B would not be
and Development noted that classroom training was rap-
granted access to other online data belonging to Company
idly changing to electronic learning (e-learning) as corpo-
A. In another industry, construction, it is common for
rations strove to meet widely scattered training needs
large construction projects to share information between
(“Online and Corporate Universities,” 2003). E-learning
contractors, architects, and engineers on schedules,
spans the range from training to operate call centers all the
progress, and drawings over is be classified as an extranet.
way up to learning corporate leadership skills; intranets
Kallioranta and Vlosky also pointed out that using Inter-
are often used for this purpose.
net protocols with an extranet is considerably less expen-
sive than any other method.
Videoconferencing. An article in PC Magazine in January
2004 reported that while business travel had decreased,
ACCESS
videoconferencing (also called Web conferencing or Web-
Individual employees access to the Internet, intranets, and
casts) was increasing by leaps and bounds. The author of
the article, L. Erlanger, went on to state: extranets varies with their need and is commonly assigned
when they log on to the network. A top-level supervisor
Yet we live in a global economy, and people in far- may have access to all levels of all systems. A network spe-
flung locations still need to meet. Increasingly, cialist is the person who assigns the correct codes to each
they are doing so via Web conferencing services, employee. Since virtually all of a company’s information is
which lets both small and large groups of people
available via computer, who has access to what is an
share presentations and documents in real time important issue in any organization. Further, every com-
over the Web. The services also deliver handy
puter system on a network is a possible target of either
tools for collaboration, including chat rooms,
hackers or spies from competing corporations. A hacker
whiteboards, document annotation, application
sharing, Web polls, and Web tours. could destroy sensitive data, and a rival company could
steal corporate secrets. Thus, every intranet and extranet
This type of use would not be practical or cost effec- has multiple layers of firewalls to ensure that access is
tive without using the commonly available Internet stan- obtained only by authorized people. Nevertheless, security
dards on a firm’s intranet. is an ongoing concern.

434 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION