The implications of an Extranet on the business model(graphic not available) Purpose of the reportThe purpose of this report is to provide the strategic implications of an Extranet on the business model of my company over the next three years. It is understood that the current business model uses an Intranet system. Topic Context When we talk about Web-based technologies, we need to consider three distinct variations: the Internet, Intranet, and Extranet. Internet The Internet is a public, global network of networks that is based on the Internet Protocol (IP) and related standards (http://www.teleshuttle.com/media/extradef.htm). The Internet was designed to provide a standard means of interconnecting networks so that any system can communicate with any other system, regardless of physical location. It functions as a confederated network of networks (an "internet") and offers universal accessibility (http://www.teleshuttle.com/media/extradef.htm). Intranet An intranet is a private application of the same internetworking technology, software and applications within a private network, for use within a company. It may be completely disconnected from the public Internet, but is usually connected to it and protected from unauthorized access by security firewall systems (http://www.teleshuttle.com/media/extradef.htm). An intranet provides access to data across all functional areas of an organization. These functional areas include sales and marketing, manufacturing and production, finance and accounting, and human resources. Additionally, Intranet applications have been developed for each of the functional areas mentioned above (see Figure 1 above). Extranet While an Intranet is private and is protected from public visits by firewalls, an organization can create an Extranet to allow suppliers/distributors and customers/shareholders to have limited access to its internal intranet. An Extranet, or extended Internet, is a private corporate network of several cooperating organizations located outside the corporate firewall. An Extranet service uses existing Internet interactive infrastructure, including standard servers, email clients, and Web browsers. This makes the Extranet much cheaper than creating and maintaining proprietary networks. It allows business partners, suppliers and customers with common interests to form a close business relationship and strong communication bond (see Figure 2). Extranet Security A typical Extranet site is divided into open, secure segments. Access security is the cornerstone of the Extranet concept. Secure connections using virtual private networks (VPNs) between computers create a virtual tunnel, using inexpensive, ubiquitous public lines (see Figure 3). (Management Information Systems, page 291) Tunnel technology can also be used to customize the Extranet site, providing access only to the features to which a specific user is entitled.