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Intranet, Internet and Extranet Advantages

Essay by   •  April 27, 2018  •  Case Study  •  2,348 Words (10 Pages)  •  1,729 Views

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1.0 Introduction

With a specific end goal to succeed today, organizations that are contending in worldwide markets are expanding quickly. The expanded utilization of innovations, for example, the Internet, intranets, and extranets will alter how organizations will work and how they will utilize technology to contend. The Internet and related advancements and applications have changed the ways organizations operate their organizations procedures and activities. For instance, organizations can arrange their workplaces and offer information to be more successful and effective.[pic 1]

Figure 1: Access to Intranets, Extranets and Internet (Turri, 2015)

Internet is a global computer network providing a variety of information and communication facilities, consisting of interconnected networks using standardized communication protocols. Straightforwardly mentioned by Moussa (2016), the Internet is an occurrence of a worldwide information network gathered from an existing set of ITs that exhibit a method for electronic data sharing. No one actually owns Internet, although several organizations the world over collaborate in its functioning and development. The high-speed, fiber-optic cables (called backbones) through which the bulk of the Internet data travels are owned by telephone companies in their respective countries. For example, today in Malaysia, we have TM's Unifi, Maxis, Celcom and many more.

In contrast to the term used explained previously, according to Moussa (2016), intranet is depicted as an internal or local PC arrange network in an organization’s private system and a smaller version of Internet, with sites that show up and work as a regular site but are only accessible to authorized internal stakeholders.  Examples of Intranet could be Human Resources System, Procurement and Finance System, online memos and bulletins and emails.

Furthermore, as accordance to an extranet represents a “bridge” between the public Internet site and the corporate (internal) Intranet site which links business partners to one another over the Internet. The Extranets have a restricted access based on the Internet technology and intended at supporting the unified and collaborative management of the interdependence processes. An extranet allows for the exchange of resources such as applications, database, information, etc. which assists the services and process integration between businesses.

Thus, in line with what has explained above, this paper studies in what way does the use of the Internet, intranets, and extranets by companies today support their business processes and activities.

  1. Advantages of Internet in Business Processes and Activities in An Organization

2.1 Allow efficient flow of information globally

Referring to Shaqiri (2015), globalization and the ability of Internet in flowing information lessen the national concept from one perspective and on the other perspective, permitting efficient flow of information. Information technology and computer networks additionally permit the global economic, cultural and political connection. Technological advancements, especially in the field of information and communication, have played and still play as a focal part undoubtedly. Internet represents a symbol for the phenomenon of globalization in many aspects. The globalization of the financial markets, the lightening quick exchange of unbelievable aggregates of cash around the globe would be impossible without this technology.

What is more, the gigantic increment in trade as a further focal component of business globalization results not just in light of the fact that vehicle costs have sunk rapidly, and goods can be transported quickly, yet particularly because goods, for example, software or databases can be sent from one corner of the world to the other over data lines in seconds.

2.2 Enable Internet Banking

The internet is the most useful tools in the present century because of its numerous benefits. Internet services have made it possible for us to do the impossible things. Major tasks have been made easy thanks to the internet. People conduct business without having to move from one location to the other. Business can be easily made anywhere as long we have internet access to communicate or update the information. Internet banking and e-commerce are Internet-based services that have made life easier because transferring money can be done within seconds. One can pay her utility bills at the comfort of your office or home. Internet banking, payment wallets, mobile banking, POS machine and all kind of banking services enable business owners to speed the business transactions. You can pay, transfer and receive money from customers. Besides that, customer can easily purchase the services/products that they interested at the web and then proceed to the payment stage and will get the transaction receipt or slip if successful.

2.3 Helps to build up awareness of the company’s products in their markets

Companies can connect directly with the general public. Basic product information to automatically updating the product catalogues, internet helps companies as a marketing tool. Many companies conduct most of their retail operations online. Internet can be used to gather information like the market trends for their products. Companies can analyze the global market easily with internet facilities. Internet provides high-speed, highly-accessible communications tools, speeding up processes that are time-critical in a company. Internet has also enabled electronic payment methods (ex: PayPal).

For instance, Walmart is a multinational retail corporation. is the website for Walmart which serves as their e-commerce platform, it contains many products worldwide which can be delivered to your doorstep. This is one of the world’s largest companies by revenue and it has used internet to support and expand its business.

2.4 Reduce Costs  

E-business enables businesses to reduce labor and other costs in many areas, including document preparation, reconciliation, mail preparation, telephone calling, data entry, and overtime and supervision expenses.   E-business can help manage operating cost in many areas, thereby reducing the cost of individual transactions.  The use of email and electronic invoicing are a tremendous saving over the training methods.

For example, when we are running small business by using Internet for marketing and promotion, it will reduce cost of operating expenses such as reduce number of employees, reduce renting office area and other office equipment’s.  The most important need is to have laptops or desktop, mobile phones data, as well as Internet connection to run the business operations. From here, company can reduce the cost of expenses. Recently, small and medium enterprise runs their business in a small area and also from their residence.



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