In order to succeed in the highly competitive market, organizations need to implement effective communication channels that will allow contact with the environment. They need to be able to interact with various parties in both the internal and external environments and it is only through such channels that this can be achieved. Some of the channels that they should consider implementing include the intranet and extranet but only after they have undertaken careful evaluations of their individual organizational needs. In this paper, we will define the intranet and extranet before discussing opportunities that they can offer to an organization.
The intranet is an internal website of an organization whose access is only allowed to the employees (Mockler & Marc, 20). It consists of interconnected computers and a universal database of the company’s private information. On the other hand, the extranet is an organization’s internal website that is connected to the internet. It allows employees and a selected number of stakeholders in the external environment such as consumers, suppliers, and creditors the access to a company’s databases. However, access for the external stakeholders is restricted to only the information that is relevant to their relationships with the organization.
Having defined the two types of communication networks in an organization, we now look at the benefits that can be derived from their effective implementations. The intranet provides the platform for interactions that are required to forge unity among the employees. A united organization stands higher chances of attaining its goals since its functions are well synchronized to complement one another. Intranets are also very effective in cutting down the operational costs in an organization. Instead of channeling resources towards the maintenance of manual records, electronic databases are installed and are also relatively cheaper to maintain. Furthermore, these databases are updated regularly and provide quick and accurate records to all the authorized parties.
As it has been aforementioned, the extranet allows other parties in the external environment access to the company’s information databases. With specific reference to the consumers, an organization could undertake online surveys of the consumers visiting its website in order to determine their changing needs (Bland, 57). This information could then be utilized to develop products that are in line with the changes therefore higher levels of customer satisfaction and loyalty. In the current business environment, organizations are also finding it necessary to undertake joint ventures in cases where they possess insufficient funds or simply to reduce the investment risks. The extranets have therefore presented avenues through which they can interact with their partners and receive updates of the events unfolding in the markets or the specific ventures. Its connection to the internet also facilitates e-commerce in the form of online banking and selling to remote consumers. Online transactions are increasingly becoming the most popular ways of conducting business operations as they are less costly and cover wide geographical regions.
Both the intranet and extranet are internal networks of an organization that link it with particular stakeholders in the environment. The decision to implement any of the two is determined by the individual needs of an organization and should be conducted after thorough assessments of both the internal and external situations. The two will generally increase the levels of communication, interaction, and cooperation which are the primary conditions for success.
Works cited
Bland, Vikki. “Extranet Exposé Demystifying the technology.” New Zealand Management 50.9 (2003): 57. MasterFILE Premier. EBSCO. 2011.
Mockler, Robert J., & Marc E. Gartenfeld. “Intranets: a key element in a company’s e-business strategy.” Strategic Change 18.1/2 (2009): 15-26. Business Source Complete. EBSCO.