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Extranet is a part of an organization's intranet. It is a communication network that is based on internet protocols (TCP/IP). It provides controlled access to firm's intranet to its trading partners and customers. So, it is a private network that securely shares internal information and operations of a firm with authorized people outside the firm.

Some of the benefits of extranet are:

  • It acts as a single interface between company and trading partners.
  • It automates firm's processes like automatically places an order with suppliers when inventory drops.
  • It improves customer service by providing customers a platform to resolve their queries and complaints.
  • It enables the firm to share information with trading partners without engaging in paper-based publishing processes.
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