Several key factors have led to the popularity of intranets. For the most part, they are cost effective, easy to update and secure. According to the Galaxy Technology Network, an association of CPAs focusing on technology issues, intranets are the fastest-growing computer products in business development.

Organizations throughout the world are changing the internal structure of their business and providing it in electronic form. According to General Electric, by posting its directory of company information on an intranet, they are saving approximately $240,000 a year in printing costs.

What Is an Intranet?
According to JBS Computer Systems, Ltd., an intranet "is the implementation of Internet technologies within a corporate organization, rather than external connection to the global Internet." An intranet is accessible internally by employees and business partners either directly or through the Internet.

Intranets provide access to information, applications and processes using a Web browser (e.g., Internet Explorer or Netscape Navigator) without requiring data conversion to a different format. Intranets work across a number of platforms; thus, information can be accessed regardless of the user's operating system (e.g., UNIX, Macintosh, NT or Windows).

Intranets use Web technology, but an intranet does not have to be connected to the Internet unless you want intranet users to access content from the Internet. The primary difference between an organization's intranet and its network environment is the infrastructure. Although they use the same connections, your LAN/WAN networks depend upon the applications from your vendor. Intranets provide information that is managed directly at the desktop with little concern about platform or software compatibility.

Intranet Applications
Some people erroneously believe that intranets are only for large organizations. Even if an organization only has a handful of employees, an intranet can improve productivity. Anyone with information to share can readily share it, whether it is with someone in the next cubicle or in the next country. The Web administrator uses modern access controls to restrict who can read or edit the content.

Common intranet applications provide users access to the following information: Human Resources

• Benefits information.
• Online enrollment in benefits packages.
• Policy and procedure manuals.
• Company forms.
• Job postings for internal transfers.
• Newsletters.
• Searchable internal telephone directories, calendars and schedules.
• Annual reports.

Financial

• Online catalogs of approved supplies and equipment.
• Billing and purchasing information from external vendors.

Sales

• Product specifications and prices.
• Sales leads.
• Competitive information.
• Calendars of sales activities.
• Instant sales presentations.

Miscellaneous

• Web-based discussion forums.
• Online training.
• Customer support databases.
• Software distribution.

Intranet Benefits
Access to timely information enables decision makers to analyze business processes, business opportunities and business goals much more quickly. Projects are managed more efficiently since communication is opened up to include anyone related to any part of a project. According to Randy J. Hinriches, author of "Intranets: What's the Bottom Line?" the company that shares information "learns together, improves together and creates a more intelligent organization."

Benefits of an intranet include:

• Ready access to information. Information can be provided that is immediate, cost-effective and easy to use.

• Freedom of choice. Web technology does not lock you into one system; Web technology is available for nearly all the leading operating systems and hardware platforms.

• Ease of use. Web technology uses a single Web browser front end so once someone has learned to use a browser, they can use it for all their Web activities and need not learn new applications to retrieve information.

• Decreased printing and processing costs. The online employee manual is almost an intranet cliche. Additional applications that can yield significant cost savings include telephone listings and training manuals.

• Decreased training costs. The Web lends itself to just-in-time training, delivered instantly to the people who need it, when and where they need it. AT&T used this method to cut the training time for customer service representatives in half.

• Better group dynamics. Discussion groups, bulletin boards, mailing lists and online knowledge bases make it easier for people to learn from each other.

Intranet Obstacles
The benefits of an intranet may seem unlimited, yet one must also consider the obstacles.

Implementation costs are typically relatively low; for example, Eli Lilly created its intranet to link about 3,000 employees for a total cost of only $80,000. According to Netscape, a typical intranet can be implemented for approximately $40 per user. However, startup costs are just the beginning since expenses must be incurred to maintain the intranet.

Consider these obstacles:

• Hidden costs. These are the costs that often are not revealed right away and include necessary hardware upgrades, firewalls, and developing and maintaining the content. These costs will be the greatest if a solid network infrastructure is not already in place.

• Insufficient use. Intranet projects are often not readily accepted and thus do not always succeed as expected. In order to be successful, management must promote the organization's intranet. Additionally, the content must be updated regularly with useful and timely information.

• Security. The Web is not as insecure as it is sometimes reputed to be, nor as secure as its most ardent advocates would like to think. If the intranet is not connected to the Internet, and you do not provide dial-up access, the security risks are minimized. With an incoming connection, there are many options (e.g., firewalls, SSL, password authentication, etc.) to secure an organization's intranet from unauthorized access.

What Is an Extranet?
Intranets and extranets closely resemble each other; many extranet applications are intranet applications that have implications outside the organization. Intranets are accessible only to members of the same organization while extranets connect external individuals to resources on a protected network.

An extranet connects a virtual business community of partners, customers, suppliers, etc., over the Internet. Because an extranet gives various levels of access to a diverse user base, it requires a high level of security and access control. Access control, authentication, encryption and filtering--all core elements of a secure extranet--are most effective when tightly integrated into a single comprehensive security and management platform.

Many businesses enjoy the benefits of an extranet. The Vanguard Group, a major mutual funds company, developed an extranet for clients' employees to look up details of their 401(k) accounts, use a retirement planning tool, download prospectuses of Vanguard funds and educate themselves on mutual funds in general.

Conclusion
Intranets and extranets will prove to be a strategic business investment, not just a technology to save money. According to a survey conducted by Forrester Research, most intranet owners either allow external access already, or plan to soon.