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Extranets involves developing the relationships between the public Internet and private corporate intranets. An extranet can be analyzed as part of a company's intranet that is made accessible to other companies, to the public. Extranets are fast developing and provides many advantages for business partners to exchange information.

Advantages:

• Extranets help the organization production by computerizing procedures that were earlier done manually.
• Extranets allow business or project information to be viewed at times suitable for company partners, clients, staff, suppliers and other stake-holders.
• Information on an extranet can be updated, edited and changed instantly.
• Extranets provides all information to their customers, and tries to develop their relationships by providing them with accurate and updated information.

Disadvantages:

• Extranets are expensive to execute and maintain within an organization.
• Security of extranets can be a big concern when dealing with valuable information.
• Extranets can reduce face-to-face meetings with customers and business partners. This could cause a lack of relations made between people and a company, which hurts the business when it comes to loyalty of its business partners and customers.
  

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