When we think of Extranet, we're talking of Linking Business Partners Via Internet Technology. An extranet can be viewed as part of a company's intranet that is extended to users outside the company. It has also been described as a "state of mind" in which the Internet is perceived as a way to do business with other companies as well as to sell products to customers.

We can define an extranet as a network that links business partners to one another over the Internet by tying together their corporate intranets. Extranets may be used to allow inventory database searches, for example, or to transmit information on the status of an order. They are being used by businesses of all types. Extranets can help businesses improve their customer service, increase their revenue, and save time and resources. The network helps facilitate the flow of information from one company to its hundreds of suppliers, and systems integrators. The system let the company's suppliers get point of sales reports at any time, day or night, and it enables companies to offer real-time inventory access.

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