a term depicting networks on the Internet dedicated to business communications between a vendor and its suppliers, customers, or dealers. The term originated from network pioneer Robert Metcalfe. Using the common format of the World Wide Web, companies, their suppliers, customers, or suppliers exchange data electronically rather than sending paper-based information back and forth. It is viewed as an Internet alternative to Electronic Data Interchange comprised of dedicated lines and software rather than the Internet. Extranets are a lower cost alternative to EDI. For example, see "Toshiba Debuts Extranet" in Information Week, October 20, 1997, p. 36. Therein it is stated that nearly all of Toshiba's 350 independent dealers will be ordering products and parts via a secure extranet.
FedEx now offers a BusinessLink extranet service with intent on handling the accounting for transactions as well as delivery of product. Competitors either are or will soon offer similar extranets. See
EDI,
Internet, and
Intranet.
