When the Internet first entered our contemporary vocabulary, it brought along a dizzying array of new buzzwords, including applets, Java, browser and cookie.

Two of the most important extensions of the Internet are intranets and extranets — and they're probably the least well understood. Small businesses in particular wonder if intranets and extranets can be of value to them and, if so, what's involved in implementing them.

Yes, indeed — intranets and extranets aren't just tools for the big guys. They can be of great value to small businesses. Here's more on that point, plus a look at what is involved in implementing them.

1. An intranet promotes employee collaboration and information-sharing.

In a nutshell, an intranet looks and acts just like a Web site on the Internet. But it is a private network that is available only to your employees. (A robust firewall is used to fend off unauthorized access from the outside.)

Intranets are used successfully to make information more accessible to employees no matter where they are located or even where the information is located.

Research firm AMI-Partners estimates that more than 700,000 small businesses had adopted intranets as of 2002, and that nearly 150,000 more are planning to do so in 2003. That's not surprising, considering that intranets can benefit a company in many different ways:

• Encourage better decisions, as intranets tie together computers, data, and the knowledge of people within a company across traditional boundaries of departments or offices.

• Dramatically reduce the costs of routine tasks and of producing, accessing, and distributing information.

• Reduce the need for managers or employees to travel to remote office sites.

• Enable extremely rapid, just-in-time delivery of information around the clock.

• Improve collaboration and foster a sense of community.

• Encourage distributed decision-making and virtual organizations, enabling company productivity to soar.

2. An extranet promotes customer or partner information sharing.

An extranet works like an intranet, except that it's designed to provide access to a select number of primary business partners, your best customers, and your suppliers, thus extending those benefits to essential components of any business.

Extranets can be accessed only with a valid user name and password, and the user's identity determines which parts of the extranet they can view.

Extranets allow companies to make selective information available to these key players. Given that the average small business deals with 35 to 45 vendors three to four times per month, it's easy to see how an extranet can cut costs, streamline business processes, and improve your company's competitive position.

3. The versatility of intranets and extranets.

There are a number of different ways that companies can use intranets and extranets to their advantage. Here are some examples:

• Collaboration content: Through intranets and extranets, companies can make information available in many formats, including e-mail, discussion forums, and training courses. Many companies use the technologies to provide access to publications, including product catalogs, newsletters, price lists, product bulletins, HR benefits, and so on.

• Transactional content: Database applications, reports, employee forms, order/inventory, etc., can be accessed through intranets and extranets.

• Process-related content: Intranets and extranets are perfect vehicles for accessing workflow procedures, project management tools, schedules, and order status.

• Utility content: Network development, management, and technical support knowledge bases can be made available through intranets and extranets.

Contact us to explore how to best adopt intranets and extranets for your business.