---
title: "Internet, intranet and extranet use"
subject: "Information System"
chapter: 1
key: "semester_8/information_system:internet-intranet-extranet"
source: https://www.bctengineer.com/q/semester_8/information_system/internet-intranet-extranet
site: BCT Engineering
---

# Internet, intranet and extranet use

Information System · Chapter 1: Information Systems

- Asked in: 2069 Bhadra (old course), 6 marks
- Video: [Difference between Internet, Intranet and Extranet](https://www.youtube.com/watch?v=HEzN3B_aXE4) — Waqas Tech Videos
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_8/information_system/internet-intranet-extranet
- Whole chapter: https://www.bctengineer.com/md/semester_8/information_system/chapter-1

## Question

Discuss how Internet, Intranet and Extranet technologies are being massively used by the organizations in the 21st century to operate their business and gain competitive edge in terms of managing their customers, employees and partners. Provide suitable example.

## Short answer

Internet is the global public network; intranet is a private network using Internet technologies for internal communication and collaboration; extranet extends the intranet securely to partners. Organizations use the Internet for e-commerce and customer reach, intranets for employee portals and knowledge sharing, and extranets for supplier integration, gaining lower costs and faster response. Example: an airline uses Internet for booking, intranet for staff rosters, extranet for travel agents.

## Answer

**Internet** is the global public network of networks; **Intranet** is a private network inside an organization that uses Internet technologies (TCP/IP, web browsers); **Extranet** is an intranet extended securely to selected outsiders such as customers, suppliers and partners (via VPN or login).

```text
 Customers --Internet--> [Firewall] <--Extranet-- Partners
                              |
                         Intranet (employees)
```

#### Internet - customers and market
- Websites, e-commerce (Daraz, Amazon), online banking and mobile payments reach customers 24/7 globally.
- Social media and email marketing build brand and get feedback.
- Search engine advertising and analytics target the right customers.
- Cloud services and online support reduce cost.

#### Intranet - employees
- Company portal for news, policies, forms, HR self-service (leave, payroll).
- Document sharing, collaboration tools, internal email and chat.
- Training and knowledge bases; access to internal applications (ERP, MIS).
- Faster communication, less paper and consistent information.

#### Extranet - partners
- Suppliers see inventory and purchase orders (EDI, supply chain portals).
- Distributors place orders and track shipment; partners share catalogues and prices.
- Joint projects and secure document exchange.

#### Competitive edge
- Lower communication and transaction cost, faster response, closer relationships, wider reach, and better customer service.
- Example: Toyota-style supplier portals give just-in-time deliveries, and an airline lets customers book on the Internet, staff manage rosters on the intranet and travel agents use the extranet.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Which statement correctly defines an extranet?
   A. An intranet extended securely to outsiders such as suppliers and partners
   B. The global public network of networks
   C. A private network used only by employees
   D. A network with no login
   Answer: A. Extranets use VPN or login to give selected outsiders access. (Key point: Definitions)

2. Which is a typical intranet use?
   A. Public advertising to customers
   B. HR self-service and document sharing for employees
   C. Supplier-only purchase portal
   D. Open social media posting
   Answer: B. Intranets serve employees with portals, collaboration and access to internal applications. (Key point: Intranet use)

3. Which is a typical extranet use?
   A. Staff reading company policies
   B. Customers browsing a public website
   C. Suppliers viewing inventory and purchase orders
   D. Employees chatting internally
   Answer: C. Supplier portals using EDI let partners share data securely. (Key point: Extranet use)

4. How do these technologies give competitive edge?
   A. Higher transaction cost but wider reach
   B. Slower response but more paper
   C. Fewer customers but more control
   D. Lower communication and transaction cost, faster response and closer relationships
   Answer: D. They reduce cost and improve service and reach. (Key point: Competitive edge)

## Related in Information System

- [Cloud technology for small business](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Acloud-for-small-business) — Information System, chapter 8

## Related in other subjects

- [Intranet, Internet, Extranet comparison and resources](https://www.bctengineer.com/question.md?key=semester_8%2Finternet_and_intranet%3Aintranet-internet-extranet-compare) — Internet and Intranet, chapter 1
- [Intranet vs Internet, firewall, content filtering](https://www.bctengineer.com/question.md?key=semester_8%2Finternet_and_intranet%3Aintranet-internet-benefits-firewall) — Internet and Intranet, chapter 1
- [Intranet vs Internet and intranet protocols](https://www.bctengineer.com/question.md?key=semester_8%2Finternet_and_intranet%3Aintranet-vs-internet-protocols) — Internet and Intranet, chapter 1
- [Internet vs Intranet and DNS need](https://www.bctengineer.com/question.md?key=semester_8%2Finternet_and_intranet%3Ainternet-intranet-compare-dns) — Internet and Intranet, chapter 1