INTRODUCTION
There's something about new technologies that makes people give them awkward and contrived labels. Extranets are no exception. First, there was the Internet, a reasonable enough name for a wonderful basket of technologies. Then came Intranets as a play on the Internet name. An Intranet is like a small private Internet living within the confines of an organization. Employee manuals, access to accounting and a variety of similar internal matters are all now frequently entrusted to a company's Intranet.
However, when early adapters began giving selected outsiders access to parts of their Intranets and creating private online communications tools for visitors, customers and clients, some Intranets stopped looking all that, well, intra. Inevitably, someone coined the word "Extranet" to describe these new tools and techniques, and the name stuck.
Big deal. Just another addition to the opaque jargon of the computer world. True, but if you dig into the concept a bit, there emerges a promising idea of real utility to law firms: the reduction or elimination of barriers between clients and lawyers, or in other words – the ability to communicate better with clients with much less effort. Where time is increasingly at a premium, it only makes sense for lawyers to learn a little something about what Extranets can do for their practices.

Extranets: the Basics
So here’s the first thing to understand. Extranets are not really a thing so much as they are a service—the service of creating novel and effective ways of communicating and sharing information with a client.
At its most basic an Extranet is a means of networking two or more entities so they can securely share information. In some cases an Extranet is simply an extension of a law firm's Intranet to include a connection to a client. In other cases an Extranet makes use of the public Internet combined with security features to create a new, more private, environment.
Extranets features: * The use of Internet technologies and standards. These include the standardized techniques for transmitting and sharing information and the methods for encrypting and storing information, otherwise known as the Internet Protocol, or IP. * The use of Web browsers. Users access Extranet information using a web browser like Microsoft Internet Explorer, Netscape Navigator or, more recently, Mozilla’s Firefox. Browser software uses relatively small amounts of memory and resources on a computer. The great thing about browsers is that an application written for a browser can be read on almost any computer without regard to operating system or manufacturer. That makes an application developed for a browser a snap to deploy. A browser on a user’s machine is all the software he or she needs to take full advantage of the Extranet application. No messy and confounding installation disks; fewer clogged hard drives. * Security. By their very nature, Extranets are embroiled in concerns about security. To protect the privacy of the information that is being transmitted, most Extranets use either secure communication lines or proven security and encryption technologies that have been developed for the Internet. * Central Server/Repository. Extranets usually have a central server where documents or data reside. Members can access this information from any computer that has Internet access.
While these are the broad attributes shared by most Extranets, Extranets vary dramatically in their design and implementation. They can be employed in a wide variety of environments and for very different purposes, like: * Sharing case information * Sharing of case-related documents—many Extranets contain document repositories that can be searched and viewed by both lawyer and client on-line * Calendaring—key dates and scheduling of hearings and trials can be shared on-line * Providing firm contact information * Acting as a “work flow engine” for various suppliers * Providing access to firm resources remotely * Sharing time and expense information

Is there a point?
Extranets have a high risk/reward factor. A successfully implemented Extranet can result in significant expansion in clientele and profitability for a law firm. An Extranet that is poorly designed or badly executed can be an endless headache. The failure to implement or join an Extranet can also have a negative impact on a law firm if it means that a more willing, entrepreneurial or adventurous competitor gains a significant advantage.
Let’s look at some of reasons why Extranets matter to lawyers:
Improved communications. The most common reason for building an Extranet is improved communication between lawyer and client. An Extranet can eliminate telephone tag, or worse, the failure of a lawyer to respond to calls and the delays involved with traditional correspondence. An Extranet is available 24 hours a day; both lawyers and clients can update or review information whenever it is convenient for them to do so. This can greatly reduce the friction between lawyers and clients and make life easier for both.
From the client’s perspective, an Extranet can make the arduous task of monitoring and following up with a roster of law firms much easier. Many clients decry the deeply frustrating process of chasing law firms for status information on the matters assigned to them. Extranets liberate the status information (“where are you on the Bloggs matter?”) from the physical file (a memo on the correspondence spike confirming that discoveries are scheduled for next Friday) by making that information open to review by the client online at any time.

Client retention and integration. High on the list of law firm motives for participating in or creating an Extranet is the desire to retain clients. Many law firms will create an Extranet around a key client or practice area where they have a significant volume of work. In an effort to enhance and solidify the relationship, an Extranet can build and reinforce deep links between the lawyer and client. Taken to the extreme, an Extranet can make it hard to tell where the law firm ends and the client begins.
Client marketing. Extranets can attract new clients or gain additional business from existing clients. A law firm that builds an Extranet can differentiate itself from those that don’t. What you are saying to the client is: "Not only do we provide excellent legal services and advice, but we do so in a way that makes it much more convenient for you to use, consume and monitor those services". And never underestimate the “wow” reaction that technology creates: the simple viewing of a computer screen with all of their file information available at a point and a click can seduce even the most cynical of clients.
Improved workflow management. Many legal matters involve a complex series of steps that must be completed in a specific order to get a file done properly. Some steps must be completed by the lawyer; other steps by the client or third parties. These steps can often be defined by a series of rules often referred to as the "workflow". An Extranet can be designed to incorporate and manage the workflow for handling a wide variety of legal matters. If properly designed, the workflow management built into an Extranet can be a boon to all parties. Done poorly, it can become a rigid straightjacket that does not conform to the realities of legal practice. Flexibility must be an inherent part of the design.
Higher quality. Implementation of an Extranet can significantly raise the level of quality control within an organization. Extranets can be built with real-time status reporting on the progress of matters. In other cases, information from the client's or law firm's core systems can be transferred automatically into the Extranet, eliminating the error-prone task of transcribing information or re-keying data. It all adds up to better product.
Community building. Something quite interesting happens when a well-designed Extranet gets properly implemented. In a very real sense, you have just built a new kind of community, a community where a shared set of values and purposes is given a new forum. The members of the Extranet community normally include the client but can include other law firms, suppliers, government offices or the courts. Rather than each of these community members working through or around each other with the benefit of only partial or third hand instructions, they can all be brought into the same circle and work toward the common goal by the very structure of the Extranet itself.
The Client wants it so. Some clients mandate participation in an Extranet as the cost of doing business with them. For this reason alone, it behooves the law firm to familiarize itself with the technology and to indicate a willingness to participate. Remarkably, many law firms, when confronted by a client who wants to introduce an Extranet, will raise objections and complain loudly about the costs of doing so. These objections often ignore the benefits that can accrue to the client and pessimistically ignore potential savings and benefits to the law firm. All talk of savings and benefits aside, if a client wants an Extranet, then a client will have an Extranet. The law firm that drags its heals will quickly lose that client.

Build or Buy
Extranets are still novel tools. So most law firms approach the world of Extranets gingerly and do so primarily at the behest of clients. Increasingly, however, leading law firms are taking steps to get in front of these things and have begun considering whether to build or buy their own Extranet applications.
If you or your firm are heading in this direction, the first task is to research whether there are existing Extranets that meet your requirements. It may be that the vendor or service provider for an Extranet could tailor an Extranet to meet your needs. Here are some things to keep in mind as you go through your planning.
Buy. If there is an existing application that meets most of your requirements and it can be customized with a modest amount of effort, you will be hard pressed not to choose this option. Here is why buying is generally considered the most effective solution: * An existing application may be far less expensive than designing your own. The vendor will likely have developed a series of Extranets using tools that it has developed specifically for that purpose. It can license the application on a one-time or periodic charge. The vendor can spread the development costs over a greater number of users, meaning the cost is lower for each user. * The vendor may host the solution on their web servers so that you do not have to build and maintain the hardware/software infrastructure internally. * Where an Extranet is developed by a third party or on behalf of more than one law firm/one client, the features developed by or at the request of one company can benefit all users of the Extranet. * Law firms specialize in practicing law and, generally speaking, not developing software. So it may make most sense to work with an organization that specializes in Extranet development and implementation.
Build. On the other hand, you may not find what you are looking for on the open market and so may have no choice but to construct your own tools. This has some real benefits: * You can specify the application to precisely meet your needs. You can accommodate the wishes of the law firm and client and the solution can have a unique look and feel. * You would have free reign over subsequent changes or modifications to meet the needs of users. You are not dependent on a third party's willingness to update the application. * You have the ability to support the application internally, meaning you can determine the level of support and training required. * You can show your client something proprietary that other law firms cannot offer.

some real disadvantages: * It’s generally quite costly, even with the contemporary design tools that have gone a great distance to simplify the job. * If you don’t have the resources and expertise internally, you may have to hire them or contract with a third party to provide them. * If you do not have existing web servers you will have to invest in additional hardware and software. * If you host it yourself, then you alone are responsible for all security issues and the risk of any breaches. * It may also take a substantial amount of time to construct your own Extranet from scratch.
There is usually a considerable learning curve associated with creating an Extranet. It takes time to assemble the hardware and resources. If you are doing a custom "design and build" it will take time to develop the web pages and features and test them thoroughly. Usually, there is a pilot phase where users test and provide feedback. It may take months before the application is ready for full implementation.

Whether you build or buy, those firms that have taken an aggressive approach to Extranet development and deployment are beginning to see some reward for their efforts. What is clear is that Extranets are not a passing technological fancy. They matter and, increasingly, clients want them.

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ELEMENTS OF EXTRANETS

Extranets are composed of a wide variety of components and participants and have several possible configurations. Extranet components include intranets, Web servers, firewalls, ISPs, tunneling technology, interface software, and business applications.
The tunneling principle is the basic concept that makes extranets possible.
Tunneling means that data transmissions across the Internet can be made secure by authenticating and encrypting all IP packets. Several tunneling protocols are available, but IP Security sponsored by IETF (Internet Engineering Task Force) is one of the more popular protocols.
Two basic methods are used to configure extranets:
1. An extranet can be implemented using a direct leased line, linking all intranets.
2. A secure link (tunnel) can be created across the Internet, which can be used by the participating companies as a VPN, usually at a much lower cost.
The effectiveness of an extranet depends on the degree to which it is integrated with legacy systems and databases. In many instances, integrating with legacy systems involves integrating a System Network Architecture (SNA)—the backbone of legacy systems in many corporations—with TCP/IP, the Web backbone.
The technical differences between the two systems are often sources of conflict.
Security is also a key issue with extranets.

IMPLEMENTING EXTRANETS: COORDINATION AND SECURITY
Although extranets are easy to use, implementing an efficient extranet requires extensive coordination between the company and its business partners. Legacy systems, databases, and other corporate resources must be interconnected for outside access and protected from unauthorized intruders. Companies must approach extranet design and development with a needs analysis to identify the best business opportunities. The success of the extranet depends on the security measures implemented. The extranet is useless if it is unable to securely transmit sensitive data between the intranet and authorized partners. Although 100 percent security is impossible, differentiating between actual threats and perceived threats, and then selecting appropriate measures to deter actual threats, will help secure the communication environment.
Is selecting the strongest possible security for the entire extranet and associated intranets the best strategy? Not necessarily, because the stronger the security measures, the more hardware and software resources are required to maintain an acceptable performance level. A balance between security levels and return on investment analysis is an important component of an initial investigation into extranet development.
Once a thorough needs analysis is completed, the feasibility of outsourcing must be checked. For most companies, the best strategy is to acquire a complete extranet package from a vendor such as Nortel Communication, Microsoft, or Netscape Communications. Select an ISP that provides high performance, low latency connectivity, dial-in availability, and written service-level guarantees.

EXAMPLES OF EXTRANET APPLICATIONS

There are a multitude of extranet applications in use. Here we look at four examples.

AMP CONNECTS BUSINESS CUSTOMERS TO SELL PARTS
AMP of Harrisburg, Pennsylvania, is a large electric-connectors distribution company with annual sales of over $5 billion, conducting business in 50 countries. The company sells nearly 80,000 different products, including fiber-optic connectors, printed wiring boards, splices, and switches. In 1996, AMP launched an extranet called AMP Connect, which is based on electronic catalogs with product descriptions, three-dimensional models, and comparative charts and tables of all its products.The company operates one of the most advanced portals. The information is available in eight languages, and the site receives 100,000 hits daily from approximately
15,000 business customers worldwide.This application is an example of connecting a company with its customers through an extranet. AMP Connect is used to place orders and has given the company a forum for communicating with wholesalers, distributors, resellers, and customers, which is necessary for the creation of an exchange.

GM CONNECTS DEALERS BY KIOSK

General Motors (GM) wanted to change the way automobiles are marketed by using an extranet accessed in kiosks and through PDAs. The interactive kiosks are installed in dealerships and shopping malls. The extranet uses the GM-access network, which connects 8,600 North American dealers with GM factories. GMaccess is implemented worldwide using the Pulsar satellite system, which is operated by Hughes Network Systems.
The goal is to link the interactive kiosks to GM’s legacy infrastructure. Ideally, kiosk information will be instantly updated whenever GM changes the configuration or price of a car.

VHA, INC., CONNECTS WITH SUPPLIERS FOR PROCUREMENT

VHA, Inc., an Irving,Texas, alliance of 18 hospitals and 1,400 health-care organizations,developed an extranet that supports collaboration and allows access to an electronic catalog of products for approximately 22,000 dial-up users. VHA members purchase more than $8 billion in products annually under contracts from 350 suppliers.
Initial use of VHA.com was for access to VHA health-care organizations and the Internet. Since 2000, VHA members have been able to buy and sell merchandise and offer a wide range of medical, legal, and pharmaceutical research capabilities.
The extranet allows all VHA members to purchase directly from suppliers.
VHA.com enables all VHA members to exchange information through a ubiquitous, secure environment. VHA chose IBM as its ISP because of its experience with data networking. Security is a particularly important issue because of the sensitive nature of clinical information. Hospitals, clinics, home health companies, and managed care facilities in numerous locations are involved, and patient information must remain private.

CSX TECHNOLOGY TRACKS SHIPPING STATUS

In 1996, CSX Technology, a railroad company, developed a highly publicized intranet for tracking cross-country train shipments from point to point. The company expanded this intranet to an extranet, named TWSNet Premium, which links more than 200 freight shippers and forwarders. The extranet allows CSX customers to track shipments, initiate work orders, and view pricing data over the
Internet. TWSNet Premium includes large suppliers of transportation services such as railroads, trucks, container ships, and barges.
TWSNet Premium is also open to non-CSX customers who require Webbased solutions for managing inbound shipping or outbound delivery information as part of their supply chain management. The extranet allows tracking of shipments to the line-item level, simplifying identification of bottlenecks or problems.
A global reporting system analyzes carrier performance and trends. It also allows users to perform precise demand forecasting, while a special programming interface enables integration with legacy systems.
For additional applications, see Riggins and Rhee (2000).

Intranet, Internet and Extranet – What is the Difference?
With such similar names, the difference between internet, intranet and extranet may be difficult to understand. This article aims to show you how each differs and what the purpose of each is. * Overview
At a basic level, the internet, extranets and intranets are all types of networks. When discussing the internet, extranets and intranets, you’ve got to step back and ask about who the audience is. The audience really defines what each of these types of networks is and how they are structured. * Internet
The internet is the easiest to define since you’re accessing it as you read this article right now. The internet is a series of computers networked together to serve up information to the public.
Audience: The audience is really everyone and anyone – ranging from kids who use the internet to help them with their homework to the elderly using web mail to email friends. When compared to intranets and extranets, the internet has the largest audience by far.
Type of Information Served: If you can imagine it, it’s probably on the internet – news, reference materials, even TV shows – nearly any piece of information or media can be found on the internet. As an example, Bright Hub is a part of the internet. Bright Hub has a network of servers that serve web pages containing articles like this one. Search engines like Google and Bing catalog sites allowing users to find information easily.

Extranet
Extranets are set up by organizations to provide restricted access to special information. For example, a company may set up an extranet to share information with their customers. They may give customers access to support information or downloads for their software.
Audience: The audience in an extranet has some sort of relationship – typically of a business nature - with the organization hosting the extranet. Typically, extranets are password protected thus limiting the accessibility to the site.
Type of Information Served: As mentioned above, most extranets are built for customers and thus serve information related to the business – support information, software downloads, documentation or other pieces of information, or media that the hosting organization doesn’t want to make public.
Intranet
Intranets are private internal networks that serve information to employees or other closely related individuals of the organization. These sites are not accessible from the internet.
Audience: The audience for an intranet is typically an organization’s employees. In some cases, organizations may offer intranet access to close business partners, vendors or contractors. The content served is meant to allow employees to collaborate, communicate and organize information that is proprietary to the business.

Type of Information Served: Information served in an intranet can range from business process documents, internal user guides, training materials, business presentations and communications to employees. The other main purpose of an intranet is allowing employees to better organize information in their organization as well as being able to find it.