What is a potential benefit of using an Extranet?

Study for the Information Technology Applications 203C (ITA203C) FE Test. Utilize flashcards and multiple-choice questions, each with hints and explanations. Prepare effectively for your exam!

Using an Extranet offers significant benefits related to collaboration over the Internet, making it easier for organizations to share information and work together with external partners, clients, or stakeholders. An Extranet is essentially a controlled private network that allows authorized users outside the organization to access specific resources, such as databases, documents, and applications.

This collaboration capability enables businesses to communicate more effectively across different locations and organizations. Teams can work together on projects, share updates in real-time, and coordinate their activities more seamlessly. This connectivity can lead to increased productivity, faster decision-making, and improved relationship management with partners and clients, as the barriers to communication and information sharing are reduced.

While enhanced software development, improved customer service management, and lower production costs can also be benefits of technology use, the distinct feature of an Extranet is its ability to foster better collaboration through secure access to shared resources and tools across organizational boundaries.

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