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Extranets and Business Solutions

Brandy Bishop

Working Web Sites

Extranets introduce innovative ways to reach even the most far away customers.Growing Across the Border

How one company redefined its business using an extranet

 

Although he's a business owner who keeps close tabs on his clients' financials, Carl Peterson has never met some many of his clients. A partner in the Minneapolis-based accounting firm of Schmidt & Peterson, Ltd., Peterson has several individual and corporate clients "across the border"—that is, outside the Minneapolis area. In fact, many of those his cross-border clients aren't even in the Midwest. But geographical boundary that limits the growth potential of a traditionally "local" service business ies havesn't stopped Schmidt & Peterson. .

Using extranet technology, Schmidt & Peterson is redefining the types ofits services it provides and its reaching new clients all over the country.capacity to reach new clients. The firm now projects that 50 percent of its their future clients will come from outside the Minneapolis area. Adding an extranet system to its existing intranet has also enabled Schmidt & Peterson to handle more clients without requiring additional staff.

With four partners and another professional staff person, Schmidt & Peterson provides standard accounting services and business consulting services. Providing both services for a large number of clients requires maximum productivity from each member of the firm. "Our business model and profit goals require a flat organization, and technology is the key to making that happen," says Peterson. Peterson believes a company should have the most advanced technology they can afford because "your company's underlying systems are the most effective to handle growth without losing profitability."

Using an Extranet to Offer New Services

At the core of Schmidt & Peterson's new service model is an extranet—a secure Web site allowing thethat allows the company and its clients to communicate and exchange financial data, accounting reports, and tax forms.

Adding the When they added an extranet to their existing Schmidt & PetersonWeb site, it went from turned their Web site from a typical "cyber-based corporate brochure" into a forum to improve current services and add higher-value services24-hour consultant, information provider, and customer service engine.

An Extranet stretches customer reach across the globe

As a baseline service, Schmidt & Peterson's extranet lets clients log in, 24 hours a day, to access current and past financial data and reports. It also provides access to strategic analysis so clients can see how their business or portfolio is performing, then plan how to proceed. A favorite service with clients is a trend analysis in graphics format, which gives clients an "at a glance" feel for key financial factors such as asset mix, asset portfolio, and investment mix portfolio. It also offers online "what if" scenarios for clients' business planning needs.

"I can access my data anytime and fax it to my banker in the evening so I can expedite a loan approval," says Randy Ruane, controller for TSI, Inc., a Minneapolis chain of seven auto repair and transmission shops. Monitoring multiple businesses under the TSI parent company, Ruane finds the 24-hour access is essential to the data and financial reports required for loans and real estate transactions. The financial report archives are also important for the documentation often required for by many business deals.

Schmidt & Peterson's extranet also provides cash-flow trends, so if the trend shows an increasing average cash balance, a client can project how to use their cash surplus. Clients also use the extranet to upload new information and data for financial planning, tax planning, auditing, loan applications, and other finance-related transactions.

"Our extranet reflects a business philosophy that we need to provide clients with 'time and information,' which are essential for them to compete," explains Peterson.

Schmidt & Peterson is currently serving ten of its clients with its extranet. "Within a year, we expect to have more than a hundred different clients using the extranet," says Peterson. "Even our retired individual clients like the flexibility and power of the extranet. They value the real-time access to investment analysis and trend analysis, and the ability to do tax planning on the fly, particularly as tax factors and market conditions change."

Extranet technology

The server that hosts Schmidt & Peterson's extranet is located at the company's Internet Service Provider (ISP). The firm's 8GB Micron extranet server includes Microsoft Windows NT Server 4.0, Internet Information Server 3.0, SiteServer Enterprise 2.0, SQL Server 6.5, Exchange Server 5.0, and Certificate Server 2.0 (used to issue and manage "digital IDs" for secure client–log in and access to confidential files).

Schmidt & Peterson's in-house server is used for updating the company intranet, downloading data from the off-site extranet, and uploading new reports and updated files from its internal network.

Stronger customer links boost business performance

Creating a stronger client service program with an extranet system, Schmidt & Peterson sees multiple results, both immediate and long term. Streamlining routine client accounting and financial reporting services has given partners more time to offer higher-value services, which has strengthened client relationships and boosted revenue without adding staff.

Stronger customer links boost business performance

Creating a stronger client service program with an extranet system, Schmidt & Peterson sees multiple results, both immediate and long term. Streamlining routine client accounting and financial reporting services has given partners more time to offer higher-value services, which has strengthened client relationships and boosted revenue without adding staff.

The extranet has also increased referrals from existing clients. "Assuming you provide excellent service, electronic links with a client almost always create a stronger relationship generating more positive word-of-mouth," notes Peterson. And because many service businesses are based on personal referrals, says Peterson, prospective clients feel comfortable working with firms that are not based nearby.

In addition to polishing off their own services,Schmidt & Peterson's success using extranet technology to provide client service has opened another business opportunity. tThe firm isy are also advising other small accounting firms on how to build and operate extranet-based systems for servicing clients.

"This is an exciting time when smaller firms can leverage technology to expand the reach of their service expertise and compete against larger, multi-city companies," says Peterson.

Extranet technology

The server that hosts Schmidt & Peterson's extranet is located at the company's Internet Service Provider (ISP). The firm's 8GB Micron extranet server includes Microsoft Windows NT Server 4.0, Internet Information Server 3.0, SiteServer Enterprise 2.0, SQL Server 6.5, Exchange Server 5.0, and Certificate Server 2.0 (used to issue and manage "digital IDs" for secure client–log in and access to confidential files).

Schmidt & Peterson's in-house server is used for updating the company intranet, downloading data from the off-site extranet, and uploading new reports and updated files from its internal network.

###

 

Sidebar one:

What is.com (www.whatis.com) defines Extranet as: "A collaborative network that uses Internet technology to link businesses with their suppliers, customers, or other businesses that share common goals. An extranet can be viewed either as part of a company's intranet that is made accessible to other companies or as a collaborative Internet connection with other companies. The shared information can be accessible only to the collaborating parties or can be publicly accessible."

 

Sidebar two:

Possible extranet applications include:

 

Sidebar 3: Resources

Washington DC–based OneSoft Corporation develops Internet, intranet, and extranet software solutions for the corporate and government marketplace. The company's Web site http://www.onesoft.com/ offers a downloadable white paper, The Extranet Solution.

Swedish technology consultant Kerstin Forsberg offers a detailed page devoted to Extranet resources and ideas. (http://www.netg.se/~kerfor/extranet.htm)

Books

Extranets: Engineering the Business to Business Web http://www.amazon.com/exec/obidos/ISBN=0136509126/1950-5460621-420259

by Deborah Bayles

Bk&Cd Rom Edition

Synopsis:

The technology for building an extranet is essentially the same as that for Intranets, but the major difference is that it is MIS and IT professionals within the organization who are being asked to implement these extranets. This book is geared for those professionals who must learn how to better serve their customers, suppliers, and partners via extranets. The CD-ROM contains valuable Starbase Version Control and Configuration Software and GlobalLink Web Translator.

 

Extranets: The Complete Sourcebook http://www.amazon.com/exec/obidos/ISBN=0070063028/1950-5460621-420259

by Richard H. Baker

Synopsis:

Extranets are soaring because they facilitate a seamless flow of information and commerce among employees, suppliers, and customers. In the first full-scale guide to the subject, Baker describes in depth the many profitable applications for Extranets, from communications and customer service to product development, marketing and sales.

 

Extranet Design and Implementation

http://www.amazon.com/exec/obidos/quicksearch-query/1950-5460621-420259

Peter Loshin

Synopsis:

Extranets are currently a hot topic in TCP/IP internetworking. "Extranet Design and Implementation" solves real business needs. It discusses how to design, build, and administer successful extranets. The book includes full coverage of extranet security.

Building an Extranet: Connect Your Intranet With Vendors and Customers http://www.amazon.com/exec/obidos/ISBN=0471179108/r/1950-5460621-420259

by Julie Bort, Bradley Felix

Synopsis:

Explains how to transform intranet technology by supplying private, product-oriented information to selected customers and vendors through an extranet, discussing a range of security issues, how to publish information, and how to build applications for an interactive extranet.

 


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