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  1 

Are the levels of usage sufficient? Extranets require a substantial investment, so efforts 

need to be made to encourage usage since we are asking the users of the service to change 

their behaviour. It is in the organisation’s interest to encourage usage, to achieve a return 

on their investment and achieve the cost efficiencies intended.

 2 

Is it effective and efficient? Controls must be put in place to assess how well it is 

working and improve its performance. Return on investment should be assessed. For 

example, visitor levels can be measured for different types of audiences and the level of 

usage for accessing different types of information can be assessed. The direct and indi-

rect cost savings achieved through each extranet transaction can be calculated to help 

assess effectiveness. For example, 3M, manufacturer of many products including office 

products such as Post-it notes, has an extranet to connect to the office supply retailers 

(see www.3m.com/uk/easy). Retailers download the latest price lists and promotional 

information such as product pictures. Each digital download represents a significant 

saving in comparison to shipping physical items to the retailer.