Home‎ > ‎Networks‎ > ‎

Value Added Network

A value added network, (VAN) sometimes called a turnkey communication line, "is a private network, provided by a third party, for exchanging information through a high-capacity connection" (pg504, Phillip). This network supports large organizations who are engaing in ebusiness.  A third party is hired to facilitate electronic data inerchange (EDI). This is an easy way to move data from one company to another. With the World Wide Web companies prefer to move data over the internet, because it is cheaper rather than paying monthly fees and per character fees.
   Value added network suppliers must provide basic translation, encryption, storage and data conversion . They also extra services such as automated B2B communications, improved processes and management reports. For a more detailed description click here.
    Large, popular  organization use value added networks as well as virtual private network (VPN) to integerate their online stores with their physical stores. For example, if you purchase something online, you are able to pick it ip at the nearest store. Through this network the store knows what was ordered online and will have it reafy for pick up. VAN also helps the organization provide accurate, cclear information to suppliers, trading partners, and customers. Information is exchanged either internally or externally in a reliable and secured manner. Although very efficient, there is a down side to this network.
  • Can only handle limited information
  • small qunatities of support to real-time business transactions
  • expensive compared to internet
  • complex to implement to the whole oragnization
  • difficult to adapt when lookimng into expansion or adapt to market changes
Phillips, Baltzan. Business Driven Information Systems, second edition.