Overview of Value Added Network
Value Added Network is a privately owned network providing specialised services, such as
electronic data interchange services or access to a particular database. VAN
generally 'adds value' to the transmission and eliminate the need for compatible
communications hardware and protocols. VANs provides
specialized services such as assisting with EDI (electronic data interchange),
extra security, message delivery, or access to a particular database
Value Added Network are used to directly add value to the
organisation's products and services. The key in defining a value added network
is whether or not the process and procedures handled by the network actually
'add value' to the companies business operation. For example, a direct link
between the purchasing / store system of a company and its suppliers would
enable the ordering and delivery procedures and processes to be speed up and
carried out more efficiently, consequently adding value to the business. Another
good example of value added network is the customer network database which enabled a
company sales personnel to keep a constant flow of information on customer
activity. Each access to a VAN provides a specific service and is paid for.
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