An intranet is a private computer network which operates within an organization. It not only provides internal communication but also permits information sharing. It should never be confused with the Internet. The main difference between Internet and Intranet is that an intranet is within an organization, while the internet is a public network.
Most companies have incorporated an intranet into their business. An intranet can improve efficiency and performance in any organization. But still, there are some risks associated with the setting up an intranet.

Benefits:

Increases Employee Productivity
Each job needs many resources and they should be available on time. Only then productivity comes to notice otherwise it will have a negative impact. The intranet provides them all the required information to perform their jobs.
Allows for Greater Collaboration
Every user has his or her own working style and communication method. That is why collaboration becomes difficult. Here, intranet helps them bringing in all resources required.
An effective intranet enables easy communication within the organization. This functionality gives the user a nice opportunity to share potentially beneficial ideas.
Works as a Social Networking Platform
Employees and management can share personal interests, hobbies and other aspects of their personal lives through an intranet. Relationships made through an intranet’s social networking capabilities can positively impact staff job performance and collaboration.
Easy Decision Making
An intranet permits the users to share information and ideas. That is crucial to effective decision making.
Streamlines Data Management
The documents can be easily uploaded or downloaded and organized. So, they can be accessed easily at any time. It gives any company a transparent culture.

Difficulties:

Security Risk
An effective security system is required to check the access to sensitive data. It may be a firewall.
Time-Consuming and Costly
Any setup needs dedicated workers to complete the job and maintain it to make it effective. The staff must be trained fully to adapt and continue to perform their job duties. Routine maintenance is a must to keep an intranet organized and functional. Regular communication is a must to maintain an intranet. This can be a time-consuming process and requires full support from the management team.
Can Be Counterproductive
The information must be organized and properly used over intranet otherwise the productivity will be negative and may affect the organizational capability and popularity.

Conclusion:

An effective intranet can make a big impact on the organizational productivity, data management and facilitating effective collaboration on projects. Employees can interact and share information with ease. These positive steps make up an effective intranet.