An Intranet can be installed in an enterprise for many different purposes. Primarily it can serve as an Communication tool between various departments and users of various departments. Because there is a big amount data that is shared by many, an Intranet serves as a common communication tool for many users who constantly use the data and modify it. The information can be posted once on a web page on the server and all the departments and users can view it and this eliminates bulky and tedious paperwork.
It also serves as a very important Collaboration tool in an enterprise and a user from one department can collaborate with another user from another department on generating a report. This type of collaboration is very common in an enterprise and an Intranet serves as an effective collaboration tool in an enterprise.