BY, SHAYO ISSAH

IMPACT OF INTERNET IN BUSINESS

The Internet is a global collection of interconnected networks using a common set of protocols

Protocols are rules that govern how communication takes place The Internet is the structure that

supports the software. The software that we run using the Internet (e-mail, a web browser, peer-to-peer file sharing) provides us with the benefits we see and the problems we face.

Most organizations view the Internet as a tool to support existing business practices; however, in some cases, the Internet can be used in all aspects of the organization and can represent the organization’s only public presence advantages of the Internet in business

Expands markets

The Internet as a business tool is attractive for many organizations and businesses because it offers a number of key advantages. It is seen as a way to expand potential markets because it is worldwide in its reach and scope. When you create and set up a website, anyone on the Internet can visit that site, no matter where they live. Organizations can use one website but offer multiple languages and services from the same site.

Supports different ways to communicate

The Internet as a communications tool is also very attractive. It supports multiple ways to communicate, including text, voice, and video, and can do so economically. Because the Internet connects a variety of smaller networks and because of the way that traffic is handled over the Internet, the cost of communication from a user’s perspective is limited to the cost of connecting to the local part of the network.

Supports different business practices

Organizations can use the Internet to support a variety of business practices, including using it to offer goods and services. They can sell directly over the Internet or provide information about the nature of the goods and where they can be purchased. The Internet can also support the delivery of products and services. Technologies of the Internet to track packages and notify people of the status of their packages.

Provides cost-effective solutions for organizations

Businesses and organizations can use the Internet to improve the inefficiencies of their operations and reduce costs. Organizations can align the technologies of the Internet with their business strategies to support the goals of the organization. Each of these advantages will be elaborated later in this module.

                      CHALLENGES OF THE INTERNET

Limited markets are available online

If the only presence of your business is the Internet, you automatically limit your potential market size to only those people with computers and Internet access. While this limitation is rapidly diminishing, there are still large segments of the population with limited or no Internet access.

Lack of consumer trust

The lack of consumer trust also creates challenges in using the Internet for business purposes. Companies that do business over the Internet are faceless. How do you convince your customers that you are a legitimate business and not a fake website? How do you convince them that when they send you their credit card information, you will actually ship them the products they have ordered and that you will protect their credit card information and not allow it to be used to rack up thousands of dollars in charges at other businesses?

Not a replacement for good business practices

The major challenge of the Internet is that it is not a replacement for good business practices. Using the Internet to deliver bad goods and services will not improve a business’s performance.

Companies became more concerned with market share than with profit, arguing that being first to the market was necessary because the first mover would snap up all of the market and leave no room for anyone else.