Impacts of Internet on Business Operations - Essay Example

Impacts of Internet on Business Operations

Introduction

The presence of online services brought about by technological improvements in the society has significantly contributed to the positive changes in the commercial environments. According to evaluations conducted by various research centres and individuals, results have shown that the benefits of the internet on business are higher than the negative impacts. This gas led every single business to change from their traditional ways of doing business and adopt the newly developed strategies so that they can fit the current market. Individuals who have assumed that there is no difference in the two distinct methods of conducting business and remained in the traditional ways have ended up losing customers. The enterprise’s size does not matter in the decision of whether to change or not, rather the technological change cuts across all type of businesses in the society.

The technological changes companies have contributed to the success of other businesses, which are dealing with machinery and products needed by the firms in the journey across the change in the mode of business operations and the environment. Many have invested in such businesses leaving their other businesses that do not have a great chance of success. International firms like Microsoft, which develops business software programs have thrived well due to the increased demand for their products and services in various parts of the globe. Other companies include Dell, a company manufacturing computer systems and office machinery together with Intel, the most successful processor’s developers. The purchase of these products and services by the businesses, help them to change successfully into the online synchronised business (Abramowicz, 2006).

Technology in business is good because it also impacts the education activities, assisting in the creation of new courses and making of new professional. This is because of the problems faced in the transition to the business operations, which cannot be solved by individuals without the required knowledge and information. For a business to be effective in the online platform, the personnel must be competitive enough to challenge the other online stabilized business. Different individuals are using various online business criteria to ensure that they succeed more than the other related businesses. The competitive nature of this situation requires the businesses to invest much in the online strategy by installing the required systems and ensuring that the individuals given the mandate to conduct the online activities are intelligent to be able to generate new strategies. The importance of making improvements at all times is because the technology is not stagnant; more developments are initiated on a daily basis. Assuming that there are not changes does not keep the business on the top of the market, which may lead to losses incurred due to neglecting responsibilities.

The online business platform has brought a lot of advantages to the specific businesses, and individuals involved in such businesses. It is through this platform that the firms and small scale businesses can make their products and services available online, thus giving them a greater chance of receiving more customers. The time used in informing people about the products and services has been reduced to a simple click of a button from the comfort of the office. Previously, people could be employed to make sure that the society has the relevant information about the offers provided by different companies. The required geographical location to be informed could not be met because of the expenses and time required. This task has been simplified after the worldwide online business platform was developed through the technological changes in our society. This change has impacted the businesses by the provision of an easy and better way to make their adverts and sent informative ads to the internet for the potential customers to approach the company (Deng and Zhang, 2014).

This change has not only affected the way the businesses conducts their operations but also it has positively impacted the mode of shopping for the customers in the society. Unlike before the existence of the internet platform where individuals could not purchase products and services in far places, online existence allows people to access information about products and services of firms far from them. Some of the businesses provide delivery services at either not cost or reasonable costs. This has fully changed the mode of the customer to businesses relationships contributing to better business environments. The national geographical boundaries have remained to be marked for differentiating the different location but imposing no big challenge to the firms doing international businesses and customers purchasing products from foreign countries. The international business relationships have been made possible by the improvements in technology, easing the task of manoeuvring into the business environment. This has also led to the changes in the laws and regulations governing the businesses in the countries to be able to capture the international markets. Minds of the investors have been widely opened to think when they are conducting their businesses, rather than being localised.

Operations and Commercial Environment before the Internet

In some decades back, there was no existence of the online business strategies and the improvements in the technology, which are visible in the current market and business environments. Investors could not say that the businesses had a lot of limitations until the digital era came to pass. In those days, today we can say that the strategies and methods used in the business operations were analogue or traditional. Businesses used different types of machinery which have been neglected in the current society because of their inefficient characteristics. Individuals used spreadsheets in keeping accounting data and records. This was a hard task to review and ensure that the records had minimal errors. Individuals involved in such tasks had to do a lot of tedious research to ensure that the records were up to the standards of the businesses at those times. Mathematical formulas in making calculations were done manually or by use of a traditional calculator. This led to a lot of errors in businesses, leading to non-reliable data about the real progress of the company and small businesses. It was hard to acquire individuals who were fit in the account because people had the mentality that it was a hard task to be an accountant.

The only machines which were functional in those times were the typewriters and the calculators that had minimal mathematical functions. It was tiresome to use the typewriter because of the stiffness in the keys, which required a person to exert a lot of force to be able to press the keyboard. People who were professional of using typewriter were few because there no definite school program that taught the usage of the machine. Therefore, a company may have owned that machine lacks the right person to work with it, thus not being much productive to the company. This machine only types documents in plain sheets and could not work as a data entry, thus leaving all the data work to be written with a pen on paper. There were no room for errors and if the person working with it was not keen enough, the document produced would be full of errors and cancellations. This is because the machine had no rubbing service; the only key available was to cancel the error made, but it would still be visible. As compared to the current situation, typing one page would take more than thrice. Therefore, this is considered to be very slow thus contributing to a slow mode of contacting business activities. All other paperwork which could not be done using the machine, like a drawing of charts and graphs was done by the use of pen and papers. This was a tiresome task for the people working on those tasks, and the salaries were not equivalent to the work which was done. A lot of time was being used in preparing the business records that investing much of the time in productivity of the company.

Research and acquisition of the information not known by the business men was a hard task, requiring them to visit libraries and look for books which might be having such information. A lot of time was used in such research activities without the assurance of getting the information required. People had to read a lot of stuff before a conclusion could be made according to the strategy to be implemented for the benefit of the company. People who were no patient enough to do long-term research could not progress in their business operations because there were no other sources of business information. Books filled the shelves of the companies, either for research of record keeping. Implementation of certain strategies had a lot of risks because there were not available online references to evaluate the chance of the success of the method. The companies’ profiles were in danger because losing some crucial files, would contribute to conflict because it was rare to have backup systems in such businesses. This is because this could be like double working thus the financial status of the businesses could not allow double payment for the employees.

The success of businesses depends directly on the status of the communication between the business partners despite their geographical locations. The communications with the potential customers is also a critical issue to be observed because they determine the success of the enterprises. In those times before the existence of the internet and the online business platform, communication was a hard task to be committed. People used courier services provided by postal companies which were not very much reliable. A lot of time was used in sending critical information from one person to another if they two individuals were located separate geographical location. Even when the distance was manageable, a messenger was used to send information and was also given the feedback. It would be tiresome for the messengers if the communication were in a sought of a conversation because they had to move to and from for reliability in communication. Considering the challenge of communication, it acted as a barrier to the development of the business. The communications between the government and the business people were not efficient, which could lead to the development of rules that could favour few business people in the society (Laudon and Laudon, 2014).

The growth of the businesses depends on the rate at which the products and services are being purchased. The number of customers for the company is increased by having relevant advertisements to ensure that people are informed on which type of service and product is offered in the specific companies. Adverts which were done the era when the internet and online platform was not yet developed were not covering a big geographical location as the businesses could wish. The impact of the information was not persuasive enough to convince the customer to purchase the product. This is because the information was limited to enable the reader to get the necessary information. Creating a big advertisement document could not capture the concentration of the individuals. Therefore, a challenge in the marketing sector created a great risk of the development of the businesses. The advertisements of that era were boring unlike in the current market where each business is creating an impressive advertisement to capture the attention of the potential customer (Charlesworth, 2009).

Production of good products is catalysed by the completion of various companies producing the same product. The competition is brought about by placing the equivalent products in the same market to make an analysis on the most attractive and liked by customers. Companies facing biggest competition tend to improve the quality of their products to be able to gain customers for the competitive environment. In the life before the internet, markets were dominative because the products were mostly sold in the places they are developed. This factor did not encourage development and more innovation of the improvements of such products. The level of completion was low this dominant investor exploited the customers on the qualities and quantities of the products provided in the market. The rate of innovations in the times without internet was very low, and the general economy of the equivalent States was not allowing new investors to venture into the businesses (Appelbaum, Iaconi and Matousek, 2007).

Situation of Business Environment with Internet

The Internet has changed the general functioning in the development and maintenance of business strategies. It is easier to do business in the online platforms than the time people had nowhere to acquire relevant information about their businesses. People can now make consultations from various international firms about their problems of activities on the online platform. The problems experienced in markets, which leads to failure in businesses are now easy to solve because there are various websites with the relevant information to address such issues. Information is ever available, and better channels for communication like Skype and others have been developed, creating an environment for the relationships between the investors for a better business growth. Issues erupting can be solved without waste of time after because consultations can be made over the internet to the relevant professionals. This factor closes all the chances of incurring losses due to prolonged business problems without provision of solutions (Laudon and Traver, 2014).

Developers have dedicated their efforts in creating software programs, which will help in doing laborious tasks in the businesses. An example is the accounting programs designed to ease the work of keeping account and generation of reports showing the progress of the company. With the use of such technologies, the business has a greater chance of succeeding in its endeavours. Businesses are in the position to know and understand their competitor leading them to the production of better products to win the market. The information is available online together with their economic progress. This enables firms to improve on their ways of production, management and advertisements. The internet has created cost-effective and reliable advertisement platforms, which includes the socials, personal and company websites. Adverts done through these platforms are viewed by a lot of individuals thus giving the business a higher capability of growing.

Benefits of Internet in Businesses

Communications between the associates, customers and employees have been enhanced by the availability of the web. The businesses are no longer afraid in locating different branches of the company in various geographical locations. This is because communication between the branches will be the same as being in the same place. Through this strategy of expanding the businesses, more customers are reached translating into significant profits. Apart from the use of telephones and mobiles phones which are available in the community, other communication channels like E-mail and instant messaging have been developed. These channels contribute positively to the development of the businesses. According to research was done, around 38% of the male businesses and 36% of the women businesses use email frequently as a mode of communication, and the others use it occasionally.

Telecommuting is another method of working, which has been enabled by the availability of internet. This helps people who have specific reasons for not attending workplaces to be given a chance of working from home via the web. Others give full mandate of working from home places thus reducing the costs incurred in payment of offices. These types of businesses have a higher chance of making more profits because of the reduced overhead costs. Many people would prefer telecommuting because of its outstanding benefits to the employer and the employee. According to research was done by the suite commute website conducted in 2008 indicated that around 33.7 million workers telecommuted and they were enjoying it (Francis, 2016).

With the help of the internet, companies should keep information about their products updated to ensure that the customers can know the new arrivals and improvement. The marketing strategy should no longer be localised; rather the businesses should understand that the internet provides a common platform to compete with the international firms. A customer from any part of the globe may be interested in the products, which requires the business to develop a delivery service to be different from others. The companies’ profiles website should also include surveys followed by forms, comments and questionnaires to ensure that the customer can give their views on the improvements required.

Internet advertising should be included in the general budgeting of the activities of the company (Huarng, Yu and Huang, 2009). This will boost the capability of attracting different customers in the world. This is because the internet is worldwide and does not distinguish people with their geographical differences. The company’s, personal and social websites together with banner placement and optimization of search engines enable the company to reach millions of potential customers around the world. The businesses have been boosted by the cheap mode of advertisement, which are efficient and reliable. Reaching many potential clients with minimal costs contribute to the higher costs after the customers acquire the products.

Different companies can work together to the success of their businesses by making webinars in times of meeting. Enterprises which have difficulties in their proceedings can consult with their partners and advises adopted to balance the demands. It is easy to work with people from all parts of the work having the same target in making a successful business premise. Without the internet, it would be hard to work with other professionals and businesses in different locations. These collaborations make business partnering successful, which captures the interest of investors who enrol to be partners of the investments. The enterprise’s growth depends on the number of investors who have entrusted the firm with their finance.

The availability of internet has enabled people in different businesses to do research works that benefit the progress of the firm. Ideas of making the products and services to be of the best standards are acquired on the internet (Zikmund, 2013). This is because the web is wide, thus accommodating a lot of information found on different websites. It is very easy to get the information by making use of the search engines such as Google, Yahoo and Bind among other many productive engines. Information which is not understandable can be forwarded to various consultant firms offering online services (Aspray and Ceruzzi, 2008). All these activities help in the development of the business by acquiring more customers and improving the products’ qualities to fit the requirements of the end users.

New ideas about the products are achieved by using the internet to research on the possible developments in their products. Research relating to the population in need of the services offered and products manufacturers can be done on the internet to be able to know how much influence the company has on the society. In times of expansion, the entrepreneurs can use the internet to research on the best area to make the investments. Use of the online databases will help the investors to understand the geographical location of the chosen area, the population of the area and the best-fitted services and products. Through the acquired information, a good approach strategy on the investment will be developed to ensure that chances of incurring losses are minimised (Bocij, Greasley and Hickie, 2014).

In businesses conducting books, magazines and publications in the society have realized that they can attract customers online. Instead of making a lot of publications, which are never bought, the products can be sold over the internet as soft copies (Clarke and Kingsley, 2008). This online strategy has reduced the production by reducing the printing costs. Printed books can also be sold on the web and delivered to the buyer in any part of the country or the world as a whole. This has led to the development of the website of different companies stating the prices of their products. There are also quotes of the available stock so that the customer is informed about the amount available. Customers can make orders for their goods in the comfort of their home and delivery made within their quoted time. A lot of information is being put on the internet, which can be of help to the growth of the enterprises. An example, traffic information in some areas is available online, and the companies use it to know the best time for transportation of goods.

Negative Impacts of Internet on Businesses

The availability of online business can create a big competition to the traditional stores by the online marketers and retailers. This influence people to be involved exploiting the store by just making comparisons of the prices. The customers can decide to range the prices in the traditional stores and order the same products from a cheaper online retailer. This will be a disadvantage to the investors of the traditional model of retailing. This can pull these stores and wholesalers out of businesses after losing revenues and customers.

Lack of face to face relationships between the customer and the entrepreneur can contribute to impersonality cases leading to completion posed by an unknown individual. The customers get the perception of the faceless, uncaring and impersonal nature of the company. This can contribute to a loss of faith from the client upon failing to meet the conditions of the business prerequisites in the first instance. If the company provides the available stock in their online databases, a client may be discouraged in making an order for the view of little stock remaining. In the cases where the employees communicate with co-workers and managers of the company via the internet have high chances of feeling demoralised. This factor may trigger them to contribute little to the development and success of the enterprise.

Business done on the web has a lot of risks of being attacked by hackers, which may expose the confidentially of the company leading chances of robbery. The exposure can also result in inappropriate publicity resulting in a loss of customers and revenue. There no reliable security measure which can be installed against the hackers (Himma, 2007). Therefore, it is precarious to conduct a business premise involving a considerable amount of cash over the internet. This is because the chance of being doing business with hooligans is high. The only sound business strategies in such conditions are done in a face to face method of trust and reliability (Jelassi, Enders and Martínez-López, 2014).

The reputation of the companies who fails to satisfy their customers has high chances of being destroyed. This happened after the other viewers of the website or online marketing site see the wrong message about the company (Bailey, 2011). The sales go down because of the influenced willing customers after reading the comments of the unsatisfied customer online. Therefore, the companies should handle the customers with care to avoid breaking their hearts on the issues of not delivering the required services. Other competitors can hire hooligans to destroy the reputation of the other company so that the customers can deviate to their enterprises. Finally, online presence in the businesses has reduced the productivity of then workers who spend most of their time if sites which are not productive to the company. This contributes to the wastage of time and money, which are valuable resources in the world of business (Belew, 2011).

Conclusion

The presence of online platforms for doing businesses has contributed much to the operations and their commercial environment. Almost all the parts of companies process have been impacted positively regardless of few adverse effects observed. The parts of the businesses which have been affected positively include the production, marketing, innovations and sales departments among other areas. Business relationships have been enhanced, also encouraging international investor into the local investments. All these have been as a result of the technological advancements in the society. Local investors have been challenged to think internationally after engaging in the internet mode of doing business activities. Chances of getting more customers have been boosted by the online advertising and marketing strategies. It would be better for the large scale businesses and the small size enterprises to involve themselves in online retailing to experience better-digitalized methods of performing their activities. The outlined adverse effects should not be drawbacks of advancing the business premises on a technological level with simplified activities. In fact, they should be the points of reference to be on watch to ensure that the firms thrive well without any difficulties. Finally, there is enough evidence to conclude that online presence has been of great help in manufacturing, advertising and selling by providing cheaper options of conducting business (Chaffey, 2014).