Achieving Business Success Through the Internet - Coursework Example

Achieving Business Success through Internet Achieving Business Success through Internet Introduction It is estimated that e-commerce sector in UKwill witness annual growth of 6% till 2014. Further, as per Forrester Research, about 37 million British will shop online in 2014 by expending more £163.57 billion on the whole as against 28 million who are shopping online currently. According to recent” IMRG Capgemini e-Retail index “which demonstrates that British outlay on purchases made through internet increased by 19 % year to year basis in January 2009. (Marvellousmedia.com 2009). As of date, total internet users in the world is around 1,581,571,600 individuals and it is about 26% of the world population is using internet on daily basis. (internetworldstats.com). This era can be termed as “e” age since ‘e-marketing’ is the new phrase for marketing and eCRM is the recent aligning of Customer Relationship Management. As of today, e-commerce is an inevitable part of selling strategies for the majority of B-2-B companies. The role of internet in the B-2-B world is ever widening and its significance is growing eternally as internet has become a gateway to global marketing. This research essay analyses how improvement in information technology especially communications through network has facilitated the business, commerce and communication worldwide and resulted in success of the business through innovation and new knowledge. Analysis The most salient characteristics of the Internet include e-mail ,discussion groups [like news groups , forums ,bulletin boards where a net user can post messages and look for replies ] , chats and instant messaging , wikis [ website on the internet that can be edited by any net user] adventurous online games , information retrieval , e-commerce , Internet-based telephone services [VoIP] , and web mashups [ where any net user combine their web-based data and services with those of other companies] and so on. [The Columbia Encyclopaedia 2007]. File Transfer Protocol [FTP] is employed to transfer information between computers operating from various networks. The supreme impetus to the popularity of Internet originated from the introduction of World Wide Web [www], a hypertext system that facilitates the browsing more intrusive and fast. Electronic Data Interchange [EDI] can be described as the transmission of information through electronically or exchange of documents between the computer systems in multiple business organisations relied on a structured, standardised and machine-retrievable format. EDI has been extensively acknowledged as a significant business tool to assist inter-organisational business transactions and at time to improve internal operations by integrating both external and internal systems. It is said that EDI helps to achieve quick retort and just-in-time stock handling in order to achieve competitive advantage. Further, EDI also enhances trading relationships by exchanging information between trading partners. By aligning “modem Internet interfaces” with EDI will foster total new avenues for e- commerce. EDI has not only minimised costs but also reduced production distribution and marketing cycles. Moreover, since each EDI manuscript is in an electronic-oriented structure, it can be employed for domestic purpose by each of the trading associates. [John Puttre 1997:23]. Further, according to Forrester Research press release made on September 19.2005, US eCommerce has estimated that online retail sales will be reaching to $329 billion by 2010. (Fox 2008:29). Further internet industry offers employment for more than 3.08 million employees around the globe as on date. How IBM misjudged the tip of the ice berg. IBM did its own research when personal computer was first developed about its future. At that time, IBM research associates estimated that total world demand for personal computers would be in the range of 200 to 500 units per annum and hence, they decided to stick to their business operations for the development and selling of mainframe only. However, today, more than 50 million personal computers are being sold per annum and mainframe has turned to be secondary to the information technology revolution. Here, IBM misjudged the future market about the role of personal computers. Thought it had innovation and new knowledge creating capability , but it missed the lion’s share of personal computer market while Dell , HP , Apple are harvesting the same even today. Thus, IBM overlooked the tip of the Iceberg. (Tracy 2002: 120). Success of Dot.com companies The unbelievable success of internet companies like Yahoo, Google, Amazon, eBay, American Online, Priceline and others is chiefly due to great numbers of clients perception that these sites to be excellent in features and designs as compared to other sites that sell analogues products and services. (Tracy 2002: 135). The above companies started as a small business ventures. They used internet by making their selected products or services more affordable or easier to access to their customers. Though, all these companies have grown as big corporations as of today, their approach to recognise and to foster new business through internet is still in progress. For instance, Dell’s gross revenue in the year ending 2008 was $61 billion. According to Dell, the company’s online sales reported about 30% of its total sales. It is to be noted that lion’s share of Dell’s business is made through business-to-business method. (Silverstein 2002:23) Dell’s internet sales competence and superior supply –chain operations through internet actually offered considerable cost savings to the company. On seeing the Dell’s success due to e-commerce activities, GE followed the suit and now it has started large-scale e-commerce activities. Visa cards used the technology that work globally and fostered new avenues for electronic commerce. Some companies integrate their corporate website with e-strategy and it works as a marketing apparatus. These websites offer a numerous services like, software, medical publications etc. For instance, Merck website offers an interactive model of its renowned “Merck Manual” at its corporate website. For example, Pfizer’s Viagra .com and Merck’s Vioxx.com are good instances of proprietary websites that construct brand loyalty with consumers. In online bridal registry services, WeddingChannel.com is the global leader as of today. This website offer its services to more than 40 million page views per month. More than 700,000 couples who are to be married soon exchange their gifts through this site only. Thus, this site offers more than 15 million varieties of wedding gifts to buy from its online stores. Tim Gray , one of the founder of this company visualises that internet is being a vast enabler for business owners since it breaks down so many obstacles and barriers that customarily limited to reach by start-up companies. Thus, internet or worldwide web is an excellent tool for an entrepreneur asWeddingChannel.com can quickly sell his products to worldwide consumers without incurring huge costs that one used to incur on the normal parlance. (Fox 2008:74). Numerous case studies have demonstrated that companies can attain cost savings in the range of 15% by automating, harmonising and supervising these internets based purchasing activities and internet offers a natural mechanism for automating these purchasing processes. Thus, this cost savings will help to increase the bottom line and to increase in the return to shareholders. Industry analyst have estimated that almost all ‘global 2000’ companies and both medium and small sized companies will harness the internet for their sourcing activity within the coming decades. Return on investment (ROI) is accomplished by having an automated system which in general combines purchase thereby minimising both administrative and accounting overheads and then makes the order with low cost vendors by typically analysing shopping over internet. (Keyes 1999::93) For instance, Wall Street is being now connected with the other primary money markets like London, Tokyo, Germany with the advanced internet technology and hence, it is easier to make transactions instantly from any of the places mentioned above. Further, internet technology facilitates for outsourcing back office jobs to countries like India, China, Philippines so that business can reduce the cost and overheads and can maximise their revenues. Internet is widely used by the governments for various purposes .One of the usage is to make the assessees to file their tax returns through online. Online tax filings make tax returns filing and payment of the taxes easier and less cumbersome. Now in USA, both state and federal tax forms and instructions are available online and it can be easily downloaded from the website www.irs.ustreas.gov. Tax returns can be now filed through Internet and tax payments can be made through online. Online filing through Internet is speedier, expedient and more precise than the traditional paper filing scheme. Under this method, IRS confirmation for filing tax returns is acknowledged instantly through online. Further, it also facilitates the IRS to forward the filed tax return data’s to the concerned state agency. Further, by using internet, users can now connect to office network through virtual private network [VPN] so that, for all office functions like communication, accounting, banking, etc can be carried over in their home pc or through their lab tap itself without virtually sitting in an office. Thus, these virtual offices are being very convenient as it is less expensive and comes with enhanced communications security. [James P Davis 2006]. Further, in the world of education technology, the internet media has facilitated the access to education very rapidly and now it is possible to pursue education from anywhere in the world by studying through online and to earn online degrees etc. [Geoffrey H Fletcher 2002]. Improvement in technology has resulted in globalisation and this has in turn achieved improvement in the technology of communications and transportations. Advancement in technology has in fact reduced the costs of transportation of goods, services and factors of production. Internet technology is being widely used in election campaign also. In U.S.A, electoral candidates is employing the web technology like online communications platforms such as blogging , instant messaging , text messaging , e-mailing and social networking to plan their election campaigns and to shore up support and to let know the public where they stand . [Washington Times 2007]. Now, Internet technology facilitated much advancement in commerce as ATM [Any Time Money] is being widely used for withdrawal of money any where and any time in the world. Further, export and import business is made more convenient now through internet as contracts can be signed through emails using the e-signature which will be legally binding the parties concerned. Conclusion: Total humanity is reliant on technology nowadays. Almost 90% of the corporations around the world have their corporate sites now. By using internet platform, commerce can be accomplished from one corner in the world to another corner in the world. Advancement in technology has no doubt has enhanced our quality of life many folds and will definitely continue to do so in the coming generations also. Innovation and new knowledge creation has been achieved by Yahoo, Google, Amazon, eBay, American Online, Priceline by tactfully utilising information technology for their e-commerce activities and others also vying to share a major pie in the global e-commerce market. List of References ‘Internet, The.’ (2007) The Columbia Encyclopaedia, 6th ed, Columbia: Columbia University Press. Davis, J. P. (2006). ‘Telecommute Safely: Use Internet Technology to Keep Cost Down.’ Journal of Accountancy 202, (2) 39 Fletcher, G. H. (2002). ‘Igniting the Internet Revolution: A New Category for Education Technology.’ T H E Journal (Technological Horizons In Education) 30, (4) 1 Fox, Scott C. (2008) Internet Riches: The Simple Money-Making Secrets of Online Millionaires. New York: AMACOM. Keyes Jessica. (1999). Internet Management. Florida: CRC press. Marvellousmedia.com (6 March, 2009) Growth Predicted For UK E-Commerce. [online} available from < http://www.marvellousmedia.com/news/19061792/growth-predicted-uk-e-commerce/> accessed on 18 March 2009 Nelson, M. R. (2006, Spring). ‘Let the Internet Be the Internet.’ Issues in Science and Technology 22, 36 Puttre, J. (1997) ‘Can Internet Standards Bring EDI to Everyone? ‘Business Communications Review, 27, 23 Silverstein Barry (2002) Business to business internet marketing. New York: Maximum Press Tracy, Brian. (2002). The 100 Absolutely Unbreakable Laws of Business Success. San Francisco: Bernett-Koehler Publishers Read More