Application of Internet in Business
The Internet is a rapidly growing network of millions of business education and research and network connecting hundreds of millions of computers and they are users in over two hundred countries. It is a network of global exchanges – including private, public, business, academic and government networks – connected by guided, wireless and fiber-optic technologies.
The applications of the internet in business areas follow:
- Sales and Market Reach:
A small company selling hot sauce realized an increase in sales of over $60,000 annually with an investment of a few thousand dollars in a World Wide Web site. Entertainment companies use the Internet and World Wide Web to showcase their products to consumers, who can see still photographs, video clips and hear audio of their favorite entertainers. And, of course, consumers can purchase the products they preview on the Internet.
- Financial and Legal Enterprises:
Financial and legal firms save time, printing and distribution costs by posting legal notices and filings on the Internet. Electronic publication of white papers and useful information for clients increases public awareness of the firms.
Advertising agencies and publishers increase income from existing clients by utilizing the Internet as part of their marketing mix.
- Internet Electronic Mail:
Companies with nation-wide or world-wide ‘ communications needs have saved many thousands of dollars in telephone expenses through the use of electronic, mail on the Internet. Audio and video conferences are also available. One of the great advantages of Internet e-mail is that your message gets through without constant phone tag delays.
An engineering firm based in California is able to use the best worldwide engineering talent for its projects by exchanging design drawings over the Internet. They are able to complete projects in half the time of their competitors who must travel across town to design review meetings.
- Electronic Data Interchange:
A firm marketing to the government utilizes Electronic Data Interchange (EDI) over the Internet to process purchase orders and automatically tile reports to government agencies, saving personnel costs and time involved to receive payments. A major manufacturer uses EDI to connect all of its suppliers to its purchasing and stockroom computers to provide automated inventory replenishment, saving a quarter million dollars in inventory expense per year.
- Worldwide communication:
An art broker specializing in major artworks conducts her worldwide business entirely on the Internet.
- Keeping Employees Productive and Informed:
Thousands of small and large companies use the Internet to communicate with their field sales forces, including automatic updates of lead tracking databases, order entry, and electronic mail. The Internet allows ‘ companies to reduce overhead and increase productivity by facilitating telecommuting of personnel. The Internet can also reduce overhead by providing centralized, paperless internal access to databases of personal information, company policy, broadcast notices, technical and sales information.
Publishers put their products on the Internet, increasing circulation, advertising income and reducing the ever-escalating costs of printing, paper, and distribution. Publishers use the Internet to transmit photographs, advertisements, and editorial copy to reduce the time and expense required to get the publication to press.
- Public Service:
A non-profit organization uses the Internet to match donors to individual needs during a disaster. The Internet remained available while other means of communication were cut off. A county sheriff posts “most wanted” information, crime statistics and receives tips from citizens on the World Wide Web. Chambers of Commerce, city and county governments use the Internet to inform citizens and promote commerce to a worldwide community.
Researchers have vast data warehouses available everywhere on the globe. Marketing and competitive analyses, government documents and requests for bid, international trade information, financial data, patent and trademark research, demographic and census data, SEC filings and the entire catalog of the Library of Congress are a few among the thousands of research tools available on the Internet.
- Direct Marketing on the Internet:
Direct marketers, catalog retailers and people operating home-based businesses use the Internet to sell products. Entire shopping malls exist in cyberspace, selling everything from flowers to automobiles.
As you can see from the applications outlined above, the Internet has tremendous potential to reduce costs and increase profits by the following methods: (1) simply being connected to the Internet enhances communication and (2) a World Wide Web site attracts customers.