Analyzing the Impact of the Internet on Business Organizations

This report provides a comprehensive analysis of the impact of the internet on business organizations. It explores how the internet has revolutionized communication, marketing, research, and telecommuting, highlighting both the positive and negative effects. The report discusses the advancements in digital marketing, social media's influence, and the rise of e-commerce, while also addressing challenges like cyber security and increased competition. It examines the impact on business strategies, customer relations, and the changing landscape of advertising and market research. The analysis covers how businesses leverage the internet for global expansion, customer engagement, and operational efficiency, with considerations for both large and small enterprises. The report concludes by evaluating the overall transformative effect of the internet on business practices and the need for adaptation in the digital age.

Impact of internet on business
organisation

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Impact of internet on Business organisation...............................................................................3
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Internet have provided the global computer networking that help people in exchanging
the information and it have also enhanced the communication facilities. This interconnected
world has maximised the large opportunities and it have also provided the scope for expanding
the business activities (Bouma and et.al., 2015). The technology has integrated business and its
operations. it has enabled in reducing the flexibility of task. Moreover, internet has provided vast
number of opportunities for business to expand in different markets. Besides this, internet has
provided a large number of data and information for business to analyse. So, with help of it they
are able to identify change in market trends. Internet has created a strong network between
people and firms. There has been more efficient and faster selling of goods in the market. now,
organisations are not dependent on local market to earn profits but on international as well.
Social media and website have modified the way of communication and managing competition
in market. This report will help in understanding about the concept of internet in real world
which impacts on the business organisations. The study will help in understanding about the
management of strategies in business using the concept of internet. It will also help in
understanding about various impacts of internet on business organisations.
MAIN BODY
Impact of internet on Business organisation
Organisation is consisting of various integrated features that may adopt various ways to
perform the commercialised activities (Ebert and et.al., 2016). In order to run the successful
business, entrepreneurs have to consider various factors which leads them towards the attainment
of successful objective. Originally, internet was used only by the government and universities
that advances low variety of features to employees of the government sector as they have to
maintain the international and international information. Technology has made it possible to
exchange data and information in wide area. Organisations are expanding in various markets and
delivering goods and services to people. they are able to operate worldwide.
Furthermore, it has reduced almost 70% human efforts and load of the entrepreneurs as it
has provisioned all the automated software that performs all the tasks accurately without the use
of skilled employees. But nowadays internet has rapidly grown over the past few years with the
advancement of many more new features that provide easy access to private organisations. In
this highly competitive world internet have provided several useful techniques that derives

business ideas which helps them to achieve the huge profitability in the business. Advancement
of technology in the form of internet can be used by the companies in identifying the level of
their business activities as compared to other enterprises in this society and this internet can also
be used to increase the sales and retain the loyal customers of the firm for the longer duration
(Kaivo-oja and et.al., 2015).
In addition, it has completely changed the base of the local customers by improving the
effective communications and interactions of the employees as well as establishing the
connection of customers with the company. The innovation has bought with the introduction of
technology, businesses have learned to develop the operational activities rapidly. The
technological globalisation has completely changed the ways of international, political and
regulatory standards of the company. The organisation which deals with large business
operations have to maintain huge data base and records of the organisations and in order to store
various kinds of information such as inventory management, accounting management, Human
resource management etc. (Laugesen, Hassanein and Yuan, 2015) So, internet have advanced
various benefits which have reduced the human efforts and needs to maintain complicated
paperwork for storing the information in the business. Moreover, internet have introduced a new
way to advertise, think, and even approach in order to create a new customer base. There are
various impacts of adopting technology or internet oriented things on business organisations. It
may be negative or positive such impacts are as follows:
Communication
Improved interactions and communications with the customer have helped in taking
reviews and feedbacks from the customers that ultimately help the organisation in growth and
development. Social media have provided the effective platform which have helped the
businessman in identifying the demands of customers. Enhanced communication also helps to
attract the large customers by providing various information about the use of products and
services. Such conversations with consumers using social media or other communicational
websites may help customers to compare the products with different competitive companies in
order to consume the best out of all.
Telecommuting
Internet have provided effective communicational facility to business in order to perform
the telephonic conversations with the people in order to take the enquiries and feedbacks from

large people personally (Xiang and et.al., 2015). This helps them to observe different
perspectives and estimations of the people regarding the use of products and services of a
specific brand. Also, telecommunication help the employees of the company for the smooth flow
of information, commands and instructions which help them to produce the desired productivity
of the company.
In addition, this also helps them to increase the profitability as telecommunication
improves the relation of the employees in the company and they feel motivated that leads to the
achievement of main objective of the organisation (Positive effect of internet on business, 2017).
On the other hand, increasing use of technology and telecommuting have also increased the
chances of data loss and security concern to the company which may impacts negatively on the
sustainability and growth of the organisation (Grayson and Hodges, 2017). Although, many
companies are now offering various options for their employees such as work from home using
tools and equipment’s that are provided by the company so this process can be commonly
referred to as telecommuting. This allows the business to minimise the overhead cost by needing
less office space and in order to provide utilities for performing daily business operations. This
have provisioned employment to almost 33.7 million of employees telecommute that help the
unemployed people for earning money ideally sitting at home.
Marketing
With the advent of internet marketing, a business has to identify the needs of the
customers in order to provide goods and services according to their requirement. This helps in
increasing the purchasing power of the employees which helps the business in obtaining the
maximum sales of the company and hence in this way internet have impacted on the positive side
of the organisation by identifying the marketing requirements of the consumers. Internet
technology have globally expanded the views of the ideas which leads to the increased
competition among the similar brands across the world.
Advertising-
As said by Agwu and Murray, 2018, in today’s era the way of advertising has
transformed. This is because of use of internet by business in promoting their products. apart
from it, evolution of digital marketing has created a platform through which large number of
people can be attracted. Another positive impact of internet is integration of digital marketing
with social media. Businesses are highly using social media marketing to promote their products

and services. it has enabled them to target specific markets and influence their buying behaviour.
As elucidated by Sharma, Mithas and Kankanhalli, 2014, modern way of advertising has
allowed business to develop effective strategies. Due to this, there has been a high reduction in
advertising cost and less waste of time. But on the other hand, according to Ehret and Wirtz,
2017, the negative impact of internet on business is rise in cyber crimes. It has been observed
that while doing digital marketing there has been increase in frauds. Hacker try to hack customer
confidential data and information and use it in unethical way. in addition, they also try to access
business information and provide it to third party. Due to this, firm has to install high security
software and application. They have to maintain them in order to ensure security and privacy of
data. it has led to rise in expenses. There is a lot of fake advertising which is done on internet and
social media sites. It has resulted in reducing customer satisfaction.
Research
In the view of Harris, Wang and Wang, 2015 , internet has revolutionised the way of
doing business. it has impacted on its growth and development. in recent times, business is
focusing on conducting research and development in the market to gain large amount of data and
information. This has assisted them in finding out crucial and important information such as taste
and preference of customers, competitors’ strategies, market opportunities and threats, etc.
therefore, by analysing this they are able to get precise and accurate outcomes. Thus, it is applied
in developing strategies and tactics, products, etc. in study conducted by Soto-Acosta and et.al.,
2016 internet has allowed organisation to take their reviews and solve problems in real time.
On the contrary Ebert and et.al., 2016, said that for conducting research a huge cost and
lot of time is required. This restricts small companies to collect data and info. moreover,
sometimes products developed by info gets failed due to change in market condition. It affects
growth of companies. alongside it, research enforces firms to modify their technological
infrastructure by implementing new process or methods. Also, frequent change management
affects their performance and operational efficiency. It becomes difficult for them to maintain
productivity.
It is said by Kaivo-oja and et.al., 2015, that in present time internet has become an
integral part of human life and business. it has given an opportunity to operate worldwide to
generate more profits and sales. The major benefit of internet is on small and medium size
business. they are able to enter in new market and providing advance and high quality products

and services. now, there is both physical and online existence of every organisation. its positive
impact is it has provided ease to people to buy products. in a research conducted by Agwu and
Murray, 2018, it is been stated that internet has reduced the gap between consumer and business.
it has allowed in making presence of business globally. People can communicate with each other
openly across boundaries and share their reviews. the increase in communication has resulted in
getting connected with people. it has made it accessible in delivering of services.
As elucidated by Ehret and Wirtz, 2017, internet has removed the barriers of entry. It
has led in rise in number of start ups. By using internet people care entering in small business
and establishing products on networking sites. Another advantage is organisations are able to
hire experienced and talented people. they post job vacancies on blogs, website, etc. through
which candidates can be hired. The Internet allows businesses to research products and services
in demand to gain dominance over a niche. This increases entry into small niches and reduces the
chance of failure.
But () argued that there is negative impact on business as well. Now, internet is used as
tool to attract people. it has allowed in quick entry and exit, but it has led to rise in competition
within industry. there are numerous competitors entering in market. they create fluctuations in
prices and market condition. Hence, big firms are not able to retain their customers. furthermore,
there is frequent change in needs of people which has forced companies to continuously develop
new products. due to this, large companies are able to dominate market. thus, local firms are not
able to survive for long term.
Similarly, internet has resulted in rise in unemployment. The automation of task has
reduced less involvement of humans. the streamlined operational process has restricted in hiring
of labour. In addition in a study Harris, Wang and Wang, 2015, it was stated that security is
major drawback of internet. In recent times, there has been high rise in activities like frauds,
hacking, etc. this has impacted on reputation of organisations. Not only did safety but also it
lower customer satisfaction. The major attacks are done at time of payment (Negative effect of
internet on business. 2018). Here, hacker access data and information of customers. so, in order
to improve and secure safety systems, a huge expense are incurred. This decreased profits and
increases expenditure of organisation. another negative impact is on productivity of employees.
for example – in a study conducted in US, it is been analysed that American workers spend most
of their time on replying to E mails, and surfing on internet. it impacted on their performance

level. There were many other things that was taken into consideration. In view of Soto-Acosta
and et.al., 2016, the main concern for enterprise in present day is privacy of employee data.
Subsequently it can be analysed that internet has created balance between both positive
and negative impact (Grayson and Hodges, 2017). It has combined different operations of
business and enhanced its efficiency. The strong connectivity with people has made it possible to
retain them and identify their needs. the availability of variety of products and services has
influenced on buying behaviour. They can easily compare different products and select best one.
In contrast to this, it is been argued that internet has resulted in trade war between companies. it
has resulted in cyber crime leading to unethical practices. Due to this business has to suffer huge
loss. Now, customer prefer to buy it only from registered website. for example – website such as
Yatra, TripAdvisor, etc. has suffered negative impact due to dissatisfied customers. it has created
bad impact on their reputation in the market. the brick and mortar concept have been adversely
affected. Small physical stores are finding it difficult to survive in market. this is because each
and every product or service is not available online. In this retail market growth is declined as
many stores are going out of business.
CONCLUSION
From assignment it can be concluded that internet has been beneficial for business
growth and development. It has provided a platform to expand into different markets. Also, there
has been both positive and negative impact on it. but it has positively impacted on organization
in serval ways. It has improved their communication networks. Moreover, the marketing and
advertising of products and services are done in effective way. this has reduced cost as well as
time and by using social media large number of people are targeted. Besides this, negative
impact is it has led to rise in cyber crimes. It has forced enterprise to implement high security
software and applications. It can be summarized that internet has become an integral part of
every business. now, there is both physical and online existence of every organisation. its
positive impact is it has provided ease to people to buy products

REFERENCES
Books and Journals
Agwu, E. and Murray, P.J., 2018. Empirical study of barriers to electronic commerce adoption
by Small and Medium scale businesses in Nigeria.
Bouma, G. and et.al., 2015. Internet-based support programs to alleviate psychosocial and
physical symptoms in cancer patients: a literature analysis. Critical reviews in
oncology/hematology. 95(1). pp.26-37.
Ebert, D.D. And et.al., 2016. Self-guided internet-based and mobile-based stress management for
employees: results of a randomised controlled trial. Occup Environ Med, pp.oemed-2015.
Ehret, M. and Wirtz, J., 2017. Unlocking value from machines: business models and the
industrial internet of things. Journal of Marketing Management, 33(1-2), pp.111-130.
Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge.
Harris, I., Wang, Y. and Wang, H., 2015. ICT in multimodal transport and technological trends:
Unleashing potential for the future. International Journal of Production Economics, 159,
pp.88-103.
Kaivo-oja, J. and et.al., 2015, August. The effects of the internet of things and big data to
organizations and their knowledge management practices. In International Conference on
Knowledge Management in Organizations (pp. 495-513). Springer, Cham.
Laugesen, J., Hassanein, K. and Yuan, Y., 2015. The impact of internet health information on
patient compliance: a research model and an empirical study. Journal of medical Internet
research. 17(6).
Sharma, R., Mithas, S. and Kankanhalli, A., 2014. Transforming decision-making processes: a
research agenda for understanding the impact of business analytics on organisations.
Soto-Acosta, P. and et.al., 2016. E-business, organizational innovation and firm performance in
manufacturing SMEs: an empirical study in Spain. Technological and Economic
Development of Economy, 22(6), pp.885-904.
Xiang, Z. and et.al., 2015. Adapting to the internet: trends in travelers’ use of the web for trip
planning. Journal of Travel Research. 54(4). pp.511-527.
Online

Positive effect of internet on business. 2017. [online] Available through : <
https://bizfluent.com/info-8236794-positive-effects-internet-business.html>
Negative effect of internet on business. 2018 online] Available through : <
https://smallbusiness.chron.com/technologys-negative-impact-business-19118.html >

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