Impact of internet on business

The fact is that it’s impossible to conduct business without the internet. In business from idea to management, production to marketing, selling and purchasing and accounts management to tax filing it seems internet is impacting the traditional methods, ongoing operations and innovations in business.

The Internet is in every tool that business is using and will use in future. You can also say that every innovation and new technology is just a part of internet. Without the internet, nothing will work and that’s why the internet is the main source of current and in future for all kind of innovations, technologies and business models.

Internet connects businesses and consumers to the platforms of communications, trade, education, and entertainment. Now entrepreneurs, leaders and companies investing on digital marketing, business automation, remote hiring, e-commerce, and online collaboration tools and trying to increase the speed of creativity and excellence in daily operations with the help of internet technologies.

Now the consumer is expecting the revolutionized products and services. Customers priorities, expectations, desires and styles are changing. It’s because customers are now connected with educational platforms and content. And due to the availability and higher speed of information, knowledge, and opinions, it’s changing the decisions and priorities of customers, consumers, companies, and robots (Artificial Intelligence applications and technologies). And that’s why the impact of internet on business is negative and positive.

In political language, if the impact is positive of the internet in the USA on businesses then within few seconds it starts impacting the businesses in India. That’s what the internet has done and will do in the future. And in common people language if you infected from cold in Japan then within a few seconds it starts impacting the people in California.  

It’s because we all are now connected to the internet from business to consumers, teachers to students, readers to writers and we can communicate instantly from anywhere on any device and anytime. It was not possible a few decades ago. Obviously, it’s impacting businesses, employment, environment, entrepreneurship, societies, education, and politics.

Related: Importance of internet in business

So now let’s start understanding and analyzing what is the impact of the internet on business and how it works positively and negatively in details:

1. Marketing opportunities:

The majority of businesses use the internet for marketing and selling. Businesses can use a search engine, social media, email, website and blogs to promote products and services on the internet. It is known as digital marketing. Digital Marketing tools help all kind of businesses to communicate the marketing message and brand values with the people using social and search channels in low cost. In this the impact of internet on business is positive.

And businesses are able to grow sells and attracting more customers with engaging campaigns, digital content, tools and by using online marketing methods to their online and offline stores. The negative impact is on small scale businesses.

Small scale businesses are unable to compete with big brands and their digital marketing methods. They are doing it but not like big brands. When any business aggressively spending the money on online marketing then it creates a monopoly on the internet and other businesses are unable to compete with them. But it’s not impossible to compete but yes, it required bigger strategies.

Learn More: Why digital marketing is important

2. Online business opportunities

Internet created opportunities to start and operate a business online. It has impacted the traditional markets. For example, today people are learning online almost every subject. They can do technical and non-technical courses and degrees online. It’s impacting negatively on local educational institutes and coaching centers that is started by small – mid entrepreneurs. It’s impacting “people can’t change themselves, business methods like a selfie”. And e-commerce or online shopping is making a big difference that is affecting the traditional shopkeepers.

But on positive side of the internet on business, there are big opportunities for everyone on the internet to start the business.

Anyone can start an online business from home. eCommerce, affiliate marketing, publishing, content creation, designing, and web/app development, blogging and digital marketing etc. businesses have big opportunities on the internet. There are thousands of people and companies doing business online and making a big profit in a shorter time. This is impact.

The impact is increasing the employment and entrepreneurship development programs. And it’s becoming very effective for consumers too and they are getting the services/products on the door.

But the impact is also increasing the competition on the internet for business. Every offline business wants to have online presence for the business on the internet.

For that, they are listing businesses on the google my business to let customer knows the location and availability of services. After that, every business is creating social media pages to keep the people connected and updated about the services/products.

They are creating a website to appear on the Google search results for users product and services requests. Many are using search engine marketing, email marketing, and content marketing etc. digital marketing methods to get more customers to their offline and online store. And it’s really increasing the growth and sales. The reasons that there are billions of people use internet daily for various things and it’s really convincing for them.

But it’s finishing the offline communication and connectivity with the people. You can order the food from the app but you never know who is the cook and how he/she has cooked.

You can order shoes, clothes and you don’t know how good it will until you have touched it. But the fact is that people are finding the problems in offline market and then creating and selling the solutions worldwide through internet. Even 80% of the business that is called innovative is a copied version from offline activities and business any sharp minded students with the help of money or support can do that.

But in this time copying offline traditions/methods/business and then creating an online business, apps, website, blog or anything is a go-to method to start an online business. There is nothing new on the internet other the copied inventions.

In online reality, the growth is lower than the start. It’s easy to start an online business or easy to start marketing online but tough to grow and build the brand. it required money, skills, team and proper profitable business models.

But due to competitiveness, it impacts the people who are running the business. People doing online businesses are more stressed, insecure, information overloaded and have less time for the family, environment and social activities. The business relations on the internet is robotic and no one knows who is behind the message. And sometimes it’s faked.

Without doubt, the internet created many opportunities for the online business but it’s also increased the insecurity, instability, stress and too much work. And people don’t have the time it’s because they have to work and work all the time to feel secure. The impact depends on the mindset of the business operator. If he/she is taking the internet as tool then they can keep using it for the profits.

Learn more: How technology has changed the business

3. Business automation

Business automation is the process in which daily business tasks, operations, management is programmed in apps, websites, software and hardware to run the business automatically. Business automation work like an alarm clock. You set the time 4 am to wake up and it will ring at 4 am.

For example, when you shop online on any e-commerce website and pay the price then it’s a part of business automation. In which business sellers and buyers get the notification mail, payment automatically while they are on holidays.

Automation of the business process is important in more complicated and challenging works. The goals are to decrease the human interaction with high-risk works and replace it with robotic interface. Such as firefighting services from robots, borders security through robots etc. Delivering food, water during floods times by using drone and robots etc. or the of technology in disaster management works will be common in the future. But now it’s in early stages and not matured yet.

Artificial intelligence apps and programs are the keys to business process automation. Google Assistant App in android, google voice search, Cortana in windows and chatbots are earlier examples in which various tasks are automatic and it’s all possible through internet.

When most of the things are automated in business, factories then it will reduce the cost of managing large teams of the workforce and will increase the productivity in business. It’s a positive impact of the internet on business. But negatively impact the employment.

Related: Strategic importance of cloud computing in business organizations.

4. Business development opportunities

The internet is impacted business development activities positively. Use of the internet in business enables companies, entrepreneurs, small scale business owners to find the growth and marketing opportunities in the new locations and country. Use of keyword research tools, data analytics and availability of the information is helping the business developer or business owners to build partnerships locally and internationally.

For example, there are various Technology Training Institutes in India providing information technology education. Someone in the USA or technology university, college and institutions want to invest in India in Technology Education then it’s easy for them to search, research, analyze the best institutes by using the internet. They can communicate through video chat, emails, they can search and research on each other’s credibility and credentials. And such business development practices impact the growth of any business.

Another example, Anyone Telecom company in India selling 3 internet data pack such as 1 GB per day in 100 rupees, 3GB per day in 200, 5 GB per day in 320 rupees. And they promote and market these data packs all over India. Now through data analytics, they will be able to get customer data.

Such as they know in which location they are getting more customers and where is less. For example, they got less customer in Rajasthan now what they will do? They will analyze the in-house data and apps data. They will call the state manager and ask for the reports. They will market more the company and data packs in Rajasthan. And sooner or later it will impact the business.

The simple logic here is the availability of data and analytics tools help companies and businesses to find/build strategic opportunities for business development.

That’s why internet is really important and you can say the main element for any business to build commercial relationships with customers or partners. And it helps to identify the market gaps, opportunities, competitors, potential partners and ease of communication within a click.

5. Competitive advantages

The impact of internet on market competition is high. The businesses using digital marketing, cloud computing, online automation tools, online accounting, eCommerce and artificial intelligence application and getting more benefits than competitors.

It’s because they are innovating and it’s impacting day to day business activities. Because digital tools are so much power to faster the research, production, distribution, management process. And this way many businesses able to dominate the market with their online marketing and management strategies. While it’s positive for business but it creates monopoly in the market that’s not good for national economic goals. But it’s happening from 2-3 decades and that’s why many countries are still developing. The leaders and expert in such nations and businesses have lack of deep technological mind or skills so that they can create and innovate the policies for the people for overall economic growth, not for few people or corporates.  

Economic growth in any country is possible if the policies and principles are covering or opening business/innovation/employment for  90% of citizens.

But due to the fact, many businesses are unable to integrate internet strategies and technology in their business models due to lack of funds, innovation, ideas, risk management, skilled workforce.

What I think is that 10% of companies are more powerful and they are using the internet and various technology to conduct business and now they are using new business models such as SaaS, PaaS, IaaS etc. But the growth in 90% of other businesses depends on the policies/innovation of these powerful 10% companies.

Internet impact positively those businesses who are prepared for innovation and change. Else it’s impacting negatively those are unable to change as per the technologies and trends.

6. Remote Staff

Businesses are able to hire part-time and full-time workforce for the projects through internet. There are various freelancing websites where they can choose talented freelancers. The management and production cost of in-house employees is higher than remote staff. Businesses can hire anyone and anytime.

Talents are filtered by web applications as per the skills, portfolio. It impacts the projected growth positively. It’s because of remote employees able to work from home. But remote employees are not suited and best for all kind of works. They are more suited for IT related business such software development, digital marketing, publishing, content creation companies. But because it’s good for IT related people and businesses that’s why the speed of innovation in through information technology is faster.

7. Cloud storage for business

These days almost every business go through the data. Businesses have to manage/secure employees data, marketing data and customer data etc. daily. It was a big work in the past. But due to cloud-based application and cloud storage, the data is automatically saved. And don’t’ required extra hours to manage it. It’s because all the applications that employees are using are cloud-based in which storage and accessibility are easy.

Learn more: What is cloud storage and it’s advantages

8. Employee training software and online training programs:

The growth of any business depends on the team and leaders skills. The more talented and skilled the workforce the faster and more will be the production and distribution. Market demands higher speed in impactful innovation, production, marketing, and distribution. While robots can do it. But robots also need to program. That’s why every business wants that they have highly skilled employees to fulfill market demands.

But to solve these problems and demands internet comes as a go-to solution. There are various online courses, degree programs for employees training and skill development on the internet. Business can create their own training materials and automate it. Employees can learn on the go and while working on the project. And it’s impacting the growth and entrepreneurship development positively.

9. Customers expect the data & information:

Due to the internet, today’s consumer is more intelligent and educated than a few decades ago. They want up to date information and data on the subject they are interacting with the businesses. And they want it faster. And if it’s not fast then they move to others.

For example, if a website takes more than 10 seconds to load, people will close it and visit another website. Customers are not interested or compelled to buy alternative products. They want what they want. If someone is not providing that then they move to others. And there are thousands of business providing the same product. That’s why businesses need speed and urgency is the impact.

10. Team communication and collaboration  tools:

Due to the best internet services for businesses, high-quality business phone system, cloud-based accounting, management, content creation applications etc. it’s easy for employees to collaborate and communicate customer needs in real time.

It’s a very competitive time for businesses to capture the opportunities. But they need innovation in almost everything. And cloud-based production and management application and collaboration, communication tools help to reduce the cost of IT infrastructure cost, speed the production process, ease of management etc. impact the day to day business operations.

Learn More: Uses of Artificial Intelligence in Daily Life

And obviously when every technology and tool is connected with the internet then it will impact the traditional and ongoing business models negatively and positively. The simple solutions are that business will needs adaptivity for the change according to the time else internet can impact the growth negatively.

When business is adaptive to change as per the internet technologies then they will see growth in sales and net profit. and if they unable to change they will see decrease in demands, sales, and profit. and even it’s possible that many have to close the business due to lack of innovation.

That’s how internet impacts the success and failure of the business. In one line, the Internet is main part of the business. and no one can ignore it in life, business, education.


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