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Home » Articles » Outsourcing » Unleashing the full potential of the internet for your business

Unleashing the Full Potential of the Internet for Your Business

Bangalore based Stylus Systems depends only on the internet to acquire business. The software and web-development firm has been leveraging the power of the internet for the past 8 years not only to acquire new clients but also to conduct business operations.

So how does this work? People visit the site, primarily through search engines, and enquire for services on the site. Such is the power of content, websites and eventually, the mighty Internet.

There are countless sites similar to Stylus Inc.

on the web a glamorous co-internet user for business acquisitions is Amazon.com. Whether the company is a mid-sized enterprise like Stylus or a giant like Amazon, the Internet is its bread and butter.

Internet Revolution

In 1998, John Chambers, who was then the president of Cisco Systems (an Internet networking company) spoke about the Internet revolution: The Internet will change how people live, work, play and learn. The Industrial Revolution brought people together with machines in factories, and the Internet revolution will bring together people with knowledge and information in virtual communities. And it will have every bit as much impact on society as the Industrial Revolution.

Even as Chambers was uttering these words, his prophesy was coming true around the world.

Consider this: 1 in every 6 people worldwide use the internet; making it over 1 billion prospects for your organization. The Pew Global Attitudes poll says more people now use computers at home, school or work than 3 years ago. This means only one thing for you: the more your internet penetration, the better the chances of your business growth.

E-commerce is on the rise as an increasing number of people prefer the internet to physical shopping. Recent studies support this statement with experts believing that the annual spending per internet buyer will increase from $457 in 2001 to $784 in 2006.

There are 2.3 million small companies in the U.S. with 16% of these in the retail trade. 60% of all small companies have an online presence.

The Internet also has the potential to increase productivity growth in a variety of distinct, but mutually reinforcing ways, including:

  • Significantly reducing the cost of many transactions necessary to produce and distribute goods and services
  • Increasing management efficiency, especially by enabling firms to manage their supply chains more effectively and communicate more easily both within the firm and with customers and partners
  • Increasing competition, making prices more transparent, and broadening markets for buyers and sellers
  • Increasing the effectiveness of marketing and pricing
  • Increasing consumer choice, convenience and satisfaction in a variety of ways.

Financial Service Firms Simplify Business Processes on the Net

CPA firms and financial services organizations are the biggest beneficiaries of the Internet. The Internet is already being used to simplify their business processes in almost all aspects of an organization. From paperless offices to integrating branches all over the world the internet can help you simplify business to business tasks and increase your ROI.

In their book, ‘ The Myth of the Paperless Office‘, Abigail J. Sellen and Richard H. R. Harper illustrate an interesting case-study of a Danish company that wanted to reduce paper use as part of a larger-scale change in company attitudes.

By not adopting an all-or-nothing approach by not saying that all paper had to be eliminated this company was able to "move to a less paper-centric environment." They were able to reduce the use of paper, yet continue using paper when necessary. The reduction served to facilitate the company's new work process, and change employee attitudes.

E-marketplaces allow for instant communication throughout the supply chain, giving partners a clear, real-time picture of supply and demand. Suppliers can now organize their production according to the needs of the customer. Producers can check on-line the availability of raw materials or where an expected delivery is. In short, e-commerce uses information to cut down the need for inventory.

E-commerce can also put customer information directly into a database, allowing businesses to better monitor customer behavior, market to each customer individually based on their buying habits and react more quickly to trends. And much of this can be done entirely automatically using data-mining software.

Marketing, Advertising and Brand Building

The Internet also helps to support as well as enhance your marketing and brand building activities. It is no longer a secret that having a h2 offline brand does not mean you'll have an equally vibrant h2 online brand.

However, the dynamics of the internet are such that it's imperative to have a h2 online presence on the net. Studies indicate that several high-profile firms are waking up to this trend.

Online advertising is booming because advertisers see new ways by which cyberspace can fit their strategies. Some global marketers, such as GM, are spending more time online as they hunt for alternatives to TV.

The online world is accommodating advertisers in ways that print and broadcast media would find impossible. In short, global marketers are seeking an alternative to television and the surge in internet adverting is only an indication that Internet can help in your advertising and brand building activities.

Dozens of start-ups want to make a splash in online commerce; their business plans practically force them to buy Internet ads. In fact, for many of these enterprises, the internet is not just a medium - it is their business!

Conclusion

The use of the Internet as a management tool may have considerable potential for improving efficiency in many sectors of the economy and in the process, may cause significant restructuring of those sectors. Business acquisitions, business processes, marketing, brand building are only a few ways by which the internet can help your business. There is a lot to be covered and explored.

However, we can say with confidence that the Internet produces significant cost savings in many sectors of the economy, resulting in faster productivity growth.