How Business is Changing the Internet

The Internet is fundamentally changing the way businesses operate. The Internet can reduce the costs of operations for many businesses and stimulate economic activity.  Use of the Internet enables businesses to become more customer and employee focused and responsive.There are many benefits to businesses to participate in the Internet or e-commerce as business activity on the Internet is referred to.  E-Commerce is buying and selling products or services through the Internet and is subdivided into three categories:  business-to-business (B2B), business-to-consumer (B2C), and consumer-to-consumer (C2C). 

Since the Internet allows process efficiencies and access to data that wasn't possible in the past, many businesses have focused their resources on developing a strong Internet presence. Through the Internet, businesses are able to make direct connections with their customers thus enabling companies to lower distribution costs, enhance customer service, and improve operational efficiencies.  

The strong presence of e-commerce on the Internet is clear through the amount of marketing and advertising delivered through this medium.  Businesses are working very hard to take advantage of the information gathered by web-based businesses and social media companies and targeting ads directly to the consumers they wish to reach.  Because of the recent explosion of digital data available on the Internet, business managers can measure much more about their businesses and consumers then ever before.  Companies that can access, analyze, and apply this data know much more about their customers and translate that knowledge into improved decision making, performance and targeted advertising. I have provided a link to an excellent article in the Harvard Business Review by Andrew McAfee and Erik Brynjolfsson that discusses the topic of the application of digital data.  http://hbr.org/2012/10/big-data-the-management-revolution/ar/1  

The impact to the consumer is mixed.   In one regard, the consumer is receiving ads that are likely to be of interest to them instead of a barrage of media messages being thrust at them which is what is typically done in mass marketing.   On the other hand, regular users of the Internet can clearly see a change in the amount of advertising and paid search making the Internet feel somewhat commercialized.  On search pages and on Facebook, advertisements line the page taking away the academic/intellectual feel the Internet once had. 

The Internet has an impact on all users of the medium.  Easy access to accurate information by both consumers and businesses will encourage its continued use and expansion.  The personalization and communication by businesses and their customers enhance relationships in ways not possible in the past and the growth of the role of business on the Internet will continue well into the future. 

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