The Internet and its business capabilities Essay

The Internet and its business capabilities - Essay Example As more individuals owned their own personal computers, the demand for internet access increased, which started off with simple uses such as email, typing and storing digital information (Veeramani 2000). As with all technology, internet technology began to develop at a rapid pace to accommodate concerns over speed and safety which resulted in the development of web browsers and the use of the internet for e-commerce in the 1990s (Veeramani 2000). This signalled the beginning of a new era for businesses as the new opportunities presented by the internet's e-commerce and e-business capabilities promised significant cost savings, new distribution channels and new markets. E-commerce has enabled businesses to conduct transactions over the internet as it enables instant communication and interaction, as well as providing real time access to information, products and services (Veeramani 2000, Pratt 2002). This has meant that the notion and concept of opening hours, location and customer services have been transformed. E-commerce also provides economic benefits by reducing the cost of searching and the cost of transmitting information which has led to efficiencies in transaction costs and the consolidation of supply and demand (SBA 2004). Consumers would also be provided with better information about price, quality and terms of trade. E-commerce would also expand markets and competition which would lead to lower prices and increased quality (SBA 2004). As a result of the opportunities presented by e-commerce and the technology available in this area, small businesses have been quick to capitalise on this and set up their internet presence. This was significant for small and medium sized businesses as they could compete with the larger organisation without having to invest in expensive infrastructure like building and costly marketing campaigns. Small and medium sized businesses were able to identify market niches and improve their customer search process in response to this (Pratt 2002). Printing technology is undergoing rapid advances as photochemical processes are being superseded by digital reproduction (Pratt 2002, SBA 2004), which is environmentally friendly and more cost effective in the long run, as it will eliminate need for procurement. However this new technology has got to be complimented with personnel trained in information technology as customers are now after total business solutions which include after care, image management and communication needs (Pratt 2002, SBA