The internet provides a synthesis of computing and communication capabilities that add value to every part of the business cycle.
A computer network infrastructure if properly aligned with a business’s goals, can serve as a foundation and enabler for key applications, innovation that contributes to competitive advantage, and sustainable growth.
Substantial cost savings can arise because applications that use the Internet based technologies (like intranets and extranets) are typically less expensive to develop, operate, and maintain than traditional systems. For examples, American Airlines saves money every time customers use their websites instead of their customer support telephone system.
Many organization have underestimated the extent to which the internet really does represent a new kind of technology mediated value proposition. Technology tends to drive rapid commoditization.
Other primary reasons for business value include attracting new customers with innovative marketing and products, and retaining present customers with improved customer service and support.
The web allows the integration of multimedia features such as text, image and video, providing marketers with a full range of communication media.
To summarize, most companies are building E-commerce website to achieve six major business values:
• Reduce costs through online sales and customer support
• Attract new customers via Web marketing and advertising and online sales
• Increase the loyalty of existing customers via improved Web customer service and support
• Develop new Web-based markets and distribution channels for existing products
• Develop new information based products accessible on the Web
• Convenience – for enabling self-services
• Effectiveness –such as greater responsiveness to partners, suppliers, and customers
By blending business goals and technology strategies for value creation companies can build shareholder value and respond to organization needs.
The true value of technology doesn’t come from providing support function, it comes from being a strategic tool than can drive a company’s success.
The internet are changing the rules of traditional business pattern, and making new rules and means for fast and border less business.
The Business Value of the Internet
