Professional Documents
Culture Documents
Assignment
How internet is used in business to make the effective decision
making
Submitted by
Amir jabbar
Roll no 4
Submitted to
The opening of the network to commercial interests began in 1988. The US Federal
Networking Council approved the interconnection of the NSFNET to the commercial
MCI Mail system in that year and the link was made in the summer of 1989. Other
commercial electronic e-mail services were soon connected, including OnTyme, Telemail
and Compuserve. In that same year, three commercial Internet service providers (ISPs)
were created: UUNET, PSINet and CERFNET. Important, separate networks that offered
gateways into, then later merged with, the Internet include Usenet and BITNET. Various
other commercial and educational networks, such as Telenet, Tymnet, CompuServe and
JANET were interconnected with the growing Internet. Telenet (later called Sprintnet)
was a large privately funded national computer network with free dial-up access in cities
throughout the U.S. that had been in operation since the 1970s. This network was
eventually interconnected with the others in the 1980s as the TCP/IP protocol became
increasingly popular. The ability of TCP/IP to work over virtually any pre-existing
communication networks allowed for a great ease of growth, although the rapid growth of
the Internet was due primarily to the availability of an array of standardized commercial
routers from many companies, the availability of commercial Ethernet equipment for
local-area networking, and the widespread implementation and rigorous standardization
of TCP/IP on UNIX and virtually every other common operating system.
Provide product information Give customers direct access to information about your
products. Some people prefer to learn about products on their own. The Internet has an
unsurpassed ability to make information about your company's products or services
available to potential customers. It also provides the information when the customer
wants it (now).
Save on literature costs Providing the information online reduces the need to print and
mail product literature, thereby resulting in significant cost reductions.
Augment/replace phone banks Often people staffing phone banks are serving merely as
interfaces to computer databases. In an age of graphical, networked computing, this
function is less necessary. Simple graphical interfaces can be designed to allow
customers to find the information they want quickly and inexpensively.
Level your customer service load How many customers are turned away unsatisfied
when your customer service lines are busy? How often do you have slack times when
customer support personnel are not handling calls but still cost your business money? E-
mail provides "asynchronous communication" that can help level the load. Customers
with problems that do not require immediate attention can send an e-mail message
through your Web site which can be handled when support people are not busy.
Telephone-tag is eliminated for your customers, and you.
Recruit new employees Many companies (now nearly all), provide current information
about job openings and attract talented people from places they could not reach
otherwise.
Provide useful information to attract customers Ski shops often have a board listing
local snow conditions. Search sites like " yahoo " and " Lycos " provide useful search
services for the Web. Providing useful information to potential customers is a good way
to get them to come to your site and return again and again (a property now called
"stickiness").
Provide your service on-line Many products and services can be delivered over the
Internet. Online services will become an even brighter option for many businesses. Since
the transaction is electronic, billing and inventory control can be automated, increasing
accuracy and reducing your accounting and product storage costs.
Help customers understand why they need you Another thing computers do well is
provide artificial intelligence, expertise, or analysis. The Internet allows you to deliver
custom software applications and extend your expertise virtually. Suppose you
manufacture thermopane windows. A spreadsheet application could allow potential
customers to determine how much money they would save in energy costs if they
installed your windows. A financial services company could allow potential customers to
analyze their investments in light of a financial service the company offers.
Let customers try a sample of your product or service Many new Web tools are
becoming available that will allow consumers to try out a sample of what you have to
offer before they buy. Gain a competitive advantage by offering a "test drive" of your
product or service.
Eliminate the middleman Middlemen exist in some industries where there are barriers
to direct contact between producers and consumers. The Internet is a vehicle for
removing these barriers. This lowers prices for consumers and increases profits for
producers.
On-line commerce This has been much touted in the popular press. Some products and
services are well suited for sales on-line. Rapid growth in this area will occur as secure
credit card transactions become (are now) standardized. Efficiency of shipping and
delivery methods for hard goods is important for typically impatient internet shoppers.
Consider an Intranet Use the same Internet technology within your company to help
workers communicate better and work more productively. Many companies are finding
an Intranet to be a much more cost effective solution to their network information needs
than proprietary software.
If the period spanning the late 1990s to the year 2000 can be labelled as the infrastructure
build-out phase of the Internet, and the period between 2000 and 2003 can be called the
phase of commercial exploitation of the Internet, then 2003 to 2005 can be labelled as the
period when the Internet came of age. In this period, as in the rest of the IT industry,
clients are focused on the return they receive on their investment. Return on investment
(ROI), net present value (NPV) and the internal rate of return (IRR) on Internet projects
have become watchwords for the Internet industry.
In 2005, Internet connectivity is almost ubiquitous among all words companies. As such,
it is no longer seen as only a tactical weapon used to improve business communications;
instead, it is increasingly being viewed as a strategic weapon used to improve a business'
entire value chain. As the Internet becomes integral to business operations, it is being
judged on the same criteria as other capital expenditure.
Key Note forecasts rapid growth in both e-commerce revenue and business expenditure
on Internet services, software and hardware over the next 5 years to 2009. medium-sized
enterprises (SMEs).
Expalaination
• Culture
• Religion
• Government tax polices
• Per capita income
• Product trend
• Raw material availability
• Currency value
• Transport facilities
• Competition
• Inflation rarte
By using internet the new entity can get all information which is given above through the
internet without cost of middleman and through this information which is provided by the
internet business managers can make effective decision to choice of country for open new
business.
Example
If any business involved as a food provider wanted to open his business in Pakistan first
of all he wanted to know the culture (halal food) and then he look forward about
competition, currency value and so on .the business manager get the information by using
internet about Pakistan market and then he make a better decision either makes
investment or not.
case 2) Effective decision making while purchasing stock which is used to produced
a product by use of internet
Explanation
Internet provides the wide range of supplier which is supply certain stock which is
required according to business. A manager of purchasing department now is not
limited to purchase stock from few choices of supplier. Suppliers makes his websites
on the internet for promote his supplies. Through internet use now managers have
best way to choose those suppliers who supply quality stock with fair prices. That
decision increase profit by getting more profit by invest low cost. This is effective
decision by using internet.
Example
Explaination
(Promotion through use of internet) ..Online reviews influence the way they buy or
patronize businesses. The Internet is the new 21st-century Yellow Pages. on this
way online about business views are collect . through this information manager or board
of director of a company change or enhance the gradients according to the consumer
wants.
(Compete the competition through use of internet). Internet have all profile of all
companies a less develop business can take the information about develop business
activities like
• Employ performance
• How he advertise his product
• Way of creating good will
• Through this information a less develop business can see all activities and adopt
these kinds of activities for compete the competition.
Example:
If a company ABCD have low good will at the point of the consumer as compare to
JKL company . to compete JKL company the ABCD company start a swot analyses
through the yellow page . Then he maid a changes according to the views of the
consumers like color of cover of product . The company takes further action to
compete competition he collect all information through internet about JKL Company.
And before collect this information the ABCD Company made changes explain
below.
After this changes the ABCD company now have a good and healthy business
due effective decision making through use of internet.
Explanation
Example