Internet for business Essay
a) Explain 2 advantages of the Internet for business.
Expansion of customer base. The Internet allows the company to advertise throughout the whole world, and allows to have contact with customers 24/7. Using Internet, it is possible to created customized experience for every customer, and therefore businesses have more opportunities to engage customers and to gain customer loyalty on the web.
Lower prices. Companies which engage in online sales do not have to support costly infrastructure (e.g. additional warehouses, teams of salespeople, rent of store place, etc.), and therefore can offer lower prices compared to their brick-and-mortar competitors.
b) Explain 2 disadvantages of the Internet for business.
Threat of copying. A business innovation published on the web is exposed to the public a lot, and the possibility that someone would copy this idea and replicate it elsewhere increases. Businesses will have to deal with patent protection issues, licensing, copyright legislation if they want to protect their innovations.
Complex website maintenance. In order to create and run a good website, the company should hire IT professionals and pay attention not only to the very existence of the site, but also to the website design, usability and overall impression created by corporate website. An ineffective website can even damage the company’s reputation instead of improving it.
c) Explain 2 advantages of information systems for business.
Customer relationships. Most information systems have diverse CRM features; with the help of these features businesses can study their customers, learn their preferences and choices, send target orders, develop new products, etc. Effective CRM can greatly boost business profitability
Networked organization. Businesses can easily collaborate and connect different company departments and diverse locations into one network using information systems and the web. Use of the same documentation system, shared standards and data and the opportunities of collaboration using information system add synergy to the business. Such networking also aids decision-making and makes it more effective.
d) Explain 2 disadvantages of information systems for business.
High implementation and learning costs. The choice and implementation of a business information system can be rather costly, and teaching staff how to work with the new system might be even more costly than the system itself.
Vulnerability to security breaches. When all information is stored in the same place, it is easier for an intruder to reach it. Businesses should pay a lot of attention to information security, because it is much easier to break into the system and get access to confidential data, if there is an information system, than in the usual paperwork environment.
