A business is any organization that works for a profit. The advent of technology and the accessibility to the internet has revolutionized the functioning of the economy. It plays a major role in MNCs and although, small businesses don’t heavily rely on it as much, the Internet can bring about major changes and help them to grow. The role of the Internet in various fields of a small business are as follow;
I. Finance
In the realm of finance in small businesses, the usage of the Internet has smoothened out various processes and transactions.
A. Investment and stocks
1. The Internet enables us to buy and sell stocks online. This helps us save time and gets the job done quicker
2. We are also able to check stock market information online as and when we’d like from the comfort of our desks.
B. Online Banking
Paying bills, transferring funds and checking balances has become simple, faster and time saving with the availability of this feature on the Internet.
C. Cost effective
Internet usage has no overheads, helps avoid expensive travel (think video conferencing, email, social networking) and online advertisements are less expensive and more widespread.
II.Sales and Profit
The main objective of every business is to make a profit. This is possible only via sales. The functions of the Internet have provided various features to help optimize sales and thereby increasing the profit margin.
A. We are able to get information on market trends and customer satisfaction. In order to make sales, we need to be aware of what are the latest trends in the market such as methods of production, new and improved machinery, cost of labor and new and cheaper raw materials. The manufacturer must be aware of what the customer wants and must keep in touch with the latest versions of his products. The internet provides information as to what is happening in the market as well as the improvements of a product.
B. The Internet provides online product documentation. This feature enables us to keep a track of all our products with their details, segregating them accordingly in a quicker, more efficient manner.
C. It provides services such as;
1.Inventory control
2.Finance management
3.Human resources (it helps in maintaining a smooth flow in the office among employee and employer through email, instant messaging, memos, notices on the website, etc)
III Advertising and Marketing
A.The Internet increases our potential customer base. We can advertise products by creating a Facebook page and sharing it to spread the word and also, on websites such as Ebay or Amazon where we can sell good quality products and eventually create your own website for a business.
B. It is cost effective.
C.It enables large scale product distribution. We can ship our products to people all over the world.
D. Online advertisements also help in reaching our target audiences. If your product is specialized and only for the use of a certain set of people, online advertisements are cost effective and efficient.
IV.Communication
A. Connectivity between employee and employer – The Internet through email, video conferencing and social networking helps in maintaining smooth flow of information between the employer and the employee
B. Customer service- for common queries on how to use a product or any problems relating to it, the company can put it up on its website and other contact details as well
C. Networking opportunities and global community – The internet creates a forum for people involved in the same line of business to interact and establishes a sense of community.
D. Connect with the youth- In order to create a market for your product among the youth, social networks are your safest bet.
E. A type of industry where the buying and selling of products or services conducted on the internet is called E-commerce.It includes;
- Electronic funds transfer
- Supply chain management
- Internet marketing
- Inventory management systems
- Online transaction processing
The advantages of E-commerce are,
- Convenience
- Selection
The disadvantages of this are,
- Limited customer service
- No instant gratification
- No ability to touch and see the product before purchase
The common applications of E-commerce are;
- Instant messaging
- Online shopping and order tracking
- Online banking
- Shopping cart software
- Electronic ticketing