The internet's effect on businesses and corporations

¶ … Internet Have on Businesses and Corporations?

Surprising as it may seem, gaining money was not the most important objective for the people who seventeen years ago launched the World Wide Web. Initially, its main purpose was to grant people rapid access to vast information, spanning on numerous and diverse subjects. As time passed, though, the Internet's huge potential to be more than an online boundless encyclopaedia became obvious to many, who therefore invested significant amounts of money (as much as 1 billion dollars a week) for its continuous development. Their investment proved to be a highly profitable one and nowadays the Internet has become an invaluable resource for businesses and corporations everywhere.

According to the management theorist Peter Drucker "The new information technology, Internet and e-mail, have practically eliminated the physical costs of communications." Drucker thus highlights one of the most important advantages of using the Internet as a means of communication, to the detriment of ordinary ones such as telephones, faxes and even face-to-face meetings. Video-conferences have now made it possible for representatives of corporations and multinationals across the world to be in constant contact with each other, at the push of a button. (Therefore keeping their consumption of time and money to a minimum.)

The Internet has become a prolific environment where new types of businesses and companies thrive. One example of such companies is Amazon.com. At its core is the way it interacts with its customers (enabling them to purchase good quality goods produced in various parts of the world, without their even having to leave the comfort of their own home). Another example of a relatively recent type of business is represented by the web-design companies who constantly work on improving websites, making them more innovative and user-friendly. It is therefore obvious that if not for the Internet the business world would not have been enriched with numerous types of businesses to serve the consumers.

Another field that has been affected by the Internet is that of the manufacturing companies whose using of outsourcing has significantly grown, thus enabling them to move much of their production to less expensive overseas locations.

Though starting a new business on the Internet is often easier and less expensive than "brick and mortar" companies, many are reluctant "to put their critical information on it because it will be exposed" (Bill Gates).This is why security on the Internet has become one of the top priorities for companies such as Microsoft, that invest a lot of time and energy into secure the online business environment.

A study on how businesses use the internet developed in the year 2000 revealed that "vast opportunities for financial and productivity gains" awaited those corporations and businesses that would regard the Internet as one of their main resources.