Explain how the communication capabilities of the internet can be used to add value to every part of the business cycle.
Explain how the communication capabilities of the internet can be used to add value to every part of the business cycle.
Ans.
Internet and Web are making phenomenal changes in the management processes of business and industry. The complex cycle of process management beginning with planning and concluding with execution and control, still remains applicable, but it can be used more efficiently with rich information access to internet. It adds more complexity in the process but also facilitates the process design with information support from various web sources. The weakness in conventional process of management arising out of lack of information for whatever reason is no longer a factor to reckon with.
The main objective of the process of management is to increase management effectiveness in business planning and execution. With web access through internet, management effectiveness has considerably increased. Firstly with better information the process has become more efficient. Secondly the control has become more effective due to prompt feedback on business status. The third factor, which has contributed to increase in the management effectiveness, is the speed of communication. With web access, communication is possible anywhere, any time and to any location. The traditional style of working 40 hours a week has been replaced by working 168 hours a week. So feedback is available continuously for 24 hours to trigger the management action, whenever necessary.
The capability of the internet that can be used to add value to every part of the business cycle are:
(1) Employment Opportunities: With increasing presence of organizations on the net, many career opportunities have been created like that of web administrators, web designers and web developers.
(2) Improved Data Flow: E-mails can be delivered in matter of minutes anywhere in the world.
(3) Increased Reach: The Internet has brought the world closer. Facilities, hitherto available only to some privileged, are available to a common man. You can pursue an academic course in the UK right from Mauritius through e-varsity available on the Internet.
(4) Improved Availability: The servers around the world are constantly up and running making information available round the clock.
(5) Access to Knowledge: The Internet can be easily considered as a vast encyclopedia containing the latest information on almost all the subjects under the sound beyond.
(6) Online Communication: The Internet offers online chat facility that is a two-way communication interactive unlike letters, telegrams, faces which are essentially one-way communication.
(7) E-Business: All sorts of business functions like ordering of items, making quotations, payment of bills, exchange of business documents can be carried out on the Internet.
(8) No Discrimination: The Internet does not discriminate between users allowing communication to take place all over the world without preference being given to a specific person, organization, or country.
(9) Reduced Cost: Unnecessary and avoidable expenditure such as stationery or printing cost, mailing cost, etc. is not involved in the Internet operations.
Strategic use of Internet: Internet is the network that helps the virtual enterprise to communicate around the globe and hence it gives a strategic advantage. The following matrix gives the various ways in which the internet can be used strategically.
