Technology Effects on Businesses
Every business depends on a variety of factors that can affect it in either positive or negative way. This could be explained by the meaning of the word business. According to Rud, “Business is perceived as an organism that functions exactly as the body of any human being”. Indeed, there are so many ways a business could be affected and most of them concentrate around the technologies of the 21 century.
The modern technologies have an undeniable effect on businesses of any kind. The vast majority of such businesses are working online. The new technologies allow people to do any business on the Internet. This surely has a huge positive effect on business, excluding the negative implications of running a business online.
Some people choose to run a small, local store along the boardwalk, the others dream about the way to go beyond and run a business internationally. We live in the world where everyone is selling something, either with the help of the Internet or using the direct selling opportunities. Every businessmen decides which way is better according to the personal beliefs, opportunities, knowledge and experience. This paper will discuss the ways that a start-up business could be managed with the help of online commerce or e-Commerce business. The findings will explain the different types of effects the modern technologies have on business.
People who are about to start a business online experience the most difficulties. This includes different technologies, as well as their implementation in favor of making money. Though, not everything is easy in the very beginning of a business. Some people may not be ready either from the position of psychological problems or different strategic plans that are aimed at business advancement on the Internet. Such problems could be alleviated with the help of a SWOT analysis that helps to make any business finance-wise.
Schneider states that, “Before running a business online, there is a need to identify the advantages and disadvantages of running a business in the Internet. This approach will help to find out the specifics of how to manage the strength, weaknesses, opportunities and threats that are mostly important for the business environment”.
The initial place to start from is to identify the strengths of the online business. First of all, it is always better to have a local store along with the website. The difference would be that the potential clients can use a store 24 hours a day, 7 days a week, and 365 days a year, whereas the local store could only work fixed hours.
Every single business that works online automatically becomes an international business, so the owner can have the customers not only in the city but all over the world, which creates a bigger market share and generates more sales.
The next emphasis is the weaknesses of the online business. The very first thing to do is to find the suppliers and distributors in different countries as well as the biggest cities in order to deliver the goods and services automatically.
The next thing to consider is advertising and/or questionnaires that could help gather the enough information to evaluate whether the products are needed in other areas. The aim is to deliver the highest quality goods and services to the customers globally.
The modern technologies do help the business function online and there is a vital need to think of the local stores to support the online stores and open a warehouse to deliver the goods to the clients easier and quicker worldwide. The reasonable opportunities come next and are aimed at finding the target audience for the online businesses. While using the modern technologies, it is important to address the best goods or services and position them to people of different age groups.
Today, there are more online stores that offer valuable products to people with the idea to allow them to purchase online in the future. In fact, the repeated clients are required to sustain any business. Conclusively, the Internet technologies are a great source of advertising all over the world, which generates more sales in a very short-term perspective.
At the same time, every business should be ready for the threats that could affect both local and online stores. Primarily, it is essential to consider the gap between rich and poor people. The aim is to restructure the pricing policy in order to spread the market cap and concentrate on both rich and middle class people.
If focusing on the rich people, the branding factor would be necessary to contemplate. As for the middle class people, an acceptable pricing policy should be created for them as well. It is important to admit that all the risk factors could remain in any business as long as it gains a great amount of repeated customers. This position addresses a huge number of competitors online, who are in the same business but for a much longer period of time.
In order to make an advantage of a start-up business, the business owner should think about the benefits for the customers that are in favor of the online store. In fact, gambling is inevitable but it helps not only to predict the trends, but to create the own ones for the industry
The business process is difficult to manage without the use of the modern technologies. In order to understand everything better on each stage of the analysis, one should investigate different key points of interest for the customers worldwide.
The first thing is to identify the basic elements of the technology infrastructure that is used to conduct any electronic business. Since the Internet technologies connect computers globally, any business that is engaged in e-Commerce is considered international. According to the findings of Turban, Aronson and Liang, “The key issues that any company faces when it conducts the international commerce include trust, culture, language, government, and infrastructure”.
Trust always matters but only if the business is transparent to other people. People will feel if the owner is trying to sell the goods of low-quality on the market. In case a business is willing to help people, the business should sell the goods for pleasure. Thus, people will be eager to buy more in the future. The major role of the combination of technologies and marketing a business is the transparency of the business and readiness to help and not just to earn money.
The culture is the second important aspect to think through. The differences in the countries need to be addressed in the first turn. This would have a more powerful effect if the owner of the store possesses the understanding of mutual benefit.
This claims that people breathe the same air and could easily combine the resources and knowledge by helping each other with the help of online technologies. Such a tactic generates a positive feedback that will definitely come in return. This is more influential for the online international business.
Another factor to challenge is the language people use. This is a challenge for creative people, as the technologies make it possible to travel around the world and communicate effectively on every level of interaction. The hands and smile can always serve better than an interpreter. So, the website could be translated into different languages of the affiliated companies around the world.
The next is the government that could support the business operations online such as to pay the taxes and manage any necessary documentation online. As it is stated by Turban, King, Lee, Warkentin, and Chung, “The Authorities are always interested in international businesses as this helps to increase the overall level of the Gross Domestic Product of the country”.
The history of the Internet, the World Wide Web and the modern technologies emerged from the supporting infrastructure for electronic commerce. This describes the protocols, programs, languages, and the architecture that support both the internet and the web technologies. The electronic commerce could exist with the help of the number of technologies to support it. Both the internet and the WWW require support from the database software, network switches and hubs, encryption hardware and software, multimedia structures and a way to integrate each of these technologies.
There is no commonly agreed de?nition of e-Commerce or e-Business. Thus, there is a need to clarify the terms in order to explain the context in detail. E-commerce has an impact on three major stakeholders, stock market, namely society, organizations and customers or consumers. There are different advantages, which include cost savings, increased efficiency, customization and global marketplaces.
There are also limitations arising from e-commerce, which apply to each of the stakeholders, the stock market and finances of the company. These include information overload, reliability and security issues, the cost of access, social divisions and difficulties in monitoring the Internet. Successful e-commerce business involves understanding the limitations and minimizing the negative impact, while maximizing the benefits for the people.
In order to understand the e-Commerce business, there are a number of frameworks that help to explore different business perspectives. The macro-environment identi?es the interaction of technology, people, organizations, policy and technical standards working together by means to enable the e-commerce processes.
Different participants and e-commerce transactions occur to the extent of digitization that analyzes the products and services, processes and delivery in any organization that works online. These frameworks help to identify the elements of e-commerce and understand how the businesses can better work with the e-Commerce standards in a practical way.
Businesses that operate in the world of modern technologies should comply with the same laws and regulations that govern the operations of all businesses. Besides, people face two complicating factors, as they try to act in accordance with the law. The WWW extends a company’s reach beyond the traditional boundaries and the web technologies increase the speed and efficiency of business communications.
So, the best way to overcome these complicating factors in order to comply with the laws that come with e-Commerce business is to follow the procedures. The thing is to pay the taxes and do everything possible to sustain an online business. The major area of interest is to be transparent for other people. If the online business strictly follows the laws there will be no problems in overcoming these complicating factors.
Many law enforcement agencies have difficulties combating with many types of online crime. Two of the most famous online crimes are merchant transactions verifications and fraud. In e-Commerce the best way to tackle these crimes would be to follow the legal authorization procedure of personal calls and verify the credit card information through the proven verification procedures. According to Davenport, “The global companies which are known worldwide and who 100% guarantees the safety of funds follow the same procedure”.
The critical legal and ethical issues related to the electronic commerce are privacy, intellectual property, free speech, taxation, computer crimes, and consumer protection. The other possible issues could be electronic contracts, online gambling, validity of electronic documents, time and date on documents across the borders, and country jurisdiction over e-Commerce transaction, etc. These are usually the ones to find most suitable for the particular online business.
The technology affects any business in a variety of ways. The use of any technology for the online business is the inevitable factor that creates success. However, the most important area of emphasis is the application of such technologies from the position of the business strategy.
Business strategy is a very intriguing and interesting subject that has an enormous amount of information to offer. I thoroughly enjoyed the research involved in this paper and have realized that the surface has just only been scrapped. There is so much to be learned from the success stories of numerous companies that have done what is right to get to the top and be successful in the online business.
In my opinion, I have found books that I searched for the parts that would fit into this paper, and have a strong desire to go back and read them from cover to cover. The amazing minds have many detailed instructions on how to do business online. The only way to check if this is the right thing to do is to practice the instructions that those books have covered in detail. This paper really challenged me in certain areas that I had covered in my work.
Even though I am not in the business of making money, I am definitely in the business of people and my task is to accomplish a mission that helps people. Different businesses can get sidetracked and think too much about a certain process and how to put it into practice. Without the success among people, you will never have the true success of any business strategy. What I found out that could definitely benefit the business online, is that being a visionary with the right people, right strategic philosophy, and right plan is what will take a company to become an innovator or a market leader. There are many success stories in the businesses world to prove this. The giant companies could top them all just because they are wealthy or have a famous name. The poor strategies are setting people and businesses for failure. I have found that business strategy begins with people, without which any business is just something formal. One needs the ability to put all the strategy in action and the only way that can be accomplished is through using the power of people in order to accomplish the great things. Business strategy is the synergy of people put in motion with the visionary goal of being the best.
So, the paper explained different types of effects that modern technologies have on any business environment, including the start-up businesses that have both the local stores and a website. This paper discussed different areas a business could work in the Internet, including the stock market, different personal and professional factors that have a huge influence on the selling process. This also includes the application of the online technologies that help advance the businesses from all the possible areas to finance the operations worldwide.
To conclude, as the people in Hollywood say, “Let’s get working!” as this is the only way to test everything in practice, gain personal experience and help other people choose the best quality products on the entire web.
About the author :
Laura Duncan is a specialist in English literature at Orlando University. She is currently working on a variety of topics related to studying the state of modern business theory. Laura is the leading explorer of US poetry of the 20th century and I am Joaquin poem one of the most important analytical research in her career. She also studies the influence of literature and language on the consciousness of society.