Essay on Internet and Organisational Adaptations

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Pages: 8
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P5:
Explain the competitive pressures on selected, contrasting business organisations to develop their use of e-business

Explain how two selected, contrasting business organisations have responded to competitive pressures to develop their use of e-business

D1:
Evaluate how successful a selected business organisation has been in preparing for the growing use of e-business

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M2:

Lesson objectives
Trends in internet development



Increasing speed, falling costs, rise of social networking, growing concerns over data security and increasing worldwide internet usage



Operational implications of trends on organisations







eg: music downloads, VoIP, and online shopping

Strategic implications of trends on organisations





Competitive pressures,
Refocusing of business

Closures,

Mergers,

Takeovers,

Relocations,

Organisational adaptations to trends





Strategic level decisions, location of manufacture, location of service provision, re-engineering of business process, redefining of supply chain, investment in information technology, acquisition or development of appropriate skills

Implications of trends on customers





Loss of non-internet outlets and services; need for technical literacy to access full range of services

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Customer and user expectations of web access, Increased competition and New providers for old services

TRENDS IN INTERNET
DEVELOPMENT

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Increasing penetration and speed
The internet is a global phenomenon with six billion users
Connection
speed are increasing as
The
numbers using it grows day by daymakes it technology improves, which Increased availability and access to the internetand even more desirable for businesses is a major trend that encourages businesses to individuals get online
Still parts of the world where internet penetration
– that is, the percentage of the population who have regular internet access – is relatively low

TRENDS IN INTERNET
DEVELOPMENT

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Falling Cost
 Other factors can encourage greater access and use of the internet. The cost of broadband connection is falling
 Which encourages more people and business to use the web and get more from it
 Businesses see opportunities and realize that greater number of people are accessing the web  As costs, speed and reliability continue to improve, the internet evolution is likely to accelerate

TRENDS IN INTERNET
DEVELOPMENT

Global Internet Penetration
The
figures for global internet penetration are growing. Do you think that this presents business opportunities? How?

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Activity

OPERATIONAL IMPLICATIONS OF
TRENDS ON ORGANIZATIONS
1.

3.
4.

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2.

Expectations and product fulfilment Customer expectations
Increased competition
New providers of old services

OPERATIONAL IMPLICATIONS OF
TRENDS ON ORGANIZATIONS

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Introduction
Day-to-day running of a business is know as operational management
 A number of factors deserve consideration before a business sets up a transactional websites
Transactional : Buy and Sell
 These factors all affect the way an organisation works.

OPERATIONAL IMPLICATIONS OF
TRENDS ON ORGANIZATIONS

trade

1.
2.
3.
4.

online

Expectations and product fulfilment
Customer expectations
Increased competition
New providers of old services

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There can be a number of operational implications for a business that starts to

OPERATIONAL IMPLICATIONS OF
TRENDS ON ORGANIZATIONS
Expectations and product fulfilment
Having a good-quality website can give an organisation a real advantage over rivals
It is crucial that the business considers operational implications
For Instance:
Does it have the background systems and processes that can meet an increase in demand


This means there must be stock available at all times and online orders have to be fulfilled

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Possibly from a worldwide customer base?

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BREAK

OPERATIONAL IMPLICATIONS OF
TRENDS ON
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