Why the Internet? -- Networking Enterprises

Why the Internet?

BUSINESS IS BOOMING on the Internet these days. You can't turn on the TV, listen to the radio or read the newspaper without someone telling you that you should be on the Internet. It's the modern day equivalent of "Go west". Is it worth it? What's in it for you and your business? Once you're on the net, what do you plan to do there? These are important questions to consider. After all, this high tech stuff costs real money.

Ian Campbell of the IDC, International Data Corp. conducted a study to determine the return on investment (ROI) for companies deploying intranet systems within their corporate structures. "The Intranet promises to fundamentally change the way workers communicate to a degree not experienced since the introduction of the telephone. To quantify: preliminary results from IDC's ROI study of netscapes's intranets found the typical ROI well over 1000% - far higher than usually found with any technology investment. Adding to the benefit, the costs of the intranet are quickly recovered, making the risk associated with an intranet project very low."

Still thinking about costs? IDC found when investigating costs of the intranet, that hardware and software costs are far less significant than the costs of personnel. And the ease-of-use browser has translated into low cost training. The study also found quantifiable benefits in the areas of reducing the use of paper for ISO 9000 initiatives. All this and the biggest savings yet to come- productivity. IDC found a minimum increase in productivity to be 10 minutes per day.

Enough about how it benefits the big boys, how can the Internet help you: a lawyer, a Realtor, a small business owner? Depending on the nature of your business, there are three ways to get value from the Internet: commercial transactions, information publishing, and community building.
Electronic Commerce
Electronic commerce gets the most media hype these days. But it's a well established fact that there are many things consumers won't buy unless they walk into a store and actually shop for it. The current rule of thumb for on-line sales is that it works for products that are ordered by mail or over the phone. If you're in the sort of industry that can make sales on the phone or by mail order, then the Internet can be your most cost effective way to make sales. And if your product is not the sort of thing that can be sold this way or if you're in a service related industry, a well designed and well marketed web site can generate sales leads, typically for the same cost or cheaper than an ad in an industry related publication. I know what you're thinking: Targeted audience in the industry related publication? Yes. And a targeted audience on-line if you choose an Internet service provider that will make sure your site is registered with all major search engines so surfers can find your site easily and one that will create a customized marketing plan for your on-line presence.
Information publishing
Newspapers, magazines, newsletters and reports of all types are finding their way onto the net, because there is so little additional cost involved. But publishing doesn't just refer to putting existing publications on-line. It means adding value to your product or service by making available to the customer as much info as possible after the sale. Technical support takes on a whole new meaning. You can publish product support information, suggestions on how to get better use of the product, info about tie-in products. When the info is readily accessible via the Internet, the value of the product tends to increase.
Community Building
The Internet isn't just an ultra cheap printing press. Nor is it simply a high tech cash register. The real power of the net is it's ability to bring together widely dispersed people. Geographical boundaries do not exist on the net. Internet savvy businesses can boost their image tremendously by serving as focal points for building communities of people who share common interests and needs related to their business. For example, a pharmaceutical company that develops and sells drugs to treat Alzheimer patients might establish an "Alzheimer's Support Group" web site.

So how does one get on the net? There are many businesses offering a slew of commercial Internet services. The key is to find one that works to fit the specific needs of your company. Be sure to look for companies that offer full maintenance and marketing services. For example, smaller organizations that offer web sites for $25.00-$75.00 per month do not allow the clients to register their own domain names, put up links between other related sites, or register your site with major search engines. If folks can't find your site, they're not going to do business there. If you plan to use your site to conduct financial transactions, it is important to look for a company that offers maximum security and routine backups for your banking needs. Bandwidth and server capacities are also important to keep in mind. If your clients spend too much time due to bottlenecks and other delays, you won't make a very professional impression on the net.
The Internet is not a "silver bullet" that will transform your business overnight. And despite the hype, the Internet is not going to take over the world, replace religion or overthrow the government, but when used effectively it can be a powerful business tool.

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