Use Of Internet In Business

Ripha university international Islamabad

Assignment How internet is used in business to make the effective decision making

Submitted by

Amir jabbar Class MBA IST Roll no 4

Submitted to Sir Sohail tariq

Internet definition: A global network connecting millions of computers. More than 100 countries are linked into exchanges of data, news and opinions. Or a worldwide system of computer networks; a network of networks in which users at any one computer can get information from any other computer Or A world-wide network of computers linked by telephone lines, allowing for the global dissemination of information.

History of internet & introduction The USSR's la A world-wide network of computers linked by telephone lines, allowing for the global dissemination of information.unch of Sputnik spurred the United States to create the Advanced Research Projects Agency, known as ARPA, in February 1958 to regain a technological lead.[2][3] ARPA created the Information Processing Technology Office (IPTO) to further the research of the Semi Automatic Ground Environment (SAGE) program, which had networked country-wide radar systems together for the first time. J. C. R. Licklider was selected to head the IPTO. Licklider moved from the Psycho-Acoustic Laboratory at Harvard University to MIT in 1950, after becoming interested in information technology. At MIT, he served on a committee that established Lincoln Laboratory and worked on the SAGE project. In 1957 he became a Vice President at BBN, where he bought the first production PDP-1 computer and conducted the first public demonstration of time-sharing.

Professor Leonard Kleinrock with one of the first ARPANET Interface Message Processors at UCLA At the IPTO, Licklider got Lawrence Roberts to start a project to make a network, and Roberts based the technology on the work of Paul Baran, [4] who had written an exhaustive study for the United States Air Force that recommended packet switching (opposed to circuit switching) to achieve better network robustness and disaster survivability. UCLA professor Leonard Kleinrock had provided the theoretical foundations for packet networks in 1962, and later, in the 1970s, for hierarchical routing, concepts which have been the underpinning of the development towards today's Internet.

After much work, the first two nodes of what would become the ARPANET were interconnected between UCLA's School of Engineering and Applied Science and SRI International (SRI) in Menlo Park, California, on October 29, 1969. The ARPANET was one of the "eve" networks of today's Internet. Following on from the demonstration that packet switching worked on the ARPANET, the British Post Office, Telenet, DATAPAC and TRANSPAC collaborated to create the first international packet-switched network service. In the UK, this was referred to as the International Packet Switched Service (IPSS), in 1978. The collection of X.25-based networks grew from Europe and the US to cover Canada, Hong Kong and Australia by 1981. The X.25 packet switching standard was developed in the CCITT (now called ITU-T) around 1976.

A plaque commemorating the birth of the Internet at Stanford University X.25 was independent of the TCP/IP protocols that arose from the experimental work of DARPA on the ARPANET, Packet Radio Net and Packet Satellite Net during the same time period. Vinton Cerf and Robert Kahn developed the first description of the TCP protocols during 1973 and published a paper on the subject in May 1974. Use of the term "Internet" to describe a single global TCP/IP network originated in December 1974 with the publication of RFC 675, the first full specification of TCP that was written by Vinton Cerf, Yogen Dalal and Carl Sunshine, then at Stanford University. During the next nine years, work proceeded to refine the protocols and to implement them on a wide range of operating systems. The first TCP/IP-based wide-area network was operational by January 1, 1983 when all hosts on the ARPANET were switched over from the older NCP protocols. In 1985, the United States' National Science Foundation (NSF) commissioned the construction of the NSFNET, a university 56 kilobit/second network backbone using computers called "fuzzballs" by their inventor, David L. Mills. The following year, NSF sponsored the conversion to a higher-speed 1.5 megabit/second network. A key decision to use the DARPA TCP/IP protocols was made by Dennis Jennings, then in charge of the Supercomputer program at NSF. The opening of the network to commercial interests began in 1988. The US Federal Networking Council approved the interconnection of the NSFNET to the commercial MCI Mail system in that year and the link was made in the summer of 1989. Other commercial electronic e-mail services were soon connected, including OnTyme, Telemail and Compuserve. In that same year, three commercial Internet service providers (ISPs) were created: UUNET, PSINet and CERFNET. Important, separate networks that offered gateways into, then later merged with, the Internet include Usenet and BITNET. Various other commercial and educational networks, such as Telenet, Tymnet, CompuServe and JANET were interconnected with the growing Internet. Telenet (later called Sprintnet) was a large privately funded national computer network with free dial-up access in cities

throughout the U.S. that had been in operation since the 1970s. This network was eventually interconnected with the others in the 1980s as the TCP/IP protocol became increasingly popular. The ability of TCP/IP to work over virtually any pre-existing communication networks allowed for a great ease of growth, although the rapid growth of the Internet was due primarily to the availability of an array of standardized commercial routers from many companies, the availability of commercial Ethernet equipment for local-area networking, and the widespread implementation and rigorous standardization of TCP/IP on UNIX and virtually every other common operating system.

Through following benefit provided by internet to business A businesses make the effective decision Reach a worldwide audience The Internet is a worldwide network allowing you to reach people even very expensive advertising could not. Provide product information Give customers direct access to information about your products. Some people prefer to learn about products on their own. The Internet has an unsurpassed ability to make information about your company's products or services available to potential customers. It also provides the information when the customer wants it (now). Save on literature costs Providing the information online reduces the need to print and mail product literature, thereby resulting in significant cost reductions. Augment/replace phone banks Often people staffing phone banks are serving merely as interfaces to computer databases. In an age of graphical, networked computing, this function is less necessary. Simple graphical interfaces can be designed to allow customers to find the information they want quickly and inexpensively. Provide easy access to customer service representatives Human interaction cannot be totally replaced by even the best graphical interface. When customers have a question, or would like to speak with a person, provide a list of contacts and phone numbers or allow them to send e-mail directly to a customer service representative, requesting that they be contacted. Level your customer service load How many customers are turned away unsatisfied when your customer service lines are busy? How often do you have slack times when customer support personnel are not handling calls but still cost your business money? Email provides "asynchronous communication" that can help level the load. Customers with problems that do not require immediate attention can send an e-mail message through your Web site which can be handled when support people are not busy. Telephone-tag is eliminated for your customers, and you. Inexpensively create/augment your corporate image It is easy and inexpensive to define your image on the Internet, whether you are a one-person-company or a large

corporation. If your company information changes rapidly due to market forces, there is no easier way to change your image than electronically. Recruit new employees Many companies (now nearly all), provide current information about job openings and attract talented people from places they could not reach otherwise. Provide useful information to attract customers Ski shops often have a board listing local snow conditions. Search sites like " yahoo " and " Lycos " provide useful search services for the Web. Providing useful information to potential customers is a good way to get them to come to your site and return again and again (a property now called "stickiness"). Provide your service on-line Many products and services can be delivered over the Internet. Online services will become an even brighter option for many businesses. Since the transaction is electronic, billing and inventory control can be automated, increasing accuracy and reducing your accounting and product storage costs. Give customers access to searchable information Computers on the Internet allow companies to post information in the form of static Web pages. But, with some of the latest software (or some clever programming) , these computers can also help your customers find the information you are providing quickly. Federal Express created an award winning Web site that allows customers to track their packages. In doing this, FedEx is providing a useful customer service while also promoting their product (service). Help customers understand why they need you Another thing computers do well is provide artificial intelligence, expertise, or analysis. The Internet allows you to deliver custom software applications and extend your expertise virtually. Suppose you manufacture thermopane windows. A spreadsheet application could allow potential customers to determine how much money they would save in energy costs if they installed your windows. A financial services company could allow potential customers to analyze their investments in light of a financial service the company offers. Let customers try a sample of your product or service Many new Web tools are becoming available that will allow consumers to try out a sample of what you have to offer before they buy. Gain a competitive advantage by offering a "test drive" of your product or service. Eliminate the middleman Middlemen exist in some industries where there are barriers to direct contact between producers and consumers. The Internet is a vehicle for removing these barriers. This lowers prices for consumers and increases profits for producers. On-line commerce This has been much touted in the popular press. Some products and services are well suited for sales on-line. Rapid growth in this area will occur as secure

credit card transactions become (are now) standardized. Efficiency of shipping and delivery methods for hard goods is important for typically impatient internet shoppers. Consider an Intranet Use the same Internet technology within your company to help workers communicate better and work more productively. Many companies are finding an Intranet to be a much more cost effective solution to their network information needs than proprietary software.

The percentage usage of internet in business now days This Key Note Market Report focuses on the business usage of, and spending on, the Internet. It examines two areas: business expenditure on Internet services and software (and hardware), and business revenues from the commercialisation of the Internet (i.e. revenues from Internet e-commerce). In 2004, total business expenditure on Internet services, software and hardware was an estimated £8.29bn, a rise of 15.8% on 2003. The market is being driven by expenditure on software and services, reflecting the moves by companies to exploit their Internet connections to improve their operations and generate revenues for their online activities. E-commerce revenues are rising rapidly, driven mainly by business-to-business (B2B) transactions. In 2004, ecommerce revenue in the UK was worth an estimated £294.9bn, of which £60.5bn was accounted for by Internet e-commerce. If the period spanning the late 1990s to the year 2000 can be labelled as the infrastructure build-out phase of the Internet, and the period between 2000 and 2003 can be called the phase of commercial exploitation of the Internet, then 2003 to 2005 can be labelled as the period when the Internet came of age. In this period, as in the rest of the IT industry, clients are focused on the return they receive on their investment. Return on investment (ROI), net present value (NPV) and the internal rate of return (IRR) on Internet projects have become watchwords for the Internet industry. In 2005, Internet connectivity is almost ubiquitous among all words companies. As such, it is no longer seen as only a tactical weapon used to improve business communications; instead, it is increasingly being viewed as a strategic weapon used to improve a business' entire value chain. As the Internet becomes integral to business operations, it is being judged on the same criteria as other capital expenditure.

Key Note forecasts rapid growth in both e-commerce revenue and business expenditure on Internet services, software and hardware over the next 5 years to 2009. medium-sized enterprises (SMEs). Key Note Market Reports

Invaluable aids to anyone needing to gain a highly detailed understanding of a specific market for more informed decision- making.

Effective decision making by using internet complete scenario (cases) According to need the internet helps to make the effective decision for the sake of profit for business. According to need I create some situation with full fledge cases. Now see how a business makes the effective decision to full fill his need by using internet. Case 1) effective Decision to establish new entity in foreign market by using internet Expalaination When a business want to establish his business in a foreign market. First of all he wants to select that country in which his business cans rum successful. For new entity following information must be require to run successful business.

• • • • • • •

• • •

Culture Religion Government tax polices

Per capita income Product trend Raw material availability Currency value Transport facilities Competition Inflation rarte

Effective decision making by use of internet By using internet the new entity can get all information which is given above through the internet without cost of middleman and through this information which is provided by the internet business managers can make effective decision to choice of country for open new business.

Example If any business involved as a food provider wanted to open his business in Pakistan first of all he wanted to know the culture (halal food) and then he look forward about competition, currency value and so on .the business manager get the information by using internet about Pakistan market and then he make a better decision either makes investment or not. case 2) Effective decision making while purchasing stock which is used to produced a product by use of internet Explanation It is the basic need for manufacturing company. It is very difficult for the managers of the company to purchase stock when there are many stock provider is available in the market. Without internet a limited supplier list can be get. Which make the poor decision. The company must have the following information while purchasing the stock.

• Knowledge the techniques

• Market price of stock • Market address which have supplier having best quality stock with fair price

Effective decision making by use of internet Internet provides the wide range of supplier which is supply certain stock which is required according to business. A manager of purchasing department now is not limited to purchase stock from few choices of supplier. Suppliers makes his websites on the internet for promote his supplies. Through internet use now managers have best way to choose those suppliers who supply quality stock with fair prices. That decision increase profit by getting more profit by invest low cost. This is effective decision by using internet. Example A motorcycle manufacturer company ABCD . ABCD company manufacture bike by assemble parts those parts are import from the foreign market. 12 October Company require bike engine. The manager of the company see many offers of supplier through internet and then choose a best supplier how gave quality and fair price.

case3) Effective decision to promotion business & how compete the competition by using internet. Explaination Generally, promotion is communicating with the public in an attempt to influence them toward buying your products and/or services. The act of seeking, or endeavoring to gain, what another is endeavoring to gain at the same time; common strife for the same objects; strife for superiority; emulous contest; rivalry, as for approbation, for a prize, or as where two or more persons are engaged in the same business and each seeking patronage; followed by for before the object sought, and with before the person or thing competed with.

Effective decision making by use of internet (Promotion through use of internet) ..Online reviews influence the way they buy or patronize businesses. The Internet is the new 21st-century Yellow Pages. on this way online about business views are collect . through this information manager or board of director of a company change or enhance the gradients according to the consumer wants. (Compete the competition through use of internet). Internet have all profile of all companies a less develop business can take the information about develop business activities like • • • •

Employ performance How he advertise his product Way of creating good will Through this information a less develop business can see all activities and adopt these kinds of activities for compete the competition.

Example: If a company ABCD have low good will at the point of the consumer as compare to JKL company . to compete JKL company the ABCD company start a swot analyses through the yellow page . Then he maid a changes according to the views of the

consumers like color of cover of product . The company takes further action to compete competition he collect all information through internet about JKL Company. And before collect this information the ABCD Company made changes explain below. • • •

He change the advertising method Manner of work in a company High technology machinery

After this changes the ABCD company now have a good and healthy business due effective decision making through use of internet. Case 4) Effective decision by use of internet while making tender agreement Explanation TENDER - A tender is an offer to do or perform an act which the party offering, is bound to perform to the party to whom the offer is made. Now company has a facility to give his tender through internet. An internet provides vide range of acceptors of the tender now through internet managers of the company can analyses that either the promise of the tender can fulfill all condition which is given in tender of the company . through these analysis company make better decision. Example If ABCD fabric manufacturer company require high technology machinery to manufacture fabric now he use the internet way to communicate his tender then most of 100 acceptor accept this tender and send applications to fulfill this tender . the company mangers analyses all the applicant financial position and then he select the promise Case no 5) Effective decision making by using internet while hire services

When company want to hire services like a bank want to hire services of security. Internet provides a list of company which offer hire some services. Internet also provide the history of company by which manager evaluate the how much efficiently he provide services .

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