IMPACT OF THE INTERNET ON ORGANISATIONS

• Internet impact on organisations

  Significant, both negative and positive impacts
• Positive impacts of the internet on organisations

  • Improved communication
  • Access to global markets
  • Access to global workforces
  • How information is managed and used (this can link to legal rights)
• Negative impacts of the internet on organisations

  • Security issues
  • Greater competition
• Improved communications

  Organisations can communicate and interact with their customers and employees more easily and in real time using different modes of messaging: emails, instant messaging, social media
• Improved communications

  • Organisations can provide up to date information about the development, pricing and the availability of the organisation's products and services
  • Organisations can publish live-information online allowing people to follow the organisations activities
• Access to global markets

  • The internet has allowed organisations to advertise and sell to customers in countries around the world
  • Reduced need for physical packaging for digital content, reducing environmental impact
• Access to global workforces

  • Organisations can employ people in other countries, allowing for a global network of employees
  • Allows organisations to be more selective when hiring employees
  • Organisations can make use of different time zones to maximise labour output
  • Organisations can reduce costs by employing people in countries with lower wages
• How information is managed and used can link to legal rights
• Security issues

  • Data stored in organisations is private and valuable
  • Unauthorised users can access organisation systems through revealing login details, intercepting data, or hacking
• Greater competition

  • Organisations must now compete in global marketspace
  • Larger organisations may be less flexible than small businesses, making them less attractive to customers
  • Some industries have been put at risk due to new online channels for trade and distribution (e.g. music/film retailers, DVD rentals, record labels)
• Digital divide


  The gap between people who have access to technology and the internet, and those who do not
• Factors influencing the digital divide

  • Economy and infrastructure
  • Location
  • Politics
  • Religion
  • Disability
  • Social factors
• Economy and infrastructure

  • Advanced and developed countries can afford to invest in infrastructure for internet access, while developing countries may prioritise other needs
• Location

  • People cannot access online systems in remote locations such as rural areas or places with poor signal/cabling
• Politics


  • Some political systems may restrict or limit access to digital technologies
• Religion


  • Some religions prohibit access to certain technologies, e.g. Amish communities in the USA
• Disability

  • Digital devices may not be designed to be inclusive for people with different abilities and competencies
• The development of the internet has impacted society and people's lives
• Online working from home
• Give the social impacts of the interent on individuals

  • Reduced social interaction
  • Increases in cyberbullying
  • Reduced physcial activity
• Impacts of the internet on employment

  • New job opportunities as the nature of jobs changes as the internet and new upcoming technologies are produced
  • New skills requirments
  • Potential job losses
• Explain the effect of the internet on the working practices of individuals

  • Collaborative working
  • Flexible working
• Describe two postive impacts of the internet on organisations

  • imprvoed communication with customerd and other markets using emails and instant messaging
  • increased acces to global markets and workforces due to the global reach of the web
  • transactional data can be used to carry TARGETTED MARKETING