Digital Economy Blog

 What are some of the issues to consider in determining whether the Internet would provide a business with a competitive advantage?

Although the IoT (Internet of Things) can aid businesses in boosting output, reducing expenses, introducing contemporary goods and services, and establishing new business strategies, there is also many issues that come with the utilization of the internet platform to gain a competitive advantage in the market. The adoption of IoT may require considerable integration and qualified personnel. Additionally, it frequently generates requirements for security and interoperability which refers to the ability of various computer systems and applications to "speak" to one another.

Security

Security and confidentiality issues become crucial considerations for all internet businesses. Millions of dollars are spent annually on security measures to guarantee the security of transactions and the comfort of customers making purchases online. Beyond routine business transactions, serious security threats like hackers, viruses, and e-terrorism make it more expensive to maintain security online than it is elsewhere. As result of security breaches, such as the widely reported theft of credit card information make customers question how safe it is to conduct business online. This can have an adverse effect on businesses as the confidence levels consumers may decrease.

Limited face-to-face Contact

A major drawback for businesses operating via the internet is the limited face-to-face contact they have with their marketplace. An online-only company never sees the majority of its customers. This lack of personal contact mitigates the company's ability to establish a strong personal rapport with core customers. This disconnect from the target audience exposes businesses to the risk of traditional companies offering a more engaging experience. It is also difficult for an Internet company's workers to feel empathy for their customers due to this lack of association.

Easier Marketing

On the other hand, the perverse proliferation of the internet has made marketing and advertising of products and services more affordable for businesses. In the past, enterprises relied on traditional media such as TV and Newspapers for advertisements. Today, the internet has proved to be a cost-effective platform where companies can market their products and services without having to spend a fortune. Additionally, it has made it possible for companies to target the right niche with their marketing campaigns. It also allows businesses to get feedback on what customers think about them, as well as identifying the areas in which they should improve.

Improved Data Storage and Retrieval

The emergence of cloud-based software systems has made it easy for businesses to store and retrieve data. Companies no longer need large hard drives and large physical space to save thousands of documents. The internet has allowed businesses to safeguard their voluminous sets of data in a virtual space. Additionally, information reserved on the cloud can be accessed easily from anywhere, as long as you are connected to the internet. Cloud storage helps to lower the costs of office and warehouse services, as well as facilitate the documentation of customer history.