The Internet: Impact on Business Operations

In this lesson you will learn how the Internet and other technological innovations have changed
the way organizations operate and interact with their stakeholders.

Business Technology
Just think that only a few decades ago, companies did not have the options they have now to
communicate and interact with stakeholders. Years ago, Yummy Chocolates would rely on a
salesperson's feedback, customers' phone calls, or letters and traditional mail. The introduction of
the Internet and other technology has drastically impacted how businesses operate and interact
with stakeholders. Business technology refers to applications of science, data, engineering, and
information for business purposes, such as the achievement of economic and organizational goals.

The main element of technology is the idea of change and how it can affect business and society.
In this manner, technology has changed the communication process between businesses and
stakeholders. Let's examine how Yummy Chocolates uses the Internet and other technological
innovations to operate and interact with their stakeholders around the world.

The Internet
Business technology has altered how companies perform their activities in the global marketplace.
It also affects how they interact with stakeholders through various forms of technology. The first
and most effective technological tool that is changing communication is the Internet. It is a
worldwide network of interconnected computers that allows individuals to share information
between users and organizations. We are going to examine how the Internet innovations have
drastically altered Yummy Chocolates' operations and interactions.

E-business
The biggest advantage of the Internet to Yummy Chocolates is the utilization of e-business which
is a transaction of goods and services between businesses, organizations, and individuals
electronically via Internet-based systems. Yummy Chocolates uses e-commerce in many ways to
interact with stakeholders and improve operations. The company is able to increase sales by
making transactions easier through websites. In addition, sales have been improved due to
consumer targeting of advertising through Web analytical software. Yummy also receives
feedback quicker from stakeholders regarding their products. Yummy allows customers to leave
feedback and product ratings directly on their website. Investor updates are easy to provide via
immediate business updates that e-business can render, such as daily inventory and sales figures.
Finally, e-commerce can help Yummy's public relations operational goals through the advertising
and promotion of Yummy's social responsibility projects.

M-commerce
Another key innovation from the Internet explosion has been the introduction of m-commerce,
which is when Yummy's business is handled via cell phones which allow their customers to use
an electronic wallet. M-commerce provides the ability for Yummy customers to order their
delicious chocolates at any time and anywhere, which has resulted in more profits for the company.
For example, many customers place orders for the holidays while taking the train to work. In
addition, suppliers and customers can pay for their purchases directly from their smartphone.
Lastly, operationally the company can target their customers via text messages and mobile
advertisements. The company saw an increase of over 200% when they initiated a text-based
coupon ad program.
Social Media
Yummy Chocolates has a well-established social media plan. Social media is a collection of
different ways of using technology that allows people to connect, explore interests, and share
activities.

There are many ways that Yummy Chocolates uses social media technology to conduct business
and interact with stakeholders. For example, the company has Facebook, Twitter, and Instagram
accounts that push advertising and promotional messages out to customers. In addition, these same
accounts provide real-time feedback from the customers. This two-way communication creates
loyalty and increases product demand. In addition, the information gleaned from the sites is helpful
in future operational planning. For example, Yummy actually developed a new chocolate bar voted
on by their customers via social media. Other stakeholders such as investors and community
members can enjoy updated product information and ad campaigns immediately as well.

Blogs and Vlogs

The last Internet innovation that has helped Yummy's daily business are blogs and vlogs, which
are Web-based written or videoed journals by an individual that contain pictures, comments,
stories, or events regarding the company. Stakeholders can also have their own blogs and vlogs
which can also impact Yummy's operations. Last year, one former customer created a blog called
Yummy for Some Bugs, which detailed how many people were finding insects or other inedible
ingredients in their Yummy Chocolates. The negative press had a drastic impact on their business.
It took a public relations campaign and a national apology to quiet the vlogger. Yummy was quick
to notice how effective the vlogs and blogs could be for business. As part of the public relations
improvement campaign, the company created their own vlogs and blogs to show how the company
was improving candy. Finally, the vlogs and blogs are used for public relations, customer
feedback, company charitable campaigns, and advertising.

Lesson Summary
The introduction of the Internet and other technology has drastically impacted how businesses
operate and interact with stakeholders. Business technology refers to applications of science, data,
engineering, and information for business purposes, such as the achievement of economic and
organizational goals. It also affects how they interact with stakeholders through various forms of
technology. The first and most effective technological tool that is changing communication is the
Internet. It is a worldwide network of interconnected computers that allows individuals to share
information between users and organizations. The innovations that are helping businesses include:
• E-business, which is a transaction of goods and services between businesses,
organizations, and individuals electronically via Internet-based systems.
• M-commerce, or when business is handled via cell phones, which allows their customers
to use an electronic wallet.
• Social media is a collection of different ways of using technology that allows people to
connect, explore interests, and share activities.
• Blogs and vlogs, which are Web-based written or videoed journals by an individual that
contain pictures, comments, stories, or events regarding the company.