Technology has had a major effect on business and the American economy. One of the largest technological advances used by many businesses is the Internet. The Internet is used by businesses for communication, inventory, records, and sales. Some businesses have even been started because of the Internet. The Internet has changed business and economic trends in the 21st century by being widely available and easy to use. It is no wonder businesses have been taking advantage of effects caused by this popular tool.
Ever since the use of the Internet has become available to the public through the World Wide Web, businesses have been taking advantage of fast and easy communication via email. Email is helpful to businesses because it allows information to be shared between clients and businesses in quick, easy, and professional manner. Also, it helps businesses advertise by allowing information to be sent to an abundance of potential customers instantly. Email is also used for communication between employees. It is a common way for employees to contact each other anywhere in the nation.
One of the first business related uses for the Internet were Automated Teller Machines, or ATMs(Wriston). ATMs were first to allow a money transaction over a network connection. They made banking quick and easy. ATMs are also very convenient because most of them are available 24 hours a day and seven days a week.
Some businesses also use the Internet for electronic money transfer(Weier). Electronic money transfer is used for buying materials, changing bank account information, and paying employees. It is also streamline and increases productivity by eliminating the transfer of paper money within a business. Electronic money transfer helps with the hassle of banking and accounting and makes businesses run smoother.
Another use for the Internet is keeping track of inventory. Businesses that have branches located in different area of the world sometimes use online inventory systems to keep track of production within the businesses as a whole. Libraries also use similar systems for keeping track of available books. Automated inventory systems increase productivity by eliminating the hassle of manual counting and record keeping.
Similar to automated inventory systems, information databases are used by businesses to keep track of certain records. Databases allow employers to keep information regarding employees, schedules, and accounting in a secure location. Along with being secure, Internet databases are accessible anywhere. Databases also eliminate the need for keeping paper records(Weier).
The biggest effect the Internet has had on businesses and the economy is e commerce. E-commerce is the occurrence of sales transactions conducted over the Internet. E-commerce allows customers to purchase products from the comfort of their own home, which is why its popularity has grown within the United States. Many businesses including eBay, Amazon, and Overstock began because of the Internet and e-commerce.
All together e-commerce has added 200 billion dollars to the American economy(Egendorf). More than 71 billion dollars is spent a year over the Internet. The United States Department of Commerce estimates a 41 percent increase in Gross Domestic Product, or GDP, because of e-commerce. In fact, about 52 percent of Internet users have purchased merchandise from Internet based businesses(Weier).
One of the largest Internet markets in America is the travel business(Weier). Online travel agents, like Travelocity, use the Internet because it is available across the nation and because it is a cheap, streamline way to increase productivity and decrease the cost of capital resources. Because of its wide usability, online travel planning has become favored over the traditional travel agent. About 60 percent of travel plans planned by an agent have been planned through an automated online agent(Weier).
Along with travel agents, stock brokers have found their place in the Internet. Brokers use the Internet to automate stock exchange and give tips and information relating to the stock market. With secure but easy access, helpful updated tips, and easier trade, online brokers have become popular among share holders in America.
Another industry e-commerce has helped is the major credit card industry. Since the main form of payment over the Internet is credit, businesses like Visa, Discover, and MasterCard have expanded greatly all over the world. Now more than 1.5 billion credit cards are in use world-wide(Weier). With increased use of credit cards, has come the expansion of Information Technology, or IT, businesses. IT businesses are constantly finding ways to make credit card use more secure, which also makes credit cards even more popular.
Along with businesses, the Internet has been helpful in schools. Studies have shown that students that have access to the Internet have inclined grades and an extended knowledge(Egendorf). This is mainly because the Internet has an abundance of resources used for education and learning. In fact, some college courses are taught online. Students who prefer to learn in the comfort of their own home can enroll into online classes setup by college teachers.
It is true that the Internet has had a wonderful effect on businesses and the American economy. More jobs have been created for IT technicians, programmers, and web designers. It has opened cheap advertising opportunities and easy communication for businesses. More and more online businesses are starting every year. Maybe one day all business will be conducted over the Internet. As Vincent Cerf says, “They say a year in the Internet business is like a dog year.. equivalent to seven years in a regular person’s life. In other words, it’s evolving fast and faster.”
Work Cited
Egendorf, Laura K. “Introduction to the Information Revolution: Opposing Viewpoints”. Opposing Viewpoints: The Information Revolution. Greenhaven Press, 2004. From Opposing Viewpoints Resource Center. http://galegroup.com
Weier, John W. “Information Technology and American Business” Electronic America. 2007 Information Plus® Reference Series. Detroit: Thomas Gale, 2007. From Opposing Viewpoints Resource Center. http://galegroup.com
Wriston, Walter. “Defeat of the Elite (How Information Technology has Changed Business)(View From the Boardroom)(Forbes ASAP)(Brief Article)”. Forbes. 160.n12 (Dec 1, 1997): p.pS156(2). (380 words). From Student Resource Center-Gold. http://galegroup.com
