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The impact of the Internet on the functioning of modern enterprises

In the modern world, having a presence on the Internet is becoming a necessity. It is not only a source of various information but also the cheapest means of communication. Therefore, this technology is being used with increasing success by modern enterprises. According to Kotler, “not being on the Internet (…) is like not having a phone.” It is not just about the fact of “being” there, but about the effective use of this technology by the enterprise. This can only be achieved by organizations that possess knowledge and creativity.
Soon, the functioning of organizations will be based primarily on utilizing the possibilities of the Internet. Online product sales will create the face of a new trade model, and the auction system will likely become a common procurement system. It can be assumed that the Internet will become a conceptual structure for improving the efficiency and effectiveness of a real organization. A new form of business activity, based on the use of global information systems and databases, are so-called virtual organizations, which are a temporary network of independent companies created via the Internet. Above all, the main goal of creating a virtual organization is to achieve the maximum level of operational efficiency by delivering the best possible product or service in the shortest possible time to a specific location. An organization of this type uses external knowledge and resources as if they were its own. This fact provides it with a market advantage. The introduction of the Internet in modern organizations causes structural changes and the intensification of information exchange and internal ties with the environment. The virtual organization could therefore develop thanks to the use of the Internet, especially in the functioning of global information networks and large databases.
Every enterprise has the chance to become a company operating on the Internet, leveraging advantages in the areas of: information, choice, convenience, individualization, savings, community, entertainment, and trust. The growing role of the Internet is becoming evident in trade. The literature most often mentions three approaches to the e-commerce model: shifting traditional organizations to the WWW, establishing organizations upon the emergence of the Internet in the market, and combining existing organizations in the form of an electronic consortium to create new opportunities through a “virtual structure” of partners in online mode. The basis of an effective e-commerce strategy is the careful definition of the meaning and role of three elements: management, infrastructure, and organizational learning.
The article comes from the magazine “e-Fakty” 1/2005.

2005-1s7.pdf