The internet provides a synthesis of computing and communication capabilities that adds value to every part of the business cycle. What business value do companies derive from their business applications on the internet?
Substantial cost savings can arise because applications that use the Internet based technologies (like intranets and extranets) are typically less expensive to develop, operate, and maintain than traditional systems. For examples, American Airlines saves money every time customers use their websites instead of their customer support telephone system.Other primary reasons for business value include attracting new customers with innovative marketing and products, and retaining present customers with improved customer service and support. Of course, generating revenue through electronic commerce applications is a major source of business value. To summarize, most companies are building E-commerce website to achieve six major business values:
- Generate new revenue from online sales
- Reduce costs through online sales and customer support
- Attract new customers via Web marketing and advertising and online sales
- Increase the loyalty of existing customers via improved Web customer service and support
- Develop new Web-based markets and distribution channels for existing products
- Develop new information based products accessible on the Web
