My mother always used to (and still does) tell me to “Never depend on other people for things.” The advice is so simple and true and yet, people still ignore it anyway. I mean, how many times have you asked someone to do something as simple as remember to bring back the cd they borrowed from you last week and then they forgot it? The same is true for businesses- not the cd borrowing part- but the fact that many companies rely solely on the Internet to run their businesses.

Now, I’m not saying that the Internet is a bad thing.  On the contrary, I think that the Internet has done wonders for all of us. However, there has been a growing tendency for many businesses to rely on the Internet, which opens them up to all sorts of vulnerabilities if they’re not careful.

Business Functions that Rely on the Internet

The following are some examples of things that a lot of businesses rely on where the Internet is involved.

• Employee benefits administration
• Corporate transfer of funds
• Document backup and storage
• Contact info for customers
• Communications (i.e. voice, data)
• Accounting purposes
• Business management
• Payroll

Potential Internet Threats

Some potential threats to the Internet include things like:

• Corrupt code written by individuals
• Internet disruptions
• Natural disasters
• Terrorist attacks
• Hackers
• People looking to harm the United States

There is much talk today about global terrorism. Terrorists aren’t just blowing things up anymore, they’re doing things more quietly too. For example, there is much speculation that a future terrorist attacks will come in the form of a cyber war. These attacks will be aimed not at the military, but at the United States economic infrastructure.

So, What Can We Do?

BR suggests that CEOs ask some of the following questions:

And you thought running a business was easy!  There are many things to consider when operating your own business, especially if it is Internet- dependent!

For more information about Internet marketing, visit Create Business Growth!

It is no surprise that ever since it’s introduction, Internet usage by United States businesses and government has been growing rapidly over the past decade or so. Additionally, Internet dependence has permeated to every inch of the global economy. For instance, according to a 2007 study published by the World Bank, between the years of 1994 to 2004, Internet usage in the United States grew from less than 10 million users to more than 180 million users.

A Reason to Depend

By 2010, it is projected that the Internet will save U.S. businesses approximately $500 billion and increase revenues of $1.5 trillion (BR). Why is this, you might wonder? The Internet is a valuable resource which reduces the amount of time, money and effort spent communicating ideas as well as information to people around the world. If businesses are saving time, then it allows them to accomplish more, thereby increasing revenue, etc.  There are also other economic benefits from the increased use of the Internet by businesses, which (according to BR) include the following:

• Enhanced communications between businesses and companies/consumers

• Lower search costs that enable businesses to purchase materials at a lower cost

• Increased productivity

• Lower inventory costs

• Increased competition by making information readily available

• Lower accounting and finance costs

• Expanded sales and delivery channels

Now, what business wouldn’t want that? However, we need to be weary of our seemingly  harmless dependence on the Internet. A lot of businesses have turned towards the Internet for all of their company needs. There’s that saying about putting all of your eggs in one basket.  Perhaps, we need to pay more attention to that. For more information on Internet Marketing, contact Create Business Growth!

According to a 2007 business dependence report by Business Roundtable (BR), there is major concern that when it comes to having an online business, many companies are not ready or prepared to handle Internet-related disruptions that may arise. You might be thinking, “So, what’s the big deal?” Well, as stated in my previous blog, when things go wrong with the Internet such as misinformation, glitches and the like, it makes consumers lose faith in that particular company, thereby causing the company to lose business. In certain instances, this can be a crushing blow.

Some of the things that catch businesses off guard include:

• Lack of awareness- For example, most businesses aren’t even aware that they have an “addiction” to the Internet until something happens to negatively impact the ability to conduct necessary business functions.
• Failure to plan- Since many businesses don’t view the Internet as something that could possibly work against them, a lot of their company plans don’t include a place for a “backup plan” should something actually go wrong with the Internet.
• Everyone suffers- If you fail to plan, then plan to fail; and plan to take other businesses with you.  The Internet is a social network, allowing for the exchange of ideas, products and services.  It’s a “web” and therefore, we’re all connected.  So, if something goes wrong with your business, plan to have it directly or indirectly affect your neighbors.
• Credibility- Credibility is so extremely important to the success of a business.  If there’s an issue with the Internet and information isn’t properly transmitted (especially if this is not the first time it’s happened), then this can and probably will have a negative impact on your company.

How Do We Fix the Problem?

Prevention is better than cure.  You cannot prevent most Internet problems from happening; however, you can be better prepared, so that when they do occur, you have all your bases covered.  When companies are established, or when annual reviews are done, businesses should address Internet dependence and assess all of the risks involved.  They should be more proactive in seeking out the partnership of other businesses so that they can strengthen organizational response time in the event that something goes wrong.  BR also suggests that corporate executives ensure executive-level engagement with government to set and communicate expectations about early warning and threat notifications for the business.

For more information on Internet marketing, contact Create Business Growth today!