Commercial Use of the Internet: Some Pros and Cons

Abstract

The U.S. Department of Defense originally designed the Internet to increase the productivity of government workers and it has now become an enormous opportunity for businesses to advertise, correspond with clients, order from suppliers, and conduct many other business functions at minimal cost. The Internet has achieved faster acceptance by Americans than any other previous technologies and businesses are already discovering that the Web is having a profound impact on how they conduct business. Conservative estimates are for Internet retail sales to reach $7 billion by the year 2000, and some respected analysts predict it to grow to $100 billion over the next five to eight years. As with any new initiative, there are costs, benefits, and risks associated with the undertaking. Anyone who wishes to maintain a Web site on the Internet can do so at a modest cost, or in some cases at no cost. One of the many benefits to be gained from placing a company on the Internet such as gaining access to the World Wide Web (WWW). The WWW gives anyone who is connected the ability to communicate with distant computers all over the world and provides the benefit of being able to send and receive electronic mail (E-mail). While there are a number of different risks incurred when a company establishes a Web site and goes on the Internet the biggest concern, by far, is security. When a company installs a Web server at their site, they open a window into their local network that the entire Internet can peer through. These substantial risks notwithstanding, the Internet provides an opportunity that business cannot afford to pass up. The number of companies that have already taken advantage of the Internet and the rapid increase in the number of Internet users has fueled a phenomenal growth in electronic commerce. The Internet provides an excellent opportunity to increase sales at a lower marginal cost than was possible before. Companies that pass up this tremendous opportunity will probably not survive in the 21^st century competitive climate.