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Unit 33: The Impact of Communications Technology on Business

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on 7 January 2014

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Transcript of Unit 33: The Impact of Communications Technology on Business

Unit 33: The Impact of Communications Technology on Business
About the Businesses
Talk To Frank is a website available to anybody that wants to find information out about drugs, there effects or if they are worried about someone with an addiction. It is a national drug information website to reduce the use of illegal and legal drugs. It does this by providing accurate information on drugs and alcohol.
Developing an Online Presence for Sales
As the internet is an ever increasing way of doing business more and more companies are operating on-line. ASOS and Go Compare only operate online and are always finding knew ways of developing their business to increase their sales.
About the Businesses
ASOS is an on-line fashion store that sells clothing, accessories, shoes and brands. This is an e-commerce business and has no physical presence.
The internet is becoming the biggest tool used for research. It helps them gain an insight into what others think about them. This is because they can upload questionnaires, look at feedback and also their reviews.
Selected Businesses
To explain how different businesses use the internet I will be looking at three different organisations, these are:
Talk to Frank
Go Compare

Assignment 1: P2

By Melanie Ridgway
It provides free information to anybody who wishes to seek information about drugs or anybody who would like advice.
About the Businesses
Go Compare is a comparison website which compares the prices and features of insurance providers. They cover car insurance, pet insurance, home insurance and even breakdown cover.
This business is B2C, although it does not charge for its services it is a free information provider. It uses its online presence to make people aware of the dangers of drugs.
This business operates on a B2B and B2C basis. This is because they provide their services to individuals and also to business who are looking to buy fleet insurance.
This business only has an online presence and solely rely's on it for the success of the business.
This business operates on a B2B and B2C scale. However it mainly is B2C as this is how they sell their products. For B2B this is mainly between ASOS and their suppliers when they need to place an order for more stock.
As products can not be seen/tried on ASOS put up catwalk videos of their clothing on models so that customers can see how the product will look and fit.
Procurement is businesses obtaining things that they need to succeed in their activities such as stock.
ASOS needs to procure items such as clothing from manufacturers and brands to carry on doing business. If this was not the case and they did not obtain the correct products then it is very unlikely that their business will continue to be successful.
This internet gives ASOS the opportunity to look around for products and getting the best price which can then be passed on to their customers. This will give them a competitive edge as they can compare their prices with their competitors and also improve the businesses profitability.
Go Compare will use research to:
See how they can improve to attract more potential customers
Look at complaints
Customer Reviews
Research market developments
ASOS developed their presence online to increase sales by moving forward with internet shopping. Many websites just show pictures of their products but ASOS also shows them in videos with models actually wearing their clothing. This gives the customer the opportunity to actually see how the clothes look on the body. ASOS went down the route of having an online presence as trends show that more and more people are shopping online compared to going down to their local high street.
Internet advertising uses the Internet to deliver promotional marketing messages to consumers. They use many different techniques:
E-mail marketing
Social media marketing
Web banners and Pop-ups
Mobile advertising
ASOS uses e-mail marketing to entice their customers to return. They send recommendations based upon their customer profiles and send promotional offers such as free delivery and 20% off deals. They also post new items on social media networks so customers are always aware of the latest trends and products being sold.
Talk to Frank also uses online promotions such as web banners. This is because this will keep the message into people's minds about the harmful effects of drugs and how it can affect other people around you.
Online promotions are becoming a thing of the future and are increasing at an extremely fast rate. This is because they can reach potential customers on a global scale, they are inexpensive and they can also increase future sales with recommendations.
Customer Service
For online businesses the customer service is the only way to connect with your shoppers. It is very important to get right as it could mean losing customers. As it is a virtual shopping experience it is important to make your customers feel noticed. ASOS and GO Compare do this by writing 'welcome back' when a customer logs in.

They also offer excellent customer service online by keeping their customer up-to-date with latest deals or items. They also keep you up to date with delivery of your purchase, product/service descriptions, FAQ's and contact us pages. These are in place to ensure the customer has an easy shopping experience and trying to meet the needs of all customers.
Public Relations
Providing Information
Public relations are about sending the public a good message about your business. A businesses own website is a good place to publish P.R as it in inexpensive, it has a wide coverage and anybody that accesses the site can see it.

On ASOS's website they contain information about:
Upcoming fashion events
Ethical Trade
Promoting a healthy body image
Sustainable fashion

These are all things that ASOS do to uphold there good reputation and public relations by doing the best they can for their customers, the environment and their employees.

Most businesses provide information on their website to their consumers, stakeholders and any other individual who is interested on their site. Different organisations provide different types of information.
Talk to Frank provides information about drugs, the harmful effects of drug use and the law relating to specific drugs. This website in an information website.
Go Compare provides information about different insurance companies, their different features and prices.
ASOS provides information on their products, such as material, size, price, washing instructions, returns policies and many more. As customers can't physically touch, feel or see the products its important that they are provided with as much information so they can gather what it will be like and whether they want to purchase it.
Influencing Others
The internet is an efficient tool when being used by the public or businesses to influence other peoples opinions or decisions about specific things. It helps information websites get their information across clearly, online stores to influence people into buying their products but it also gives customers the opportunity to say what they feel to influence other buyers and to change their perceptions.

There are many methods which can be used to influence others and these are:
Reviews - These can either be customer reviews or professional reviews. People can comment on the websites about products which they have brought so other customers can see.
Forums - These allow consumers to write comments on an open debate about a specific topic. For example the Go Compare advert.
Pressure Groups - These try to influence peoples views based on facts, over a widespread scale of people for a particular purpose. Such as Greenpeace.
As computers networks make up the internet this has enables rapid communication within a business and outside it.
E-mails are an inexpensive and instant way of sending text, images and attachments. Many businesses use e-mails because they are instant and provide evidence that something has been sent.
Web-Based Meetings are becoming more and more popular with the use of Skype and Facetime. They give businesses the opportunity to have face-to-face meetings with business associates around the world without having to pay for travel and hotel costs.
The intranet/ extranet are restricted networks confined to an organisation. These are becoming more popular as they are a safer way of keeping information private by securing them with log ins and passwords.
These are all ways that are cutting business costs down as they are all completed through the internet.
Use of Mobile Technology by Organisations
Mobile technology is now allowing people to work from home or on the go so that you are not tied down to an office. There is different types of technology available for different needs and these include:

WIFI - businesses use WIFI as it gets rid off wires running through the office. It also means that people can move around the office as they will always be connected to the internet. Devices such as laptops, notebooks, tablets, mobile phones and many more can connect to WI-FI.
4G - This is the fourth-generation of mobile phones. These devices use Wireless Application Protocol which means that they can always access the internet through a data connection.
PDA's - These are a hand-held computer that runs a sub-standard version of software. These are a Personal Digital Assistant and are useful for keeping notes and as a diary or planner.
Bluetooth - This is now becoming a thing of the past as it is used to send images or small amounts of data between two devices which must only be a short distant away.
VoIP - This stands for Voice-over Internet Protocol which allows you to call anywhere in the world for as long as you want which gives your business more flexibility when operating with overseas companies.

This will affect ASOS as they operate in many different countries and it is vital for an organisation to have good communication skills.
Trends in Internet Development
Increasing Speeds - These increase as technology improves
Falling costs
Rise of social networking
Increasing Worldwide Internet Usage
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