Internet is a technology that provides global network and has become an unavoidable concept in the last few years. This technology which started as a basic tool within military, government & university operations has exploded into a world class communication medium and has become the backbone for organisations. Businesses are exploiting this technology on a large scale and implementing it widely in all their functional processes (Aguiar & Oliveira, nd). In this report we touch base on the aspects of gaining competitive advantage, limitation and management issues relating to the technology of internet. The information has been gathered through search on various websites and AUT library database and all citations have been referenced appropriately. Management or Implementation Issues
Major management issue for most organisations is to understand the percentage of assistance required from Internet technology. Management needs to understand the structure of the organization, nature of the business, employee skills and customer database. Alignment should be based on company goal and future requirements rather than generic reasons (Schwartz, 2008). Closely associated to the alignment problem is the issue of organisational culture. Considerations have to be made on how the culture of the company can be managed with the ever-rising technology of the Internet. Technology is moving at a rapid pace but it is important for the staff to understand the relationship between the use of advanced technology and organisational benefits. Management need to have a clear understanding of organisational goals, value and business plan to all stakeholders. Implementation and sophistication in one office is difficult to be transferred across national borders due to cultural implications (Haynes, 2002). Staff training is also a management issue due to the rapid development of new technologies over the Internet. Another major issue for management is the loss of personal relationships. Lack of human touch may not allow the employees and customers to develop a rapport that may erode emotional attachment. Research indicates customers are loyal and perceive less risk in a face-to-face interaction as compared to interacting online (Colgate, Buchanan & Elmsly, 2005). Another major implementation issue has been the amount of employee access to the Internet. As Internet is a great source of communication, staff access needs to be controlled to increase their productivity at work. Employment records and criminal history has to be processed before recruiting new staff. As internal information can be transferred in seconds through the Internet, management needs to be more cautious. Also integrity of the information on the Internet has implications for management. As any information can be uploaded on the Internet it is important for management to understand the genuinely of the report especially in sensitive matters. Finally the security issue needs to be identified here by the management. Outside offenders are constantly trying to gain inside knowledge through the Internet and thus organisations need to have effective systems implemented (Aguiar & Oliveira, nd). Define Organisation’s Internet Strategy
The Internet serves differently in different type of organisations. It can be a marketplace, an information platform, a customer service channel, a management approach or a combination of these. It depends on the strategy of the organisation. In this part we are going to discuss how the Internet can serve an organisation and be exploited to enhance an organisation’s competitive advantage. Firstly the organisation must define its strategy of using the internet. Different purposes of using the Internet will lead to different types of websites. A commerce organisation should design its website based on market view. A news agency better makes use of its websites as an information platform. Banks need to have user-friendly...
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