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Doing Business on the Internet

Last Verified: 2007-11-16

Summary

Internet Services

The Internet is not a single entity; it is more a complex system of services and programs that together, provide users with the Internet. Each of these services has different capabilities and functions. Working together, they provide users with a unique variety of services that can be used by businesses as a research tool, a networking tool and an advertising medium.

Opportunities Sourcing

As a Research Tool

The Internet has a vast collection of information that business can source to stay competitive in the market place. Included in this information are products and industry suppliers from around the world that can be found and contacted.

By using a Web browser, you can access such Internet distribution services as the World Wide Web. The Web allows the users to download information from desired sites right to their computer screens. Once this information has been downloaded, it can be printed and/or saved to one's hard drive.

Once on the Internet, search engines can be used to connect users with desired sites. Some common search engines are:

As a Networking Tool

The most popular service on the Internet is E-mail. With E-mail, businesses can keep in touch with customers, business associates and other entrepreneurs from around the world. Since E-mail is an inexpensive, convenient and efficient communication tool, it has become far more superior to conventional means of communication such as telephone, fax and mail.

As an Advertising Medium

One of the more obvious business uses of the Internet is advertising. Every year, marketing and advertising teams spend billions of dollars trying to sell their products and/or services. Now companies can promote their goods through the Internet at a cost per sale basis. Internet advertising reaches potential customers worldwide at less than five percent of traditional advertising costs.

Some of the great advantages of the Internet are:

  • the Internet has no boundaries and can be accessed in a matter of seconds. You can enter new markets all over the world with minimal costs;
  • you can reach customers all over the world. And by using E-mail, you can quickly keep in contact with your customers at a very low cost;
  • the Web allows you to market your products or services to your clients or potential customers 24 hours a day, 7 days a week.

Other Internet Uses

The Internet has a variety of uses. Here are some of the many uses that companies are taking advantage of:

  • providing human resources information;
  • customer service and support;
  • remote office and field support;
  • public relations (i.e., news releases);
  • selling products and offering product information;
  • corporate profiles;
  • investor relations—stock performance.

Terms

Download: A way of transferring files from a remote computer to your computer.

E-mail: (Electronic Mail) The transmission of correspondence and documents from one computer to another via telecommunications.

FTP: (File Transfer Protocol) One of the first developed Internet services that allowed users to move files from one place to another. It enables you to connect to a computer on the Internet (as long as you are allowed to write to that host), transfer any type of files-programs, text, pictures, sound, or any other file format.

Internet: A vast collection of networks from around the globe. Each network in the collection has physical connection to one or more of the other networks; thus, all networks on the Internet are connected. The Internet includes many services such as FTP, Telnet, and the World Wide Web (www).

Modem: (Modulator-Demodulator) A device used to send and receive data over telecommunications lines.

Network: A set of interconnected computers that can interchange information over long distances.

Search Engine: Tools you can use free of charge that help you locate information on the Web.

TCP/IP: (Transmission Control Protocol/Internet Protocol) is a networking protocol that all companies must adhere to in order to make the Internet accessible by people using different types of machines. It allows for transferring data on the Internet itself, as well as on many local area networks.

Telnet: is a program that allows you (using a telephone line and a modem) to connect two computers together; it provides a terminal connection to the remote machine. This connection enables you to type commands to the remote machine, just as if you had a terminal hooked to it.

UseNet: (also known as Newsgroup) Refers to a mechanism that supports discussion groups. In many ways, you can think of UseNet as an organized electronic mail system, except there is no single user that mail is sent to. Instead, the messages that are sent are available for anyone who accesses that newsgroup.

WWW: (World Wide Web) is one of the newest Internet service. It allows anyone to easily access and display documents that are stored on a server anywhere on the Internet.

Other Web sites of interest may be:

Source: Daniel Dern. The Internet: Information Highway for Small Businesses and Entrepreneurs
Prepared by: Saskatchewan Regional Economic and Co-operative Development




Last Modified: 2007-11-16

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