Study Notes
The internet has significantly transformed how organisations operate, offering both positive and negative impacts. Organisations benefit from improved communication, global market access, a diverse workforce, and enhanced information management, but face challenges like security risks, hacking, and increased competition.
- Improved Communication — The internet enables instant communication through email and video conferencing. Example: Slack allows real-time collaboration among team members.
- Access to Global Markets — Organisations can reach customers worldwide without physical stores. Example: Amazon operates globally, selling products 24/7.
- Access to a Global Workforce — Companies can hire talent from anywhere, supporting remote work. Example: Shopify has adopted permanent remote-work policies.
- Changes in Information Management — Cloud storage and shared databases improve data accessibility. Example: Google Drive allows secure online data storage.
- Security Issues — The internet exposes organisations to risks like data breaches and malware. Example: The 2017 WannaCry attack affected the NHS.
- Risk of Hacking — Unauthorised access to systems can lead to financial and reputational damage. Example: TalkTalk lost customers after a data breach.
- Greater Competition — Global connectivity increases competitive pressure on organisations. Example: Local bookshops now compete with online retailers like Amazon.
Exam Tips
Key Definitions to Remember
- Improved Communication: Instant communication through internet tools.
- Access to Global Markets: Reaching customers worldwide via the internet.
- Security Issues: Risks like data breaches and malware attacks.
Common Confusions
- Confusing cloud storage with local storage solutions.
- Assuming all internet communication is secure.
Typical Exam Questions
- Explain one positive impact of the internet on organisations? Answer: The internet enables organisations to reach a global market, increasing potential revenue.
- Describe two ways the internet has changed information management in organisations? Answer: Through cloud storage systems and shared databases.
- Discuss the advantages and disadvantages for an online retail business of using the internet to communicate with customers? Answer: Advantages include instant communication and cost-effectiveness; disadvantages include security risks and impersonal interactions.
What Examiners Usually Test
- Understanding of both positive and negative impacts of the internet on organisations.
- Ability to apply theoretical knowledge to real-world business scenarios.