Businesses, which utilise Internet, intranet and extranet facilities, are gaining significant competitive advantages through the increased business value that adoption of these platforms provides.
Introduction.
Businesses are utilising the Internet, intranet and extranet facilities in order to gain a competitive advantage. According to O"Brien (2000 G-3) a competitive advantage occurs when a business develops a product, services, processes or capabilities that give a company a superior business position relative to its competitors and other competitive forces. The Internet can be defined as an interconnected series of computer networks, which provides global access to communication and information. Intranets are internal networks, which utilise Internet technologies to support communication, collaboration, information sharing and the support of business processes within the organisation. Extranets utilise Internet and intranet resources to link customers, suppliers and trusted partners with the enterprise in a connected way to facilitate communication and collaboration and improve business relationships.
Body.
There is significant business value to be derived from embracing the opportunities that the Internet is providing. O"Brien (2001 p.249) states "The Internet provides a synthesis of computing and communication capabilities that adds value to every part of the business cycle". The development of e-commerce websites to attract online sales, the creation of strategic alliances with business partners and the use of electronic mail to support enterprise communications collaboration and communication are examples of how Internet savvy businesses are gaining a competitive advantage over competitors who rely on traditional business systems to compete in the market place.
Through the implementation of e-commerce websites businesses are increasing their competitive advantage by deriving revenue through online product sales and the selling of advertising space without incurring the overheads found in traditional business systems.
