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Impact of the Internet on Organisations & Society

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Impact of the Internet on Organisations & Society

🧠 Big Idea: The internet has made life faster, cheaper, and more connected for businesses and people — but that same openness creates new risks: security threats, unequal access, and information you can't always trust.

Quick Summary

  • The internet gives organisations better communication, access to global markets, access to a global workforce, and the ability to use big data.
  • But it also brings security risks (remote access = more vulnerable data) and greater competition (global rivals, entire industries disrupted).
  • For society, "less-restricted networks" mean anyone can broadcast a message globally — but content isn't always fact-checked or neutral.
  • The information gap divides people who have good access to online information from those who don't.
  • The digital divide is caused by economy, location, politics, religion, disability, and social factors (age, gender, education, income).
  • Increased digital socialising can cause isolation and anxiety around real-life interaction.

1. Positive Impact of the Internet on Organisations

Communication Global markets Global workforce Big data

Think about a small local shop before the internet existed. It could only sell to people who physically walked in, could only hire staff who lived nearby, and could only tell customers about a sale by putting up a poster or running a newspaper ad. The internet completely removes those walls. Here's how, broken into four areas:

Improved Communication

Organisations can now talk to customers instantly and directly, instead of waiting days for a letter to arrive or hoping someone sees a TV advert. This happens through:

  • Websites — a 24/7 shop window anyone in the world can visit
  • Email — cheap, instant, and can reach thousands of people at once
  • Instant messaging — real-time customer support chat
  • Social media — two-way conversation, not just broadcasting

Access to Global Markets

Before the internet, a business's customer base was limited by geography. Now a business in Amman can sell to a customer in Tokyo just as easily as one down the street. This also means organisations can find manufacturers abroad more easily and negotiate directly with them.

Cost savings from selling online Selling online cuts costs on overheads (rent, utilities, staff), packaging, and postal charges — because you don't need a physical shop full of stock and staff in every city you sell to.

Access to Global Workforce

Hiring isn't limited to people who can physically commute to an office anymore. This lets organisations:

  • Be more selective — pick the best person for the job, not just the best person nearby
  • Hire across different time zones, gaining a wider range of skills and even round-the-clock coverage
  • Reduce costs — wages differ between countries, so hiring remotely can be cheaper

How Information Is Managed and Used

Every time someone uses a smartphone, shops online, or pays with a card, they generate data. Organisations collect this big data to spot patterns of behaviour — for example, noticing that customers who buy running shoes often buy sports socks two weeks later. This helps them:

  • customer experience
  • process efficiency
PRACTICE
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Also in the full note
  • 2. Negative Impact of the Internet on Organisations
  • 3. Impact of the Internet on Society
  • 4. Access to Digital Technology
  • What to Memorise
  • Concepts Checklist
  • Exam Tips
  • Security Issues
  • Greater Competition
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