Internet Impact on Business & Organizational Structures
The Internet’s Impact on Business
ICT. The Internet is a global network of interconnected computers that are able to communicate among themselves. The introduction and implementation of the Internet in business brings important changes to the organization and activity of the company, such as:
- Improved external communications: Communication with the outside world is cheaper, faster, and more efficient, which results in better economic management and business performance.
- More investment and funding options: Since it is a global financial market where capital and its movements have no borders, funding opportunities are expanded, as well as investment alternatives in the world.
- Increased labor productivity: Flexible labor relations and a more qualified workforce lead to improved work organization.
The opportunity for internet users to communicate consistently, quickly, and cheaply allows companies to streamline procedures, make business more dynamic, and save resources. These improvements can be observed in several aspects:
- Client-supplier relationship: Communication is improved, making the process of buying, shipping, and handling bill payments easier.
- Banking: The company can check their bank accounts and do a lot from a computer, without needing to visit bank officers.
- Procedures: The company can make tax payments, deliver official documents to the Inland Revenue or Social Security, and achieve better communication with public authorities, all from their offices.
- Information and advice: Connecting via the Internet allows for faster access to outreach systems.
Organizational Structure Models
Models of organizational structure. There are several models:
Online or Hierarchical Model
In this model, all depends on the person above who gives the orders, and subordinates can only receive them. This is a basic model for small and medium companies, or companies with simple processes focused on a single product.
Disadvantages: lack of expertise on the part of leaders, an excessive concentration of authority, lack of flexibility, and lack of motivation in the subordinates.
Functional Model
This model is characterized by a specialized department that devotes its entire effort to a particular task. The benefits are that each department works in their specialty, tasks are divided into shares, and specialists are utilized.
Disadvantages: each worker has more than one head, which often creates conflicts and coexistence issues, and they may receive conflicting orders.
Line and Staff Model
This model is characterized by a hierarchical structure with central support from staff departments. The advantages are that it permits the intervention of specialists who advise various departments. Value command in the sense that each person depends on another, only takes orders from no one.
Disadvantages: decisions are slow because the departments have been consulting advice, some involved in decisions that do not belong, departments represent an additional cost to the company.
Committee Model
This model is characterized by the cooperation of several people at the time of assuming authority, and responsibility for decisions is shared. Usually, the decisions are taken together by leaders from different areas or departments, in order to obtain an overview of all aspects that can affect the decision.
Advantages: views are taken from different points of view, and there are different opinions in each month integration decision on people.
Disadvantages: difficult decisions and sometimes are so friendly, because of problems more than one authority.
Matrix Model
This is a new model specific to its own industry, changing two variables, and linked from of relations of authority. In this model, there is a dual authority, normally, there is authority that the two above.
Advantages: is a flexible organization is a new method, but it maintains a regular structure.
Disadvantages: must know how to combine and coordinate all the people involved in the project, although they are different areas.