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ISSN 2410-3918 Academic Journal of Business, Administration, Law and Social Sciences Vol 1 No 1
Acces online at www.iipccl.org IIPCCL Publishing, Tirana-Albania March 2015
73
Impact of Information Technology and Internet in Businesses
Afërdita Berisha-Shaqiri
University of Pristina
Abstract
In the past few decades there has been a revolution in computing and communications, and all
indications are that technological progress and use of information technology will continue. e
revolution in information and communication technology has changed not only our lives but also
the way how people do business. Using information technology, companies possess the potential
to reach more customers, introduce new products and services quickly, and collaborate with
suppliers and business partners from all over the world. Transformation from industrial society to
information society and industrial economy to knowledge economy is a result of the impact of ICT
and Internet use. Main objective of this paper is to describe information technology; opportunities
of Internet usage for businesses to achieve strategic advantages compared to their competition and
how they can facilitate the movement of goods and services from producers to customers.
Keywords: Internet, information technology, business, goods, service, customer.
Introduction
Information Technology (IT) has grown and evolved over the last 50 years; you cannot
think and plan a project, business or other initiative without the usage of this technology.
When we say Information Technology that means not only personal computers or smart
phones, but also modern machinery in factories, automotive industry, aviation industry,
various household appliances etc., In one way or another this has not only facilitated our
daily lives but it has also reduced cost and time in general.
Research shows that a quarter of workers in the United States of America work from
home for a considerable time of the year, while, another quarter work “mobile” - on the
move. is reects the great opportunities that Information Technology and the Internet
provide as an important tool for implementation in organizations and public institutions.
Economists highly appreciate the importance of Information Technology in business
growth, lowering costs and promoting the best products.
During recent years, globalization and computerization have redened the industry,
politics, culture, and social order. Globalization refers to ultimately integrate economic
and cultural institutions. is integration occurs as a result of the use of information
technology. e technological revolution presupposes global computerized networks and
the free movement of goods, information, and peoples across national boundaries. Hence,
the Internet and global computer networks make possible globalization by producing a
technological infrastructure for the global economy. Computerized networks, satellite-
communication systems, soware and hardware link together and facilitate the global
economy (Douglas, 2002, 285-305).
ISSN 2410-3918 Academic Journal of Business, Administration, Law and Social Sciences Vol 1 No 1
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An overview of internet as a resource
Using ICT also facilitates the production of goods in a short time with the help of
computerized information systems, and services are quick and eective (Miles, 2001, 232).
Information and Communication Technology known as ICT technology has become the
main tool in business activities in the modern world (Dimovski & Škerlavaj, 2004, 636).
Internet is becoming part of everyday life for the whole world. In recent times electronic
business has developed in an important business discipline.
“E” as the last letter in Internet usage has assumed great importance not only in the world
of information and communication technology but also in businesses. It has become
an important component for a large number of areas of research. So we can mention:
electronic marketing, electronic commerce, electronic nance, electronic commerce,
electronic learning, electronics markets and others. e Internet represents a technological
innovation, whose eects range from communication to interaction; however, its potential
has not been fully explored and studied (Homan, Novak & Peterson, 1997, 123).
Sales have increased in Europe in 2010 compared to 2009 online sales by 19.6% which
makes 5.5% of all retail business (Center for Retail Research, 2010 www.retailresearch.
org).
Graph. 1. Internet users in the World
Source Internet World Stats: www.internetworldstats.com/stats.htm
Note: Basis: 3,035,749,340 Internet users on June 30, 2014
Based on the following data about the use of internet in the world in 2014, there are more
than 3 billion users of the network, thus constituting a percentage of 42.3% of all mankind
(2014/Q2).
Information technology today has become a regular feature of the global society.
Statistics show the ongoing Internet usage by Continents.
ISSN 2410-3918 Academic Journal of Business, Administration, Law and Social Sciences Vol 1 No 1
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Tab. 1.Use of Internet in the world and population statistics June, 2012
World Regions Population ( 2012) % of population % of the continents
Africa 1.073.380 15.6 7.0
Asia 3.922.067 27.5 44.8
Europe 820.918 63.2 21.5
Near East 223.608 40.2 3.7
North America 348.280 78.6 11.4
Latin America 593.689 42.9 10.6
Oceania/Australia 35.904 67.6 1.0
Total world 7.017.847 34.3 100.0
Globalization and informatization reduce the national concept on the one hand and on
the other hand, allow ecient ow of information. Information technology and computer
networks also allow the global economic-, cultural- and political connection. ese two
forces greatly aect the economic and cultural integrity. Technological innovations,
particularly in the eld of information and communication, have played and still do
play a central role without doubt. Internet represents a symbol for the phenomenon of
globalization in many aspects. The globalization of the nancial markets, the lightening-
quick transfer of unimaginable sums of money around the globe would be impossible
without this technology, just like the organization of transnational production would be
and much more. The enormous increase in trade as a further central element of commercial
globalization results not only because transport costs have sunk rapidly, and goods can be
transported more quickly, but especially because products such as software or databases
can be sent from one corner of the world to the other over data lines in seconds.
Electronic business
E-business (electronic business) consists of the conduct of business processes on the
Internet. ese electronic business processes include buying and selling products, supplies
and services; servicing customers; processing payments; managing production control;
collaborating with business partners; sharing information; running automated employee
services; recruiting; and more. E-business can comprise a range of functions and services,
ranging from the development of intranets and extranets to e-service, the provision of
services and tasks over the Internet by application service providers. Today, as major
corporations continuously rethink their businesses in terms of the Internet, specically
its availability, wide reach and ever-changing capabilities, they are conducting e-business
to buy parts and supplies from other companies, collaborate on sales promotions, and
conduct joint research.1
Information technology is one of the relevant factors which nowadays is helping businesses
to penetrate in new markets for being innovative and producing new products and services.
erefore, we can come to the conclusion that the role of information technology in the
http://searchcio.techtarget.com/denition/e-business (January 7, 2015).
ISSN 2410-3918 Academic Journal of Business, Administration, Law and Social Sciences Vol 1 No 1
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manufacture of new products and services is enormous. If an enterprise does adequately
identify the information technology for its competitive business market by providing
appropriate soware, it will be able to perform the organization and accumulation of data
and information necessary to develop new products and services.
Electronic business via electronic mail, voice mail with videoconferencing, data conference,
teleconferencing and electronic exchange of data enable the internet which gave a new
boom in sharply changing market, economy, society and politics by changing products,
services, consumer behavior, etc. At the same time, the rules of European and national
competition will be implemented to ensure small businesses to have all opportunities to
enter new markets and compete on fair terms (European Commission, 2000, 23).
Key elements of the surroundings include:
• Global Infrastructure
• Links to suppliers
• Links with buyers / clients
• Links with intermediary
So, being connected to the internet, companies have the opportunity to research faster,
build websites that promote their products, monitor consumer behavior and develop
video conferencing. It is worth to mention one of the most revolutionary developments
in advanced communication technologies, such as voice over internet protocol (VoIP),
which includes all types of voice communication transmitted through the internet,
between computers or in hybrid form between PC and regular phone. Advanced computer
technology is sophisticated, though it is oen very expensive and takes more time to be
implemented by an enterprise. Well business processes are transformed from physical
reality to digital reality based on Bit (Berisha-Namani, 2010, 53).
Information technology and internet access by SMEs in Kosova
Information Technology is used as a strategic tool for companies to enhance their
competitive advantages at a time when uncertainty is increasing (King, Grove & Hufnagel,
1989, 87-93). e idea that information technology can contribute to the optimization of
enterprise resources, strengthen, enable and enhance business performance, is accepted
and supported by many empirical studies (Sethi & King, 1601-1627; Chan, Hu & Barclay,
125-150; Croteau & Bergeron, 77-99).
e level of the use of technology varies according to the country. e current situation in
the level of information technology usage in Kosovo is shown below by BSCK’s research
results.
According to 2010 BSCK survey 59.42% of rms declared they have computers. According
to BSCK Survey in 2011, the usage of computers by rms has increased by approximately
7% (66.26% in 2011), while in 2012 the usage of computers by rms has decreased by 8%
(58.23% in 2012). In today’s economy knowledge, the use of information technology by
rms increases their competitive advantage. Moreover, not only the intensity of the use
of IT, but also the quality of the use of IT is an important factor for SME development.
ISSN 2410-3918 Academic Journal of Business, Administration, Law and Social Sciences Vol 1 No 1
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According to the BSCK survey, SMEs have around 6.5% computers per enterprise. Only
40% of companies that do not have computers are planning to buy a computer in the
future.
e development of information technology at a rapid pace and its use in enterprises in
Kosovo is constantly changing the quality of services. Kosovo SMEs use computers for
nancial records, text processor and market research. e use of computers for production
management and quality control remains low, but it is worth mentioning that there is a
positive trend.
Tab.2 Purpose of computer usage
2010 2011 2012
Computer usage
2010 %Computer usage
2011 %Computer usage
2012 %
Financial record
keeping 37.7 Financial record
keeping 30.0 Financial record
keeping 53.9
Planning 16.7 Planning 11.3 Planning 13.9
Word processing 11.7 Word processing 9.8 Wor d
processing 7.8
Market research 15.3 Market research 11.9 Market research 8.3
Production/
operations
management
8.0
Production/
operations
management
7.1
Production/
op-erations
management
7.8
Quality control 6.8 Quality control 5.8 Quality control 5.6
Other 3.8 Other 2.6 Other 2.6
Source: BSCK SME Survey 2010, 2011 and 2012
According to the latest research on the development of SMEs conducted in Kosovo in
2012, Kosovo SMEs mainly use Internet for 18.1% of market research, communication
(e-mail) has increased to 61.2% compared to 2008 and decreased to 10.1% in promotional
activities.
In 2011, 23% use internet for market research, 14.4 % for promotion and advertising
activities, 11.5% for selling goods and services. As seen in table below the rate of
percentages for these factors has decreased among 2010 and 2011. In 2011, the use of
internet for e-mail communication has doubled, which is currently the key-factor for
using the internet. Furthermore, in 2011 the survey encompassed the E-Banking factor
as a reason for internet usage, and the results assert that 12.4% of companies use internet
particularly for E-banking. e remaining 3.1% of the companies use internet for other
purposes. As seen in the table below the rate of percentages for most factors has decreased
among 2011 and 2012. In 2012, the use of internet for e-mail communication has increased
tremendously, which is currently the key factor for using the internet. is is a fact which
shows that the best electronic commerce has begun to evolve in Kosovo. Internet services
ISSN 2410-3918 Academic Journal of Business, Administration, Law and Social Sciences Vol 1 No 1
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for SMEs are of great interest because of the increasing cooperation provided to businesses
in nding buyers, suppliers and placing of products on-line and distance (BSCK SME
Survey: 2010, 2011 and 2012).
Tab. 3. Shows the use of Internet by SMEs in Kosovo
2008 2010 20112012
Internet usage
in %%Internet usage in
2011 %Internet usage in
2012 %
Market research 33.7 46.8 Market research 23.0 Market research 18.1
Promotion and
advertising 12.2 15.4 Promotion and
advertising 14.4 Promotion and
advertising 10.1
Selling products 11.6 13.9 Selling products 11.5 Selling products 4.6
E-mail
communication 36.4 18.1 E-mail
communication 35.6 E-mail
communication 61.2
Other specic
business
purposes
6.2 5.7 Other specic
business purposes 3.1
Other specic
business
purposes
5.9
Source:1. Riinvest Institute Research on the development of SMEs in Kosovo (2008)
Business Support Center Research on the development of SMEs in Kosovo (2010, 2011,
2012)
e results of using this technology are seen in the rapid implementation of products and
services as well as in the great speed to meet customer requirements. We can say that as a
result of the use of new technology, a new economic structure is developing, building an
intelligence network2 that has become a new reality. ese trends in global proportions
have greatly inuenced the Kosovo SMEs development in extending their productivity
due to increased use of this technology.
Conclusions
Information Technology and the Internet are not only important features for the facilitation
of communication between people but, they are a way that creates new business models,
by changing the development of business and transforming them in a positive manner.
e Internet can be considered as a strategic resource where companies can promote their
work and services as well as to expand into new markets. Companies that utilize this new
technology can be more ecient in conducting business activities and create competitive
advantage. Electronic business has changed the economy, society and politics. is is
the main reason why enterprises which are in tighter competition today are orientated
towards the market fullling the requirements of the buyers.
The most popular forms of electronic business are: electronic market, electronic marketing,
electronic banking transactions, e-procurement, e-government, etc.
ISSN 2410-3918 Academic Journal of Business, Administration, Law and Social Sciences Vol 1 No 1
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