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How the Internet Can Save Your Company Money

“By 2005 or so, it’ll be clear that the internet’s impact on the economy has been no greater than the fax machines.” These are the famous or, rather, infamous words of the world-renowned economist and Nobel laureate Paul Krugman.

It is hard to find a worse
prediction in recent history, because the Internet has completely transformed
our economies, our lives, and even, the whole world.

Read – How Technology Can Help Your Small Business

One of the largest effects of this
has been a complete overhaul and transformation of the ways we do business.
This seems quite clear now, but how did so many economists think the Internet
won’t have a large effect just a few decades ago.

  • Is
    the internet fully utilized today?
  • Can
    we still expect productivity gains thanks to it? 

These are all questions we’ll
attempt to answer in this article.

How to Use the Internet to Save Money

Why Did Most People Think the Internet Won’t Have a Big

Our economic systems are more
complex than ever before. Since the end of world war 2, we’ve lived in a
highly-connected, highly knowledge-heavy, information-dominant economy, and the
trends keep showing more and more jobs will rely on specialization and
comparative advantage going forward.

In such a highly complex and large economic system, it takes a lot of time before a technology is fully absorbed and productively used in the economy. We see this with many inventions in history – even the printing press and the steam engine didn’t transform businesses overnight, but rather, it took decades and even centuries for these technologies to be fully widespread and utilized.

That’s why, when a new disruptive
technology is introduced, its initial impact will always be very limited. Some
economists failed to see that this limited initial impact doesn’t mean the
Internet won’t be a game-changer later on.

Is the Internet Used to Its Full Potential?

Actually, the Internet transformed our economy way sooner than we expected. It took the steam engine more than a century to completely change every aspect of production and management; it took the Internet only two decades.

This is because of the qualities
of the Internet. It is more flexible, more easily accessible to businesses
everywhere. The nature of the Internet made the changes proliferate much

Although, as the growth of Silicon Valley and the startup culture shows, the Internet is still not fully utilized and there’s still a lot of productivity gains and cost-saving techniques that aren’t widely implemented.

What are Ways Your Company Can Use the Internet to Save Money

So far, we’ve talked about the
Internet, its history, and its impact, but it was rather abstract and

Now, we’ll discuss how you, as a business owner, can use the Internet to reduce costs, increase productivity, and save money in the long run:

Financial Impact of Internet on Businesses

#1. Business Process Management Software

Business processes refers to the various tasks,
employees, contractors, etc. you’ll need to deliver a certain service to
customers or consumers. Each process typically involves many people, usually
more than one department, and produces a lot of data.

To manage all of this, you need to use a BPM software
program. It’ll make your employees more
productive and allows
you to analyze the data easier.

#2. Increased Communication

Increased communication is a wonderful thing in the
workplace if done correctly. Most business analyses show that long meetings
make employees more unproductive and aren’t useful – being able to communicate
on the fly and disperse relevant information throughout your company is
extremely important.

The communication channels, however, should only be
used for work-related information.  

#3. E-Commerce

E-commerce is the biggest driver of growth on the Internet. It is extremely easy to expand and deliver products if you create an e-commerce platform. Even Youtubers are using startups like Fourthwall to get into the e-commerce business.

Creating and promoting an e-commerce business will lessen the needs of having physical locations and help you reach a bigger audience. It is a very common-sense step to take.


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