Significance

In 2009, Internet sales revenue in the United States accounted for 2.1 percent of the nation's gross domestic product, or $300 billion, according to ComputerWorld. Ten percent of retail transactions are through the Internet.

Types

The Internet transforms all aspects of how the traditional company does business, according to the Indian Institute of Materials Management. This includes how the business itself runs, advertising and sales.

Effects

The Internet has made doing business much easier and more efficient, reports IIMM. Sellers can send an electronic form to order products, resulting in reduced paperwork. Consumers can shop from the comfort of their home. Businesses can adjust their catalogs to niche markets and offer information such as warranty and product support, more easily.

Fun Fact

Netscape was one of the first online businesses to make it "big." Netscape's stock value tripled by the end of the day of its initial public offering, according to BBC News.

Potential

The Internet will only grow more pervasive in the global society and make business even more efficient, according to the Organization for Economic Co-operation and Development. UPS, for example, reduced fuel use by 12 million liters in 2006 by optimizing driving routes with internet maps. But the increased amount of Internet-based commerce could cripple economies in case of a cyberattack.

Source:

ComputerWorld

Indian Institute of Materials Management

BBC News

Resource:

Organization for Economic Co-Operation and Development