Benefits of the Internet and ICTs

Benefits of the Internet and ICTs

The development of the Internet and ICTs has made many significant impacts on the operation, structure and strategy of organisations, as well as communication with consumers. The enhancements in ICTs capabilities, in combination with the decrease of the size of equipment and ICTs costs, improved the reliability, compatibility and inter-connectivity of numerous terminals and applications (Gupta, 2000). The emergence and mainstreaming of the Internet empowered the global networking of computers, enabling individuals and organisations to access a plethora of multimedia information and knowledge sources, regardless of their location or ownership, often free of charge.

Benefits to Organizations
• Locating customers and/or suppliers worldwide, at reasonable cost and fast
• Reduce cost of information processing, storage, distribution
• Reduce delays, inventories, and cost through supply chain improvements
• Business always open (24/7/365); no over time or other cost
• Customization/personalization at a reasonable cost
• Seller can specialize in a narrow field, yet make money
• Facilitate innovation and enable unique business models
• Rapid time-to-market and increased speed
• Lower communication cost
• Saves time and reduces  cost by enabling e-procurement
• Improve customer service and relationship through direct interactions with customers
• May need fewer permits in business and be able to avoid sales tax
• All distributed material is up-to-date
• E-commerce may help small companies to compete against large ones by using special business models
• Using customization inventories can be minimized
• Reduce distributing cost by deliver online

Benefits to Consumers
• Can shop any time from any place because of ubiquity
• Large selection to choose from a variety of channels (e.g., vendor, products, styles)
• Can customize many products and/or services
• Can compare and shop for lowest prices
• Digitized products can be downloaded immediately upon payment
• Easy finding what you need, with details, demos, etc.
• Do auctions any time and from any place
• Sometimes no sales tax
• Can work or study at home
• Can socialize online in communities yet be at home
• Can find unique products/items


The Internet and ICTs have enabled tourism organisations to develop their processes and adapt their management to take advantage of the emerging digital tools and mechanisms to:

• Increase their internal efficiency and manage their capacity and yields better. For example an airline’s reservations system allows the company to manage their inventory more efficiently and the managers to increase occupancy levels.  They also incorporate sophisticated yield management systems that support organisations to adjust their pricing to demand fluctuations in order to maximise their profitability (Buhalis, 2004).
•  Interact effectively with consumers and personalise the product. For example, British Airways has launched the Customer Enabled BA (ceBA) strategy to enable passengers to undertake a number of processes, including booking, ticketing, check-in and seat and meal selection, from the convenience of their computer.
•  Revolutionise tourism intermediation and increase the points of sale. For example, Expedia, Travelocity, Lastminute, Orbitz and Opodo have emerged as some of the most dominant global electronic travel agencies, offering an one-stop-shop for consumers. 
• Empower consumers to communicate with other consumers. For example www.tripadvisor.com, www.virtualtourist.com or www.igougo.com supports the exchange of destination information and tips, whilst www.untied.com or www.alitaliasucks.com enables dissatisfied customers to make their views available.
• Provide Location Based Services by incorporating data, content and multimedia information on Google Maps and Google Earth.
• Support efficient cooperation between partners in the value system. For example Pegasus enables independent hotels to distribute their availability through their web sites and other partners online whilst an extranet allows hoteliers to constantly change availability and pricing. 
• Enhance the operational and geographic scope by offering strategic tools for global expansion.