14.01 – Appreciating The Power of Digital
So just how big is the internet? The internet is vast and growing rapidly. Cisco, a global technology leader, estimated that 50 billion devices were connected to the internet in 2020. The global internet community reached 4.6 billion people. Excluding children under five and adults over 85 from the 7.8 billion global population, it’s clear that almost everyone has internet access.
Cisco predicts that by 2023, over 70% of the world’s population (5.7 billion people) will have mobile connectivity. Global Wi-Fi hotspots are expected to increase four-fold from 2018 to 2023, totaling nearly 628 million. Mobile connection and Wi-Fi speeds are also set to triple.
To explore the current size and scope of internet traffic worldwide, visit Cisco’s Annual Internet Report.
Ruminating on Richness vs. Reach
The internet has transformed the traditional balance between delivering customized products and services (“richness”) and achieving economies of scale (“reach”). As shown in Figure 15-1, as richness grows, so does the number of potential customers. The internet is an ideal medium to enhance both richness and reach. For example, finding a rare second-hand book is now just a click away, and online sales can continue 24/7 without the high costs of maintaining a physical store. What once took years for a small business to go global can now be achieved with a basic website costing a few hundred pounds, a translation of key phrases, and a currency widget for payments. This realization of a “Global Village” was predicted by Marshall McLuhan, a Canadian marketing visionary, in the 1970s.
Checking Out Clicks And Bricks
The internet business world often overlaps with and sometimes overtakes the traditional business world. For instance, in 2019, Debbie Wosskow and Anna Jones launched AllBright, a women’s collective with clubhouses offering networking opportunities and workspaces. After raising £13 million, they planned to expand to the US. However, the 2020 pandemic forced them to pivot to AllBright Digital, creating a virtual network for women. This shift allowed them to offer 170+ inspirational “Academy Courses” and expand their reach globally, something that would have been impossible with physical locations alone.
Similarly, Jessops, a UK camera retailer, closed its 187 stores in 2013 but was reborn with a smaller estate and a significant online presence under new ownership. Many traditional businesses have adapted by maintaining physical stores while expanding their online offerings. For example, Tesco uses its local stores for “pick and pack” operations and delivers locally, leveraging the trust built in physical stores to enhance their online presence.
Recognizing the Limits – You Have None!
Even if you think e-business offers few advantages, the internet exposes you to unexpected threats and competitors. Without an online presence, your business might:
- Appear old-fashioned compared to competitors with websites.
- Miss out on business opportunities that prefer online interactions.
- Lose talented staff seeking more forward-thinking workplaces.
- Miss out on operational cost savings, making you less competitive.
Reviewing What You Can Do Online
A website isn’t just for selling products. Here are other valuable uses:
- Generating Advertising Revenue: Websites with traffic can earn money through advertising. Google AdSense, for example, matches ads to your site’s content, and you earn money for each click. Check out other affiliate advertising schemes at AssociatePrograms.com.
- Recruiting Staff: Advertise job openings on your website to attract candidates familiar with your business. Job boards also offer cost-effective ways to reach a large audience quickly. More on online recruiting is covered in Chapter 11.
- Answering Frequent Questions: An FAQ section on your website can save time and money by addressing common inquiries. Use tools like CSGNetwork’s FAQ generator to create an FAQ page easily.
- Carrying Out Market Research: The internet provides a wealth of market data, often free and immediately available. However, always verify the reliability and bias of the information. Detailed sources of market data and market research are discussed in Chapter 4.
The digital age offers unprecedented opportunities for businesses to expand their reach, enhance customer experiences, and optimize operations. Embracing these digital tools can propel your business to new heights.
