The Internet is continuing to change the way business is done and has truly transformed the nature of business in the country, giving even local companies the chance of a global presence on a level playing-field. Sites like Bizwiki can be a useful way for companies and non-profit organisations to provide information to local customers and obtain some free advertising, but can also provide a platform for companies to present themselves to a far wider audience.

The appearance of the Internet has brought about some wide-ranging changes to business practices and to the way consumers go about making their purchases. The scope of these changes is incredibly varied, so in this post we have summarised the key ways in which the Internet continues to transform business and the economy in the UK.

Opening up the possibility to participate in a truly global economy

According to historians, 5,000 years ago, three quarters of all trade and commerce took place within a 12-mile radius. As trains, steamships, and planes began to be used as part of the world’s distribution network, the possibility of reaching consumers on the other side of the world became more real.

However, the true global global commerce revolution did not appear until Internet technologies were applied to business. The development of e-commerce allows UK businesses to reach a potential customer base of millions of people, regardless of their size or location. In fact, e-commerce is currently Europe’s fastest-growing retail sub-sector, with the UK online market dominating the continent’s online sales. In 2013, online sales in the UK amounted to £38.8 billion, which represent a 16.8 per cent increase over the previous year.

Targeted advertising

Targeted advertising is a spin-off of e-commerce. A 2014 study on the UK’s Internet value chain estimated that during 2013, online advertising generated revenues of more than £6 billion, and £500 million of those consisted of targeted advertising. As a result, average annual online expenditure has grown by 16 per cent, with UK online shoppers now spending over £1,000 a year.

The appearance of the 24/7 economy

The Internet has facilitated connectivity between businesses and consumers around the clock. The business world is shifting from brick-and-mortar stores to virtual shops that are open for business 24/7. Whereas traditional UK stores have only grown by 2.4 per cent over the past year, their online counterparts have experienced growth rates of nearly 17 per cent.

And then we’ve got mobile commerce. Smartphones and tablets are now used by 28 per cent of the UK population to visits retail websites at least once a month. In 2013, UK consumers spent £5 billion shopping with their mobile devices. At the same time, new payment technologies (like online billing or PayPal) have made online shopping possible anytime and anywhere.

Information and communication

Thanks to its immediacy and low cost, e-mail communications have become the most used communication channel in the business world. Other Internet-based platforms, such as social networks, have also become a mainstream medium of communication between consumers and businesses, transforming the nature of business interactions.

On the other hand, the ever-increasing flow of information on the net has prompted the appearance of new business sectors, such as virtual storage management, data migration, and off-site data storage.

Outsourcing and telecommuting

Internet technologies played a key role in the growth of outsourcing, as business owners realised that they could be saving anything between 30 and 70 per cent in personnel costs by adopting this practice. According to an Oxford Economics report, the value of the UK’s outsourcing market is over £207 billion, or 8 per cent of the country’s total economic output.

Business owners have also realised that they can considerably reduce their overhead costs by implementing telecommuting practices, as they require fewer equipment, a smaller amount of office space, and consumer fewer resources as a business. Research has shown that when adequately implemented, telecommuting strategies help boost productivity and staff morale.

To sum up, the Internet has transformed business interactions beyond recognition, eliminating barriers and bringing down costs for both business owners and consumers.

Overall, the strong adoption of Internet technologies in the UK has been beneficial to the economy, and we can only expect the advantages to grow as time goes by.