At this moment in time there is a big push for businesses to amalgamate and increase their online presence. Only a few days ago we had Amazon making a $13 billion bid for a US food company and it looks as though this will prompt a period of consolidation in the sector. While there is no doubt that the online market is certainly the way ahead for many businesses, are we becoming over dependent on the Internet and online markets?
Security issues
Just a few short weeks ago the UK NHS system was literally brought to its knees after a hacking incident. Computers were taken over, ransom threats were made and quite literally the lives of many patients were put at risk. While there is no doubt that there are risks in every walk of business life, are we becoming too Internet minded?
Those in favour of the online market will suggest that security programs have stopped many hackers from accessing not only home computers but an array of everyday major business systems. While there is no doubt that security programs do work, very often they are behind the times and react to new types of hack as opposed to being proactive. The fact is that until they know of the “different” type of hacks being pushed out, they simply can’t react.
The online market
There are very few, if any, business markets which have not taken advantage of the Internet to some extent. In many cases this has helped to reduce margins and increase profits but further competition in the sector will again put margins under pressure. The idea of stacking them high and selling them cheap seems to be a very interesting strategy for online businesses. Gone are the shops only to be replaced by large warehouses which have significantly lower costs than previous premises.
The fact is that the online market is extremely convenient for customers who would like to do their shopping late at night or early in the morning. It also allows companies to promote special deals and promotions which offer significant savings. So, on that basis, it is difficult to argue against the online market and the impact it has and will continue to have on the business world.
Risk factors
In the business world you would have a backup system for any important operations but this can be extremely difficult where the Internet and hacking is involved. There are many different ways in which the hackers can gain access to systems, some extremely complex and others extremely simple, and in theory a backup system is unlikely to be available if the whole system was compromised. This then begs the question do share prices reflect the risks associated with the online market?
At this moment in time there is no real mention of the risk of hacking and disruptions to online services which will impact those who have a greater online presence. While the likes of Amazon will spend literally millions upon millions of dollars per year protecting their systems, is any system really 100% safe?