Why is the internet important?

The following extract is from the research report "e-charity? An evaluation of the potential of the internet for the UK voluntary sector" by Anthony Gibbs. Copyright 2001 Anthony Gibbs

“The newest innovations, which we label information technologies, have begun to alter the manner in which we do business and create value, often in ways not readily foreseeable even five years ago.”

Alan Greenspan, Chairman US Federal Reserve Board speaking on 6 May 1999 reproduced from ‘The new economy starts here’ (Business 2.0 magazine June 1999)

Alan Greenspan’s remarks were an early trigger in considering the impact of the internet on the voluntary sector as a suitable topic for this evaluation.

This topic was confirmed as an important area for investigation following analysis of the subject using established management tools. This analysis provided justification of the need for this research as well as helping to shape the aims and objectives of this evaluation.

I carried out this analysis myself using SLEPT and SWOT models supported by further data obtained from the Institute of Directors as well as background reading. The complete SLEPT and SWOT analyses are included in "e-charity? An evaluation of the potential of the internet for the UK voluntary sector", with the key points summarised below:

Analysis of influences and drivers on the voluntary sector

When considering the internet, external influences on the voluntary sector were identified using the SLEPT model to highlight Social, Legislative, Economic, Political and Technological issues. A SWOT analysis of the internet (Strengths, Weaknesses, Opportunities and Threats) highlighted further issues and drivers that confirm the importance of the internet for the voluntary sector.

Social, Legislative, Economic, Political and Technological (SLEPT) analysis

Use of the internet is already widespread throughout society, and increasing, with approximately one in four of the UK population already having internet access. By 2004, a higher proportion of UK population had access to the internet from home than in any other G8 country. At the same time, the total cost of internet access in UK for individuals is now expected to be lower than in any other G8 country.

However, there are concerns that a so-called ‘Digital Divide’ exists between the affluent and poorer members of society (the haves and have-nots). The ‘Digital Divide’ could be an issue for a charity whose potential beneficiaries may not have internet access.

In the private sector the use of internet technology is already enabling companies to provide improvements to customer services. There is in turn a growing expectation that all types of organisation (whether in the private, public or voluntary sector) will have a web site.

By 2004, a higher proportion of business to business (B2B) and business to consumer (B2C) transactions was carried out on e-commerce networks in UK than in any other G8 country.
The internet is also an important political issue. The UK Government is commited to developing an internet culture and infrastructure in the UK as part of its ‘Modernising Government’ agenda. There is a commitment that all dealings with Government will be electronically deliverable by 2008.

The pace of technological change will reinforce the importance of the internet in the future. The advent of interactive digital TV will create a new internet audience in addition to personal computer users. Also, the next generation of mobile phones will further expand internet access.

Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis

The internet has a number of strengths. It is the cheapest way of linking computers (and therefore people) around the world. There are few restrictions on available (digital) storage space, and information can be personalised providing an unprecedented matching ability to meet the interests and needs of individuals. The interactivity of the internet is also a unique function.

There are a number of weaknesses associated with the internet although some may be transient rather than permanent or fundamental flaws: Current technology means that the majority of people still need a computer, although rapid inroads are being made to provide internet access through mobile telephones and television.

Changes in access technology may highlight an IT skills and knowledge gap, which may in itself present a barrier to accessing the internet. This is though likely to change as society generally becomes more IT literate.

Importantly within the voluntary sector, charity managers may lack an understanding of the potential uses for the internet with training required to develop the necessary new skills.
There are a number of opportunities including ease of information sharing making use of this technology. Email in particular can improve all-round communication between charities and stakeholders.

The potential applications of the internet are varied and could be relevant to many parts of an organisation, providing cost reductions and process improvements.

A fundamental threat is that without cheap access to the hardware, whether a computer, television or mobile phone, it may not be possible for charity beneficiaries to access the internet. This does not however preclude charities from making use of the internet on an organisational (infrastructure) basis or in relationships with other charities, government and the private sector.

Also of concern is that not all charities may have the resources to make the best use of the potential of the internet. The need for investment in an IT infrastructure that will equip the organisation to realise the potential of the internet may be prohibitive.

There may also be a skills gap resulting in a need for the charity to further invest in staff training and/or recruitment of e-strategists.

To request a copy of the full report, "e-charity? An evaluation of the potential of the internet for the UK voluntary sector" by Anthony Gibbs email admin@charitytraining.com