They will also be able to schedule appointments, pay bills, and submit and check the status of claims. As increased bandwidth allows for the rapid transmission of high-resolution images, and as security and reliability improve, remote diagnosis will become increasingly feasible. When new technologies are introduced, it is often to improve existing processes, sometimes substantially. Lower costs and expanded markets are the most likely drivers for the first organizations embracing e-business. For example, it costs banks about 1 cent to process an Internet transaction, compared with 27 cents for ATM transactions and over a dollar for branch transactions .
Internet banking is cheaper for banks.
Cost reduction can be equally dramatic in the insurance industry where the Internet could cut costs across the value chain by more than 60 percent, with the most dramatic savings in distribution and customer service. These cost savings, combined with convenient and customized service, will encourage consumers to buy policies electronically, and companies that offer on-line policies will undercut traditionally priced products. The Internet can also be used for electronic communication between customers and insurers, reducing the time spent on routine tasks such as applications processing, updating customer account information, and reporting on the status of claims. It is not surprising, therefore, that airlines are pursuing various strategies to drive their distribution costs down by lowering travel agent commissions, selling through the Internet, and promoting electronic ticketing. While the new connectivity enabled by the Internet gives businesses the opportunity to streamline procurement, sales, and marketing, it also gives them an opportunity to find new customers and suppliers.