What is an Internet company?

Does having a website make a company an internet business?

shopping online with credit card through social media, cloud computing and e-commerce

Deloitte’s 2012 fast 50 list of Australia’s fastest growing technology companies announced last week is an impressive list of diverse businesses ranging from online retailers to technology support firms, but it raises the question of what exactly is a ‘technology’ or ‘internet’ company.

A quick look at the top twenty illustrates how broad the “internet” category is, with eleven coming under the classification;

. 1 brandsExclusive (Australia) Pty Ltd 1335.1% Internet
. 2 Australian Renewable Fuels Ltd 1235.7% Life Sciences
. 3 SolveIT Software Pty Ltd 678.9% Software
. 4 Kogan Technologies Pty Ltd 515.6% Internet
. 5 Neon Stingray Pty Ltd 467.7% Internet
. 6 Infoready Pty Ltd 418.1% Software
. 7 SMS Central Australia Pty Ltd 371.6% Communications
. 8 Cohort Digital Pty Ltd 295.6% Internet
. 9 Redbubble Pty Ltd 275% Internet
. 10 astutepayroll.com 256.7% Software
. 11 SurfStitch Pty Ltd 252.7% Internet
. 12 BizCover Pty Ltd 249.9% Internet
. 13 Appen Holdings Pty Ltd 225.5% Communications
. 14 MyNetFone Pty Ltd 216.7% Communications
. 15 Appliances Online 206.2% Internet
. 16 Time Telecom Pty Ltd (Smart Business Telecom) 205.6% Communications
. 17 BigAir Group Ltd 202.2% Communications
. 18 Observatory Crest Australia Pty Ltd 198.1% Software
. 19 Tom Waterhouse Pty Ltd 196% Internet
. 20 Bulletproof Networks Pty Ltd 178.4% Internet

Included among those eleven ‘internet’ companies is the winner, Brands Direct, along with Redbubble, Appliances Online and Tom Waterhouse.

Tom Waterhouse is an online bookmaker, Appliances Online is a whitegoods retailer, Red Bubble is a design marketplace and Brands Direct is a fashion retailer.

While the internet is the core distribution channel for all of these companies, they are not ‘internet’ companies – they are retailers, marketplaces and bookmakers. The web is important, but it isn’t their business.

Calling them “internet companies” in many ways misses the point of just how ubiquitous the net has become to business operations. It also risks double counting as Appliances Online’s staff are counted both as retail and internet employees – something government agencies are notorious for.

We’d understand a lot more about the web’s reach if we didn’t label these fast growth businesses with the somewhat meaningless term of “internet companies”.

None of this detracts from the achievements of these businesses, their managers and proprietors. These companies are on track to being the leaders of the future.

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Author: Paul Wallbank

Paul Wallbank is a speaker and writer charting how technology is changing society and business. Paul has four regular technology advice radio programs on ABC, a weekly column on the smartcompany.com.au website and has published seven books.

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