4. How has the Internet and Internet technology transformed business? The Internet provides the primary technology infrastructure for electronic commerce, electronic business, and the emerging digital firm. The Internet and other networks have made it possible for businesses to replace manual and paper-based processes with electronic flows of information. In electronic commerce, businesses can exchange electronic purchase and sale transactions with each other and with individual customers. Electronic business uses the Internet and digital technology to expedite the exchange of information that can facilitate communication and coordination both inside the organization and between the organization and its business partners. Digital firms use Internet technology intensively for electronic commerce and electronic business to manage their internal processes and relationships with customers, suppliers, and other external entities.