Managers still backing the net

By JAMES MCLEAN
Updated:

 

British businesses are facing up to the reality that the internet revolution was more hype than substance but the development of e-business retains strong support at senior executive level in British companies, according to a new report.

KPMG Consulting's recently launched e-business unit Metrius Europe said a recent study of senior management views on the internet shows the growing list of dotcom failures exerting an increasing influence on internet strategies being adopted by traditional businesses.

However, the survey also concludes that despite confusion among managers about how to outsource e-business projects, developing an internet strategy remained an important focus for senior management among 90% of established bricks and mortar companies. 'This research reinforces our belief that there is no new economy. Economic principles have not changed,' said Metrius chief executive Clive Pinder.

'UK corporates have benefited from a wait-and-see policy before implementing e-business strategy and now believe this approach is paying dividends. They have learned from the high-profile failures and recognise the importance of strong business models and defined revenue streams as essential factors,' the report says.

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