Information Sheets > E-Business Basics

Many seasoned businessmen have fallen for the lure of dotcoms in the belief that a new life full of adventure lies ahead. However, as the new economy develops, people are starting to notice that it is not so different from the old economy after all.

Evidence for this comes in studies by AT Kearney, the management consultancy, and from Henley Management College. Kearney interviewed 251 chief executives from 26 countries and found only 4pc believe that e-business is the main challenge facing them today.

While they recognise the significance of e-business, they are careful not to characterise it as the sole determinant of success.

Henley’s report, Management in the New Economy, shows realisation has dawned that the same business basics apply whatever the organisation. "A sense of direction, strong cashflow management, people skills and many others are essential for business success in bricks and mortar, bricks and clicks and dotcom organisations," says Henley professor David Birchall.

Two case studies in the report tell the same story. Bill Shipton, managing director of the online recruiter PeopleBank.com, believes there is little difference in the people-management skills needed in traditional and e-commerce businesses.

Providing true leadership, developing relationships and ensuring human interaction are key. "I describe us as a recruitment business foremost but the internet is our medium. Yes, we’re an e-business but the issues we face are similar to businesses which mainly operate off-line," he says.

The message is much the same from Ecademy.com, a training and consultancy company. Its virtual office structure, with staff based in their homes, proved unsuccessful and was changed to a single office. The company found it needed to talk to staff about vital issues such as managing cashflow.

Yes, the first phase of e-excitement is definitely over. The "web DNA" required by anyone working in the new economy now includes the old-economy skills of communicating with people and managing cashflow as well as the risk-taking and visionary stuff.

Phase one was about difference. Phase two is about similarities. Phase three will be when we stop talking about "e" and take the internet for granted, just as we do the telephone.