Old economy urged to adopt quick decision-making or die

But conversely, dot-coms will need to learn execution skills from the old economy if they are to survive.

At a SAP roundtable debate in London yesterday, business leaders concluded traditional companies need one or two individuals who will champion the cause of ebusiness and drive new economy values through the organisation.

Alan Buckle, CEO of KPMG Consulting, said that with dot-coms failing all around, the UK risks having old economy companies become complacent in their plans to create a turnaround.

He explained that investors crucify old economy companies when they do something brave and it affects earnings.

Buckle said: "You want new economy companies to achieve profitability, but you don't want to lose the new understanding that has come out of dot-coms. We run the risk that the old economy will go back to sleep, back to the five-year planning cycle, and that we'll lose the momentum we have built in the new economy."

Jeff Powell, IT director of WHSmith News, said his 200-year-old company took only one month to decide to spend £18m on an ERP system to reorganise the way the company does business.

He said: "One of the real challenges facing old economy companies is to change the culture and make decisions more quickly. These companies want to belong to the new economy, but all their roots and their hierarchy are in the old economy."