by Emma Nash European companies have escaped the worst excesses of
the Internet hype but they risk being left behind if they don't use
Internet technology to reduce costs.
That was the view of Michael May, Accenture global managing partner
of strategy, who was speaking at the Wall Street Journal Europe CEO
Summit in London.
May told CW360.com, "Traditional companies will look at how they
can apply the Internet to reduce costs.
"We have seen a tremendous increase in the use of the Internet as a
cost cutting exercise. Whereas before it was revenue driven, people
will soon regard the Internet as a tool," he added.
The Internet, May said, should be regarded as a channel for
delivering value both internally and externally. He warned
traditional companies not to feel smug because they had not raced
headlong into Internet technology.
"There are those companies that say, 'Gee, I'm glad I didn't enter
into this dotcom explosion, and look how great I am'. I think
that's a major error: the Internet provides tremendous
opportunity," said May.
May suggested that while the recent slowdown in IT investment has
been overstated, Europe would not escape the economic pain felt in
the US, "I think we're in for a difficult two quarters in Europe. I
don't think Europe has bottomed out yet."
However, May felt Europe was unlikely to face a full-scale
recession.