The convergence of media and communications could throw
up so many unmissable opportunities and false dawns-of-new-eras
that the collapsing weight of expectations could create a new
"digital bubble" warned
KPMG yesterday.
A paper, "The Digital Bubble: Balancing Operational Challenges
With Growth", identifies the critical market conditions that are
applying tremendous pressure onto media and communications
companies.
The key issue, said report author and convergence partner Tudor
Aw yesterday, was whether companies can execute the operational
aspects of their digital strategies. Aw said convergence is not
only taking them into uncharted business areas, but they appear to
be taking leave of their senses. "Technology companies find
themselves in the content business, dealing with companies with
limited financial track records. And media companies are getting
dragged into technology," said Aw.
The digital market is displaying the classic symptoms of an
economy about to descend into bubble madness, he warned. Excess
capital, investments based on speculation rather than economics and
demand exceeding investment opportunities are all characteristics
displayed just before the
dot com bubble burst.
"When technology revolutions developed before, management
[failed when they] over focused on top line growth and increasing
market share," said Aw.
Dot com despair >>
Paradise lost >>
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