Too many e-marriages ending in divorce

Ebusiness success will evade organisations unable to form long-term strategic alliances, says connect.com.au executive Vish Viswanathan.

At the IT 2000 conference yesterday, Viswanathan said that forming such alliances would be critical for businesses wanting to survive the fierce competition of ebusiness. He said that despite the increasing amount of partnerships being formed among ebusiness players, there were "actually more disasters than success stories".

Viswanathan, general manager for ebusiness solutions with connect.com.au, an ISP-cum-ASP, said the main cause for these merging "disasters" was poor compatibility between companies, as well as their obstinance in aligning every part of the merging businesses. He advised merging businesses to "band together", while allowing both companies to "stick to core competences".

"You can't just buy the strengths of a company. You have to buy both their strengths and their weaknesses," Viswanathan said.

He said the ebusiness marketplace will continue to grow strongly since the majority of businesses were currently only planning to run 10 per cent of their business online. This would increase exponentially as technologies mature and acceptance increases, he said.

He concluded that the winners would be companies that are able to get to market quickly and sustain successful alliances which add value over the long haul.

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