News on 29 August 2000

The myth that dot.com leaders are young, inexperienced, and looking to make a fast buck while ploughing through venture capital handouts, has been exploded by new research from KPMG Consulting. The report, E-Business Leaders Survey 2000, shows that the average e-business leader is aged 38, and is quite willing to sacrifice corporate perks in order to start a new business in a dynamic sector.

E-business leaders are less likely to have their own office or PA and are more likely to travel economy or with ‘no frills’ airlines. They do not necessarily rebel against traditional rules of business - 88% of respondents felt casual dressing was not appropriate for important meetings and the majority of those interviewed worked extremely long hours and had little time for socialising.

"Despite the well-publicised failures of some dot.coms recently, it would be a mistake to underestimate them," said Alan Buckle, chief executive of KPMG Consulting UK. "This survey shows that dot.com leaders have huge energy, drive and understanding of how the internet is already changing business. Traditional leaders have a lot to learn from this new generation and ignore them at their peril."

Dot.com directors differ most noticeably from their counterparts in 'old world' businesses in a number of important areas, particularly in how they work on a day-to-day basis. Typically, internet business leaders start work later, continue until well into the evening, and often work seven days a week. Many dot.com leaders are in it for the long haul, with one in seven still expecting to be working when they are 70. When it comes to dreams, dot.com directors have their heads firmly in the clouds - the most popular alternative career for this group is a pilot, while they would ideally like to drive a fashionable Audi TT.

But the survey quashes the notion that traditional business leaders are ageing technophobes. Their average age is 46 and they use the internet both at work and at home, to gather information and make online purchases.

Other findings of the survey include:

Education and Background: Dot.com leaders are less likely to have a degree than traditional leaders (66% compared to 84%), yet they are more likely to have had a private education. Their route to the top is also somewhat different - traditional business leaders tend to have a finance background, while dot.com executives are more likely to be IT or Marketing specialists.

Daydreams: If dot.com directors could do any other job, their preferred option was a pilot or formula one racing driver. Traditional business leaders, meanwhile, would rather be a doctor or an author. When it comes to cars, dot.com leaders' dream motor is an Audi TT, yet their traditional counterparts would prefer a Jaguar XK8.

Heroes: Bill Gates was the most admired business leader by traditional respondents, but the favourite of the dot.com leaders was Richard Branson.

Alan Buckle commented: "Most people think that dot.coms are run by young graduates, who make loads of money in a short space of time. What's more, recent hype would have us believe that all you need to be a dot.com success is a good idea. Our research proves that this simply is not the case.

"The dot.com leaders we surveyed work hard and are extremely dedicated - they are not kids, playing at business and hoping to make a fast buck. The research shows that there really is no short cut to success in the new economy. Just like a traditional business, a Net venture will only thrive thanks to the hard work and business sense of its people. But there are critical differences in how dot.com leaders work that are increasingly likely to spread to the rest of UK plc - particularly the focus on keeping costs to a minimum and the changing work patterns that reflect the 24 x 7 culture of the internet world. "