E-Business Solutions

New world, new technologies

IT IS CERTAINLY a strange world where Geoff Bezos of Amazon can state: ''We were profitable for about an hour in December 1995, but it was probably a mistake.'' The internet has challenged many accepted wisdoms and is forcing organisations to revisit their business models - but it hasn't changed accounting practices just yet.

Despite the occasional suspension of reality, the internet remains a huge force for change.

Charles Schwab took 20 years to accumulate $100 billion of customer investment, but just six months for the most recent $100 billion, thanks largely to the internet. And eTrade demonstrated phenomenal growth by adding 332,000 customer accounts during one quarter in 1999.

Business value can also be measured in terms of average revenue per customer. Egg states that it has an average balance of over £17,000 per customer, whereas the average for a building society is nearer £3,000.

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