Andrew Mendoza

Andersen Consulting's eStrategy UK lead responds to a recent Podium, in which John Kay argued that the 'new economy' is an invention of the media

John Kay claims that the new economy doesn't exist ("What's so new about the new economy?", 23 August), and that it is nothing more than the invention of journalists.

John Kay claims that the new economy doesn't exist ("What's so new about the new economy?", 23 August), and that it is nothing more than the invention of journalists.

On the one hand, doing business has changed tremendously. We are undergoing an industrial revolution driven by new technology. Whatever you might think, there is a degree of change unprecedented for decades. There is a high proliferation of new businesses springing up, all fighting for dominance or survival.

However, certain fundamentals remain - old rules have not disappeared: in order to build a successful business, revenues must exceed costs, shareholders must have a return on investment, and customers must be provided with the most competitive product. Good marketing fundamentals? The gap in the market-place and the right people have not changed.

Andersen Consulting helps to apply both new and old rules at the same time by working with existing and start-up companies to develop and adapt at speed. Leadership must maintain creativity, while the organisation structure should connect and support people.

Processes should be continually examined to see if they enable decision-making to be matched by fruitful follow-through and results.

New rules work best when applied in conjunction with the more traditional rules normally associated with doing business.

So whether the epithet "new economy" was invented by American journalists or not is almost irrelevant to the realities of what we are encountering every day with companies doing business in the 21st century. Our role is to work with our clients to achieve the most effective and competitive business.