According to Gartner2, the new business growth research service of Gartner Inc., the Netherlands and Scandinavia measure the highest in flexible business attitudes, and ability to change processes quickly and maximise growth. The UK and Germany are ranked in the second tier of such abilities and France, Italy and Spain are ranked in tier three and risk being left behind.
“Fear of change is the greatest inhibitor of progress in countries like the UK and Germany,” says Petra Gartzen, Research Director at GartnerG2. “However, tier three countries face a tougher challenge, because their businesses also face external infrastructure challenges. France’s strict labour laws and strong unions are considerable obstacles to change, and Italian businesses are much less willing to accept the transparency of information exchange needed to make the Edge Economy model work. Spain has the most flexible system of the three and may eventually come out in the lead, but they must all address these issues or their companies will be seriously left behind in Europe.”
Gartner believes that by 2010, so called ‘Edge Economy’ companies will dominate 95% of all European markets. In addition, by 2005, half of all European large business failures will be caused by a failure to adapt to these conditions.
“This is the key to business growth over the next five years,” says Gartzen. “Our research has found that companies which adopt the Edge Economy model will increase revenues and profit margins, as well as improve employee productivity. Companies that ignore Edge Economy business practices will be at a significant competitive disadvantage in terms of product quality, value and services.”
Gartner defines an ‘Edge Economy’ company as one which “creates flexible technology systems incorporating wireless networks, high-bandwidth services and remote connectivity, and extends their reach beyond the enterprise”. These enable seamless changes in suppliers, and billing in the manner in a customer- and supplier-friendly manner.
