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Software companies are creating financial software packages with the single European market of 1992 in mind. Software companies are selling a wide variety of ledger systems that have multinational accounting features. An accounting package for the single European market should include multiple language support, multiple currency features, international fiscal regulations support, and flexible reporting features. Firms will need software with multiple language support only if they intend to implement a common accounting system in their foreign subsidiaries. Standardization will lower costs because the accounting software can be bought in bulk, and accountants can move easily among offices without having to get used to a new system.

Unix is becoming increasingly popular as a computer operating system and as an economical alternative to mainframes dedicated to inflexible operating systems. Mainframe computers typically can not run software from other systems, forcing owners to buy applications software for that unique operating environment. Owners desiring to move to another computer supplier or a more powerful computer usually must have to have their applications rewritten for the new operating system at great cost, which can force owners to stay with their old system. Unix, which was developed by AT&T and refined at the University of California, Berkeley is an open system that performs on par with alternative proprietary operating systems. Unix gives owners the ability to share software and is cheaper than proprietary operating systems.

Electronic commerce is expected to generate $400 billion worth of business by the year 2000. However, while the outlook for online marketing looks very positive, many companies that have entered the market have yet to make real money through the Internet. Businesses realize that the point of going online early is not only to generate immediate profits, but to achieve other objectives such as gaining differentiation from the competition and a competitive advantage as an early entrant. Electronic commerce can also help companies reduce their operating costs, because there will no longer be a need for heavy investments in constructing regional branches. It is likewise advantageous for shoppers because they now have access to products that are cheaper or easier to purchase from specialist shops or those in other countries.

The Pacific Rim is positioning itself as a major industrial force. Highly industrialized countries in the region, including Japan, Singapore, South Korea and Taiwan, are being joined by such upstarts as Indonesia, Malaysia, Thailand and Vietnam, in terms of manufacturing capabilities, especially in the field of information technology. The whole region is home to 18 of the 50 largest manufacturers in the world, as compared to only 14 in the US. Companies based in the Pacific Rim are improving their competitiveness by investing in technology and expanding their global reach. Meanwhile, Western companies are recognizing the potential of the region, particularly its cheap labor force, burgeoning market and attractive tax cuts, by establishing their presence in the bloc. However, they should avoid treating the whole region as a homogenous area and consider the differences among the countries in terms of culture, infrastructure and economic status.

The rewards of successful biotechnology research and development projects are enormous. Unfortunately, European biotechnology companies are being hampered by lack of funding. Venture capitalists in Europe are hesitant to provide the necessary finance to these biotech firms because they are short-term-oriented, which means that they want to have immediate results. They do not take into account the fact that it takes many years before a single product can be tested and finally approved for marketing. Moreover, they do not understand what exactly constitutes biotechnology, which is no surprise given the fact that even biotech insiders are not in consensus when it comes to defining biotechnology. Nevertheless, hopes are up for the biotech industry of Europe as it shifts its focus from monoclonal antibody to gene therapy and forms alliances and acquisitions.

Arthur Andersen is a major player in the field of information technology (IT) consultancy in the UK. Arthur Andersen still receives more revenue from its traditional tax accounting and auditing functions than it does from providing IT consultancy services, but the IT consulting part of the company, Arthur Andersen Consulting, is growing at 25-30% annually. The firm's tax and auditing services have given it advantages over other consultancy firms: wide contacts, and a reputation for being business-oriented and reliable. The firm invests heavily in training for its IT consultants, spending $112 million internationally for training in its consulting division in 1989. The firm's approach to IT consulting is heavily oriented towards clients' business needs, with each job being assigned an engagement partner whose function is to keep a client's business objectives constantly in mind. The company is now offering computer-aided software engineering, providing clients with the automated means to build software systems.

The increasing vogue for decentralized computing, made possible by the increase in power for both mid-range computers and personal computers, has reduced the market share of mainframe computers to 15% of the total market. Mainframes are useful for those companies that need to maintain a single large data base which can process transactions online, process online inquiries, and execute batch processing. Mainframes are good data processors because the central processor is fed from between eight and 128 multiple channels that move data in and out of the CPU rapidly and prevent the computer from being slowed due to wait time. Mainframes remain ideal for computing jobs requiring the shifting of data around very large data bases.

It is important for a web site to fit the needs and desires of the customer, rather than use the latest gimmicks. An inexpensive web site may be relatively useless, if it does not produce results.

Firms must make adequate investment in protecting their businesses from network failures. They must also ensure suitable management is put in place to deal with technology failures.

Properly managed manufacturing and design automation can improve companies' efficiency and competitiveness. Some of the technologies that have become important in manufacturing include computer-aided design (CAD), computer-aided manufacturing (CAM), computer-numerically-controlled (CNC) machinery, and computer-integrated manufacture. CAD, CAM, and CNC allow manufactures to: reduce product lead times; increase the flexibility of machinery; increase product quality; and gain better control over production processes. To take advantage of what manufacturing automation has to offer management needs to know exactly where manufacturing problems are and needs to be prepared to make major changes in organizational relationships.

This article describes Amazon.com's claim of being larger than UK giant Sainsbury's. Psychological aspects of Internet stocks, Amazon's high investment potential without profitability, and how Amazon.com is managed are discussed.

An information technology (IT) strategy has evolved into a necessary component for the success of a merger. A good IT strategy, which is most often neglected or done only after an initial problem has already appeared, is most often the factor responsible for the success or failure of a corporate union. Reducing the overall cost of effecting a merger is one reason some companies must adopt an IT strategy early on as operating on different systems can be a costly proposition, especially for firms that rely heavily on information. The IT strategies that a company learns from its past acquisitions and mergers will also be applicable to future IT integrations, including the addition of new delivery channels such as the World Wide Web to its back-office systems.

Scandinavian software companies have been increasingly finding success in international markets. Among those that have succeeded in expanding outside their small domestic markets are Scala and Hansa Business Solutions from Sweden; Navision, Maconomy and Damgarde from Denmark; and Agresso from Norway. Scandinavian software developers have been particularly innovative when it comes to accounting products, which is not at all surprising given the region's technology-oriented culture and education system. In addition, Nordic countries have highly rigorous tax regimes, thereby creating the need for very efficient accounting computer programs. Further enhancing their chances for international success is the language ability of the Scandinavian software companies. Most of these firms develop English-language products, which they later translate to the languages of their home markets.

Companies are increasingly relying on enterprise resource planning (ERP) systems to cope with the pressure to do business faster, cheaper and a more international scale. These systems provide better, timelier and more comprehensive business information. They are particularly appealing to businesses because they integrate different software packages and facilitate the exchange of information between different computer systems. They also allow multinational companies to manage their core business processes all over the world in the same manner. The recent growth in the sales of ERPs can be attributed in part to the efforts of companies to become Year 2000 and EMU compliant. Installing new systems would be easier and cheaper for businesses than upgrading their old ones.

The selection and implementation of a new enterprise resource planning (ERP) system are two of the most important tasks for companies venturing into the global market. The process begins with the selection of an ERP product that will support a company's key business drivers and competitive advantage. ERP selection should also be based on the organizational structure and corporate culture to be established in overseas business units. Another consideration is the degree of autonomy to be given to these units. Moreover, companies must decide whether or not to implement a standard ERP system for their entire multinational operation. A standard system can streamline reporting procedures and reduce information technology costs. However, standard systems appear less feasible for diverse or autonomous operations. The international expansion of healthcare organization BUPA is described.

US companies are establishing operations in Europe in increasing number. About 40% of overall foreign investment by American firms were directed at the EU. Setting up operations in Europe eradicates transatlantic shipping and duty costs, provides an opportunity to expand globally, and offers new sources of labor. Of the US companies with a European presence, 40% have chosen the UK as their European location, amounting to $140 billion in total investments in this country. The UK is favored because of its historical and political affinity with the US, economic stability and good political condition, accessibility to the rest of Europe, and availability of needed skills. Companies intending to expand their operations in Europe may consult with the different European government economic development agencies, private sector consultancies, internal industry contacts, trade associations, European customers and the US Dept of Commerce.

The Web browser has become the focus of the intensifying competition between software giant Microsoft Corp and successful startup Netscape. Their battle for supremacy in the browser market can be likened to the encounter between David and Goliath, with 22-year-old Microsoft generating $8.67 billion in 1996 alone, while Netscape has only been in existence for four years and offers only three products. The competition between the two began when Microsoft launched its Microsoft Internet Explorer (MSIE) browser to challenge Netscape's Navigator. Netscape is at a big disadvantage because it has to charge for its browser products because they constitute a very important revenue source, while Microsoft can afford to give MSIE to customer for free given its enormous financial resources. However, Netscape has two valuable competitive weapons, namely, a group of business partners that all want to defeat Microsoft and customers' dislike for being restricted to a single supplier.

The Network Computer (NC) is a cost-effective alternative to the personal computer (PC). It is purported to offer the PC's flexibility, attractive screen display and user-friendliness while boasting the mainframe computer's simplicity and central control. Unlike the PC, the NC requires minimal processing power and memory because it rarely runs programs on its own. It also allows users to move to any application or information source anywhere on the network whether it be an intranet or the Internet. Theoretically, NCs can access applications that run on the PC server, the mainframe and the departmental Unix computer and to transfer among these in an instant. However, NCs have a few drawbacks that have to be considered, including the fact that they cannot be used if the central or network computer is down. In addition, it is not certain how effective they are in running productivity applications and how much demand they will make on the network/central server.

There are not enough venture-backed, technology-based new companies being established in the UK. This was pointed out by a recent report published by the Confederation of British Industry, which also stressed that these firms are vital to the economy since they stimulate innovation, spur new technological developments and provide sources of new growth. Some claim that it is difficult to obtain venture capital in the country because of the 'negative connotations' of technology for many investors. There are presently only about six venture capital companies in the UK that invest in risky market sectors. Another barrier to obtaining financing is the scarcity of high quality management teams in high-tech start-ups. Statistics show that strong management is vital to the success of a new business venture. Entrepreneurs looking for funding may consider finding partners with business experience and can attract finance, or seeking out business angels.

Virtual banking means that financial transactions can be undertaken 24 hours a day 365 days a year, meeting customers' demand for better service, without increased costs.

Cyberia considers itself to be the first international chain of cybercafes in the world. It established its first branch in London in 1994 and has since opened up 10 more branches in all over the world. The company offers its customers coffee while also renting out PC equipment. Aside from these, it resells Internet products, provides Internet training, hosts corporate events and serves as high-technology marketing consultants. Several Cyberia outlets are franchises because franchising is a relatively low-cost way of expanding the business. Co-founder Eva Pascoe admits that the company was undercapitalized when it was established and continues to have difficulty in raising working capital. It is still a loss-making business but expects to begin making a profit in 1997.

The practice of outsourcing the information technology (IT) management function is spreading rapidly in the UK. A 1995 survey revealed that about 80% of the country's biggest companies are outsourcing or planning to outsource their IT operations. This trend is being driven largely by the disillusionment of firms with their in-house IT services. However, the approach to the IT outsourcing is changing. While it was common for organizations to outsource entire functions or departments in the past, companies now are more selective about what operations to contract out. Service providers are responding to this development by offering 'selective outsourcing services.' Some IT specialists, such as SecurIT, are focusing on specific tasks instead of providing a complete network outsourcing service.

The advent of the single European market in 1993 shall have tremendous repercussions in the European information technology (IT) industry as the lifting of trade barriers shall mean that European IT companies shall face increased competition in the overall European market. While most national computer hardware makers such as ICL in UK and Bull in France are expected to maintain a dominant share of their home markets, they are not expected to be able to compete effectively in the overall European market as Japanese and American companies have a distinct advantage over them given their wider experience in international trading. In the computer software sector, increased merger activity is expected, with US and European firms expected to jockey for market dominance. European dominance in the largely fragmented custom software sector is, however, expected to continue.

There has been a sharp increase in business interest in UK and international manufacturing quality standards. Experts attribute the upsurge in the manufacturing industry's commitment to quality standards to the recession and the resultant pressures to improve quality to maintain a competitive edge in the market. The BS 5750 certification of the British Standards Institute (BSI) is the subject of much of the interest in quality management systems. First introduced in 1979, the BS 5750 certifies that companies which have passed the BSI quality audit have effective quality management systems in place. The certification is divided into three parts and covers design, manufacture and installation, and testing and inspection. The certification is considered by many manufacturers as a key accreditation that can demonstrate to customers their strong commitment to quality control.

An increasing number of British companies are turning to facilities management, also referred to as outsourcing, in order to do away with the high cost of running a computer services function. The obvious financial benefits for companies include savings on equipment and manpower costs. Agreements between companies and service providers can be flexible and tailored to the needs of the company, leaving it free to concentrate on its core business. Despite the many benefits outsourcing can offer, some companies are still reluctant to adopt this practice, mainly because of the fear of losing control over their computer systems which can be an important competitive resource.

The success of the mobile phone operator NTT DoCoMo in Japan is described, with focus on the popularity of the i-mode mobile data service offered by DoCoMo, in contrast to the lack of sales of wireless application protocol.

The features, costs and benefits of CD-Rom business cards are discussed. The cards, which can store up to 50Mb of data, are used to provide short presentational information or videos on a company's products and services.

Collaboration between information technology (IT) firms has become an acceptable strategy in the 1990s. Even firms which would once have tried to develop products on their own or grow through acquisitions are now busy forging alliances with other IT firms. One reason for this trend is that the cost of software development has become quite heavy, making it necessary for firms to divide costs with partners. Another reason is that systems development has become much more complex, making it difficult for individual firms to go it alone. The trend towards IT collaboration has also been made easier by the increasing standardization of UNIX and PC hardware, the widespread acceptance of Microsoft Windows as the industry standard and the growing use of object oriented programming. Examples of successful IT alliances in the UK are the partnerships between Coda and Science Systems, and between Sage and Curat Lex.