It is two years ago since the burst of the dotcom bubble. The so-called new economy is in shambles. There is, however, nothing new in such manic and steep up- and down-turns in the economy. The tulip mania in the Netherlands in 1630s is an early example and the South American mining industry in the 1820s is another. When a new area is discovered by the financial markets, there is a possibility that it will be the object of an economically unsound and hysterical interest. But the breakdown of this manic situation does not mean that behind the euphoria there is nothing new. After the breakdown may come a phase of more steady build up, and the long term implications will gradually evolve. In this paper, the question of value creation in ebusiness relationships is examined since this question must be at the centre of a wellfounded discussion of the implications of new business relations based on the usage of information and communication technologies and solutions. It is concluded that in spite of unfounded assumptions in important areas, there are also sane and reasonable elements in management theories on e-business implications, and that the technological and economic realities behind these elements will result in gradual, however, important changes in business relations and the economy as such.
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Presented at Westminster University Conference, London