The euphoria surrounding Internet start-ups has given way to a period of rationalisation, according to a senior management consultant. John Donahoe, worldwide managing director for Bain & Co - a top three global consulting firm - said survival for these companies now hinged on developing their businesses based on traditional values. Mr Donahoe said the winners would be those that could combine customer relations, brands and assets with today's technological innovations and business models. 'There should be a willingness to innovate and a willingness to take the risk.' Companies should avoid becoming too reliant on the Internet, which was not just about selling online, he said. In Hong Kong to meet Bain & Co managers from around the region, Mr Donahoe said the new technology should also be used internally to improve productivity, invent new services, add value and reduce costs. 'A Web site isn't a strategy, it's a tool,' he said. Hong Kong's Internet fever peaked soon after the scramble for a stake in tycoon Li Ka-shing's technology spin-off Tom.com, which saw thousands of investors queue for share applications amid chaotic scenes. Since then, investors have become more wary of technology start-ups. Mr Donahoe said the Internet had turned some traditional management consultancy ideas on their head. The concept 'think global, act local' had become 'think global, act global'. 'The ease of access to a wide variety of customers and information through technology defines globalisation today,' Mr Donahoe said. 'The best global organisations will capitalise on that.'