New Environment, Old Issues.

Despite the increasing importance of sophisticated systems and new technologies, traditional companies say the biggest challenges in terms of competing these days are familiar ones -- finding the right people and getting organizational commitment. Those two tied as the challenges cited most often in a survey of more than 100 companies done by management consultant Hewitt Associates.

Not surprisingly, nearly two-thirds of the companies surveyed felt they were behind dot.coms in terms of exploiting the New Economy. Fifty-eight percent said their most difficult people challenge was trying to align the old and new cultures.

More than 40 percent of respondents said they were struggling to attract talent for their e-businesses -- not surprising, considering the host of startups and others offering "unique opportunities, benefits, flexibility and attractive compensation packages," Hewitt says. "Traditional companies have to look for new and compelling ways to provide value to employees." In a world in which a few dot.coms have been offering BMWs to lure the best and the brightest, old-line companies have a tough time competing - though the emerging shakeout of some Internet-based businesses may help pare down the more outlandish inducements.