UKeU, formerly the government's flagship elearning initiative for higher education, was a shambles. As a Select Committee report this week shows, the project turned into a perfect example of how not to build an internet-enabled business, and as such offers a lesson for any organisation looking to engage with customers over the web.

Launched in 2000, UKeU followed all the practices that led to disaster for so many over-ambitious and unrealistic dot coms at the time. The report says the scheme took a 'supply-driven' rather than 'demand-led' approach - in other words: here's something we can do with technology, so let's try to sell it.

But where greedy investors once gave billions to companies selling cat litter on the web, UKeU took taxpayers' money without adequately researching its market.

So, lesson one: ask your customers if they want to use the internet, and how. Other public bodies have learned this lesson slowly and painfully in the rush to e-enable government services.

UKeU allowed the development of technology to drive its business strategy. Maybe there are a few IT directors who would love the opportunity to do just that - but the lesson that most have learned is that IT supports and enhances strategy.

Forward-thinking companies will understand the potential of technology, but will understand their customers' needs first.

A third failure was UKeU's inability to find private sector funding or partnerships. The lesson here is the changing nature of business enabled by the internet. In a global supply chain of products and information, no company can go it alone.

Where once IT departments could survive on a 'not invented here' doctrine, today's technology leaders recognise the importance of partnerships, sometimes even with potential rivals, to bring IT-enabled efficiencies to entire industries.

The report finally recommends taking a 'more experimental' approach to potentially high-risk initiatives such as UKeU, testing different ideas and setting criteria for success. This is clearly sensible best practice advice that all IT directors should heed.