Internet Time doesn't simply mean working 18-hour days. It means trying lots of ideas, making mistakes, and killing off bad results quickly. You no longer have that luxury - if you ever did. Don't slow down your development cycle, speed it up. Don't penalize mistakes, encourage them.
Many companies say they encourage mistakes, but really intimidate and punish the mistake-makers.
Instead, put your money where your mouth is. Train people to savor their mistakes, and understand the strange paths which lead them astray. Use rapid prototyping. This technical-sounding phrase simply means doing things quickly without trying to get them into final form, making mistakes and swiftly fixing them. Get something up and running - anything that resembles your desired solution.