The book excerpt in this issue helps to explain why executives can be so uncomfortable about being on the leading edge of information technology. The excerpt is on how John Malone of TCI sold the world on a half-baked plan for 500-channel cable-television systems. The piece illustrates how crummy ideas can develop so much cachet that it's hard to see that the technology just isn't there.

I find the 500-channel idea particularly insidious because I was once caught up in it. In 1992, when I was a technology reporter for the Wall Street Journal, the front-page editor asked three of us to do a story saying that such TV systems would have powerful repercussions. Our reporting made two of us a bit hesitant, based on technological limitations and the weak results of a pilot project. But the hype was so strong that the editor still wanted a far-reaching, favorable story, and we reporters didn't have enough evidence to talk him out of it.

The broader problem is that, while most people assume that reporters write for their readers, reporters actually write for their editors. While some of my best friends are editors, they only want to run pieces that haven't already appeared in the competition. When it comes to technology, editors' standards mean that interesting ideas get inflated in importance beyond all reason as each reporter writing on the subject tries to find something more earth-shattering than has been written before. When it comes to declaring something a dud, the same escalation occurs. So, new technologies can go from ushering in a new era of civilization to being worthless in the space of just a few months. It can take six months to two years for the reporting to settle down.

Trying to be realistic about technological capabilities, I've included two columns in this issue that throw cold water on the current fascination with Web "portals." Digital Strategy says that, rather than spend big bucks to advertise on Web portals, companies should construct "communities of value." These communities can let companies interact with customers in ways that lead to new classes of products and services.

The communities can also let customers interact with each other in ways that can benefit those who foster the communities. CEO User's Guide says the focus on generating traffic through portals obscures the real issue, which is: how to rethink business processes and business models to take better advantage of the Internet's capabilities.

On the more optimistic side, "Collision Course" is an example of someone who came up with a novel idea and made it succeed—even if he became frustrated in the process. "Cashing In" shows how one company is casting a wide net to find important new ideas. And, all right, we couldn't resist proposing a big idea of our own: that sensors in equipment will let manufacturers tighten relations with their customers. It may take a while for the sensors to become ubiquitous, but they will, and they'll be important. This time, I'm sure.

Cheers,

Paul B. Carroll
Editor-in-Chief