InformationWeek

March 6, 2000

Editor's Note:
Privacy: A Question Of Balance

Stephanie Stahl ast week, I got a notice from a publishing firm that's putting together an alumni directory on behalf of my high school. Great idea, I thought. I've lost touch with many of my old pals from that part of my life. Where did our popular quarterback end up? Does he have some high-profile job on Wall Street, or is he a surfboard waxer in Hawaii? It will be fun to read about everyone, and I'm thrilled that this firm is gathering all the gory details.

But much to my surprise, my name, address, and phone number were all listed correctly on the note that was sent to me. Why the surprise? Because my phone number is unlisted and has been for many years. How could this firm have my number? I called to inquire and a representative told me that an online research firm collected the information for them. I still haven't gotten a return call from that firm, but I'm eager (in a furious kind of way) to find out where they got those 10 numbers I've tried to keep out of the public domain. Now, I don't really care if my old high school classmates have my home phone number. I'd love to hear from them. It's the principle of the matter-I feel like it's an invasion of my privacy. Gee, the telemarketing calls should be starting up any day now.

My simple example casts just one tiny shadow on an online industry that's starting to find itself under some dark clouds. Imagine how I (or you) would feel if it was bank-account information that had been gathered? Or health records? In this week's cover story, senior editor Rick Whiting takes a close look at the escalating concern over online privacy. Several well-known companies are finding themselves with tarnished reputations and legal tangles that will be difficult to unravel.

Let's face it, there's a lot of value in collecting all kinds of data about customers. After all, companies use that information to better serve their customers. Acquiring knowledge and treating it in the right manner can go a long way toward building customer loyalty. However, using it recklessly threatens the entire online business culture. Find out what some companies are doing to protect their customers-and themselves-on page 22.

Also in this issue, we continue our regular coverage of E-transformation. Eric Chabrow takes a look at some of the deeper paths companies are taking to transform traditional business models (p. 48). Best practices include a careful mix of speed, knowledge, technology, and people and a culture that is adaptable to change. For more on E-transformation, check out some of our past cover stories (Sept. 13, p. 45; Dec. 13, p. 42; Jan. 31, p. 45).

STEPHANIE STAHL
Editor
sstahl@cmp.com

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