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http://www.forbes.com/asap/99/0405/065a.htm

Marketing expertise was essential on the Internet and elsewhere, as firms
invented new
ways of getting customers to buy. Apple's
10-minutes-and-you're-on-the-Internet claim
made the iMac the best-selling computer of the year, helping bring the
firm back from the brink to #4 among hardware entries. Gateway (#3) proved
that, if nothing else, its managers aren't afraid to try something new:
They opened inventory-less stores where retail customers could meet with
salespeople to design their own computer systems. It's a long shot-but
most high tech successes are.
Gateway also started leasing PCs to its customers in '98.Human capital is,
of course,
essential to success in high tech. Technology companies often send their
most important assets home every night (except when they sleep in their
cubicles). Can a hot company retain the loyalty of the world's most
creative designers and programmers? J.D. Edwards (#40 in software) can:
The ERP company has a reputation for keeping its people "forever."
  One way to get people to come in the first place is to lure them with
lucre. According to cofounder Dr. Henry Samueli, Broadcom (#1 in
semiconductors) has made some 350 of its 450 employees paper millionaires.
Alliances and partnerships are often the quickest way to hold a commanding
market share of a new or shifting market. Internet Security Systems (ISS)
(#29 among software firms) makes security software that competes with
products from Cisco Systems (#1 among networking companies); but while
Cisco builds its own networking equipment, ISS holds its own through its
agreements with Cisco's manufacturing rivals. Citrix Systems' (#1 in
software) partnership with Microsoft protects its leadership status in the
market for server-based computing software. And consider Yahoo (#1 among
Internet firms): "Yahoo has shown us that you don't need to own anything
to succeed in e-business," says Kevin Landis, manager of the Technology
Leaders Fund. "You partner instead."   Finally, good intentions and better
prospects aren't enough to make the list. Ultimately we want to see the
same thing everybody else does: killer growth. Companies like @Home
Network (#10
among Internet firms; last year's revenues of $48 million are expected to
jump to $2.2
billion by 2002), Citrix (100% revenue growth in '98), and Global
TeleSystems (#6
in telecommunications; 319% '98 revenue growth) set the standard here.
A side note: More than half the firms on this year's list and four out of
the seven category winners are from places other than Silicon Valley.
Blame it, along with much else, on the Internet's ability to spread power
and wealth around.
  While you ponder the companies that are on this list, spare a thought
for the firms
that aren't. Some that otherwise would have made the cut were bought by or
merged
with other dynamic companies before our January 31 cutoff: Yahoo bought
GeoCities;
@Home bought Excite; Vodafone merged with AirTouch; Lucent bought Ascend.
Others got beat by the three Cs: circumstances, competition, and-once
again-change.
  The year ahead may be easier. But don't count on it. You can bet none of
the
companies on the list are. They know that markets will change and even
disappear,
new competitors will emerge, alliances will shift, and technologies will
blow up.
  That said, we're convinced the companies on this year's "Dynamic 100"
list are
capable of resisting and even exploiting most of the twists and turns that
will come
their way in 1999.

                                            �Clint Willis


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