With the fading monopoly of the industrial mode of production and the emergence of the "information revolution," modern technology has pervaded almost every aspect of human life. In education, however, information technology has yet to find a place, despite the unceasing attempts to "fit" it into the existing educational system. The paper argues that the industrial mode of production was successful in inventing "education" as a new paradigm, institutionalizing it in schools, and implementing it through a number of tools, such as "certified" teachers, curricula, and textbooks. By contrast, the information mode of production has created the tools, namely "educational technology," before developing a corresponding paradigm or institution. This crisis of educational technology is therefore a corollary of its misplacement, and subsequent malfunction, in the still-in-use industrial paradigm and institution (education and school). The paper suggests that, in order to ensure a proper functionality of modern technology, we need to resolve this theoretical inadequacy. A possible solution would be to thoroughly restructure "education" and schools, as remnants of the industrial age, into a new paradigm and institution.