Information market
Encyclopedia
Although information
has been bought and sold since ancient times, the idea of an information marketplace is relatively recent. The nature of such markets is still evolving, which complicates development of sustainable business model
s. However, certain attributes of information markets are beginning to be understood, such as diminished participation costs, opportunities for customization, shifting customer relations, and a need for order.
s and encyclopedia
s are at risk of losing their positions as new technology greatly reduces the cost of creating and distributing information. They also indicate that information markets will not resemble textbook
competitive markets with many suppliers offering similar products but lacking the ability to influence prices.
In describing the transition from traditional to information markets, Simard (2005) used a metaphor of autonomous providers and users exchanging information in place of sellers and buyers trading goods and services, respectively. Martin (1996) indicates that as manufacturing shifts from mass production
to customization
, marketing should shift to individualization. Similarly, Mcgee and Prusak (1993) state that with the increased capacity for customization, information about products and services will become an increasingly important resource.
Hagel and Rayport
(1997) focus on customer relations. Although businesses assume that information about customers is freely available for the taking, as customers assume greater control of this information, access will likely become more difficult. Further, as ownership of information shifts to the customer, a new source of supply is created and there may be opportunities for intermediaries to add value by linking this supply with business demand.
Although Web
-enabled information markets resemble the frontier-style “old west,” Sparr (2001) states that governments will eventually find ways to step in with standards, property rights, and regulations, as all economic activity ultimately depends on order. This has virtually always been the case in the past and there is no reason to expect that the Net will be different.
For Linde and Stock (2011) the information market is the market for digital information distributed via networks. Traded are all sort of software applications and of content (from blogs via images, films and games up to scientific articles and patents). I-Commerce is the e-commerce with (digital) information.
Information
Information in its most restricted technical sense is a message or collection of messages that consists of an ordered sequence of symbols, or it is the meaning that can be interpreted from such a message or collection of messages. Information can be recorded or transmitted. It can be recorded as...
has been bought and sold since ancient times, the idea of an information marketplace is relatively recent. The nature of such markets is still evolving, which complicates development of sustainable business model
Business model
A business model describes the rationale of how an organization creates, delivers, and captures value...
s. However, certain attributes of information markets are beginning to be understood, such as diminished participation costs, opportunities for customization, shifting customer relations, and a need for order.
Overview
In describing the idea of information markets, Mcgee and Prusak (1993) note that people barter for information, use it as an instrument of power, or trade it for information of greater value. In contrast, Shapiro and Varian (1999) point out that historical leaders in information markets, such as newspaperNewspaper
A newspaper is a scheduled publication containing news of current events, informative articles, diverse features and advertising. It usually is printed on relatively inexpensive, low-grade paper such as newsprint. By 2007, there were 6580 daily newspapers in the world selling 395 million copies a...
s and encyclopedia
Encyclopedia
An encyclopedia is a type of reference work, a compendium holding a summary of information from either all branches of knowledge or a particular branch of knowledge....
s are at risk of losing their positions as new technology greatly reduces the cost of creating and distributing information. They also indicate that information markets will not resemble textbook
Textbook
A textbook or coursebook is a manual of instruction in any branch of study. Textbooks are produced according to the demands of educational institutions...
competitive markets with many suppliers offering similar products but lacking the ability to influence prices.
In describing the transition from traditional to information markets, Simard (2005) used a metaphor of autonomous providers and users exchanging information in place of sellers and buyers trading goods and services, respectively. Martin (1996) indicates that as manufacturing shifts from mass production
Mass production
Mass production is the production of large amounts of standardized products, including and especially on assembly lines...
to customization
Mass customization
Mass customization, in marketing, manufacturing, call centres and management, is the use of flexible computer-aided manufacturing systems to produce custom output...
, marketing should shift to individualization. Similarly, Mcgee and Prusak (1993) state that with the increased capacity for customization, information about products and services will become an increasingly important resource.
Hagel and Rayport
Jeffrey Rayport
Jeffrey F. Rayport is a consultant, author, and founder and chairman of Marketspace LLC, a strategic advisory practice that works with leading companies to reinvent how they interact with and relate to customers...
(1997) focus on customer relations. Although businesses assume that information about customers is freely available for the taking, as customers assume greater control of this information, access will likely become more difficult. Further, as ownership of information shifts to the customer, a new source of supply is created and there may be opportunities for intermediaries to add value by linking this supply with business demand.
Although Web
World Wide Web
The World Wide Web is a system of interlinked hypertext documents accessed via the Internet...
-enabled information markets resemble the frontier-style “old west,” Sparr (2001) states that governments will eventually find ways to step in with standards, property rights, and regulations, as all economic activity ultimately depends on order. This has virtually always been the case in the past and there is no reason to expect that the Net will be different.
For Linde and Stock (2011) the information market is the market for digital information distributed via networks. Traded are all sort of software applications and of content (from blogs via images, films and games up to scientific articles and patents). I-Commerce is the e-commerce with (digital) information.
See also
- Content (media and publishing)Content (media and publishing)In media production and publishing, content is information and experiences that may provide value for an end-user/audience in specific contexts. Content may be delivered via any medium such as the internet, television, and audio CDs, as well as live events such as conferences and stage performances...
- Information economyInformation economyInformation economy is a term that characterizes an economy with an increased emphasis on informational activities and information industry.The vagueness of the term has three major sources...
- Information societyInformation societyThe aim of the information society is to gain competitive advantage internationally through using IT in a creative and productive way. An information society is a society in which the creation, distribution, diffusion, use, integration and manipulation of information is a significant economic,...
- Intellectual propertyIntellectual propertyIntellectual property is a term referring to a number of distinct types of creations of the mind for which a set of exclusive rights are recognized—and the corresponding fields of law...
- Internet economyInternet EconomyThe internet economy conducts business through markets whose infrastructure is based on the Internet and World-Wide Web. An Internet economy differs from a traditional economy in a number of ways, including: communication, market segmentation, distribution costs, and price.- Internet economy...
- Know-How TradingKnow-How TradingKnow-how trading is a web-based research and design phenomenon related to open innovation and crowdsourcing. It denotes Fee-based knowledge markets that treat knowledge and expertise as commodities that can be traded for financial gain...
- Knowledge economyKnowledge economyThe knowledge economy is a term that refers either to an economy of knowledge focused on the production and management of knowledge in the frame of economic constraints, or to a knowledge-based economy. In the second meaning, more frequently used, it refers to the use of knowledge technologies to...
- Knowledge marketKnowledge marketA knowledge market is a mechanism for distributing knowledge resources. There are two views on knowledge and how knowledge markets can function. One view uses a legal construct of intellectual property to make knowledge a typical scarce resource, so the traditional commodity market mechanism can be...
- Prediction marketPrediction marketPrediction markets are speculative markets created for the purpose of making predictions...