Managing Value-Creation in the Digital Economy: Information Types and E-Business Models

Abstract

This research seeks to advance understanding of information as a source of value creation in the digital economy. It therefore focuses on the nature of information itself as a resource, the effective management of which may be used to create products and services of economic value. Implicit in this assertion is the belief that the mere possession of information technology is a necessary but not sufficient condition. Hence, we focus not on the management of information technology, but on the ways that different types of information may be used to create value. The reader should note that our use of the term “products” refers to both tangible and intangible offerings. The convergence of information, physical products and services is becoming a particularly powerful driver of value creation in the form of fusion products that embody all three elements (Berryman et al., 1988; Goldman et al., 1995). Toward this end we develop a classification of information types based on the rate at which information changes and the degree to which information can be combined with other types of information to create value. We then use the classification scheme to describe the types of information that underpin four Internet business models. The reader should note that we do not purport to describe all extant business models. The Internet is a technologically dynamic, fast changing environment. It is virtually a certainty that other models will arise.