Value Creation in Information Business based on the Service Field

2.1. Information Value based on the Relationship between Information and a Decision Maker

Figure 1 shows the relationship between information and a decision maker. The decision maker has clear objectives for which he utilizes information provided by an information provider. This figure shows that the definition of service can be applied to information service or information system. Both service and information are supporting activities for people or organizations to achieve their objectives. Therefore, the concept of service value creation discussed in Chapter 2 of this edited book can be applied to the value creation using information.

Figure 1.

Structure of decision making

If the provided information considers decision makers’ objectives or situations, then suitable information for the decision maker can create value with information effectively, otherwise the value creation with information cannot be expected.

Figure 1 shows the structure of decision making with information. The information provider (S) provides information (It) to the decision maker (I) in order to maximize the objective function Q(Ct, Ot). The value of the objective function Q is dependent on both controllable parameters (Ct) in the situation for the decision maker and uncontrollable parameters (Ot) such as the external environment. The decision maker decides the action (At) for maximizing the objective function Q based on the provided information (It). Therefore (Ct) is determine by (At) and Ct = Ct (At). The provided information (It) should consider the situation (Ct, Ot) and the most suitable action (At*) is determined based on the provided information. Thus both service activities discussed in Chapter 2 and information offerings have similar characteristics which are situation dependent and supporting activities.