Value Creation in Information Business based on the Service Field

Value Creation in Information Business based on the Service Field

Michitaka Kosaka (Japan Advanced Institute of Science and Technology, Japan), Haruko Nagaoka (Hitachi Ltd., Japan) and Minh Chau Doan (Japan Advanced Institute of Science and Technology, Japan)
DOI: 10.4018/978-1-4666-4663-6.ch018
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Abstract

A new value creation approach to the information business is proposed based on the service field concept. The characteristic of value creation is situation dependent and similar to “value in use” in Service Dominant Logic (SDL). Therefore, the service field concept and KIKI model, which are proposed in Chapter 2 of this book, are applied to the information service business. First, the usefulness of the KIKI model and issues with it for information business are discussed. Then, a methodology of managing the KIKI model holistically in service business is proposed by using the Business Dynamic (BD) methodology. Finally, the service field concept is applied to Information Service Mediators (ISMs), and a new service mediator model based on SDL is proposed. The effectiveness of the service field concept is emphasized in this chapter.
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2. A Concept Of The Information 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.

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