Strategy & the New Economics of Information

8/8/2019 Strategy & the New Economics of Information

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STRATEGY & THE NEW

ECONOMICS OF

INFORMATION

Presented by:

Aditya Chiranjeevi

Kumar Prateek

Sravani Gangadhar


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INTORDUCTION

STRATEGY: According to Henry Mintzberg

Strategy is a plan, a "how," a means of

getting from here to there.INFORMATION: it is the quality of

message from a sender to one or more

receivers, it could be anything like size of parameters, occurance of an events or

values or ethics & etc.


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Economics: it is a study of mankind in the

ordinary business of life. It examines that part

of individual & social action which is mostclosely connected with the attainment & with

the use of material requisites of well-being


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Prominence of information

Huge representative of cost structure

eg: health care spends 1/3rd or $350b on costassociated with information capturing storing

processing & etcEven low tech products required market

research like of Walt-marts logistics dept

Various dependence on information

1. customers loyalty

2. employees loyalty

3. supply relationship


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4. brand identity

5. process coordination

6. switching costs etc

information is equally emphasized asphysical activities related to products

like by; Walt-mart, American airlines, Nike

True explosion in connectivity


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Trade of Between Reach and

Richness

The economics of information is governed by abasic law i.e.; trade of between reach & richness

Reach: means the number of people, at home or atwork, exchanging information.

Richness: quality of information, accuracy,bandwidth currency, interactivity, etc.

Richness can be formulated by three aspects of theinformation itself


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1, band with- the amount of information that can bemoved from sender to receiver in a given time

2, customization is degree to which the informationcan be customized

3, interactivity dialogue is possible for a smallgroup, but to reach millions of people the message

must be a monologue A pervasive trade of shapes company's strategy

for e.g.: a company's marketing mix

converse and inverse relationships


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Richness

Reach

Wal-Mart, Toyota (EDI)

Citibank (trading)

Richness and Reach

positioning


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Prescription by a economic

theory

Pioneered by Ronald h.coase

Boundaries are set by economics ofexchanging information like organizations

and markets

Trade of business is a fundamental principleEmergence of open, new technological

standards like internet extranet & intranet


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Demantling value chain

structureNeed of deconstruction

Invasion by hi-fi, hi-tech electronic tablets

Invatable transformation

in newspapers

merits of unbundling

acclimatising to the changes


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Retail banking

Emergence of new distribution channels

New versions and varieties in banking like

intuits quicken and Microsoft money

Deconstruction not and unprecedented

change


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Documents

Strategy & the New Economics of Information