Assignment: Uni Life Magazine

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Assignment: Uni Life Magazine

Assignment: Uni Life Magazine

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Most recently, enterprises have found that social IT platforms and capabilities drive a new evolution of applications, processes, and strategic opportunities that often involve an ecosystems of partners rather than a list of suppliers. Business ecosystems are collections of interacting participants, including vendors, customers, and other related parties, acting in concert to do business.3

In Eras I through III, the value of information was tied to physical delivery mechanisms. In these eras, value was derived from scarcity reflected in the cost to produce the information. Information, like diamonds, gold, and MBA degrees, was more valuable because it was found in limited quantities. However, the networked economy beginning in Era IV drove a new model of value—value from plenitude. Network effects offered a reason for value derived from plenitude; the value of a network node to a person or organization in the network increased when others joined the network. For example, an e‐mail account has no value without at least one other e‐mail account with which to communicate. As e‐mail accounts become relatively ubiquitous, the value of having an e‐mail account increases as its potential for use increases. Further, copying additional people on an e‐mail is done at a very low cost (virtu- ally zero), and the information does not wear out (although it can become obsolete). As the cost of producing an

2 Shenay Kentish, Zara (October 18, 2011),‐interest/zara/ (accessed April 10, 2012). 3 For further discussion of business ecosystems, please refer to Nicholas Vitalari and Hayden Shaughnessy, The Elastic Enterprise (Longboat Key, FL: Telemachus Press, 2012).

c02.indd 34 11/26/2015 6:20:48 PM
35Evolution of Information Resources

additional copy of an information product within a network becomes trivial, the value of that network increases. Therefore, rather than using production costs to guide the determination of price, information products might be priced to reflect their value to the buyer.4

As each era begins, organizations adopt a strategic role for IS to address not only the firm’s internal circum- stances but also its external circumstances.

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