Discussion: Automated Information Exchange

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Discussion: Automated Information Exchange

Discussion: Automated Information Exchange

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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. Thus, in the value‐creation era (Era V), companies seek those appli- cations that again provide them an advantage over their competition and keep them from being outgunned by start‐ups with innovative business models or traditional companies entering new markets. For example, companies like Microsoft, Google, Apple, and Facebook have created and maintained a competitive advantage by building technical platforms and organizational competencies that allow them to bring in partners as necessary to create new products and services for their customers. Their business ecosystems give them agility as well as access to talent and knowledge, extending the capabilities of their internal staff. Other firms simply try to solve all customer requests themselves.

Era VI has brought another paradigm shift in the use of information with an era of hyperplenitude: seem- ingly unlimited availability of information resources such as the Internet and processing and storage through

FIGURE 2.1 Eras of information usage in organizations.

Era I 1960s Era II 1970s Era III 1980s Era IV 1990s Era V 2000s Era VI 2010+

Primary Role of IT

Efficiency Effectiveness Strategy Strategy Value creation

Value extension

Automate existing paper‐based processes

Solve problems and create opportunities

Increase individual and group effectiveness

Transform industry/ organization

Create collaborative partnerships

Create community and social business

Connecting intelligent devices

Justify IT Expenditures

Return on investment

Increase in productivity and better decision quality

Competitive position

Competitive position

Added value Creation of relationships

Automated information exchange

Target of Systems

Organization Organization/ Group


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