2011 information rules

8/13/2019 2011 Information Rules

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Information Rules

Technology Meet Economy

Winny Setyonugroho, M.T.

Head of Health Informatics Dept.Faculty of Medicine and health sciences

UM


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What is Information ?

Is anything that can !e digiti"ed


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The information economy

Technology changes,Economic la#s do not


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Producing Information

The cost of producing information

Costly to produce but cheap to

reproduce It has high fixed cost but low marginalcost

Price information according to its value, not its

cost


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Managing Intellectual Properties

Information goods, reproduce cheaply, otherscopy cheaply

Information goods, reproduce cheaply, otherscopy cheaply


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Experience Good

Information is an experience good

Other goods free samples, promotional

pricing, ! testimonial to learn newproduct

Information is an experience good everytime it"s

consumed


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Experience Good

#ased on #randing and $eputation

eg reason read %ournal published by

&lsevier today is that we"ve found ituseful in the past

$eputation accuracy, timelines, ! relevance

#rand &lsevier conveys a message forpotential reader about the 'uality


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The Economic of Attention

( wealth of information creates a poverty ofattention

)owadays the problem is not informationaccess, but information overloaded

(dvertising wor*s by exploits statistical

patterns Create one to one mar*eting


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Technology

Infrastructure is to information as a bottle is toco*e

Technology is pac*aging, to deliver information

to end user

Technology ma*es information more accessibleand more valuable


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System Competition

Traditional rules competitive strategy focus oncompetitors, suppliers, and customers

+ou cant compete if you"re not

compatible

Information economy companies sellingcomplementors

ocus on competitors also collaborators andcomplementors


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oc!"In # S$itching Cost

once you have chosen a technology, or a formatfor *eeping information, switching can be veryexpensive

-oc*.in arises / invest in multiplecomplementary and durable assets specific to a

particular information technology system0


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%ecogni&ing oc!"In

1imple rules, such as 23on"t get loc*ed in2 or2&valuate costs on a life.cycle basis,2 / wonthelp

strategically loo* ahead and reason bac*0

Total cost of switching 4 cost the customer bears

5 costs the new supplier bears


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%ecogni&ing oc!"In '(

&'uipment wears out, reducing switching costs

information.based loc*.in is durable0 peciali6ed

databases live on and grow, enhancing loc*.inover time

7eep control of information and databases by

using standardi6ed formats and interfaces


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%ecogni&ing oc!"In ')

1uplliers and partners face loc*.in

1oftware vendor write a speciali6ed soft

for individual client

Lock-in

Brand selection

enrtrechment

sampling


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ou are not !orn $loc%ed&in'

ou get loc%&n !ecause of choice you ma%e


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Managing oc!"in

8inimi6ed loc*.in

8a%or consideration be how difficult it may be to

convert your data to other formats in a few years 7eep control of information and databases by

using standardi6ed formats and interfaces

(nticipating 90 bargain hard : ;0 Ta*e steps tominimi6e switching cost


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*et$or!s # Positi+e ,eed-ac!

the value of a product to one user depends on howmany other users there are / networ*

externalities, or networ* effects0

Positive feedbac* ma*es large networ*s get larger

&xternatilities create virtual networ*s / create

externalities


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Waging a Standars War


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Information Policy

8onopoly is illegal

2011 information rules

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