Business of Information (BOI) Week #1
Aturan Kelas • Ketidak hadiran maksimal 3x (BUKAN JATAH!!) • Toleransi keterlambatan 15 menit. KOMPONEN PENILAIAN • UTS : 30% • UAS : 30% • Tugas : 40% • Bonus: 10% (Quiz, Partisipasi di Kelas)
Information is... • Data that has been processed to be a valuable form for the receiver and has real value that can be used in decision making, now and in the future. (Gordon B. Davis) • Informasi adalah pemberitahuan; kabar atau berita tentangsesuatu; (Kamus Besar Bahasa Indonesia)
Understanding principles Understanding patterns Understanding relations “Information is the currency of today’s world. Those who control information are the most powerful people on the planet – and the ones with the most bulging bank accounts” (Matthew Lesko, Columnis at New York Times)
VALUE OF INFORMATION Positive: • Information as a guide to action/decision making; example: weather forecast • Information as an economic good; example: e-book, business report Negative: • Flood of information • Public knowledge for inappropriate person or case
Short Case “Antonio from Helvetia Square Market” [Birchler: 76] • Antonio is a successful vegetable and fruit seller on Helvetia square market in Zurich • Every morning at 4.30, Antonio and his father buy their supply for the day. By 6 a.m they have their stall ready for the first customers • Customers may search among stalls for the best price, and this has an impact on price setting policies. • But, Antonio rarely have to cut prices. Why?
Short Case (cont.) • The first step is finding the right markup for each product. Local vs Import Product • Then, anticipating demand: knowing fruit season • Know what you sell! “A lot of information processing going on in market, but only the smaller part of it relates to prices; the larger part concens quality”
PRODUCTION OF INFORMATION • Information can be extracted from nature, through: • Research • Search • Waiting • OR, can be bought or copied from others “Information is costly to produce but cheap to reproduce” (Shapiro and Varian, 1999)
Information is a Public Good • Information can be under-produced because it shares the characteristics of public good: • The same piece of information can be used by more than one person • It is difficult to exclude others from obtaining a piece of information and from using it • Solution: PATENTING!! • Because of patenting, potential inventors compete to produce information over-produced
What is BUSINESS of INFORMATION?
A business (also known as enterprise or firm) is an organization engaged in the trade of goods, services, or both to consumers(Arthur Sullivan & Steven M. Sheffrin, 2003) • Business of Information INFORMATION as goods So, Business of Information is an organization engaged in the trade of INFORMATION to consumers.
DRIVEN FACTORS OF INFORMATION BUSINESS • Businesspeople and consumers alike need information provided to them in convenient forms, and in some cases. • Internet and Information Technology make information exchange become easier and faster • Information industry encompasses products such as traditional books, audio programs, or DVDs, magazine, newsletters, ebooks, membership websites, teleseminars and webinars, telecoaching program, and seminars and conferences. • Other?
TYPES OF BUSINESS INFORMATION • News • Market Research • Credit and financial information • Company and executive profiles • Industry, country and economic analysis • IT research
FORMS OF INFORMATION PRODUCTS • Paper • Books, newsletters, manual/workbooks, etc. • Audio and Video • Recorded speeches or seminars, interview of experts on a specialized topic, etc. • Internet Products • Ebook, online-course, etc. • Combination Products • Computer software, trainer kits, etc.
Information Business “value chain” Information Marketing Business Consumer (Personal/Organization)
Examples of information Business • Bloombergs: providing highest quality data, news and analytics for financial and business. • Dow Jones Watch List: Used by eight of the ten largest, global financial institution. • Forrester: Forrester Research identifies and analyzes emerging trends in technology and their impact on business. • Reuters: Global financial research and information • SoftBase: Company and product profiles and reviews in the information technology industry.
Advantages of Information Business • Replaces manual labor by “multiplying yourself” and leveraging what you know • You are being paid for what you produce! • Trying multiply yourself by hiring employees to increase the amount of product you can sell • With an information business, you create product once, but you can sell it many times, over a period of several years, without having to do any additional work. • You can create information product from what you know, the secrets, the techniques, the things that you already know. • Buyers of your information products will buy more • People who buy your information products are much more likely to hire you to perform services, makes you an expert of it • Once you’ve gotten a customer, you’re going to be able to sell that customer many things in the future.
Advantages of Information Business • Little or no interaction with buyers is possible • You can work from anywhere while selling your information products • Few staff members are required • You needn’t to pay employees to maintain customer database, ship products, and handle customers’ question • Only a small investment is needed to get started • It doesn’t require a lot of equipment. • Just leverage the information you already know • Large profit potential exists • This is a business that is completely scalable, you can make it as small or as large as you want.
DISKUSI KELOMPOK • Setiap kelompok terdiri atas 4-5 orang (?) • Setiap kelompok diberikan satu copy artikel “Berbisnis Informasi Digital Melalui Internet” dan mendiskusikan: • Sebutkan tantangan dalam bisnis informasi digital • Informasi apa saja yang menurut Anda “layak jual” saat ini di Indonesia, sebutkan alasannya!