Sources of Information Value: Strategic Framing and the Transformation of the Information Industries

200 Pages·2004·3.806 MB·English

by  Joan E. Ricart-Costa, Brian Subirana, Josep Valor-Sabatier (auth.)

Sources of Information Value
Also by the authors
INFORMATION SYSTEMS STRATEGIC PLANNING: ASource of
Competitive Advantage (R. Andreu, Josep Valor-Sabatier and Joan E.
Ricart-Costa
MANAGING STRATEGICALLYIN AN INTERCONNECTED WORLD
(edited by Joan E. Ricart-Costa, Michael A. Hitt and Robert D. Nixon)
THE VIRTUALSOCIETY (Josep Valor-Sabatier, Brian Subirana and
Joan E. Ricart-Costa)
Sources of
Information
Value
Strategic Framing and the
Transformation of the Information
Industries
Joan E. Ricart-Costa
Brian Subirana
and
Josep Valor-Sabatier
© Joan E. Ricart-Costa, Brian Subirana and Josep Valor-Sabatier 2004
Foreword © Pankaj Ghemawat 2004
Softcover reprint of the hardcover 1st edition 2004 978-1-4039-1233-6
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C
ONTENTS
List of Figures xi
List of Tables xii
List of Exhibits xiii
List of Abbreviations xiv
Preface and Acknowledgments xv
Foreword xix
Chapter 1 Introduction: Digital Data and the
Information Revolution 1
1.1 Dot.com Realities 1
1.2 Why Does Ditigal Information Make a Difference
in Business? 2
Analogue and Digital 2
Business Information 3
Metadata 4
Computing Power 4
1.3 The Online Value Chain: Creating and
Appropriating Value in Networked
Environments 5
New Information-Based Relationships 5
Connecting to the Network 7
1.4 A Simple Transaction Stream 8
Internet Architecture 8
Modem, ISP and Hosting Computer 9
1.5 The Structure of the Book 9
Chapter 2 Client Software 13
2.1 Competitive Factors: The Nature of
Information-Based Businesses Information and
Information Goods 13
Cost Structure 14
The Lock-In 15
Positive Feedback 16
2.2 Strategic Approaches 19
vii
Contents
viii
Setting Proprietary Standards 19
Managing the Lock-In Process 28
Avoiding Commoditization 29
2.3 Industry Structure and Trends 30
Paradigm Shifts 30
Chapter 3 Local Loop, ISPs and IAPs 43
3.1 The ISP/IAP Industry 43
ISPs: Competitive Factors 44
ISPs: Strategic Approaches 50
ISP/IAP: Industry Structure and Trends 51
3.2 Local Loop 55
DSL and ADSL 55
Commercial Value 56
Local Loop: Competitive Factors 56
Local Loop: Strategic Approaches 58
Local Loop: Industry Structure and Trends 61
Chapter 4 Network Infrastructure: The Internet Backbone 63
4.1 Infrastructures: The Bandwith Revolution 63
4.2 Long-Distance Telecommunications Companies 68
Long-Distance Telecommunications: Competitive
Factors 68
Telecommunications: Strategic Approaches 70
Telecommunications: Industry Structure and
Trends 71
4.3 Network Equipment: Network Infrastructure 72
Network Equipment: Competitive Factors 73
Network Equipment: Strategic Approaches 73
Network Equipment: Industry Structure and
Trends 74
4.4 Web Server Hardware and Software Network
Infrastructure 74
Web Server Hardware and Software: Competitive
Factors 74
Web Server Hardware and Software: Strategic
Approaches 75
Web Server Hardware and Software: Industry
Structure and Trends 76
Chapter 5 Hosting 78
5.1 Web Hosting and ASPs: Competitive Factors
Hosting Services 78
Barriers to Entry 79
5.2 Web Hosting and ASPs: Strategic Approaches 79
5.3 Web Hosting and ASPs: Industry Structure and
Trends 80
5.4 The Role of Storage 80
Contents
ix
What is ‘Storage’? 80
Magnetic Hard Drive 81
Surface Density 81
Other Physical Advances 81
Applications 82
Chapter 6 User Hardware 85
6.1 User Hardware: Competitive Factors 85
Hardware Devices 89
Complementary Elements 89
6.2 User Hardware: Strategic Approaches 90
Low-Cost Production 90
R&D Investment 92
Service Contracts 93
PDAs 93
Mobiles 93
6.3 User Hardware: Industry Structure and Trends 98
Chapter 7 Proprietary Content Providers: Aggregators
(Portals) 100
7.1 Content Products and Services 100
Proprietary Content Providers 100
E-Commerce 106
7.2 Content Aggregators (Portals) 110
Early Portal Development 111
Portal Business Models 112
Content Aggregators (Portals): Competitive
Factors 113
Content Aggregators (Portals): Strategic
Approaches 114
Content Aggregators (Portals): Industry Structure
and Trends 121
Chapter 8 Extensions of the Value Chain and
Transaction-Stream Electronic Markets 123
8.1 Information Everywhere 123
The Information Explosion 123
Sources of Information 124
8.2 Business Processes and Information 129
Interaction and Interactive Labour 129
Interactive Business 130
Transaction Costs 131
The Value-Chain Perspective 131
8.3 Transaction-Stream Markets 132
Electronic Markets and the Search for Optimal
Prices 135
Transaction Processes 136