Infonomics in the Information Age
Infonomics is the hidden engine that drives the information age. Without a doubt, technology is continuously changing our lives. Prior to 2007, it was difficult to imagine ordering a taxi, watching a movie, video chatting with your family, and paying for groceries on one device. Yet today the iPhone changed all of that creating new business models. It is impressive how quickly that technology changed our lives. Today it is difficult to imagine life without smartphones.
Already the next wave of game-changing technologies is upon us. The rise of cloud computing, AI, Machine learning, Big data, IoT, and other emerging technology will exponentially increase the amount of information collected. The storage, access, and control of that data becomes a major challenge. According to Douglas Laney‘s book Infonomics, we have not fully realized the power of information as a resource and asset. Doug shows us the evolution and rise of big data. Ultimately taking us along a journey that has laid the foundation for the emerging practice of infonomics.
Infonomics in Business
All businesses are moving to digital and those that do not are going out of business and/or falling behind. Look at Blockbuster vs. Netflix. Blockbuster failed to embrace the nature of streaming content and stayed with its traditional model of brick and mortar video stores. Utilizing data and information Netflix parsed the most popular content. Utilizing the information they learned about their customers viewing behaviors Netflix could pivot. Which allowed Netflix to go all-in on content creation adapting from a mail-order DVD company to a behemoth media company.
It was the ability to leverage data to enable their business for the future. At its core, Infonomics dives deep into the consequences of acting and failing to act on your information assets.
Valuing Information as an Asset
One of the most interesting points Doug highlighted is the complexity yet the necessity to value information as an asset. When you look at the known information companies like Facebook you see their valuations relative to earnings are higher. There is a price discrepancy that may be attributed to information being factored into the price.
Importantly there are many ways to value information. Yet it is not included in traditional accounting principles and is not on corporate balance sheets. In the future, this practice may change. Currently, our system leaves it up to companies and investors to come up with a methodology for evaluating information assets.
Winning in the Information Age
Valuing information is the largest opportunity for businesses to thrive in the ever-changing business landscape. Many large companies are in a position to be disrupted if they do not focus on information as an asset. In the future, it is likely that we will seamlessly barter and exchange information. One of the exciting use cases for Blockchain is around this idea of monetizing and securing our online data. Enabling the owner of the data to have the power of monetizing or hiding that information.
Overall Infonomics shows a big pain point and opportunity in the marketplace. Information is a new form of currency and asset for all. In general, information always has been a competitive advantage. But technology has unlocked an opportunity to utilize vast amounts of data in new ways.
For business owners, investors, or those interested in how information and technology are changing the world I recommend you read Infonomics. It clearly identifies where we are today and what the future of information may look like in our lives. Perhaps it will help you think creatively about your business.
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