The Information Environment
The author presents an overview of information as an input and output in the economy and discusses the emergence of an information society and the drivers of change. Thirteen key characteristics of the new information economy are then identified. These include: extreme economies of scale; network effects; divergent cost trends in the value chain; excess supply; price deflation; non-normal distribution of success; importance of intangible assets; the presence of non-maximizers of profit; public good characteristics; high government involvement; and more. The author then draws out the managerial implications.