The Information Environment
The chapter introduces an overview of information as an input to and output from the economy. It discusses the emergence of an information society and the drivers of change. It then identifies 13 key characteristics of the new information economy. These include extreme economies of scale, network effects, divergent cost trends in the value chain, excess supply, price deflation, the importance of intangible assets, the presence of non-maximizers of profit, high government involvement and more. It then draws the managerial implications.