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Marketing and Consumer Studies
MCS 2020
Nicole Mc Callum

Chapter 1 Information Age 1.1 Welcome “Here be Monsters” Quality control- reducing inconsistencies and inaccuracies in information State control- keep knowledge discoveries secure -digital world remains largely uncharted, unmapped, unwritten SLIDES: Information Systems: -three activities of information systems produce information organizations need: 1. input-captures raw data from organization or external environment 2. processing- converts raw data into meaningful form 3. output- transfers processed information to people or activities that use it Information and the Organization Strategic business objectives of information systems: -operational excellence (improved efficiency=higher profitability - new products/services/business models (business model describes how company produces, delivers, and sells product/service to create wealth - customer & supplier intimacy (good customer experience leads to loyalty, efficient with suppliers via strong information systems leads to lower inventory costs—ie. Amazon’s recommender system) - improved decision making (basic economic theory –accurate information can lead to better decision making (forecasts)) -competitive advantage (delivering better performance-any of the above objectives could achieve competitive advantage) - survival (information technologies= necessity, governmental regulations requiring record keeping) Information Personnel -CIO'–'Chief'Information'Of)icer' - CTO'–'Chief'Technology'Of)icer' - CSO/CISO'–'Chief'Information'Security'Of)icer' - CPO'–'Chief'Privacy'Of)icer' - CKO'–'Chief'Knowledge'Of)icer' 1.2 Information as Commodity -organizations collect information to better understand their markets, to improve their goods/services and to make quality decisions -information doesn’t just help exchange commodities, it is a commodity (product that can be bought or bartered); information can be collected, analyzed and combined into an advantageous end product (ie. more information); faces quality control inspection before distributed and can depreciate (lose value) over time -commodities are things (products of manufacturing), meaning they can be measured and priced according to the rules of supply and demand—but information is not tangible, nor is it limited in quantity, nor is it manufactured -organizations/individuals that acquire, analyze, and act on available information generate more advantageous opportunities for themselves than their competitors- one of fundamental maxims of information economy SLIDES: Information Economy: an economy whose information sector has become dominant sector of the economy Information sector- involved in production, sale, distribution, or use of information goods Information goods- value resides in their information content Market shifts: -expansion of e-commerce, online ads -increased use of wireless -social participation and social web -government policy (DRM, security) -production of information- unlimited growth, power of creation and control -economics of information- ‘information wants to be free’ -lower marginal cost of production-info technology (IT) –systems of managing and using information; IT changes relative costs of capital and the costs of information (IT has lowered transaction costs) -economic impacts of information- IT affects market entry, information lowers switching costs Agency Theory: -Employee= independent agent -Firms experience agency costs (cost of managing and supervising) which rise as firms grow -Information (when efficiently managed) can reduce agency costs 1.3 Information Overload -living in information age means we have access to unprecedented amount of information (Google contains over 1trillion unique URLs) -information overload, cognitive overload, information fatigue syndrome, data smog, sensory overload, information pollution, document tsunami-- having access to this much info
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