David Bowie … rock star, artist, actor … is arguably one of the most malleable pop culture figures of our time. He has migrated from one generation to the next through unabashed transformation or, in the words of his song "Changes", let time change him rather than change with the times. As we begin the new millennium, it is appropriate to reflect on the changes that have occurred in recent years, and to pick up on the fundamental lesson that David Bowie (like him or not) seems to have learned.
Rise of the Internet Economy
Several years ago, many information professionals and vendors looked upon the Internet as just another format for the delivery of information. To longtime users of online products, it was vindication of the value they had seen in these services. However, it has become evident that the Internet is far more than another format or channel for the delivery of information.
To understand how the Internet might affect the information industry and information professionals, it is important to view it as both an enabler and a fundamental change to the business (and government) environment. The technology surrounding the Internet has far reaching implications for any organization and cannot be viewed as just another channel. Let me draw on an example:
Traditional publisher vs. new age marketer. ABC Publishing produces a CD-ROM product that contains the most extensive list of medical products (with reviews, price lists, etc.) in the world. The product is bought by hospital administrators and independent physicians. A start-up Internet company, Intermed, then develops a new extranet service for hospital administrators. The service contains a list of medical products, directories of experts by specialty, a job posting service, a section with case studies on health care management, and a current events service. In addition, the service contains interactive features that allow administrators to check the current price, availability and delivery time of medical products with competing manufacturers; order products online directly from competing manufacturers; post jobs and receive resumes; benchmark financial and operating statistics (e.g., bed utilization, in-out time); and receive customized news. Furthermore, the company is structured by market, rather than by product. In other words, there is a manager and sales force assigned to the hospital administrator market, rather than to specific products or applications.
The value offered by Intermed over ABC Publishing is very apparent. So why aren't more information companies moving quickly to fill this void? The answer lies in human nature and the dynamics of changing markets. For years, the publishing (information) industry has been driven by product-centric, editorial processes (e.g., to bring a book, magazine, CD-ROM, or other product to market). In addition, it has managed products that are largely information-based. To restructure on the basis of markets, and to extend products beyond the realm of information, requires a huge leap. Not only do the people working in these companies have to reinvent their work processes and manner of thinking, the companies themselves have to restructure along market lines. Furthermore, they have to develop alliances to provide information and transaction-based services that are necessary pieces of the puzzle. In some cases, traditional competitors find that they each have different pieces of the puzzle (i.e., essential information products serving different needs), but are unwilling to forgo long-standing rivalries for the sake of delivering a market-centered product. What results is a service that bundles the proprietary information of a specific publisher, but does not necessarily deliver on the ideal requirements of the end user.
To go back to the example, a company like ABC Publishing may be encumbered by traditional industry bounds and rivalries. On the other hand, a start-up like Intermed may be in a better position to negotiate with ABC Publishing and its traditional competitors in the publishing industry to obtain content pieces from different parties. Furthermore, without a history in the publishing industry, Intermed employees think of their role along different lines. They seek to serve the needs of a market, whether it is through information or transaction services, and develop skills on this basis (e.g., the skill to negotiate with information providers, manufacturers, etc.).
This leaves the traditional information companies with a fundamental decision about the role they play in the new market: Do they act as a content developer, providing "channels" to companies that serve a particular market via the Internet? Do they assess the needs of specific markets or communities, and delivexr on these overall needs?
Choosing the first route removes the company from direct contact with its traditional customers. On the other hand, the second route involves redefining and restructuring the business as it now stands. Either way, ABC publishing is faced with far-reaching changes. More than that, however, it must implement these changes within the context of Internet time.
The E-business Transformation
Up to now, many people have focused on ecommerce or sales on the Internet. As a result, companies like Amazon.com have attracted huge amounts of interest from investors, analysts, and others. A more fundamental transformation is now in full swing. Organizations and business networks are beginning to take advantage of the power of the Internet to make business processes more efficient, enhance customer value, and build long-term brand loyalty. Some further examples can help demonstrate the nature of this transformation.
The purchasing process. At the present time, purchasing departments in organizations deal with a large number of suppliers, as well as a huge inventory of specific goods and services at different prices and negotiated terms. Managing this process is resource intensive. If improved, it would allow organizations to focus on other value-added activities. For example, if an end user within the organization could source, check inventory status, and order products and services directly from suppliers at negotiated rates (discount rates that are specific to the organization), then the contracting function would focus on identifying and negotiating with the best suppliers, rather than order fulfillment and contract administration. This business process could be managed through an extranet service that links the supply chain to the purchasing organization. On a broader scale, a hub and spoke system might arise from linkages between one purchasing network and another.
The channel management process. A business-to-business technology company relies heavily on dealer channels to market its products to end customers. At the present time, communications (e.g., on new product offerings, technical updates, price promotions) are distributed through fax and direct mail. Similarly, inquiries are made and orders placed by the dealers by either fax or telephone. An extranet application can be used to provide more timely information, resulting in fewer problems at the customer level. Common technical inquiries can be dealt with online, reducing the demand for service and support resources. Orders can be placed and checked against inventory and delivery schedules directly by the dealer.
The Next Level of Interactivity
Within the next couple of years, the adoption of more interactive and robust technologies will likely take the Internet to yet another level in terms of its impact on the business environment. Even the best sites right now only take people to a certain level of interactivity. This lack of interactivity can have a tangible business impact in terms of lost sales and frustrated customers. Several studies have shown, for example, that a large proportion of people on ecommerce sites place items in their shopping carts, but drop out before they make the purchases. Technology is now available which allows customer or technical support representatives to track and engage people on the web site, turning it into a two-way communication medium. As one webmaster explained to me, "Q&A knowledge trees only take you so far. There are certain situations in which people need two-way interaction." This technology can also be applied to knowledge sharing within organizations, effectively turning the Intranet into a two-way meeting and discussion forum.
The explosion of wireless access technologies and standards (e.g., Bluetooth) will also lead to new uses of the web and an extension of knowledge sharing and information to mobile occupations and situations. With wireless access devices, it is now possible for a remote representative to access intelligence from the corporate intranet anytime, anywhere.
Implications for Information Providers and Professionals
So, what impact will this staccato rate of change have on information providers and professionals?
Information providers. The market will dictate a new structure and value proposition. The lines between content provider, software application developer, and access service provider have become increasingly blurred in recent years (the merger of the content and software interests under the Software and Information Industry Association is simply a reflection of this). As the ebusiness phase of the market cycle heats up, it will become even more difficult to define the industry in a homogeneous manner. The migration of essential business processes to the Internet/Intranet environment will necessitate thinking beyond the confines of information as stand-alone products and services. Intranets and extranets could well become the hub for a range of business processes and applications. In many cases, information will be subservient to transactions. This will leave vendors with the choice of providing content, thereby removing them from direct end user interaction, or combining information, technology and enabling services in a market-centered approach to help users better meet business objectives.
Core competencies can be leveraged in the Internet economy. The core skills that vendors have developed in information technology (e.g., search technology, interface design) need to be adapted to the Internet economy. Rather than creating "one size fits all" products for customers, vendors can develop custom intranet solutions that leverage both the content and technology assets of vendors. After years of studying how people interact with information and computers, vendors also have an opportunity to leverage this expertise in emerging transaction and ebusiness systems.
Branding will become important. While our surveys show that information professionals are generally satisfied with the quality of content provided by vendors, there is very little brand differentiation as a whole. In the past, most of this differentiation has come in the form of proprietary software interfaces and technology features. In the new environment, vendors need to focus on developing a unique brand identity, as it relates to the character of the company and the nature of their content. This is particularly important as organizations turn to intranet delivery of information, where internal and external content is combined in a seamless manner (and the product being delivered becomes content rather than a bundled content/interface solution). It is also important given the ease with which people can switch from one Internet-based service to another "with the click of a mouse."
Think plumbing, not access device. The impending explosion of wireless will heighten the need to develop access-independent information services. The analogy can be drawn between the internet and the plumbing in your house. While the faucet in your kitchen may be different from the one in your bathroom, it's still the same plumbing underneath and the same water coming out the tap. The point is: How can information providers leverage their content resources into other points of access? Similarly, how can information professionals extend the reach of their organization's information resources to mobile situations and occupations?
Information Professionals. Most organizations have yet to sort out the organizational structure and division of responsibilities as it relates to the Internet and ebusiness. The problem is that as an enabling technology, the Internet is not a line function. Rather, it cuts across the whole organization. A growing number of organizations are beginning to recognize this by establishing a transitional ebusiness executive function, with the task of coordinating across internal silos.
With this new function comes an opportunity for information professionals to help define the manner in which information will be collected, analyzed and accessed in a converged ebusiness environment. Their knowledge of interface design and end-user behavior can also add significant value to the development of effective ebusiness strategies.
Conclusion
The main lesson in all of this is that the rate of change in the market requires great flexibility and openness to new approaches, roles and structures. Rather than waiting for change to happen and then trying to adapt to it, push the boundaries…let creativity reign. Information professionals need to look beyond the management of content to encompass the changing bounds of the external market and internal organization structure.
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