THE ECONOMIC VALUE OF INFORMATION
How are we to value information? A common view is that “to accountant, information is considered as worthless. On the balance sheet, information is such a hidden asset. It is totally invisible (Tate, 1986,86) such may be the case of accountant creating an annual report. But to those who must enter, collate, sort, store, transmit, format, analyse and utilize it, information certainly has value.
What kind of ‘value’’ might we consider. Calculation of the value of commodities in general is an established problem addressed by economists. Value in this general sense has also been addressed by information theorists in communications, library and information science (Black and Marchant, 1982). In order words the value of information is an expression of impact or how it is used (Griffiths, 1982). The American college dictionary (1968) lists three primary meanings for the word value.
1. That property of a thing because of which it is esteemed, desirable or useful.
2. Material or money worth as in traffic or sale.
3. The worth of a thing as measured by the amount of other things for which it can be exchanged, or as estimated in terms of a medium of exchange.
Information value as ‘’Use’’
The economic value of information depends on the utility it is placed. Indeed a prevailing view speaks of the ‘’value of information’’ with this same connotation, which information value denotes solely an expression of how ’’useful’’ it is to the recipient. Information value is frequently expressed as a derivation from communicational utility, following from the engineering work of Shannon and Weaver (1949).
Information as ‘’traffic’’
Indeed, in formation is available in many forms, not just computerized, and there have been many attempts to map its societal usage, flow and value. Machlup (1962) is justly credited with farthering this field of study with his book The production and Distribution of Knowledge in the United States. This was the first detailed attempt to classify knowledge production in society, including education, research and development (R&D) activity and the communication media.
Information value as ‘’commodity’’
Utility by itself, without economic factors is of little help in analyzing information as commodity, because what we seek to measure is economic value which assumes use value.
Many (although not all) forms of electronic information are commodities. This means they are available for purchase in the market place. The lists of example is long including purchased software packages (e.g. Word Perfect, rBase) leased Software (VSAM, IMS), bibliographic retrieval services e.g. (Dialog, D&B), Scientific data retrieval services, Governmental data services, data networking services (e.g. Telenet, Tymenet) and computer network services (e.g. CompuServe.
However it is interesting to note that the issue of the economic value of information is an academic exercise. It is rather not easy to define. But it is clear to look at it from the point of view of utility at which information have been placed. On the general note, information is most valued on the point of tactical, operational and strategy purpose.
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ECONOMIC VALUE OF INFORMATION
The economic value of information can be seen as a great “phenomenon” which generates high feeling as regard to how information is considered valuable material in respect of the economic point of view.
This economic value information can be attributed to its usage, traffic and commodity. The economic value of information can be analyzed when the issue of how individuals and organization see it. This can be perceived through different needs and quest the individual and organizations develop in sourcing and utilizing information materials for various decisions making in their respective areas. This can be clarified when we look at how various firms and companies diversify effort in providing various supportive information in enhancing product characteristics as well as product delivery through various automated installations.
When we look at the economic value of information as “traffic” we have to analyze the rate at which information flows or travels from different angle and perspective across the world. The movement of information across various angles makes it tacit to know that a lot of revenue and other economic values are attached to information. The rate at which on-line data-bases are being accessed across the globe, one can be fully optimistic that economic value of information is gathering momentum.
Because information is used in facilitating the necessary changes in in-put and processing through computer – controlled manufacturing equipments. The on-line information and electronic forms of information are growing at a higher rate compared to the print media and thus greatly result in pervasive electronic information demand.
The economic value of information by measuring it as a commodity can be described as how various forms of electronic information facilities encumber the World markets today. This can be seen in respect of how a lot of these information materials are being bought excessably by different individuals and organizations which include millions of PC., and Mainframes. Contemporarily we can see that the software is valued when we discovered that it is marketed, distributed and supported permanently. Because business applications such as spreadsheet and word processors have becomes commodities. This can be seen as how users, especially corporations and other volume purchasers, can negotiate wide ranging enterprise licensing deals at very attractive terms.
The internet, the World’s largest computer networks has emerged as a giant “informant” for future hundreds and thousand of companies across the globe. This was propelled by advances in computer power and packet – switched network, so the internet has poised to become a stapple of modern business communication.
To summarize, we can say that the economic value of information can be seen in respect of how information is being used and sourced in supporting various operations, management and strategic planning, that is why its demand is becoming fervently excessive in the Global Market.
CRITICISM:
Something is said to be valued when it is predominantly and pervasively having total coverage in a given domain. We cannot assert the economic value of information if it does not represent or cover the entire globe. Especially when we look at the contemporary era of “globalization”, we can say that economic value of information can solely be related to the Western developed economies. And more, often then not, African continent, Latin America and greater part of Asia are being sidelined or left behind.
This can be adhered when we look at the fact that almost all the electronic and on-line information industries are situated in the developed economies like the Western Countries and other fast World growing economies like India and China. This can clearly illustrate that developing countries and other third World Nations are not accruing any economic value of information due to various factors of under development.
To this end, I can say that economic value of information is only realized or observed in a littler portion of the World. While in the greater portion of the World, the economic value of information is not something remarkable or worth while.
DANBABALE AMINU
MIM/EDUC/11763/2007-8
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