from zero to_euro_rotterdam_nov_5_2008_
TRANSCRIPT
Port of Rotterdam as infopreneur From zero tot EuroRobbin te Velde
Rotterdam, WTC, 4 November 2008
Theory
Information is a weird substance
Economic characteristics of information:• Non-rivalry*• Non-excludable
Information is not by itself excludable. It could be made excludable but thus involves additional costs.
What are you actually selling?
Information • Structure • Medium
Technological developments have a very strong impact on the costs of information
Processing
Storage Transport
The strategic dimension(‘Knowledge is power’)
• Having information (or not) changes the behaviour of firms and consumers.
• The added value of information often is in the change of behaviour, not in the information itself.o New behaviour new needs (2nd order) new markets
o Two different ways to create value by (re)use of information:o Public (Macro): information as public good. Society as a whole benefitso Private (Micro): information as excludable good. One specific firm benefits vis-à-vis other
firms.
Example change in behaviour
R2 = 0.73 (p=0.01)
Nota bene: GDP / capitaR2 = 0.57 (p=0.01)
Christopher R. Kedzie (1995). Democracy and Interconnectivity. Santa Monica, CA: Rand Corporation
Practice
Life at an information service firm
• Information services = making phone callso Research (information in)o Sales (subscriptions out)o Customer relations (extending subscriptions)
• Customer focuso Define your product (basic, Pro, Advanced)o User friendly information systemso Seize emergent needs of customers
Life at an information service firm
• Information services = improving communication processeso Match demand & supplyo Facilitate one complex processo Replicate that process
• Breadth versus deptho Sufficient critical mass (coverage) to draw reliable conclusionso Just enough breadth to break-even. Get your margin from the
deptho Deepen customer relations over time by a symbiosis between
Research and Customer service
The public sector also wakes up
• Public Sector Information is a pot of gold…o Building & Construction Authority (Singapore) o United Kingdom Hydrographic Office (UK)o Statens Bygningstekniske Etat (NO)o ABI-case (UK)
Port of Rotterdam as infopreneur
• Assess each type of information on an individual basis• Grosso modo three business models:1. PoR gives away information for free (earn back via 2nd order effects)2. PoR sells information to the market itself
o Customer focus?!o Don’t overcharge (p<costs of collecting data customers)o Never make exclusive deals
3. PoR outsources sales of information to a commercial third partyo PoR uses the infrastructure of the third party (franchise)o Through public-private partnership the efficiency & effectiveness of
information flows can be optimized.
