Information2ASCII

In earlier post and in my seminars, I have stressed the importance of recognizing the transformation from an Industrial to a New Economy. This New Economy has many names; Knowledge, Information, Network, etc. By what ever name you call it, this transformation is brought to you by: “Information2ASCII”.

The meaning refers to the ability to acquire information due in large part to the conversion of the alphabet into code called ASCII (pronounced ás’kē -standard code for representing characters using the binary system- 0’s and 1’s, bits and bytes a.k.a. digitization) and thus facilitating rapid accessibility and transfer of information for everyone and anyone no matter where. The implications are massive in scope and breath.

They are massive because Information2ASCII (I2A) implies the need to recognize and embrace a fundamental shift regarding the current view or perception in economics and business: Information is not only an unlimited resource but also essentially free.

What does this mean for a business? In the Industrial Age Business Model, resources are viewed as limited. The more limited the resource, the more the cost as production scales. “That model fits limited-resource markets like mining, utilities, and bulk goods, where there's a fixed resource and little technological change.” according to Gregory J. E. Rawlins.

Because of I2A, Information is now available at light speed and it is essential free.
What does this mean for a business today? In the information markets, like education, communications, entertainment, publishing, computers, pharmaceuticals, robotics, and biotechnology it means after certain fixed cost, there are increasing returns. Not only that, but for any business that can figure out how to substitute information for expensive inputs all along their value chain, R&D, production, distribution, administration, operations, marketing, cost of sale etc., their profits will increase as free cash flow. This is the business model to recognize and embrace in order to begin the transition to a New Economy. How to do that is the subject of my seminars and further blogs. (to be continued)