Information industry: consolidation, evolution or just a Big Bang!

摘要

What we are seeing is not a consolidation of the information industry, as this suggests stabilisation. Nor are we seeing an evolution of the industry either as this suggests a gradual change of the industry. No; what we are experiencing before our eyes is an explosion in the industry, and like the big bang theory of the creation of the universe, what we are going to be left with is not one information industry, but an infinite number of fragments loosely held in the information universe. Each fragment will provide information in a unique way, not only in the information it provides and how it is provided but also on how it is paid for. What is interesting for the players in this industry, whether they be publishers, vendors or users, is watching which planets will survive and be as bountiful as Earth and which will be as barren and as cold as Pluto. For many of us, picking the right planet will be a life or death decision and not all of us will survive, but what are the trends driving this new universe? In the last two years we have seen some major names in the industry merge or be taken over - MAID's merger with Dialog and the purchase of LEXIS-NEXIS by Reed Elsevier, to name just two. On the surface this could be taken as a consolidation of the industry, where large multinational companies will come to dominate the industry. But this could not be further from the truth and the reason for this is because of the explosion caused by the Internet. Rather than focus on what the Internet is, which more knowledgeable people than me have written volumes about, let's look at the trends it has caused to the information industry and its impact on the way this industry operates. The Internet has increased the size of the market - basically anyone with Internet access is an information user. Freedom of information (not necessary free information) is now a reality. In corporations, information has moved from the library to the worker's desk, meaning the means of presenting that information has to be more user friendly. The cost of SMEs to provide global access to their service has been effectively eliminated, and is now no longer a barrier to entry. If SMEs can provide a service to a niche market, they will survive and thrive. Large companies will never be able to cover all the niche markets. Non-traditional players are now entering the market with new ideas and new models. ISPs are beginning to provide information as a way of differentiation of their service. Many Web sites such as Yahoo! and PointCast provide free information to the end user, but receive revenue from sponsors. Push technology has allowed companies such as Wavephore Newscast to provide enterprise solutions to multi-site, multinational companies without the need for large investment costs in communications and hardware. These are just some of the reasons why we are seeing the explosion of the information universe. What is exciting about this new universe unfold is seeing which planets or niches will survive and flourish, and which will be like dying stars, bright only for a short time but then entering eternal darkness.