Business systemics LO5783

Andrew Moreno (
Thu, 22 Feb 1996 00:32:34 -0800 (PST)

Replying to LO5775 --

On Wed, 21 Feb 1996, Johanna Rothman wrote:

> I disagree that the total demand in the world is fixed. It may be fixed at
> current prices, but even then I disagree. There is demand that is not
> being met. I have money that I would gladly pay for specific services and
> products, if they existed.

I agree. If a customer really wants to buy something, they will find the
money to buy it...

The challenge for companies, as they enter the information age where the
delivered product is information, is to customize their "market surveys"
to each customer to maximize created value. It is a challenge because
complexity rises exponentially as the number of different customers are
pursued. A toolset for "customizing" to each customer is needed. The
companies will know when they have created maximum value when their
customers go past the usual "disposable income limits" to buy their
products and services.

Another challenge for companies is that as the barriers to entry are
removed in an information based economy, companies get more competition...
but think what this means... those companies can sell to more customers
because there's more people with money to buy stuff - disposable income...
[BTW competition assumes a fixed market... but there is unlimited ways to
create value.. the constraint is that the complexity rises as companies
"customize" to different customers.... if companies find a way to deal
with complexity in customizing, they can focus on creating more value for
their customers instead of "destroying the competition".

[Note: I think there's a distinction between _information delivery and
processing systems_ and _information that creates value_, companies and
people don't want more systems.... they want results - customized
information get's results....]



Andrew Moreno <>

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