Personal Information and Monetization

• 2019 Musashino City Endowed Lecture "IT and Rules Now and in the Future"
• personal information and monetize Yasuhiro Ota [/mkk/4. Oct 10, Personal Information and Monetization](https://scrapbox.io/mkk/4. Oct 10, Personal Information and Monetization).

Submarines and railroads can't determine at market prices how much is appropriate when a country procures them.

• →Decide by accumulating the cost

monetize

• Originally meant "issuance of currency," "method of turning resources into gold," etc.

• How to make money from free services" is a Japanese-English usage.

• New business model "subscription" is now available.

  • Some people say things like, "What I've learned in business school so far is useless."
  • But the principles have not changed.
  • Applicable conditions have changed.
  • Better to learn the principles first, then how conditions have changed.
    • Conditions will continue to change.

• general principle

  • Business Model for Product Sales

  • Business Models for Advertising

  • Product sales model

  • Exchange of goods and services for value

  • Issue:

    • How do we find sellers/buyers?
    • How do we check and promote quality?

- information asymmetry - Not good for a difficult translation. - One knows and the other doesn't." - Can a stranger be a sucker? - The unknowing side knows that they don't know. - take precautions - hinder the smoothness of business transactions - reverse selection - It attracts different people than you want to attract. - Used cars ( Lemon Market ) - Previous owner has information.

• Reduction of information asymmetry is big business.
  • Asymmetry Reduction Business is profitable.
  • Groupware may also reduce information asymmetry within the company! - Groupware reduces internal information asymmetry
• One example is advertising

radioactive contamination

• Although the technical cost is low
• High reputational costs
  • The cost of making people believe they are safe is higher than the cost of making them safe.
• Majority of the 21 trillion yen cost

advertising model

• physical matching

  • near
    • → location (e.g. of industry) Important

• Online Matching

  • search (e.g. for someone using a search engine)
    • →SEO is important

• hub-and-spoke system

• Fedex Fred Smith Ideas

• Design to place mediator in logistics

• Referring to the settlement of bills.

• Platform is a mediator

  • platform is mediator.

• A model that creates a place for information to gather and takes a matching fee

  • I'm creating a kind of "location (e.g. of industry)" for myself.

Jeff Bezos, Securities & Investments employee

• Products chosen to create Amazon

  • Low quality uncertainty
  • Small and expensive (low percentage of price of transported volume)
  • Lots of variety (searchable online stores are more advantageous than physical stores)

• Examples: CDs, etc.

• counterparty risk

• [Counterparty risk - Wikipedia https://ja.wikipedia.org/wiki/%E3%82%AB%E3%82%A6%E3%83%B3%E3%82%BF%E3%83%BC%E3%83%91%E3%83%BC%E3%83%86%E3% 82%A3%E3%83%AA%E3%82%B9%E3%82%AF]

  • escrow
  • Comey's Appraisal Service
  • Assessment on line just take a picture and send it to us｜KOMEHYO for brand-name goods, jewelry, and watches []

Data Monetization

• credit limit
• advertisement

Banks

• Payment Services
• Information on the movement of money can be found
• How can we make use of this information?
• →Financing.

There used to be incidents of bank employees copying passbooks and selling them to registrars.

• Compliance is strict now.

• Cannot sell information for money.

• The "use the information yourself" line.

  • The same principle applies to accounts receivable.

• economy of scope

• Lower costs of doing disparate businesses together.

Purchase behavior information → alcohol and tobacco purchases → health risks → insurance

If uncertainty is reduced too much, insurance and financing will not be established.

• (the) market (as a concept) and organization

• 

• The market is the sea and the organization is the land.

• The state in which everything is organized is communism. - planned economy

• It's not efficient (?) when it's all in the market.

  • Why？
    • The amoeboid organization in Kyocera (company name) is an approach that markets smaller units of organization rather than the entire company as one organization.

• planned economy

• Gather all the information and try to make a plan.

• But it is not practical to collect and analyze all the information

  • Implicit assumption: because human information-processing capacity is poor

• Difficult to gather local information - high efficiency "Knowledge of the specific circumstances of a time and place" is difficult to communicate.

  • "There's a need in this place at this moment, so if you open a store, you'll make money!" Something like that.
    • In a planned economy, it takes too long for that information to get to the command center and for action to come down, and the timing is missed.

• question

  • Planned economies have gone awry due to poor human communication skills.
  • The development of information technology has enhanced information transfer.
  • Would a planned economy be advantageous?
• - I'm not sure about the national level, but I have skin in the game that it's the other way around at the corporate level. - At Cybozu, where groupware is used to communicate information all over the place - Movement to "abolish the manager position" rather than strengthen the supervisor's command and control. - ["Don't you need another manager?" We asked the Development Division, which abolished managers, about salary evaluation and transfer mechanisms | Cybozu Style](https://cybozushiki.cybozu.co.jp/articles/m005359.html) - [Cybozu's development headquarters tried to eliminate managers "If you can't do it without them, just make them again" | Cybozu Style](https://cybozushiki.cybozu.co.jp/articles/m005343.html) - As described in [teal organization](/en/teal%20organization), the pyramid hierarchy is being dismantled in various companies. - Why is this? - Because the bottleneck is not "human information transmission capacity" but "human information processing capacity." -  - In an era when means of information transmission were poor, humans were the medium of information transmission. - The hierarchy is deeper because of the poor ability of humans to communicate information. - Deeper hierarchies resulted in greater delays. - Technology such as groupware (and [radio](/en/radio) and television) has made information transfer more efficient. - In that era, it's easy for a large number of employees to receive the president's thoughts. - Receiving the president's real voice on a daily basis has facilitated the sharing of vision. - One hundred employees can hear the voice of one president, but one president cannot hear the voice of one hundred employees. -  - Notification brings [information flood - It may have been several times more efficient than in the days when information was communicated by voice or paper, - The volume of information circulating within the company has increased by two to three orders of magnitude as all employees disseminate information. - Current technology is not yet in a position to handle this. - How organizations change when decision makers' ability to process information is the bottleneck - Delegate decision-making - Process information without centralizing it - Made possible by sharing the vision and the information needed for decision-making in advance - Groupware has eliminated information asymmetry between management and employees. - 「 [Facilitation of transactions](/en/Facilitation%20of%20transactions) 」 - No labor-management conflict - summary - The reason the planned economy didn't work is not "human [information transmission](/en/information%20transmission) capacity" but "human [information processing](/en/information%20processing) capacity." - Information technology has enhanced the ability to communicate information, but not so much the ability to process it. - As a result, authority will be transferred to avoid localization of the burden of information processing - This trend will be reversed when decision-making itself is done by computers. - That's still a long way off.

division of labor

• Fixed costs to variable costs
  • Skin feeling that doesn't really fit in the context of parallel work.
    • Increase uptime by car sharing cars that are not working while parked in front of the company.
    • The "increased occupancy" aspect of the car owner's position that
    • The "fixed cost to variable cost" position is on the side of those who use car sharing without owning a car.
    • Working in between childcare, for example, is certainly an improvement in utilization, but it doesn't feel right.

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