}Knowing information
◦Perfect, imperfect and asymmetric information
}Knowing the behaviour of the others and rules
◦Imperfect
◦Incomplete
}Searching and consequences
}Information about price and quality
}Auction models
}

Role of IT
* IT is a tool to:
* fill the gap – to distribute information
* To eliminate the gap – using IT services to interconnect subject with negative effects of a gap
* Manage the information
* To prevent the influence of the gaps
* To eliminate the gaps

The price of information
* Is almost individual
* It is equal to the searching (opportunity) costs
* It is important to divide the price of information and the price of access to information
* To buy the possibility to search
* To buy a possibility to share information
* The question of technology
* Higher speed means higher probability to find what I am looking for

Technology progress
speed
costs
T
T2
N
A
B

Government and information
* It needs the information for making of the decisions
* It is important source of information
* It is supervisor on the market with information

Government as the information receiver
* The most of analysis is done by
* state institutions
* ministry clerks
* National bank
* The government is the source of information for itself
* The analysis can be wrong
* The decisions can be wrong – moral hazard
* The question of time

The government and searching of information
* Where is the equilibrium of searching
* Stigler model does not work
* The process of searching is excluded from the process of evaluating and using of the information
* The person who is searching does not know the effect
* We can not be sure that the government has right information
* We can not be sure the information are correct
* Moral hazard
* The Greece

The government as the source of information
* The government is not one source of information
* The motivation of the clerks
* To publish only the information that are good for them
* Moral hazard
* The subjects need the information from other source to prove it

The government regulates the market of information
* Direct approach
* Problem of the identification of information gap
* Absolute filling
* How to do it
* Law – market subject must give some information to the register
* Relative filling
* Not necessary to identify a specific problem, just a group of problems
* Mandatory insurance

The government regulates the market of information
* Indirect approach
* Development of information sources and channels
* Support of using services
* Digital mail-boxes
* Digital signature
* E-government
* Supporting the development of the information access

}Service System
}Elements of service system
◦Client
◦Provider
◦Target
}Consequences and relations
◦

Service system
* Provider
* Individual
* Organization
* Any of previous combined with the technology and/or piece of environment
* Technology that provider is responsible for
* Client
* Individual
* Organization
* Any of previous combined with the technology and/or piece of environment
* Portion of reality owned by Client
* Target
* The reality to be transformed or operated on by Provider for sake of Client
* People, dimensions of business
* Dimensions of products, technology artefacts & environment
* Information, codified knowledge

Mention - Use
Mention
Provider
Client
Target
Forms of ownership
C is owner of T or
C needs an added
value on T
Forms of relationship
value co-creation
value proposition
information sharing
Forms of responsibility
P is responsible for
the actions with T

* a tendency to take undue risks because the costs are not borne by the party taking the risk
* The customer is able to affect an event he is insured against, but the seller has no power to
monitor or affect this event.
* ERP supplier has limited information about customers IT security
* Provider has limited information about the basement of the real client´s problem
* Double moral hazard
◦Client does not know if the provider is able to operate on the particular target

}Illusion of value proposition
}Provider is not able to see the basis of target
}Client is not able to see the benefits of the cooperation }Both are motivated to share information
and knowledge
}Value proposition can not be set up
}
}

}The company needs information system to support its core business
}The company has serious problems with
◦communication with customers
}But also hidden problems
◦publishing information
◦time spent on one particular business case is too long – mostly caused by bad communication inside
the company

}Offers a big customised ERP system together with CMS system
◦CMS system has connection to Social Networks
}The problem to solve is the communication
}But it is not a part of the problem
}IT company needs to find its paths through particular targets – to analyse the situation if the
client
}

}Value proposition is hidden
◦is hidden by the hill
}Hierarchy of barriers hiding the target
◦have to be overcame step by step
◦leads to process of value estimation
}Value can not be proposed
}It can be only estimated
◦is used to find value proposition
◦there is not a target, only target area
–target area is the space of all sub-targets, corresponding with particular value estimation
}
}

}modified by the value co-creation process
}motivated by the decreasing of the level of information asymmetry of both parties }the process is
about particularize of value estimations }till the moment of founding the value proposition
}

}can be found in the moment client and provider can see the target
◦share the same point of view
◦both can see the utility level
◦and share as well
}both partners agree with concrete mutual criteria of success
◦variables to test
–no of customers
–profitability
◦target values
–number of customers rise of 30%
–profitability rises more than 10%
}




}must be shared and paid
◦problem is complex
◦must be understood and explored
}provider must be paid for using his sources to do it
}Client is paying for the analysis of the target area
}

}Information asymmetry and its role in service system
}Value estimation
}Target area
}Negotiation and information sharing
◦Leeds to target finding