Beruflich Dokumente
Kultur Dokumente
Journal
of hformation
Management
(1991),
17 (156-l
65)
Jonathan
J. Eaton is with the Department
of Information
Studies, Sheffield University, Western Bank, Sheffield SlO 2TN, UK.
His present
address
is Library,
London
Business
School,
Sussex Place,
London
NW1 4SA, UK. David Bawden is Senior
Lecturer in the Department of Information
Science,
The City University,
Northampton Square, London EClV OHB, UK.
'CLEVELAND,
H. (1985).
The twilight of
hierarchy:
Speculations
on the global information
hierarchy.
Information and Referral, 7 (No. l), pp. l-31.
MOORE, N. (1989). Developing
the use of a
neglected
resource:
The growth
of information
management.
Journal of Information Science, 15, pp. 67-70.
156
Introduction
The information
0266-4012/91/02
015&l
0 0
1991
Butterworth-Heinemann
Ltd
resources?
unpublished
For an extended
literature
MA thesis by Eaton.
J.I. (1987).
Is information
a resource? A review of the literature
relating
to the economic
significance
of information. Unpublished
M.A. dissertation,
Department of Information
Studies, Sheffield
University.
4~~~~,
A.J. (1989). The value of information: Approaches
in economics,
accounting
and management
science. Journal of the
American Society for Information Science,
40, pp. 68-85. REPO, A.J. (1987). Economics of information.
Annual Reviews of
Information Science and Technology, 22,
IJp. 3-35.
~MACHUJP,
F. (1983).
Semantic
quirks in
studies of information.
In The study of
information: Interdisciplinary messages. (F.
Machlup
and U. Mansfield,
eds). New
York: Wiley.
h~~~~, K. (1988). Records,
words, data
whatever
you call it, its still information.
Information and Records Management, 16,
pp. 18-20.
COOPER,
M.D.
(1983). The structure
and
future of the information
economy.
Information Processing and Management, 19
(No. I), pp. 9-16.
'BOULIXNG,
K. (1968).
Knowledge
as a
commodity,
In Beyond economics: Essays
on society, religion and ethics. Ann Arbor,
Michigan: University of Michigan Press.
"ARROW,
K.J. (1984). Information
and economic behaviour.
In The collected papers
of Kenneth J. Arrow, vol. 4. Cambridge
MA: Harvard University Press.
ARROW,
K.J.
(1985). Economic
welfare
and the allocation
of resources
for invention. In The collected papers of Kenneth J.
Arrow, vol. 5. Cambridge
MA: Harvard
University
Press.
KEATON,
survey
of this
area
see
the
as a resource
This concept
has been very often put forward
in the context
of
information
fulfilling
the role of primary
resource
for the postindustrial
society or information
society.
This in turn leads to the ideas of information
economics,
with
information
treated as a commodity.
These aspects are discussed fully
by Eaton and by Repo.
We devote some discussion
to what is meant by resource. We do
not, however, try to deal with the well-worked
area of what is meant by
information,
nor will we try to distinguish between data, information,
knowledge and wisdom. Rather, we will agree with Fritz Machlup that
information
has become an all-purpose
weasel-word,
and with Mass
that records,
words,
data
. .
whatever
you call it, its still
information,6
hoping that our readers are clear as to what is implied.
The change in the status of information,
from a comparatively
marginal
intellectual
level to a resource or commodity,
central to
modern society, has occurred only in the last 40 years. This has largely
resulted from the work of economists
such as Machlup, Porat and Bell,
who pioneered
the ideas of the information
economy, with information
as the transforming
resource for the post-industrial
society. Their ideas
have been well summarized
by Cooper.
Even at an early stage of these developments,
however, critics were
pointing
out the limitations
of such ideas, in particular
the quite
different
nature of the exchange of information,
from that of other
commodities.
Boulding gives a good example: when a teacher teaches a
class, at the end of the hour the pupils know more and the teacher
usually knows more too. Arrow also points out that information
is
inappropriable
because an individual
who has some can never lose by
transmitting
it,9 and that the usual means of control of resources legal protection,
secrecy, monopoly,
etc. - are inapplicable
to information: no amount of legal protection
can make a thoroughly
appropriable commodity of something so intangible as information.
The very use
of information
in any productive
way is bound to reveal it, at least in
part. lo
Furthermore,
as Arrow clearly shows, a basic paradox
exists in
determining
the demand for information
- demand analysis being a
fundamental
requirement
of commodity
economics,
allowing the calculation of a relationship
between price and quantity.
The,value
to the
purchaser of information
is not known or verifiable until the information has been received. Indeed, it may only be months or years later that
an individual fully apprehends
the value of the original information.
The
value of information
eludes attempts
at its precise calculation:
it is
entirely dependent
upon context, use and outcome.
Demand
analysis
techniques
are therefore of strictly limited applicability.
The ideas of the information
society and information
economy were
met with a good deal of enthusiasm,
perhaps rather uncritical,
on the
part of the information
professions.
Perhaps the feeling was that these
alleged trends were moving towards a situation in which information,
and by implication
information
professionals,
would occupy a much
more central role. More recently, there has been a degree of skepticism
157
is information?
Information
resource management
information
as
resources
Information
resource.
is now
our
most
important
and
pervasive
"DIEBOLD.
J. (1979).
Information
resources management IIRM)? New directions in management. Znfosystems, 26 (No.
The corporations
which will excel in the the future
those that manage information
as a major resource.
There
158
as a
is today
a widespread
appreciation
will
be
of the value
of
information
as a social and organizational
resource
. .
Organizations,
be they industrial concerns or service entities,
are information communicating
and processing systems. They
are routinely
bombarded
with information;
they routinely
generate
information;
they routinely
store and access information.
How they manage the information
resource thus
has a direct bearing on organizational
effectiveness.
There
tion
is a clear
implication
is to be managed
underlying
in essentially
the whole
the same
of IRM that
way as other
informa-
resources:
Information
must be regarded as a valuable asset or resource
that deserves
and needs the same kind of management
physical,
disciplines
given to other resources - financial,
material, and natural. l9
The nature
and Forest
of IRM is expressed
Horton:20
particularly
clearly
by Cornelius
Burk
We must say at once that Burk and Horton explicitly recognize that
there are other professional
and operational
aspects to information
management,
which they regard as a wider field which embraces IRM,
than are expressed
in this narrow viewpoint.
Nonetheless,
it is this
approach which has attained most visibility in expressing the information as a resource idea, and it is with this that we must deal.
If information
is a resource, to be administered
like any other, then it
must stand comparison
with other types of managed resource: people
(human resources management);
money (financial management);
land,
plant and buildings (property management);
equipment,
stores and raw
materials
(materials
management);
energy (energy resources management); etc.
Of course, each of these traditional
resources has its own characteristics, and the management
of each is done in its own way, under the
broad framework
of resource management.
The question is whether
information
can also be fitted within this framework,
or whether its
qualities are so singular as to require it to be treated as a unique entity.
%RONIN,
B. AND
formation
research,
and productivity:
GUDIM,
M.
International Journal
of Information Management, 6 (No. 2), pp. 85-
101,
19~~~~~~
AND
MARWAND,
op.
cit., Ref.
13.
"BURK
Ibid.
AND
HORTON
op.
Information
159
What
kind of resource
is information?
1.
Information
is acquired at a definite measurable
cost.
Information
possesses a definite value, which may be quantified,
and treated as an accountable
asset.
consumption
can be quantified.
3. Information
4. Cost accounting
techniques
can be applied to help control the costs
of information.
has identifiable
and measurable
characteristics.
5. Information
has a clear life-cycle:
definition
of requirements,
6. Information
collection,
transmission,
processing,
storage,
dissemination,
use,
disposal.
Information
may be processed
and refined, so that raw materials
(e.g., databases)
are converted
into finished products (e.g., published directories).
Substitutes
for any specific item or collection
of information
are
available,
and may be quantified
as more or less expensive.
Choices are available to management
in making trade-offs between
different grades, types and prices for information.
2.
should be treated as
primer on IRM:22
but as something,
tangible,
Furthermore,
this concreteness
must be continued
by way of the
analogies shown above: information
must have a life-cycle of creation,
distribution,
use and disposal, just like any other tangible resource, and
must (above all) be accurately costed and valued. The original formulation of IRM laid great stress on this necessity to squeeze information
into the mould of tangible resources,
while neglecting
the important
qualifications
to the commodity
view of information
raised by the
economic
theorists,
as noted above.
Although
recent trends have
tended to a more flexible approach to IRM, with greater allowance of
singular qualities of information,
the commodity
approach still largely
holds sway.
Proponents
of the information
as resource viewpoint from within the
information
professions
have tended to concentrate
on trying to demolish counter-arguments
based on the intangibility
of information,
and on
the difficulties of costing and valuing it. Thus, Vickers:23
The notion that information
is a resource is becoming quite
widely accepted in certain circles, as evidenced by the spate of
pronouncements
on the subject by various gurus
Not
everyone agrees, of course
many a wizened old manager,
and perhaps quite a few younger ones, holding more traditional views (to put it politely) would hold no brief for such
new-fangled
nonsense. There is a belief that if you cant hold
it in your hand, its not real. So we have a long way to go, just
in convincing the world of this basic tenet.
cit., Ref. 13.
(1985). Information management: Selling a concept. In Information
management.
From strategies to action (B.
Cronin, ed.). London: Aslib.
'"WHITE,
M. (1985). Intelligence
management. In Information management. From
strategies to action (B. Cronin, ed.). London: Aslib.
*'HORTON,
op.
%ICKERS,
P.
160
and in somewhat
similar
vein,
White:24
sheet, and on this basis many will say that information is not a resource since it cannot be valued.
balance
This is not to say that there have not been critics of the over-enthusiastic
approach of information
as resource,
but they have not made great
impact. Perhaps this is because their arguments have stressed the unique
attributes
of information,
so different
from those of more tangible
resources. This line of attack is likely to smack of special pleading to the
generalist administrator,
while being so self-evident
to most information
professionals
as to be unworthy of emphasis.
Cleveland
gives a clear account of the unique, indeed paradoxical,
qualities of information;
his six main points are summarized
below:25
1.
2.
3.
4.
5.
6.
Information
is expandable,
it increases with use.
Information
is compressible,
able to be summarized,
integrated,
etc.
Information
can substitute
for other resources,
e.g., replacing
physical facilities.
Information
is transportable
virtually instantaneously.
Information
is diffusive, tending to leak from the straightjacket
of
secrecy and control, and the more it leaks the more there is.
Information
is sharable, not exchangeable,
it can be given away and
retained at the same time.
His main thesis, similar to the criticisms by Arrow and Boulding of the
idea of information
as commodity,
is that information
is quite unlike
the tangible things generally thought of as valuable resources.
He also
argues that the means used to administer
things - control, ownership,
monopoly,
secrecy, and so are singularly
inappropriate
for, and
ineffective at, administering
information.
We cannot carry over uncritically to the management
of information
the concepts which have proved
useful for the management
of things.* The difficulties
of enforcing
property rights for information
have been emphasized.27
Blaise Cronin similarly criticizes information
as commodity:28
It is fashionable to speak of information as a commodity, like
crude oil or coffee beans. Information differs from oil and
coffee, however, in that it cannot be exhausted: over time
certain types of information
lose their currency and become
obsolete, but, equally, certain types of information
can have
multiple life-cycles. Information
is not depleted on use, and
the same information
can be used by, and be of value to, an
infinite number of consumers.
Furthermore,
information
has
the characteristics
of a public good: more for me does not
necessarily mean less for you.
"CRONIN,
B.(1984). Information accounting. In The use of information in a changing
world (A. Van der Laan and A.A. Winters, eds). Amsterdam:
Elsevier.
2y~~~~
(1989). op. cit., Ref. 4.
300p, cit., Ref. 18.
3Op. cil., Ref. 12.
Repo summarizes
similar arguments.29
Cronin and Gudim make the point that it may be too simplistic to
speak just of information,
in discussing its resource qualities. Informatton per
se, they argue, has the features of a hidden property good, in
that its value may not be fully appreciated
until well after the time of
use. Information
services.
on the other hand. can be reearded
as
experience
goods, since their value may not be appreciated
immediately, but only after a number
of transactions.
Information
technology
systems have features of search goods, since they may be tried out, and
their value assessed, before purchase.
Olaisen also distinguishes
between the resource aspects of information
per se and of information
technology.31
161
Best3 makes
similar
points:
Much
32~~:~~~~~,
162
of information
Although
the writers quoted above, and others, often categorize their
points ;ery differently,
we may make a number
of key distinctions
between information
and traditional,
tangible resources.
Value of inform&ion
We must distinguish
carefully
between
value and cost. It may be
perfectly possible to assess the cost incurred in creating an information
source - purchase price, staff time, hardware and software costs, etc.
- but this does not reflect the true value to the users. A great deal of
effort has been expended in the attempt to produce some realistic way
of assessing the value of information sources and systems. Indeed, some
commercial organizations, particularly in the USA, are beginning to
include information resources among the financially accounted corporate assets. The fact remains that information cannot, in general, be
accounted for in the same way as other resources.
Consumption of information
The results of the use of information are quite unlike those for other
resources: the consumption consequences attached to finite resources
are not applicable. Information is not lost when it is given to others,
although its usefulness for particular purposes may be decreased. Nor
does it diminish when consumed; its sharing and transmission may,
indeed almost always will, cause its increase. In economic terms, we can
say that information differs fundamentally from commodity resources,
in that it has a self-multiplicative quality; that is its exchange does not
necessarily involve redistribution, loss or consumption.
Dynamics of information
most
and
that
all of
of a
~ndivid~~~ityof information
371bid
It is worth noting that even these writers, who pour scorn on the strict
IRM ideal, still refer to information in resource terms, Clevetand, for
example, regarding it as our most important . . , resource.
163
AN"
"VICKERS,
164
HORTON,
P.
By contrast,
even the strongest proponents
of IRM are increasingly
recognizing
the limitations
of the traditional
resource models as applied
to information.
Burk and Horton, for example, are driven to conclude
that it is the role that information
plays which distinguishes
it as an
organizational
resource, not its similarities
to the other resources.s
By
this, they imply that information,
like traditional
resources is something critical to achieving success and for which there is a real, potential
or perceived shortage. This rather brings us back to where we came in,
with information
as a resource meaning little more than information
is
important,
and with no implication
that information
should be treated
in the same way as other resources.
Vickers speaks in rather the same
way: For there to be information
management,
information
has to be
when the management
of information
starts
accepted as a resource .
to be treated with the respect given to the management
of money and
materials.
Roberts and Wilson refer to the requirement
for the active
handling
of information
as a management
resource
of comparable
importance
to other factors of production.4
So, there appear to be two distinct ways in which information
may
reasonably
be spoken of as a resource.
First, the phrase indicates an
intention to treat information
as a resource like any other, and manage
it appropriately.
Second, it may simply indicate a clear awareness of the
importance
of information
to the organization.
The irony of the situation
is that the two approaches
may be
diametrically
opposed in the situations
to which they are best applied.
The IRM model is arguably most suitable for administrative
information, of the sort generated within organizational
bureaucracies.
This will
probably
have a clear use, and hence value, a well-defined
life-cycle,
and other parameters
in accordance
with IRM ideas. But it is the last
kind of information
which will be a resource
in the other sense:
providing value to the organization
through encouraging
innovation
and
change.
To give a trivial example,
consider an organization
undertaking
a
programme
of research and development
in order to generate ideas for
new products and services. One type of information
service may record
the administrative
aspects of the programme
- financial accounting
and
budgeting,
personnel
assignments,
project planning,
etc. This information will be used for control and monitoring
of the process, for spotting
potential
problems,
for planning
future work, and for maximizing
efficiency.
This is probably
the closest that information
comes to
imitating a tangible resource, in this context. Another form of information system will record the results of the projects,
the success and
failures and the reasons for both, and perhaps the ideas of the people
involved as the project develops. This will not fit the tangible resource
model, for the sorts of reasons discussed above, but it is the sort of
system most reasonably
described as an organizational
resource, in the
broader
sense, since it encompasses
the knowledge
gained and the
possibility of future innovation.
Best suggests that information
can only be managed, i.e., treated as a
resource, if three conditions
are fulfilled:4
1.
2.
3.
The production
of the information
some purpose in the organization.
The relationship
of the information
purpose can be clearly shown.
The relationship
can be empirically
is undertaken
to contribute
to the achievement
tested.
to
of the stated
Conclusions
In speaking of information
as a resource, we must be careful to state in
which sense the term is meant. We must not use the term indicate the
importance
of information,
and then find ourselves
led to adopt an
inappropriate,
and potentially
harmful,
resource management
model
which cannot allow for the singular properties
of information.
The
analogy, useful as it is, should not be pushed too far.
165