Learning Objectives

By the end of this chapter, you will be able to:

  • Define the Information Age.
  • Describe the role of a knowledge worker.
  • Explain why information has become a critical business asset.

The Information Age

The Information Age (also known as the Digital Age or Computer Age) is the period in human history characterized by the shift from traditional industry to an economy based on information technology. In this new era, the primary source of economic value is no longer manufacturing or agriculture, but the creation, processing, and distribution of information.

The Knowledge Worker

A key figure in the Information Age is the knowledge worker. This is a professional whose main capital is their knowledge. Unlike a manual laborer who works with their hands, a knowledge worker’s job is to think for a living. They deal in information and are valued for their ability to analyze it, interpret it, and apply it to solve problems.

  • Examples: Doctors, lawyers, engineers, scientists, financial analysts, and software developers.

Information as a Strategic Asset

In the Information Age, data and information are no longer just byproducts of business operations; they are a core strategic asset. Companies that can effectively collect, manage, analyze, and act on information have a significant competitive advantage.

  • Example: Amazon collects vast amounts of data on its customers’ browsing and purchasing habits. It uses this information to recommend products, optimize its supply chain, and even create new services like Amazon Web Services (AWS).

Summary

The Information Age has transformed the economy, shifting the focus from physical goods to information as the primary driver of value. This has given rise to the knowledge worker, whose main role is to process and apply information. In this environment, the ability of a business to manage and leverage its data has become a critical factor for success.

Key Takeaways

  • The Information Age is an economic era where information is the key asset.
  • Knowledge workers are professionals who work with information.
  • Successful modern businesses use information as a strategic tool to gain a competitive advantage.

Discussion Questions

  1. How does the job of a knowledge worker differ from that of a manual worker in the Industrial Age?
  2. Besides Amazon, what is another company that has been very successful in the Information Age? How do they use information?
  3. What are some of the challenges of competing in an economy based on information?