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In the digital economy : an asset = production + transformation + information

In the agricultural society, raw materials were essential to the economy : vegetables, meat and minerals were the trading basics. Crafted products (fabrics, clothes, jewellery, objects) had the highest value in the consumers' eyes. We can translate this by the two following formulae :

Merchandise = Production
Value = Production

In the industrial society, the majority of products which were not modified had no value (see the collapse in the stock market prices for raw materials and agricultural products). On the contrary, modified products offer a good profit margin and customers are prepared to pay high prices for them. The economy's essential goods are those which are transformed. We can translate this by :

Merchandise = Production + Transformation
Value = Transformation

In the information society, the merchandise becomes intelligent products. Transformation by an industrial process is not enough. They must be enriched by information which increases their value for the customer : they must be intelligence-enriched. In the digital economy, the essential element of the perceived value and in consequence the purchase value of a product lies in its intelligence and not in its transformation. The final equation is therefore :

Merchandise = Production + Transformation + Intelligence
Value = Intelligence

If it appears difficult at present to give a precise definition of a product's intelligence, we can nevertheless suggest some trains of thought :
· the ability to analyse and anticipate customer needs to provide an individual reply (one of the applications of this principle is one-to-one marketing) ;
· the ability to adapt its utilisation context ;
· the ability to detect the possibility of commercial transactions.


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If you enjoyed this site, we obviously share values: we have written it in 1999 !

We haven't updated it online as the vision still is more and more relevant: the more the internet matures, the closer it gets to our vision.

We still believe in innovation, creativity, rigour and results control.

Contact us if you need webmarketing services:

Raphael Richard, founder

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