Information Becomes a Commodity

I have realized that almost all information has become a commodity. It’s the services wrapped around the information that now has value.

Let’s use web search and Google as an example.

What people want is information and that information is often found one some obscure web page. Let’s say, for this example, the fact we are searching for can be found on 300 web pages; none can charge for the fact because it’s distribution cost is so low and the competition is high; it’s a commodity with almost zero value.

So, which page would you choose?

When you compare them side-by-side, some pages will have better accuracy and communicate the information better, that’s the one you probably want–and Google has figured out a way to put that at the top of the list.

Google provides better relevance and accuracy in its search results. That is a valuable service and it is not a commodity. (At least not yet; Yahoo, Amazon, Microsoft and others are trying though…)

Most web pages make little to no profit by providing the information, yet Google has created a huge amount of value (and profitability) by wrapping a service around commodity information all across the web.

(The fact that the #1 ranked web page is (likely) more relevant has won them the opportunity to sell advertising and perhaps product, that is the value they derive from publishing the fact.)

I have some ideas about how to improve services for delivery of travel information and travel products and provide a high level of value to travelers.

That is my mission over the next few years.

Stay tuned.