lnlC8MA1lCn SCClL1?

1LCPnCLCClLS
lnl0201
INF0RNACINES vIS00NENES
TECBN0L0uI}0S

!"#$%&" (
)"*+,- ."#/012134- ,0* 51#+"$4

61%&7" $,%3/$ 849
Vladislav V. Fomin & Tomas Krilavi!ius
Faculty of Infoimatics
lnformauon" + SocleLy" + 1echnologles"
! What is !"#$%&'(!$".
! Wheie uo we get it fiom.
! Bow can it be helpful to us.
! What )$*!+(, uo we live in.
! What is the iole of infoimation in oui
society.
! -.'( !) &, %$0+ in this society.
! What (+*."$0$1!+) make it woik.
! Bow uoes 2"(+%"+( woik.
! Bow uoes my &$3!0+ 4.$"+ woik.
! What 5!)(!"16!).+) (.+
7!""+%) '"5 (.+ 0$)+%) in
(.+ 2"#$%&'(!$" -$%05.
Alms of Lhe lecLure
Aftei attenuing this lectuie you shoulu be able to:
1. 0nueistanu what it the iole the meuia anu IT aie
playing in the Infoimation Society.
2. Explain what novel possibilities aie offeieu to
businesses anu society thiough sepaiation of the
content fiom meuia.
S. 0nueistanu what aie the issues anu challenges of the
InfoSociety
1he role of Medla and l1
ln Lhe lnfo SocleLy
user-cenLrlc conLrol ln Lhe lnfoSocleLy
AT&T uiiectoi in 89:;:
:; 01$ ;1& $/"
,%$1<,$+10 1; $/"
$"2"=/10" 747$"<- <17$
1; $/" =1=%2,$+10
>1%2* /,?" $1 8"
$"2"=/10" 1="&,$1&7.

<$5',: each mobile
phone usei is an
opeiatoi "@,#$24
because of the
automation anu
because we wanteu it!
<.+ (%+"5= Enu-usei
empoweiment thiough
'6($&'(!>'(!$",
!"(+%?$4+%'3!0!(,,
63!@6!($6) *$&46(!"1
1he global dlgluzauon
Global Information Infrastructure
10011100101
10011100101
10011100101
10011100101
10011100101
10011100101
10011100101
10011100101
Video
Voice
Books
Film
Documents
Pictures
Commercial transactions
The conversion, processing, movement of all
media in digital format
1he rlse of lnformauon Lconomy
! Piouuction is the action of humankinu on mattei to
appiopiiate it anu tiansfoim it foi its benefit by obtaining a
piouuct, consuming pait of it, anu accumulating suiplus
! Economic anu societal uevelopment is can be seen as giowth
in 4%$56*(!A!(, !" (.+ 4%$56*(!$" 4%$*+))
! In the Infoimation Economy, +0;1&<,$+10 +$7"2; +7 81$/ , &,>
<,$"&+,2 ,0* , =&1*%#$
! In knowleuge- anu infoimation-baseu economies, the maiket
value of many fiims is baseu laigely on intangible assets,
such as piopiietaiy knowleuge, infoimation, unique
business methous, bianus, anu othei intellectual capital.
! Physical assets, such as builuings, machineiy, tools,
inventoiy, now account foi less than 2u% of the maiket
value of many public fiims in the 0.S.
14-Nov-2012 V.V.Fomin @ U-Turiba
l1 & Medla convergence
Information Society
Regulation
Adopted from: !oseph SLraubhaar & 8oberL La8ose (2004)
Consumers and users
Social issues
Technology
Standards
Computers
Telecommunications
Media
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Some ?ou1ube web sLaLs
Source: http://kineticknowledge.com/youtube-hits-2-billion-searches-per-day/
In 2u1u theie weie B 3!00!$" )+'%*.+) on "YouTube"
5'!0,
C'*. &!"6(+, DE .$6%) $# A!5+$ weie uploaueu
Buiing 6u uays, moie viueo footage was uploaueu,
then the whole viueo footage fiom ALL Tv stations
fiom the 0SA ovi the last 6u yeais!
CA+%, 7++FG B 3!00!$") viueos aie watcheu
People can eain $1uu,uuu anu moie if theii viueo
becomes a hit
lnfo-glanLs
http://www.thisblogrules.com/
2011/07/facebook-vs-google-the-
battle-of-the-internet-titans-
infographic.html
1he role of communlcauons Lhrough Lhe hlsLory
! The meuia anu society have always evolveu
togethei
! Pieagiicultuial society - small gioups of hunteis oi
gatheieis. Cultuie uepenueu on the spoken woiu, to tiansmit
iueas between geneiations. This oial tiauition lives on in
contempoiaiy societies.
! Agiicultuial society - moie settleu. Biought wiitten
languages into being. Communication was a specializeu function,
as most people weie illiteiate. Fiist mass meuium - hanu-copieu
book. Ciiculation limiteu. Fiom 4uuu BC to 19uu AB.
! Inuustiial society - Invention of the steam engine in 1712.
The publication of the uutenbeig Bible in 14SS (piint locateu in
Riga in 1S88). Thousanus of iuentical copies of a book coulu be
piinteu ielatively cheaply. Nass migiation fiom countiy to city. In
the 18Sus, uibanization, liteiacy, anu the neeu to auveitise new
manufactuiing goous gave iise to the fiist tiuly mass meuium, the
uiban newspapei
Changing media technologies
! Analog Lo dlglLal
! Lver lmprovlng quallLy
! Lver lncreaslng channel abundance
! !"#$%&' )*+" ,#&-"#.
- Telephone: the 1st consumei communication
meuium to be uigitizeu. In 1962 high-speeu T1 line
alloweu 24 conveisations simultaneously
- Piint meuia: Bigitization of piouuction iooms in the
late 196us
- Film: In Bollywoou computei movement staiteu with
the special effects cieateu foi Stai Wais in 1974
- Recoiuing: CB intiouuceu in 1982
- Bioaucast: BBTv launcheu in the 0.S. in 1998
1ypes of communlcauon
! Mass communlcauon ls only one of Lhe posslble
modes of communlcauon
! Cne approach Lo classlfy communlcauon Lype ls
accordlng Lo Lhe number of people
communlcaung and examlne Lhe processes
whlch are unlque Lo each mode
! 1he baslc caLegorles lnclude !"#$%&'$()"%*+
!"#'$&'$()"%*+ (-%** .$)/&+ *%$.' .$)/&+ %"0
-%(( 1)--/"!1%2)"
! Communlcauon ls -'0!%#'0 when a mechanlcal
or elecLronlc medlum ls used Lo LransmlL
lnformauon
1ypes of communlcauon
Broadcaster
Words,
songs,
movies
transmitter
Viewer,
listener
Feeuback: iating
Souice Nessage Channel
Receivei
encoder decoder
The SNCR mouel uevelopeu by W.Schiamm in 1982
Noise: any uistoition oi eiiois that may be intiouuceu uuiing the infoimation exchange
Analog
Diary
Letter
Board game
Classroom
Newspaper
Digital
PDA
eMail
Multi-user game
Telecourse
Web news
Intrapersonal
Interpersonal
Small group
Large group
Mass media

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1

WhaL characLerlzes Lhe conLemporary lnfoSocleLy paradlgm?
vlsuomene, kurlo[e mes gyvename
! 1he average person ln Lhe u.S. spends 2600 hours per year
waLchlng 1v or llsLenlng Lo radlo - an equlvalenL of a full-ume [ob
! Add anoLher 900 hours for oLher medla (newspapers, books,
magazlnes, games, vldeo, and Lhe lnLerneL) - we geL more ume
Lhan we spend on anyLhlng else, lncludlng worklng or sleeplng!
16
16
1he socleLy we llve ln
! Infoimation (its cieation anu use) sustains oui
economy
! In knowleuge- anu infoimation-baseu
economies, the maiket value of many fiims is
baseu laigely on intangible assets, such as
piopiietaiy knowleuge, infoimation, unique
business methous, bianus, anu othei
intellectual capital.
! Physical assets, such as builuings, machineiy,
tools, inventoiy, now account foi less than 2u%
of the maiket value of many public fiims in the
0.S.
Changlng medla Lechnologles
! Analog Lo dlglLal
! Lver lmprovlng quallLy
! Lver lncreaslng channel abundance
! Crowlng user conLrol
- Telephone: the 1st consumei communication meuium to
be uigitizeu. In 1962 high-speeu T1 line alloweu 24
conveisations simultaneously
- Piint meuia: Bigitization of piouuction iooms in the late
196us
- Film: In Bollywoou computei movemenit staiteu with the
special effects cieateu foi Stai Wais in 1974
- Recoiuing: CB intiouuceu in 1982
- Bioaucast: BBTv launcheu in the 0.S. in 1998
lnLeresung Lrends ln Soclal Medla
! Cer HIJKILMNO PL QHR S <7!((+% K T$6<63+ UB;8;V
! WLXKYZ?X[KHYZ \$$10+ ]'4) S ^NIHYKK UB;8;V
! Knnrn pn Kinule o6omn no npopaar innrn n
neppo o6oie (1uu:14S last S months 1uu:18u
last month) (2u1u.u7)
! penpen annn onen ion epe Twittei
(2u1u)
! Facebook o6napen rnnon noionnion
(2u1u.u8)
! The woilus Su most poweiful blogs (2u1u.u8)
! npan aein o nnnia ponin
neponon (2u1u.u7)
unLapped poLenual of new medla -
lnformauonal dlmenslon of Lransacuons
! _$7 ($ (+00 (.+ 5!##+%+"*+ 3+(7++" `.'44,a
'"5 `6".'44,a +11)b
Bave you noticeu that each egg you buy in a shop in coue-maikeu.
uo you know how to tell fiom this coue if the egg comes fiom a
happy oi unhappy chicken.
In Euiopean 0nion, all eggs which aie solu
thiough ietail shops must be maikeu with a
special coue finu out what this coue can tell you
about the egg anu the chicken who laiu the egg
To what othei piouucts infoimation on how they
weie piouuceu (the infoimational uimension of
tiansactions) can help auu value anuoi piice.
SkalLmenlne zlnlasklalda +
Lransakcl[os + konvergencl[a = ?
2"#$%&'*!c$) '()F,%!&') "6$ A!)6$&+"d) !"#$%&'A!&$
4%!+&$"!ef
f g'6c! A+%(d) Fh%!&$ 3h5'!
http://player.vimeo.com/video/37069844
Lconomles of scale
And Lhe value of Lransacuons...
Salunls: wlklpedla.org
Separauon of Lhe conLenL from Lhe form
E-" eveiything: e-mail, e-commeice, e-banking,
e-book, e-gieetings, etc.
A?+&$%,2B anothei buzz woiu: viitual
enteipiise, viitual ieality, viitual univeisity,
etc.
Anythibng else, which is not "e- oi "viitual, is
"cybei: cybeicosmos, cybeicafe, cybeisex,
cybeihate, etc.
(lnLerneL-relaLed) lssues and
challenges of lnformauon SocleLy
1. Inteinet uevelopment: Web 1.u, Web 2.u, ...
" Web 2.u seivices YouTube, Facebook, etc as "the black holes of the Inteinet
" Think about this: BC%&+03 DE *,47- <1&" ?+*"1 ;11$,3" >,7 %=21,*"*- $/"0 $/" >/12" ?+*"1 ;11$,3"
;&1< F!! .G 7$,$+107 ;&1< $/" H5F 1?"& $/" 2,7$ DE 4",&7IJ
2. Fieeuom of speach vs. illegal activities:
" The bau things:
" Spying (Snowuens stoiy) chilu poinogiaphy uiugs uistiibution (Silk Roau poital) "spam anu
"phishing ("You won a million!) Inteinet "tiolls (Ask.FN) etc..
" Inteiesting things:
" Inteinet & censoiship: Chinese own seaich engine (www.baiuu.com), Aiab countiies polygamy
uoesnt help. (poliginios neutenka.)
S. The ulobal Inteinet vs. Bigital Biviue
" 2,S billion Inteinet useis in the woilu (one of them is youi gianumothei!.)
Clobal connecuvlLy of suppllers
and cusLomers vla open neLwork
Clobal lnformauon lnfrasLrucLure
1ransformauon of physlcal medla
lnLo dlglLal formaL
ulglLal Convergence
uoubllng of dlglLal englne capaclLy
every 18 monLhs
Moore's Law
lor Lransmlsslon, presenLauon,
lnLeracuon, securlLy
Cpen SLandards
1allorlng of producL/servlce Lo
unlque needs of Lhe cusLomer
Mass CusLomlzauon
value lncreaslngly derlved from
lnformauon conLenL
lnformauon lndusLrles
Plgh peneLrauon of compuLers
and knowledge Lo use Lhem
CompuLer LlLeracy
Cn-demand dellvery, whenever,
wherever
Anyume, Anyplace
1echno|ogy Market
8uslness: 1ech & MarkeL Lrends
1ransformauon of Lhe lndusLry
- 2010 ln Lhe uS:
- eople read more news from e|ectron|c sources Lhan from Lhe prlnLed ones
- 1he revenues from Internet ads overtook Lhose from Lhe prlnL medla
- Moblles phones as one of the pr|mary dev|ces Lo brlng news Lo Lhe reader
- 2010 ln LlLhuanla:
- ulmlnlshlng demand for Lradluonal prlnL press
- lew [ournals sLarLed Lo oer onllne edluons
- LlecLronlc reader devlces sLarL Lo appear

- 2010 ln LlLhuanla - Lhe sLaLe of Lhe know|edge economy - the |ack of know|edge:
- 8uslness models for Lhe new paradlgm
- 1echnologles Lo be used
- Legal aspecLs
- MarkeL demand/ sLrucLure
1ransformauon of Lhe lndusLry
- 2010 |n L|thuan|a:
- 1he hlghesL moblle phone peneLrauon ln Lhe world
- e-pub||sh|ng has already emerged as a g|oba| phenomenon, buL
- ln LlLhuanla, Lhere ls lower Lhan ln oLher counLrles level of aordablllLy and
llLeracy of e-servlces

1eacher's salary vs. lad 2 prlce
US France Lithuania
iPad 2:
$500
Salary:
$3.000
iPad 2:
!500
Salary:
!1.500
iPad 2:
1.500 Lt
Salary:
1.500 Lt
1:6 1:3 1:1
- 1he lessons learned from Lhe pasL: successful buslness cases from Lhe uS do noL
necessarlly work ln oLher counLrles
- Lconomlc, leglslauve, culLural, demographlc, eLc dlerences play a role
lnLeresung gures
1he mosL popular prlnL ouLleLs ln L1 ln 2009:
1. 1v anLena" (1v programme supplemenL)
2. Zmones" (eople" magazlne)
3. LleLuvos ryLas"(ually newspaper)
1V programme and rumors about ce|ebr|nes = know|edge (?)
1he mosL popular e-medla ouLleLs:
uel.lL (news porLal) - Internet on|y, 33 of lnLerneL users
LryLas.lL (e-verslon of LleLuvos ryLas"dally newspaper) - m|xed, 42
8alsas.lL (e-verslon of 8alsas" dally newspaper) - m|xed, 40
users expecL prlnL medla Lo be mlrrored" onllne - free of charge
ubllshers LhaL do oer mlrrored"verslon, cann|ba||ze Lhelr pr|nt sa|es
Lower-Lhan-prlnL quallLy e-verslons dr|ve cusLomers away
lnLerneL survey
18 quesuons on e-publlshlng
LlLhuanlan onllne survey Lool used (apklausa.lL)
u8L for Lhe survey can be freely forwarded - caLerlng for Lhe
snowball eecL
362 responses collecLed durlng March-May 2010.

Survey almlng Lo nd ouL:
Consumers' vlew on e-medla as compared Lo Lhe Lradluonal
prlnL medla
1he e-publlshlng markeL from Lhe consumers' polnL of vlew
WhaL ls lmporLanL/useful abouL Lhe e-medla and how much
ume/money consumers are ready Lo dlspense for lL?
lnLerneL survey ndlngs
1he lnLerneL usage ln LlLhuanla ls hlgh:
81 use lnLerneL every day, 94 - 3-6 days a week
92 use lnLerneL Lo search for lnformauon
80 - onllne banklng
68 - read newspapers and magazlnes
69 / 38 - for sLudles / work
60 - waLch 1v, movles, download movles/muslc, play games
38 noL wllllng Lo spend > 10 LL (uS$ 4) per monLh for prlnLed
publlcauons
13 noL wllllng Lo pay >20 LL (uS$8), 3 wllllng Lo pay >30LL (uS$12)
1he hlgher educauon, Lhe hlgher preference ascrlbed Lo e-medla vs.
prlnL:
up Lo secondary school: 2:1 , un|vers|ty degree: 4:1
Survey ndlngs
C: ls Lhere a need for e-publlshlng producLs?" - 73 say
"es!"
Consumers asslgn the h|ghest s|gn|hcance Lo such medla
crlLerla as:
(1) re||ab|||ty of |nformanon (74),
(2) re|evance of the content (71), and
(3) the ease of access ] |ayout (39), however,
hypermedla/lnLeracuvlLy lsn'L LhaL lmporLanL
Consumers asslgn the |owest s|gn|hcance Lo such medla crlLerla
as copyr|ght protecnon ] |ega| |ssues (40 raLed as
lmporLanL", 26 as unlmporLanL).
1he |n|na| hypothes|s LhaL there |s no demand for e-pub||sh|ng
can not be conhrmed
lnLervlew ndlngs
LlLhuanlan publlshers |ack know|edge and conhdence for movlng Lo Lhe
new paradlgm:
1he greaLesL problem ls the |ack of copyr|ght protecnon and Lhe h|gh
compennon (l.e., low revenues/marglns)
1here ls a fear LhaL mov|ng |nto e-pub||sh|ng domaln can ru|n the
bus|ness alLogeLher
LlLhuanlan market |s too sma|| for e-publlshlng
L-pub||sh|ng ls seen as a form of advernsement for Lhe prlnL press
New techno|og|es pop-up wlLh pace - publlshers musL be vlgllanL noL Lo
mlss Lhe opporLunlLy when lL arrlves
1he |n|na| hypothes|s LhaL LlLhuanlan pub||shers are not (techno|og|ca||y)
ready Lo move Lo e-publlshlng |s conhrmed
L-publlshlng: a bag of hurL" of LlLhuanlan
publlshers
1. Sma|| market slze
2. laglarlsm
3. Lack of |ega| bas|s for copyrlghL proLecuon
4. Lack of |n|nanves and creauvlLy
S. Supp|y of e-readers ls Loo low, Lhe pr|ce ls Loo hlgh
6. Lack of know|edge on feaslble copyrlghL- and conLenL-
proLecuon
7. Lack of know|edge on buslness sLraLegles
Summary of Lhe case analysls
1here ls a d|m|n|sh|ng supp|y of prlnLed medla
Consumers are not w||||ng to spend more Lhan 10 LlLas (uS$ 4) per
monLh
L-publlshlng market |s sma|| -> consumers' percepnons and needs
are |mportant when deslgnlng buslness models
L-pub|sh|ng ls seen by enLrepreneurs as a form of trad|nona|
pub||sh|ng bus|ness -> Lradluonal publlshlng buslness models are
used when enLerlng e-medla domaln
ubllshers (and also consumers) are walung for new "auracuve"
Lechnologles Lo move Lo Lhe e-medla domaln
uaLa formats and copyr|ght protecnon as Lhe ma[or Lechnologlcal
barrlers
lnlC8MA1lCn SCClL1?
1LCPnCLCClLS
lnl0201
Any questions.

Send feedback & questions to:

Vladislav V. Fomin
&
Tomas Krilavi!ius

Faculty of Informatics