One of the profound consequences of the ongoing information revolution
is its influence on how economic value is created and extracted. Spec
ifically, when buyer-seller transactions occur in an information-defin
ed arena, that information is more easily accessed and absorbed, and a
rranged and priced in different ways. Most important, the information
about a product or service can be separated from the product or servic
e itself. In some cases, the information can become as critical as the
actual product or service in terms of its effect on a company's profi
ts. In an information-defined transaction space, customers learn about
products differently, buy them differently, and have them delivered d
ifferently. Crucially, how they assign their loyalty can also be diffe
rent. In a world where the traditional marketplace signposts of differ
entiation no longer matter - where ''content'' may not automatically m
ean ''product'' and where ''distribution'' may not automatically mean
''physical location'' - brand equity can rapidly evaporate. As a resul
t, information-defined transactions-or value creation and extraction i
n what the authors call the marketspace - create new ways of thinking
about making money and thus a new value proposition. Today both market
place and marketspace transactions are occurring. The authors have res
earched how companies survive at the cusp, working marketplace and mar
ketspace to their best advantage. These companies' experiences provide
a useful backdrop for thinking about the marketspace and suggest a st
rategic model for maximizing opportunities in this emerging area.