Like that car? The tricks of the data body industry

2. Like that car? The tricks of the data body industry

In the New Economy, data have become a primary resource. Businesses unable to respond to the pressure of informatisation are quickly left behind. "Information is everything" has become the war-cry of the New Economy. More than ever, business companies now collect data related to their customers, their competitors, economic indicators, etc., and compile them in data warehouses. Large amounts of data acquired can be turned into a systematic collection called a data warehouse through data mining techniques. These data can be used for marketing, stock exchange transactions, risk assessment, and many other purposes.

However, there are also many companies that specialise in data body economics as the main line of business. They collect huge amount of data process and enhance them (thereby increasing the value of the data) and offer them on to other companies. Direct marketing companies belong to this category. Direct marketing companies carry out targeted marketing, also called strategic marketing, aimed at individual customers or groups of customers. This process is based on a consumer profile, a collection of data containing personal information such as age, sex, marital status, employment, address, and information about consumer and payment behaviour. Based upon this profile, conclusions regarding possible future consumption are drawn and offers are made.

For example, somebody who has been attracted by a car on display in an airport terminal and completes a card with name and address to participate in a draw reveals a lot of economically valuable information about him / herself. Apart from name and address, and other data that is completed on the card, this person also can be assumed to be a potential car buyer (evidently he / she wants a car) and to be relatively affluent (the poor do not normally travel by plane). The time when you complete the card also provides information: in July and August, you are more likely to be a holiday maker than in November. Possibly in small print somewhere on the ticket you complete you agree to receive more information about this and other products, and you agree also that your data are "electronically processed". The data acquired this way can normally be expected to be much more valuable than the car the is offered in the draw. Most people who completed the cards will not win in the draw, but instead end up on directs marketing data warehouses and one day receive offers of products and services which they never knew they wanted.

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The 18th Century: Powered Machines and the Industrial Revolution

The invention of the steam engine by James Watt in 1776 represented a major advance in the development of powered machines. It was first applied to an industrial operation - the spinning of cotton - in 1785. A new kind of work-slave it not only marked the beginning of the Industrial Revolution, but also the coming age of mass production.

In the England of the 18th century five important inventions in the textile industry advanced the automation of work processes. 1) John Kay's flying shuttle in 1733 , which permitted the weaving of larger widths of cloth and significantly increased weaving speed, 2) Edmund Cartwright's power loom in 1785, which increased weaving speed still further, 3) James Hargreaves' spinning jenny in 1764, 4) Richard Arkwright's water frame and 5) Samuel Crompton's spinning mule in 1779, whereby the last three inventions improved the speed and quality of thread-spinning operations. Those developments, combined with the invention of the steam engine, in short time led to the creation of new machine-slaves and the mechanization of the production of most major goods, such as iron, paper, leather, glass and bricks.

Large-scale machine production was soon applied in many manufacturing sectors and resulted in a reduction of production costs. Yet the widespread use of the novel work-slaves also led to new demands concerning the work force's qualifications. The utilization of machines enabled a differentiated kind of division of labor and eventuated in a (further) specialization of skills. While before many goods were produced by skilled craftsmen the use of modern machinery increased the demand for semiskilled and unskilled workers. Also, the nature of the work process altered from one mainly dependent on physical power to one primarily dominated by technology and an increasing proportion of the labor force employed to operate machines.

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1700 - 1800 A.D.

1713
First typewriter patent filed

In 1714 Henry Mill got granted a patent for his idea of an "artificial machine or method" for forgery-proof writing. Still it was not before 1808 that the first typewriter proven to have worked was built by Pellegrino Turri for his visually impaired friend, the Countess Carolina Fantoni da Fivizzono. The commercial production of typewriters began in 1873.

For a brief history of typewriters see Richard Polt, The Classic Typewriter Page, http://xavier.xu.edu/~polt/typewriters.html

1727
First photocopies

Searching for the Balduinist fluorescenting phosphor (Balduinischer Leuchtphosphor), an artificial fluorescent, Johann Heinrich Schulze realized the first photocopies, but did not put them into practical use.

The first optical photocopier was not patented before 1843, when William Henry Fox Talbot got granted a patent for his magnifying apparatus.

In 1847 Frederick Collier Bakewell developed a procedure for telecopying, a forerunner of the fax machine. Yet it was not before 1902 that images could be transmitted. Almost 200 years after Schulze's discovery, for the first time photo telegraphy was offered as a telecommunication service in Germany in 1922.

1794
Fixed optical network between Paris and Lille

Claude Chappe built a fixed optical network between Paris and Lille. Covering a distance of about 240kms, it consisted of fifteen towers with semaphores.
Because the communication system was designed for practical military use, the transmitted messages were encoded. The messages were kept such a secret that even those who transmit them from tower to tower did not capture their meaning; they transmitted codes they did not understand. Depending on weather conditions, messages could be sent at a speed of 2880 kms/hr at best.

Forerunners of Chappe's optical network are the Roman smoke signals network and Aeneas Tacitus' optical communication system.

For more information on early communication networks see Gerard J. Holzmann and Bjoern Pehrson, The Early History of Data Networks.

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Highlights on the Way to a Global Commercial Media Oligopoly: 1990s

-1994

Viacom multimedia and industrial corporation takes control of Paramount Communications for US$ 9.6 billion, as well as Blockbuster Entertainment, a huge video store chain, for US$ 8.4. billion.

1995

Entertainment giant Disney buys Capital Cities-ABC for US$ 19 billion.

The industrial and broadcasting company Westinghouse Corp. buys out CBS for US$ 5.4 billion.

In a US$ 7.2 billion deal, Time Warner acquires Turner Communications, owner of prime cable TV channels CNN, TBS and TNT and a major classic American film library.

1996

Westinghouse/CBS buys Infinity Broadcasting's large group of radio stations.

Murdoch and News Corp. acquire ten more TV stations and TV production studios with the US$ 2.5 billion purchase of New World Communications Group.

Viacom buys half of UPN-TV network, adding that to its other holdings, which include eleven TV stations, along with MTV, VH-1, and other cable TV channels and Paramount movie studios.

1997

Radio Groups Chancellor Media and Evergreen merge and are linked by ownership with Capstar Broadcasting; they also buy ten radio stations from Viacom. By mid-1997 Chancellor/Capstar controls no fewer than 325 radio stations around the United States.

Chancellor/Capstar's controlling ownership group, Hicks Muse Tate & Furst, buys the seventh largest radio group, SFX, adding another seventy-two radio stations, making a total of nearly four hundred stations controlled by this one source.

Westinghouse-CBS buys out American Radio Systems, the fourth largest radio chain in total audience, which gives Westinghouse-CBS over 170 radio stations with a total audience nearly equal to that of the Chancellor/Capstar group.

Giant European-based print and electronic publishing and data base corporations Reed Elsevier and Wolters Kluwer merge.

1998

Bertelsmann buys the Random House-Alfred A. Knopf-Crown Publishing group of book publishers from Newhouse/Advance Publications, adding to its Bantam-Doubleday-Dell publishing group and giving Bertelsmann by far the largest English-language publishing operations.

1999

AOL, the worlds leading Internet service provider and Time Warner, the worlds leading classical media company merge in a US$ 243.3 billion deal.

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Galileo Galilee

Galileo Galilee (1564-1642), the Italian Mathematician and Physicist is called the father of Enlightenment. He proofed the laws of the free fall, improved the technique for the telescope and so on. Galilee is still famous for his fights against the Catholic Church. He published his writings in Italian instead of writing in Latin. Like this, everybody could understand him, which made him popular. As he did not stop talking about the world as a ball (the Heliocentric World System) instead of a disk, the Inquisition put him on trial twice and forbid him to go on working on his experiments.

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Satellites

Communications satellites are relay stations for radio signals and provide reliable and distance-independent high-speed connections even at remote locations without high-bandwidth infrastructure.

On point-to-point transmission, the transmission method originally employed on, satellites face increasing competition from fiber optic cables, so point-to-multipoint transmission increasingly becomes the ruling satellite technology. Point-to-multipoint transmission enables the quick implementation of private networks consisting of very small aperture terminals (VSAT). Such networks are independent and make mobile access possible.

In the future, satellites will become stronger, cheaper and their orbits will be lower; their services might become as common as satellite TV is today.

For more information about satellites, see How Satellites Work (http://octopus.gma.org/surfing/satellites) and the Tech Museum's satellite site (http://www.thetech.org/hyper/satellite).

http://www.whatis.com/vsat.htm
http://octopus.gma.org/surfing/satellites
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Division of labor

The term refers to the separation of a work process into a number of tasks, with each task performed by a separate person or group of persons. It is most often applied to mass production systems, where it is one of the basic organizing principles of the assembly line. Breaking down work into simple, repetitive tasks eliminates unnecessary motion and limits the handling of tools and parts. The consequent reduction in production time and the ability to replace craftsmen with lower-paid, unskilled workers result in lower production costs and a less expensive final product. The Scottish economist Adam Smith saw in this splitting of tasks a key to economic progress by providing a cheaper and more efficient means of producing economic goods.

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Gerard J. Holzmann and Bjoern Pehrson, The Early History of Data Networks

This book gives a fascinating glimpse of the many documented attempts throughout history to develop effective means for long distance communications. Large-scale communication networks are not a twentieth-century phenomenon. The oldest attempts date back to millennia before Christ and include ingenious uses of homing pigeons, mirrors, flags, torches, and beacons. The first true nationwide data networks, however, were being built almost two hundred years ago. At the turn of the 18th century, well before the electromagnetic telegraph was invented, many countries in Europe already had fully operational data communications systems with altogether close to one thousand network stations. The book shows how the so-called information revolution started in 1794, with the design and construction of the first true telegraph network in France, Chappe's fixed optical network.

http://www.it.kth.se/docs/early_net/

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