Main Dynamics of the Transition from Industrial Society to Information Society

Industrial Society is based on mass production and mass distribution of standardized goods and services. The objective of companies is to reduce the unit cost by producing and distributing the same goods in large quantities cheaper than their competitors. Mass production and mass distribution requires an economic model based on centralization; mechanistical, rigid/hierarchical organizational structures; and traditional education. Companies act on the basis of the logic of “produce, store, and sell”. Information Society on the other hand is an indication of a more complex and richer social structure. The objective of companies is to produce mass customized and personalized goods and services for their customers. The customer can buy a personalized good or service with the best price from anywhere in the world. Called “The Age of Terrific Deal” by Robert B. Reich, Information Society requires an economic model based on personalization; dynamic and flat organizational structures; and customer focused education. Companies must act on the basis of the logic of “sell, produce, and deliver”. This paper discusses the major changes that take place during the transition from Industrial Society to Information Society along with basic dynamics of the Information Society.