In earlier articles, I described Social Media evolving into user-generated productivity in the new science called Social Capitalism. A social currency will be required to represent ONLY real productivity, not simulated productivity.
Monetization means that social currency must be convertible with financial currency or accepted widely enough to stand alone across all phases of production.
What exactly will people produce in Social Capitalism and from what raw materials?
We know that buying a can of Tuna Fish at the grocery store is a very simple transaction. This is because the institutions that support that transaction are incredibly complex; there are catchers, processors, banks, transportation, inventory, outlets, etc. – all are very complex pieces that need to integrated in order for that final transaction to be very simple. |
Those same complex institutions must exists in Social Capitalism in order to ultimately make transactions in a social currency very simple and widely accepted so that one may eventually be able to buy groceries with it.
In classical economics, entrepreneurs deploy land.labor, and financial capital in various combination in order to produce stuff.
In social economics, entrepreneurs deploy social capital, creative capital and intellectual capital in various combination to produce stuff.
Now, what is the stuff of Social Capitalism?
WIKiD stands for Wisdom, Innovation, Knowledge, information, and Data. Value in Social Capitalism is created by transforming one of these elements into another one of these elements.
For example: Transforming data into information creates value. Transforming information into knowledge creates value. Transforming knowledge into innovation creates value, and transforming innovation into wisdom created value.
We see this today
In social media bloggers transform data into information, people take that information and combine it with their own to create knowledge. They get together with friends and share it creating new ideas that transforms their businesses. This makes everyone wiser as they see the success or failure of their own or another enterprise.
All this value is being created there just is no way to express it in an economic paradigm except through some increasingly irrelevant association with Land Labor and financial Capital.
In WIKiD Tools, the word “Tools” refers to how each of the WIKID elements is related to each other. You can’t have knowledge without information and you can’t have information without data, nor can you have wisdom without innovation. If you take away one element you lose the others. So these are all related.
On the other hand, you cannot create one without the others.
We can now say that wisdom is derived from trail and error, that’s innovation. Innovation is derived from knowledge. Knowledge is derived from information, and information is derived from data, etc. These are the production “tooling”
The word productivity means all the stuff we can produce within a certain period of time.
So now we can say that:
- The value of wisdom is related to the rate at which innovation can be produced.
- The value of innovation is related to the rate at which knowledge can be produced
- The value of knowledge is related to the rate at which information can be produced
- The value of information is related to the rate at which data are produced.
On the flip-side:
Suppose a social entrepreneur wants to create value. They would simply look for high rates of change of information in a community. That tells them value is being created and all they need to do is transform that information into knowledge and they will enjoy a profit.
If the social entrepreneur sees a diverse group of people getting together to share their knowledge about something, this is a big red flag that value is being created and all they need to do is transform that information into knowledge and they will enjoy a profit.
The Monetization of Social Currency:
This value can be measured sincee Internet analytics record all the required data and their time functions. Analytics can tell the entrepreneur what information is aggregating and where. Entrepreneurs can determine that diverse groups people are getting together at Conferences, Meet-ups, and Social Media Clubs.
Now, Geolocation will accelerate innovation as people populate the last mile of social media. Deep web search engines are mining data at an unprecedented degree of relevance and inter-connectivity – all of it is measured with respect to time.
With WIKiD Tools, we have an extraordinarily powerful algorithm for creating, measuring, storing, and exchanging value that we can represent with a social currency. Since social currency represents real productivity (as opposed to Simulated Productivity) it can therefore be fully convertible to financial currency.
Please Vote for The Ingenesist Project to present at SXSW 2011
The Ingenesist Project specifies an Innovation Economy built on a platform of social media as the next economic paradigm. 60 minute solo presentation in the advanced technical track. Your help is deeply appreciated. All comments welcome. Material based on video series here