The US Senate recently blocked a measure designed to reduce the outsourcing of US jobs that many corporations pursue in the relentless drive to reduce costs.
Modern Globalization is a system
Globalization must be analyzed like a system. Data, Information, knowledge, Innovation, and wisdom are profoundly related in a system. If you take away one of the components, the others become worthless. If you destroy one component, the entire structure could fail.
Everyone knows that data, information, knowledge, innovation, and wisdom are related. If I corrupt the data, then the associated information, knowledge, innovation, and wisdom are also corrupted. Likewise, if I eliminate any of these elements, the system fails.
Focus on Core competency – what core?
The standard argument for outsourcing is that knowledge workers are better allocated in innovation jobs so “we can better focus on our core – and heck, we can all save a little dough in the process”. But when we outsource our knowledge economy, the innovation economy is choked off. The knowledge economy is the source of the Innovation Economy. The Knowledge economy is also the recipient of the information economy which transforms data and information into useful tools, ideas, and products.
Rate Of Change is Innovation
The rate of change of the innovation economy is directly proportional to the INCREASE not the OUTSOURCING of the knowledge economy. This is the calculus of outsourcing. If, on the other hand, it is in you best interest to keep a population poor, weak, and unable to organize into powerful collectives, then yes, outsourcing is an effective method.
When I use the term “Innovation Bank”, people conjure up the image of a cheery place where anticipation reigns as starry eyed depositors arrange their intellectual property in neat cubby boxes, Patents are peddled like newspapers, and flush pocket companies troll the halls looking for a cure for their bottom line reflux disease.
This is not exactly what we have in mind, nor is it too far off either. An innovation Bank is simply a knowledge inventory that contains knowledge assets that exists in the format of a financial instrument between people’s ears and can be deployed for the purposes of increasing productivity. Oh, by the way, knowledge makes more of itself every time it is deployed …. Interesting?
The Assumptions
This is not much different than a financial bank. In fact, in the financial bank, everyone assumes the borrower has the knowledge to execute the business plan and the bank lends the money. Oh, by the way, the money makes more of itself (interest rate) every time it is deployed.
With the innovation bank, everyone assumes the entrepreneur has the money to execute the plan, and the seek to borrow the knowledge. Other than that, they can be considered identical. The key is in the scope, depth, and format in which the knowledge assets live in a community as well as the ability to track and preserve the creation of new knowledge in a community.
A Virtuous Circle
Together with the financial banking, these two system engage in the dance of the virtuous circle of innovation enterprise. Apart, they collapse into the swirling cesspool of eternal debt and infinite interest (pun intended).
Exoquant.com Currency is a device used for the storage and exchange of Value. Two characteristics of modern money are the abilities to Capitalize and Securitize the currency. In fact, Wall Street touts a specialized professional precisely for that purpose – they are called “Quants” This video introduces a very similar form of mathematics that Wall [...]
Very few discussions about the future of money approach the subject with as much experience, introspection, and clarity as this historic panel has. This is not another doom-gloom room – but a truly optimistic model of a future financial system built on a platform of social media. These panelists represent some of the top thought leaders, visionaries, and practitioners in the area of “Local Social” – where nothing happens until the rubber meets the road.
It seems ironic that people are using Facebook to urge others to quit Facebook. If they take their own advice, they would no longer be able to give their golden advice to others. If we took their advice, we would not be able to heed the advice of others in this matter. Is Facebook too [...]
If necessity is the mother of invention, then the Future of Money and Technology Summit 2010 was Paul Revere. There were many innovations that seek to change banking as we know it using a new denomination called social currency.
Suppose I was to suggest that value stored in social currency may exceed the value stored by financial currency. The paradigm shift now becomes, who quantifies whom?
I am astonished that people willingly and freely give up huge volumes of information about themselves when they really don’t have to. In earlier times, marketers and advertisers would pay a great deal of money for far less information that people give them for free. People do not understand the value that is stored between their ears or how easy it would be to set up an alternate economy that trades in social currencies.
The problem arises because our financial system is not able to articulate true value of social currency using a dollar denominated currency so social value remains invisible, not non-existant. Maybe the financial system does not want to articulate social value. After all, dollar denominated currency represents control of social value at a ratio of 1000:1
All of this tells us that Social Media is up against the ropes on the monetization plan. As a result it is starting to consume itself. This may be the first indication that the Dollar is NOT the currency of trade in the social media space, it’s a yet unnamed Social Currency. This definitely tells us that something new must happen soon.
Any definition is supposed to give the reader enough information to duplicate, recognize, and identify instances of the subject – Preferably before the event has ended. Think about it – if the definition for Innovation were clear, nobody would be asking this question.
If Facebook provides consumers with the same information that they supply to corporations; CEO name and address, preferred music, groups joined, etc. Then we’ll see a level of opportunity and accountability that is required to support a universal social currency. It’s up to Facebook now.
China and India are producing millions of engineers as part of their global economic dominance strategy. Engineers increase productivity and productivity creates wealth. Why? Because money is only a means for storage and exchange of value and engineers create the value.
Whoever said “Time Is Money” got it backwards. Anyone who still believes this is now moving backwards in economic time. Reality is simple: Money is time.
Money happens because people happen, not the other way around.
Wall Street has no idea what’s knocking at their door with the emergence of a new class of Social Media Applications that incorporate geolocation strategy.
In fact, the cards are stacked in favor of the corporation over the employee; unless, of course, you are both. We teach our kids to be good employees, not to become good corporations. How do we expect social priorities to compete with Wall Street Priorities?
Making human knowledge and intentions tangible in a market place opens up the possibility of a whole new class of business plans. We call this Social Power by the Hour.
The problem is that risk can never be negative, therefore interest rates can never be negative – that is called “breaking he buck”. Risk is a measure of volatility, or, “deviations from what is considered normal”. While there is certainly good deviations and bad deviations, there can never be a “negative” deviation from normal – it is a mathematical impossibility, a glitch.
If we consider the structure of conversations and compare that to both the structure of social networks AND the structure of our financial system, we see a huge opportunity to develop an alternate financial system that can capitalize and securitize knowledge assets in social media.
The existing definition of innovation is insufficient for use as a way to identify innovation in the present. There is no way to build an innovation economy upon a flawed definition and unpredictable value of innovative activity.
Many people doubt that the dollar has more than a decade or so of steam left as the interest on debts mythically exceeds the total amount of money on Earth (at least in my world). Yet banks march on, heading straight for the cliff.
Modern Globalization is a system – it must be analyzed like a system. Data, Information, knowledge, and Innovation are profoundly related in a system. If you take away one of the components, the others become worthless.
Gambling with Jobs
Future of Banking
