The New Value Tool is a repetitive simulation of The Value Game (described herehere, and here) that may be used to determine in advance the true value that may be created when people interact with each other around a shared asset.

The Social Charter

This should not be too difficult to envision since The Value Game plays out daily in the modern corporation where workers acting in the best interest of the corporation (the shared asset) interact with each other in various departments to preserve the asset rather than consume the asset – this is how corporations create social value; through the employment of people and the social utility of their products.

Obviously, corporations that fail to fulfill their social charter likewise fail to sustain value creation in a community.  Those that do, tend to thrive in the Internet Age. The objective of the New Value Platform is to enable communities to organize, as do corporations, except without the burden of corporate governance or the priorities of outside investors.

Drag, Drop, and Dream

The New Value Tool is simple to use; just drag and drop from the Zertify Personal Knowledge Inventory into The Value Game and see what the Exoquant dashboard tells you about your simulation. It may take some practice at first to see how to make the numbers move, but soon it will become intuitive which scenarios create lots of New Value – and will likely sustain themselves in practice.  Scenarios that do not, will likely fail in a particular community and ought not be ventured to practice.

Community Algorithm

Exoquant provides a very simple algorithm relating the creation of data, information, knowledge, innovation and wisdom that govern the Value Game.  However, the weighting of these elements is a component of the “fuzzy math” that entrepreneurs bring to the game.  The empirical data resulting from the application becomes property of the players (community) as their “Secret Sauce” of value creation in their own uniquely optimum economic game.

On the path to a Social Currency

The New Value Tool May become an important system for analyzing existing ventures for optimum social value creation as well as predicting how collections of knowledge assets in a community can optimize their social value in collaboration with each other.  Eventually, the predictability of the outcomes will improve while diversification of projects will eliminate risks such that a social currency can be capitalized and securitized.


This reference post serves as an introduction to The Value Game (TVG).   The Ingenesist Project will be posting Value Game Solutions to many specific scenarios that our readers and clients propose.  Having this post as reference will help those new to The Value Game catch up quickly.

The following 12 minute video gives some historical perspective of The Value Game as we have applied to the aviation industry (see SocialFlights.com).  This video also expands the idea to any shared asset and provides important insight as to how to generalize The Value Game across the economic spectrum.

Introduction to Value Games

  • The Value Game is a new class of business methods that manufactures New Value.
  • New Value represents all value that is not normally convertible to U.S. Dollars; i.e., creativity, community, sustainability, resilience, compassion, trust, etc
  • Currently, The Value Game begins and ends with dollars, however, all New Value created within the game is denominated in “social currency” which has no physical manifestation.
  • The Value Game converts between Social Currency and Dollars; i.e., business plans that are not viable in dollars may become viable when social currency is included in the bottom line

Building A Value Game

  • The Value Game starts by identifying any asset, tangible or intangible, that a group of people would share.
  • The next step is to find 3 or more communities that have a vested interest in the asset
  • The New Value Entrepreneur is able to discern which communities and which assets will interact successfully in a Value Game.
  • In general, once a value game is started, it will improve itself since only those who have a vested interest in the asset will continue playing.
  • Players that are inappropriate for the given asset and related communities, will drop out or find another value game
  • All players will eventually find and play value games that correspond most closely to their natural interest and passions.

The New Value Entrepreneur

Just like with any business venture, it is up to the entrepreneur to identify and engage all of the right components required to build any enterprise; this is no different for Value Games.

  • The objective of the new value entrepreneur is to organize three or more communities to interact around a shared asset
  • The interaction among these communities acts to preserve the asset rather than consume the asset.
  • Each community acting in the best interest of the other community is, in fact, acting in their own best interest.

The material that references this post will help identify what types of assets are suitable for value gaming and what types of communities would make worthy participants.

The Ingenesist Project is currently building Value Games for clients in aviation, construction, education,  affinity groups, and social service communities.  Please let us know how we can serve your New Value creation enterprise.  


The proverbial “all-you-can-eat” business model works great for some products and not-so great for others.  The opportunity, of course, is to be able to transform non-viable business methods into viable one’s using social media tools and data.  In this article, we explore how the AYCE model can be improved.

Netflix for the Sky

The Netflix model for movies has been touted as one of the greatest business innovations in the modern era of technology – not because it is new, but because it works.  Now, consider that the AYCE model has been applied to transportation, club membership, and telecommunication (cell phone data plans), etc.  Some work better than others….

I found this recent article about American Airlines experience with the AYCE model – which became their worst nightmare.  In 1981, you could buy a lifetime all access pass to first class travel on United Airlines for 250,000 dollars. While touted as a good way for AA to raise a lot of quick money, it proved to have long term liabilities that far outstripped the performance of the fund raising.  Today, a small carrier called Surf Air is now trying to use a subscription based system on a limited circuit using executive turboprop aircraft.

What is the comparable human behavior?

AYCE models impact human behavior in often unpredictable (read “unprofitable”) ways.  We’ve seen the unlimited plan for cell phones becoming a thing of the past.  Taxi drivers have not yet introduced the subscription travel plan but certain bus routes and commuter modes lend themselves to unlimited passes where an alternate single use rate and behavior record can be used as a price comparison.

I recall a wise and successful colleague in the insurance business revealed the dark truth about unlimited subscriptions.  “They are like extended warranties, the only people who should actually buy extended warrantee are those who fully intend to beat the crap out of the item that they are covering”.  Like gym subscriptions, low use members are needed to subsidize high use members.

Simulated Economy

Another way to simulate the effect of an unlimited prescription without leaving the business with an unmanageable long-term liability is to create an option-like instrument.  The buyer would hold the right without the obligation to purchase the service at a discount during a specific period of time where behavior will be regulated by market forces.

Holding the option would be priced relatively cheap so that the buyer does not feel a deep loss for not exercising the option, yet sufficient to subsidize the activity of those who do exercise the option for discounted service.  Another feature is that the option can be traded allowing holders to build a proto-economy around the asset that they possess.    This would decrease the marketing costs of the provider as the price of the options floats to meet the needs of the market.

These strategies are commonplace on Wall Street but a statistical construct for their deployment on Main Street may be emerging.  New “platforms” will arise which produce and  aggregate data in the right format to support an options type of instrument for the trade or exchange of any number of goods and services in a non-cash environment.

Maybe the all-you-can-eat buffet of the future will resemble a cornucopia of options for assets that everyone shares.  Bon Apetite.


99% of Americans don’t have a game that they can win playing by the rules imposed on them by the other 1%.  But in order to keep this game in play, that 1% utterly depends on the remaining 89% who still have jobs to show up for work and do as they are told. The spectre of the 9% fallen is an incentive, of sorts, to those still walking.

These are the 89 percenters…

…who already occupy Wall Street with their knowledge of systems and processes to implement procedures and methods that support the connections and networks of the remaining 1%.  Without these people in place, the system will fail faster than S&P can calculate a credit score, literally.

The 89% know what each other know

The logistics manager knows whom to call when the packages are late.  The account manager knows all of the customers by name.  The service team knows exactly how to get the computer systems back online.  The loan officer knows where the money is.  But only the 1% know where the knowledge is…and where it isn’t…

Knowledge is money

As RIM recently learned, if the computers go down, all the money in the world will not bring them back.  Most companies have an off-line life span of only a few days or hours before irreparable damage occurs.  Only the right knowledge in the right place at the right time can save the firm.   This is a huge monetary vulnerability.

The Public Knowledge Inventory

I found a great picture of the Occupy Wall Street Library from here.  The great irony is that OWS felt the need to build a Library that represents the ideas that they have between their ears.  What they really need is a “Library” for the knowledge that actually lives, breaths, and acts in the minds of the 99%.  Only then can they deploy the force that they need to move enterprises.

Divide and conquer

As long as Americans are fighting with each other, there is little chance that they will organize their knowledge assets and deploy their knowledge assets in a manner that serves social priorities instead of Wall Street priorities.  This is the big shift that the World is waiting for.  As long as people fear losing their jobs, they will comply with the 1%

What scares them the most?

The greatest fear of any company is to have their key employees poached by a competitor.  Companies have gone out of their way to implement non-poaching agreements between known competitors and NDAs against unknown competitors.  Companies hide key players behind a mountain of bureaucracy, misinformation, and obscure titles and job descriptions in order to hide them from the open market; yet they willingly poach other firms when they can.

The cry of the 99% is income equality.

Let me suggest that OWS consider knowledge equality as a superior alternative.  So instead of the OWS book library, they should form a public knowledge Library.  A public knowledge inventory would make knowledge transparent to all people and all companies equally.

Then Let the Poaching begin

If the 89% were not scared heartless about getting another job, then they would be far more willing to join the movement.  In fact, the MVPs would be the most powerful voice of the movement – the top innovators and visionaries toiling their life away for a company willing to raid their pension fund or drop insurance coverage at the drop of a hat.  Nobody is going to tell them to take a bath – they are the water.


(I am sitting on a panel at SIBOS 2011 in Toronto Sept 19-21st speaking on the subject of New Economies – this post represents the angle that I take on the subject)

With images of people rushing into the Libyan dictator’s compound like the current from a great tsunami reshaping the landscape in a matter of minutes, I reflect on the obvious metaphor.  A quick Google search on “Social Current” reveals almost nothing – except “Social Issues and Current Events”.  Well, close, but not quite…

I hate to break the news to folks but Social Current and Social Currency are the exact same thing.

For example, the ex-Egyptian President had plenty of money and plenty of oil, and plenty of guns  – all the markings of wealth and power.  Yet he was challenged and defeated by Social Currency. If there were a strict market driven conversion factor for Egyptian Social Currency, it would probably comp out at around 100 Billion dollars. So there is a conversion factor in case anyone is interested.

Will the real economy please stand up

Anyone who does not believe that social currency exists today and is actively traded, stored, and exchanged in quantities far greater than financial currency, is looking in the wrong end of their binoculars.  In fact, I would go so far as to say that the economy denominated in social currency is far greater than the economy denominated in financial currency.

Dollar spelled backwards is….

In the past, I have used the word “Rallod” as a placeholder for all VALUE that is NOT directly articulated with Dollars.  In fact, we could say that the Sun delivers Rallods to planet Earth and humans harvest what are called “natural resources” which are then converted to Dollars for storage, trade, and exchange.  The problem is that Rallods don’t have a financial “system” of their own. Rallods have been invisible – until now.

Money can’t buy me Love…

Not to get too fluffy here, but try to produce an airplane, a sandwich, or a surgical procedure without intellect, creativity, compassion, empathy, ethics, social values, or community awareness.  None of these things show up on the typical Wall Street Financial report balance sheet.  However, the absence of these things can quickly shows up in the liabilities column when confronted by social current.

Syria is in the midst of a social currency conversion process as are Greece, Tunisia, London, Israel, and France, etc.  Not to mention Yemen, China, Iran, and quite notably, the United States.

The Challenge then is to articulate ALL value in an economic system.

I believe this to be the genesis of the next economy.  I can also say with quite a bit of optimism, that it is well underway, we have past the point of no return, it’s a done deal, we are all interchanging Rallods and Dollars every day.

People are learning how to store, and exchange Rallods.  They really are – in fact, that’s where the majority of innovation in the world is occurring today.

**************

New economies
Is money the only form of transaction value and wealth? What about social currencies? We will expose you to new thinking on new economies such as the trust economy, the intention economy, the relationship economy, the social economy and the ethical economy.

Already confirmed:


The Hub and Spoke system is a time honored formation of commercial aviation. People accept hub and spoke as the most rational way to organize people and planes much like they accept the corporation as the best way to organize production of goods and service.

Meanwhile, social media is challenging every assumption that we hold dear to our hearts as new applications role out which steadily increase the ability for people to organize their selves.

The newest applications such as Google + show us that people are the hub and their various forms of social networks are their spokes. A person has a group for their family, one for their friends, their colleagues, their schoolmates, etc.  While G+ fatigue may wear in as people get tired of classifying their casual contacts, the real value of G+ may arise in the intentional Organization of people for social and financial efficiency.

The similarity between the airport and G+ Hub and Spoke is not a casual coincidence.  There is a very real and physical connection between the way people organize themselves in social media and the way they organize themselves in corporate production and the way their organize themselves in air transportation systems.

Suppose we make the analogy that the person in the center is the customer, the circle that they belong to is the market, and the person in the market is a client.  The analogy hold when we try to “preserve college friendships”.  College is the social market and the friend is the mutual client relationship where the currency is a social currency.

The analogy is still very young, but it is truly profound.  This way of thinking will drive a form of social organization that may rival corporations, government, and even international boundaries.  It is also no coincidence that Social Flights has been modeling this analogy for the 2 years since we first started developing our business plan.

Today, Social Flights is working on some important concepts for defining Travel Tribe Leader functions.  The objective is to duplicate the function of a “concrete” hub and spoke system denominated in dollars with a virtual hub and spoke system denominated in social currency.

Network Characteristics of Travel Tribe leaders:

  • Each Travel Tribe Leader is responsible for 10-20 city pairs from their own location.
  • Two travel tribe leaders for each city pair (one located at each point)
  • Travel Tribe Leader creates revenue by matching people and places
  • Builds tribal/shared knowledge
  • Redundant, opportunistic, and fault tolerant
  • Ideally suited for Twitter, Google + and Facebook Distribution Channels

Conclusion:  The organization of people it figuratively (with G+) and literally (with corporations) is the exact same thing.  This will become obvious when people discover the necessity to organize their selves into productive communities in the absence of corporations and government.  But why wait – we can, and we will use social media to form a new system of social organization.

Citationhttp://www.slideshare.net/padday/the-real-life-social-network-v2


It’s been a few months since Social Flights entered the market with our February 28th Soft Launch.  Since then we have grown at an amazing rate after getting picked up by a series of important news publications.  But for this article, I would like to talk about what we learned.

He who hesitates, iterates

Learning is a critical element in any organization.  The iterative process is a series of intentional steps that a group of innovators must invariably endure.  The iteration process requires a strategy for introducing new variables to a product or process in such a way that the experimenter can isolate the effects of each change.

Social Flights was very much launched with this in mind. We prioritized the rollout of game features in order to form a player priority profile that will drive this Value Game.  Nobody can simply invent such a thing, it must be observed empirically.  This means that the right conditions must be in place to reveal the right data without bias.  The data can then be used to improve the incentives that drive the game.

Resistance is futile

One of the most daunting challenges has been to identify the skill set for what makes an effective community leader.  The Value Game is a value-based economy that is modeled after the mirror image of a dollar-based economy.  It’s like driving on the left hand side of the road for the first time.  Of course, you need someone who can drive a car – but in a very significant way, you need someone who has never driven a car.  In either case, resistance is fatal (figuratively) and futile (literally). The willingness and ability to iterate is essential.

We do expect the results to surprise us.  We went through many candidates for our social media distribution and engagement office before we found the right skill set; not in a marketer, or in an MBA, or in social media guru – we found the skill set in a Linguist.  This makes perfect sense now – but we did not know that before we started the iterative process.

Easier Said Than Done

A travel community leader needs to solve a simple equation.  Find 18 people to share an 9 – passenger jet (9 flying in each direction) within a certain span of time.  This is much easier said than done – in fact, it’s like trying to solve a big Sudoku puzzle where all the rows, columns, and regions need to add up to the same number with no duplication.  Of course the puzzle gets easier as more people join the community because the probability of finding 9 people that want to go to the same place improves.  But still, someone needs to be on the ground to solve the puzzle.

Help us find the gamers

With that, I invite our readers to help us imagine what skill set would be the starting condition for an iterative process of finding hundreds of entrepreneurial community leaders that can solve this puzzle in diverse communities. I am leaning more and more toward the Gaming community on sites like http://gamification.org to find this skill set.  Any thoughts?  Thank you.


People always ask me how The Value Game will work and how The Value Game will scale, and how The Value Game will make money.  These are great questions, albeit straight from the b-school crib sheet; good questions nonetheless.

At first glance, The Value Game as we are deploying in Social Flights looks like a rich kids party barge.  The idea is that people can share an airplane just like they did with that stretch limo on prom night.  Yes, the idea is the same – the jet is a shared asset and status on prom night is special.

The Value Game also produces a lot of very important data that is owned by the players.  So when the passengers arrive at their destination, their data can now transform the hotel into a shared asset. As such, a new Value Game plays again.  If the players own their data, and they only share it with the other players in the associated Value Game, they can command substantial value for the collaborative purchase of hotel rooms – or any shared asset.

Likewise, the players will need restaurants, tour guides, golf courses, concert tickets, entertainment, etc.  Their data – if they own it – is their discount coupon…like a Group Coupon, except relevant to the need and exercisable on-demand.  By the time the trip is over, their Value Game data can result in hundreds or thousands of dollars in discounts for the individuals in a travel tribe if, and only if they own their data.

The next time they want to take a trip, their data is not only a discount coupon; it becomes a passport to opportunities that money cannot buy. In the End Game of the Value Game, data are the shared asset.  This works if, and only if people own their data and they can share or restrict it from view of others.

Seriously, think about that for a minute.

You give your data away for free.  Companies collect this data and they have no intention of sharing it with you.  Data is a multi-billion dollar industry.  Why?

Aren’t most life lessons about figuring out who is NOT playing The Value Game and avoiding those people and situations?


I found an interesting article by Kim Gaskins at Sharable.net titled: Where the Game Layer Really Counts: Sharing & Peer Communities.

I sensed some resigned frustration from her as she reflected upon a somewhat trivial nature of current innovation in this new social genre called “gamification”. Predictably, in the end, Gamification amounts to little more than feeding the advertiser’s insatiable addiction to that extra dose of personal data coursing through the veins of unbridled consumption capitalism.

She is not alone.

In reading her article, I was, however, stuck with a particular stroke of clarity. Kim provided the following diagram showing the intersection of Social, Economic, and Environmental reality that she calls the best gaming opportunity for business and societal benefit.

This is a very important observation. Kim identifies the intersection of three “communities” and suggests that a game opportunity may exist.  Even though the article appeared in Sharable.net community blog, she stopped short of saying “This is where you put the shared asset”.  So I’ll say it for her:

This is where you put a shared asset.

At the Ingenesist Project, we developed something called The Value Game that we are testing in several different business models. The value game is very simple: Three communities are brought together to interact around a shared asset.  Each community interacting with each other, while also acting in their own best interest, would be acting in the best interest of the asset.  The result, we expect, will be the preservation for optimum utilization rather than forest-to-dump consumption.

Meanwhile, the fact of interaction between these communities creates “social currency” that articulates the true social value of the asset. Where social currency is readily convertible to financial currency, the paradox of market capitalism is broken.

Kim’s observation is important – she is talking about a marriage between collaborative consumption and gamefication.  People need to watch this mash-up very closely and we must innovate in this domain very rapidly.  We will need millions of value games playing out in communities across the world if we are to hedge the inevitable implosion of financial currency while also preserving our most valuable shared asset for future generations.

Thanks Kim – you are on to something very important.


(The following is a draft of the unveiling presentation for The Value Game at The Future of Money and Technology Summit in San Francisco on February 28th 2011)

Hello;

The Ingenesist Project is developing a new class of business methods that convert social value into financial value, and vice versa.  The premise is that when people cooperate to do useful things, they can also create an amazing amount of social value.

Historically, we have seen how each of the great eras of human civilization was derived from the prior era when the tools of that prior era became integrated.  Like when the wheel, wedge, and pulley integrated to become the printing press.  Great social transformation followed.

So it is that integration of tools that we are most interested in.

Today, we can see this drama playing out across the Globe as people integrate the tools that were created over the last 30 years. People are reorganizing and in doing so they are directly challenging the power of financial currency with equally powerful social currency.

So it is inevitable that a conversion factor between social currency and financial currency will arise.  And that, we believe, will mark the next economic era.

So we developed something called The Value Game that we believe will help build the social infrastructure for the creation, storage, and exchange of social value.

The Value Game is a new class of business methods designed to specifically create social value.  The rules of the Value Game are very simple.  The Game Starts and Ends with money but all of the new value created in the game is denominated in Social Currency.

A Value Game is created by assembling 3 or more communities around a single shared asset in such a way that their interaction with each other relative to the asset creates social value.  In this form, social value can then be more readily converted to a financial value.

To demonstrate this, we helped launch a new company called Social Flights.  The objectives of Social Flights are to aggregate a large fleet of Private Turbine powered Aircraft and deploy them to the Social Graph instead of the Hub and Spoke system used by the Commercial Airlines.

The Shared Asset is the jet.  Player 1 is the traveler community.  Player 2 is the community of private aircraft operators. ,  Player 3 is the community of entrepreneurs at the flight destination.  The True Value Calculation compares the true door-to-door cost of using Social Flights versus other alternatives such as commercial airlines.

For example, flying between two smaller cities like Bellingham Washington and Vail, Colorado.  A Commercial flight would take close to 14 hours traveling through two hubs.  A fully utilized private flight would cost about twice as much but can make the flight in 3 hours.  So right off the bat, the True Value Calculation issues a par value between alternatives.  So if your time is worth less than, say, 70 dollars per hour, you are better off taking commercial airlines.  But if your time is worth more than 70 dollars per hour – for whatever reason – then you should take the private flight.

Now, a hotel in Vail may say – wow, here is a group of 10 people staying 5 days. They can divert advertising budget and issue a 100 dollar “discount coupon” to everyone in the group. Now the par value of the private flight is reduced to 60 dollars per hour. Next, Ski slopes, restaurants, bars, and services will deploy Coupons against the airplane lowering the par value toward closer to middle class incomes and certainly well within the business class of a commercial airline.

Things will get really interesting as people start gaming the game. The more demographic information that the traveler provides, the greater the likelihood that more and more vendors will issue them a discount coupon – which they can even resell on Craigslist.

In effect, why would someone let Facebook sell their information when people can sell it their selves?  Why would vendors pay for advertising when they can find the perfect customers directly?  Why would a manufacturer pay a retailer when the community can sell it for them?   Here we see a great deal of financial value can also be articulated in a Value Game.

Theoretically, we could build a Value Game around any shared asset from zip cars, public infrastructure, energy production, education, natural resources, even the totality of human knowledge, etc.

But for now, let me introduce Allen Howell, Chairman of Social Flights who will discuss how this new business method is developing in practice.

Social Flights should be very interesting to many of the people here because it integrates several of the hottest properties in the Valley; Travel, Coupons, Gaming, and Social Media.  Each of these communities have seen astonishing valuations lately so it will be interesting to see what happens when they, in fact, become integrated.

So please welcome Allen and I can take questions while he sets up.