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Social Media: Power By The Hour

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.

A Social Trifecta

1. Obviously, Social Media is powerful.

2. Fractional ownership or rental of assets is an emerging trend in our environmentally, geographically, and monetarily constrained economy.

3.Vendor Relationship Management (Doc Searles) promises to change the shape of traditional advertising in the future.

What if we combined all three?

ZipCar is an excellent example of the fractional membership for automobile transportation. There are many advantages but also huge drawbacks. $7.00 per hour is a lot to add to a casual lunch at a sidewalk café or any social experience. Then there are all the lost options like the one-way-trip, guaranteed availability, all those rules and regulations. So, it’s pay now or pay later.

Social memberships

What if your friends in the social network also had ZipCar memberships and the scheduling were interchangeable? Suppose you could find a ZipCar anywhere and park one anywhere?

Now, enter the Vendor of goods and service. What if the Vendor were to subsidize the cost of the ZipCar to bring 4 people into the restaurant, club, or event? What if amusement parks, zoos and art exhibitions helped pay for full car-loads of friends to drive themselves to events?

The Vetting Mechanism:

What if the real social value of the ZipCar could be compared to car ownership for each intended trip? How would this influence your decision to drive, plan, or combine events into your user experience? What if Vendors could influence that cost to drive incentives?

Power By The Hour Game

The Above schematic is What I’ll Call the Social Media Power by the Hour Game. Everyone is part of the same social network and can talk to each other. Each Box represents a player that can influence the cost of the power by the hour. The True Value Calculator keeps score by comparing each transaction value to the equivalent car-ownership or public transportation value.

Set your filters and wait for the proposition…

Instead of scheduling, everyone (including passengers, vendors, social network) start by setting a bunch of filters that represent their approximate intentions. The system compares the intentions with ZipCar locations and compares it to the True Value Calculator. When a suitable transaction is in play, all the players are notified.

Once the game starts and enough people play, statistically, there should be ZipCars distributed proportionally around the city and all vendors will be managing their marketing campaign with 100% ROI on their impressions. The system will become a self optimizing money game.

A fully convertible currency

At first, this may seem like an application to sell ZipCar memberships, but actually, it is selling odds and entrepreneurs are placing bets. The ZipCar is simply a mechanical device that converts social currency into money.

A few Scenarios:

Scenario 1: When a vendor notices a group of friends going to the mall, they can pay for part of the ZipCar with a lunch coupon.

Scenario 2: Amusement park or event promoter can see when a family has no plans and can offer a free ZipCar to them

Scenario 3: The bigger your social network, the cheaper it becomes for you to drive a car

Scenario 4: Vendors can bid for the ZipCar audience with Packages of discounts, coupons and also earn impressions and trust.

Scenario 5: Friends can see what other friends are doing and can jump in the same ZipCar

Scenario 6: ZipCars can be parked densely at events since you will not necessarily leave in the same car that you came in.

Scenario 7: As soon as you park, the zip car becomes available for someone else. As soon as you need one, there is a high probability one is parked close by.

Scenario 6: ZipCar options can be traded like currency to buy things on, say, Craigslist

And many many many more……..

End result: The bigger your social network, the cheaper your Power By the Hour. The bigger the social network, the more effective WOM marketing becomes. The bigger the social network, the more options are available to users. The greater the social network, the more SOCIAL VALUE a ZipCar membership will have in comparison to independent car ownership. The bigger the social network, the more social currency can trade hands as the Dollar fails.

Building Better Problems

The solution to any problem is entirely dependent on how the problem is defined. Likewise, redefining the problem, exposes huge opportunities for new solutions.

In Fact, a great deal of innovation arises not from a clever solution, but from a clever new definition of a problem.

For example, “build a better mouse trap” has entirely different outcome when one simply changes the definition of the word “trap”.

Manufacturing Problems.

Commercial Air Transportation, for example, was once lauded as a “Time Machine” because airplanes could carry a person into “a future” that was otherwise impossible to emerge in, or to a “past” that would never have been witnessed by any other means.

However, solving this problem created many more problems such as runways, infrastructure, car parking, noise, oxygen, crashing, etc. Diligently, we went about solving those problems as well. Unfortunately, solving each of those problems created a host of new problems. Today we’re down to solving the 3.0 ounce of toothpaste rule and the flammable underwear problem.

At some point we need to ask if we are manufacturing problems with every new solution. At what point is innovation taking us backwards? How prevalent is this human trait and does it have anything to do with the financial deficit?

Redefine the Problem

One of the greatest opportunities of Social Media (which is rarely cited by the experts) is the opportunity to redefine problems in the context of social media. Using our airline example, we know that commercial aviation arose from WWII as a response for bringing troops to static battle fields with such dynamic machines as the DC3. This worked great after the war too!

Today we still treat people as static and airplanes as dynamic. Suppose we were to redefine the problem so that people are dynamic and the airplane is static?

Think about it, people go about their life with work, family, and friends. Then they hop into a long aluminum tube, tie themselves down and sit there doing nothing. After a few hours, they emerge from the tube to go about their life, work, family, and friends. The aluminum tube is static, not dynamic – it’s a time machine, remember?

The opportunity, therefore, is for people to self-aggregate using social media around locations, schedules, and events related to life, work, family, and friends. The market could then supply the correct size aluminum tube to meet the need of the community. After all, wouldn’t it be easier to move one airplane to meet the ‘market of many’ rather than trying to move the ‘market of many’ to meet one airplane?

This may sound trivial now, but don’t underestimate the creativity of social entrepreneurs to build a better problem to solve.

Should Educators Command an Equity Position in Students?

The idea that a mentor may take an equity position in a protege is not new – it happens in families and extended families as elders are fully aware that the children will provide for the family in the future. The connection is not to hard to grasp that it’s in everyone’s best interest to help the kids – all of the kids. This is the social contract.

Somehow that connection gets lost when everyone is competing for the same set of limited jobs and everyone is responding to the pressures of insurmountable debt to banking institutions.

As Social currencies begin to replace the decaying monetary currency, a new set of social instruments will arise. The scope and range of new social contracts is unlimited and should be expected to increase substantially. These social contracts will become tangible in a communities and may he used in a system of trade that stores and transfers knowledge efficiently in a community.

If a father can teach a son how to become successful in the family business, why can’t a community of fathers teach a community of sons to be successful in a community of businesses? This may need to happen whether we like it or not.

The Interesting Thing About Interest Rates

Money represents human productivity, but the interest on money represents risk. This means that the lender collects interest because that represents the risk that they assume in departing from their money. Meanwhile productivity fluctuates naturally and can be affected by a many external forces.

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.

The result is that productivity must always be driven up and up and up – sometimes in unnatural ways, such as forcing consumption. Constant production is unacceptable – it must always increase. Vacations, free time, family time, and leisure are not acceptable. What if we had a currency that could accommodate a negative interest rate?

What is the Secret Sauce of Innovation?

Most studies on Innovation study the to 99th percentile human in the hope of discovering the “secret sauce” of wealth creation. One such study identifies 5 discovery skills and conclude that the top innovators are also in the top percentile for all these skills. What a surprise that the top university would conclude that they – and people like them – were the secret sauce of all wealth creation.

But what about the rest of the world? What about the individuals and teams of people who actually carry out the plans of those great people? Are they relegated to the footnotes or is there a way for two or more people to simulate the attributes of a 99th percentile person?

This video argues that a 6th discovery skill is the ability to recognize one’s weaknesses AND the strengths of another person. This takes humility and an knowledge inventory of one’s community. Given the ubiquitousness of the persistent economic crisis, ostensibly managed by those paragons of intellect, the masters of the 5 discovery skills – we may need a new way of building so-called “consensus” about what innovation is and who the innovators are.

(I did fail to point out in this discussion that the ability to network with similar people is a distinctly different than the ability to network with dissimilar people. As such, the 5th discovery skill and the 6th are distinct)

Breaking The Monopoly on Money

Hundreds of community currencies are forming across the globe. Gaming currencies are jumping back into reality. Europeans communities are calling for the authority to print their own money arguing that the fractional reserve system is like trying to recover from a war by waging more war (a novel thought).

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.

Governments are polarized against themselves (and in cooperation with other governments) to solve the problem – except by reducing services to the people. But isn’t this why Governments exists in the first place? Are they suggesting their own elimination? Of course not, so they issue press releases worth about as much as the photons they are printed with.

Meanwhile, corporate media is trying to dominate (and subdue) social media….ultimately, the end game will be the other way around. This short video invites the status quo to look at what people are “doing and saying with their productivity”

Video: America; A Next Developed Country

Industrial Revolution cartoonAmerica is stuck in the Industrial Revolution. A loose paraphrase from Seth Godin points out “our entire education system is designed to prepare people to work in factories, consume stuff, and believe this makes us happy”

Now that the factories are gone and the rest of the World has copied all of our tricks (while not copying our mistakes) it is time to move on. What is that next watershed economic paradigm? Who is going to figure this one out? The one who does will define the new meaning of “A Most Developed Country”

Video: Intellectual Property in the Social Media Cloud

social_media_cloudThe Patent system is slow, static, and expensive. Sure it’s great for corporations and wealthy institutions, but what about the rest of us? How do we get paid for our intellectual property? We make rapid fire decisions every day that can make or break markets – who’s got time to patent?

Or maybe the last thing that Wall Street wants is for Engineers, Architects, designers, and creative people to get “royalties” on their work. That is What Wall Street does, they collect the royalties of the creative people in America….until now. Social media is a social contract, IP is our currency.

Image credit

Video; You Can’t Make a Bet Without Odds

C14Dec09_290x390Entrepreneurs won’t make a bet without odds. So when it comes down to assembling knowledge assets into an innovation enterprise, how can entrepreneurs predict the likelihood that they will be successful? The short answer is that they cannot.

The simple truth is that humans have not evolved to the point where they will organize themselves as knowledge assets in a financial system – they still need to use a proxy for their productivity controlled by a master, a corporation, an idealism. It’s called money, politics, and fear.

This is the greatest constraint on economic growth that America faces, not inflation, debt, taxes, or regulation….entrepreneurs have simply run out of info juice. This is the greatest challenge of our times. What are the odds that we’ll figure it out?

Video: Taxonomy for Community Knowledge Inventory

2009 Forecast DocAny taxonomy that is used to classify information is a candidate for the classification of knowledge. This is because knowledge is related to information in a differential equation that also includes data and innovation (another blog post).

The trick is that everyone needs to be using the same taxonomy so that we can all access knowledge inventories of the people around us as easily as it is to access books on Amazon.com. This will lead to a trade in knowledge assets formally the sole domain of corporations through the process of industrialization (yet another blog post) .

Please enjoy these videos, use them as you wish and let us know what you think.

Where is The Knowledge Inventory?

Knowledge marketsThere is no knowledge inventory of our communities. The is a STUNNING omission for a country whose only hope at climbing out of economic hardship is sequestered within the innovative minds of its people.

If done correctly, knowledge can behave as an asset of trade. This must first start with a comprehensive knowledge inventory. Like the human genome project, the knowledge inventory project must be a sustained effort.

Link to specification document

The Old Economic Paradigm Breaks Down

childmillworkerAs the economic crisis unfolds before us and a paralyzed government, we must seek to understand the forces still acting upon all of us. When cause and effect have become a “complete mystery” to our most prominent thinkers and leaders, they need to look at history.

Does the Merchant Class allocate land Labor and Capital to the a great extent in an Innovation economy? The accepted statistic is that 70% of a company’s value comes from human capital and the creative solutions that they produce.

Land, labor, and capital are ineffective proxies for human creativity and intellect – end of story. The road to new monetization is not paved upon on the roadmap of the industrial revolution.  Something new needs to happen:

The simple truth is that humans have not evolved to the point where they will organize themselves as knowledge assets in a financial system – they still need to use a proxy for their productivity controlled by a master, a corporation, an idealism. It’s called money, politics, and fear.

The reality is that opportunities are endless if we can simply shift away from history and build a new future; a new economic paradigm.

Video: Tangible Knowledge; The Holy Grail of Social Media

Accounting Balance sheets have tangible assets and intangible assets. Unfortunately, intangible often means invisible and those on the dark side of the moon wind up in the unemployment line.

What if knowledge assets were tangible? What if you owned your knowledge like a company owns a structure or specialized machinery? What if it could be quantified and qualified so that it resembles all other tangible assets? Easy answer…entrepreneurs will trade it, like money.

Video: The Last Mile of Social Media

Sure Bro…Facebook, Twitter, and Linkedin are great for broadcasting across the Ocean, but how good are they for meeting your neighbors? As wonderful as all this global chatter appears, nothing tangible happens until the rubber meets the road.

Don’t Worry, Be Neighborly…

The following video describes how the components of the next economic paradigm must act locally, but share globally. For anyone wondering what to do next or where the great opportunities are, think about building out the Last mile of Social Media.

Video: Currency Must be Backed by Productivity

We must all be engaged in the process of Innovation. We must all be engaged in the process of increasing each other’s productivity – in whatever form that may be, that’s the objective. Anything that wastes time needs to go away. It’s that simple.

The following video discusses what the dynamic of an innovation economy will look like. Not glass walled towers and obscure think tanks, but real productivity – yours and mine. That’s the basis of the new global currency. It’s that simple.

Share Me

What is the Quality of Conversation?

conversation1As we build the Next Economic Paradigm we seek to define the quality of conversations.

The Common European Framework of Reference for Languages: Learning, Teaching, Assessment, (CEFR), is a guideline used to describe achievements of learners of foreign languages across Europe.

Here is the twist.

We propose the use of a language proficiency standard as the conversational quality standard for any subject. Why?, Because every subject has it’s own language and related subjects have related languages. Try to bridge the philosophical chasm for yourself by reading the descriptions and drawing the analogy to the subject of your expertise, lack of expertise, or your interests and intension!

As such, for conversations about any subject matter in the world, past present or future, the following also holds true for subject matter proficiency:

Basic Proficiency

A1: Can understand and use familiar everyday expressions and very basic phrases aimed at the satisfaction of needs of a concrete type. Can introduce him/herself and others and can ask and answer questions about personal details such as where he/she lives, people he/she knows and things he/she has. Can interact in a simple way provided the other person talks slowly and clearly and is prepared to help.

A2: Can understand sentences and frequently used expressions related to areas of most immediate relevance. Can communicate in simple and routine tasks requiring a simple and direct exchange of information on familiar and routine matters. Can describe in simple terms aspects of his/her background, immediate environment and matters in areas of immediate need.

Intermediate Proficiency

B1: Can understand the main points of clear standard input on familiar matters regularly encountered in work, school, leisure, etc. Can deal with most situations likely to arise whilst travelling in an area where the language is spoken. Can produce simple connected text on topics which are familiar or of personal interest. Can describe experiences and events, dreams, hopes & ambitions and briefly give reasons and explanations for opinions and plans.

B2: Can understand the main ideas of complex text on both concrete and abstract topics, including technical discussions in his/her field of specialisation. Can interact with a degree of fluency and spontaneity that makes regular interaction with native speakers quite possible without strain for either party. Can produce clear, detailed text on a wide range of subjects and explain a viewpoint on a topical issue giving the advantages and disadvantages of various options.

Advanced Proficiency

C1: Can understand a wide range of demanding, longer texts, and recognise implicit meaning. Can express him/herself fluently and spontaneously without much obvious searching for expressions. Can use language flexibly and effectively for social, academic and professional purposes. Can produce clear, well-structured, detailed text on complex subjects, showing controlled use of organisational patterns, connectors and cohesive devices.

C2: Can understand with ease virtually everything heard or read. Can summarise information from different spoken and written sources, reconstructing arguments and accounts in a coherent presentation. Can express him/herself spontaneously, very fluently and precisely, differentiating finer shades of meaning even in more complex situations.

The Monetization Mystery

maritimeMystery

OK, the social media buzz is getting a little stale folks.

  • Yes we know that social media is valuable.
  • Yes we know that lots of folks are doing it.
  • Yes we know that the predictive web is predicted.
  • Yes we all know that all this activity will mysteriously “monetize”

Show me how everyone is related and I’ll show you a new economic paradigm. Here is how they are not related:

  • They are not related by “earning” people’s trust today so you can shove your product down their throat tomorrow.
  • They are not related to collecting thumbnails.
  • They are not related to giving the g00gle alg00rithm an 00rgasm.
  • They are not related by “The 6 Steps to [Fill in The Gap]”.

The next economic paradigm is related to transformation.

  • People transform data into information
  • People transform information into knowledge
  • People transform knowledge into innovation
  • People transform innovation into data

Under a set of fundamental assumptions that:

  • All people are socially talented
  • All people are intellectually talented
  • All people are creatively talented
  • All people are good at something
  • Nobody is good at everything

This is how value is generated. This is where the mystery of monetization hides.

Thank You for Flying Citizen Airlines, LLC

I will be introducing a number of applications of Innovation Economics in Social Media as continue writing part 2 of my book. The objective is to identify new business opportunities by disrupting the old economic paradigm with new ways to organize people around social media. In this case, a troubled industry would team up with communities that are not their direct customers:

Corporate-jet-001I live in Edmonds Washington near Paine Field – home of the sprawling Boeing manufacturing site of the 747, 777, and 787 aircraft. For years, the county executives have been trying to lure major airline service into Paine Field Airport claiming the economic benefits would far outweigh the drawbacks. Paine Field is about 1 hour north of Seattle Tacoma Airport and about 3 hours South of Vancouver, BC.

Many efforts over the years to locate another airport in this gap have hit political and environmental land mines. Paine Field expansion is no different. For years, the county, state, and FAA have been funding “improvements” that look a lot like accommodations for scheduled airline service. The county executive has been courting carriers, lobbying ‘unaffected voters’ and corralling legislators to this grand economic development cause.

The citizens of neighboring communities have not stood still. They have commissioned studies of every environment and quality of life factor from home value impact to distracted learning at the local schools. They cite urban blight, social deviance, and under development at other similar expansion projects. Political careers are made and broken over support or opposition to the airport expansion.

So far, the market has not proven large enough to support a major B737 sized scheduled service. Ironically, there have been very few studies of the impact of private aviation service expansions. Little data is discussed related to the noise foot print of small jets versus large jets. Very little data is presented to the community about distributed vs. concentrated air and car traffic flows and the upscale effects of a private aviation presence.

To the community’s advantage, small private carriers can soak up and diffuse the market that would eventually support a major carrier. These battles are raging all over the country against the political mantra of Jobs! Jobs! Jobs! Local communities are running out of money, lawyers, and stall tactics to fight them.

With the price of seat on a (full) private Jet about the same as a business class ticket on a major airline, local communities may want to go into the travel agency business. By using community media, website, a booking website, twitter alerts, and tourism agents to identify and match travelers to destinations combined with some proactive social media marketing, Citizen Airlines LLC can stave off an airport expansion by competing with it.

Meanwhile, unemployed citizens are available to manage an on-line Community Branded jet service (operated by a private carrier). Advertising and marketing can be transferred to the community in exchange for reduced rates and shared access to private aviation reports and data which would help them fight airline expansion.

This requires that the private aviation industry empower communities who are not necessarily their direct customers but are stakeholders none the less. Social Capitalism is the act of elevating oneself by elevating the entire community rather than opressing then for capitalist gains. By giving people a voice, the economy gets a bullhorn.

Predictions for 2010 and Beyond – Nothing is Sacred

transparentIt looks like everyone is buffing up their predictions for another year of astonishing growth by social media. The last several years have brought so many surprises that the next several are promising to yield a bumper crop of “I told you so” fodder from the “pithier than thou” crowd.

My prediction for 2010 is that nothing is sacred, including the onslaught 2010 predictions. Therefore, I’ll will go way out on a limb and make my 2011 predictions in 2009.

In General:

The interest coming due on our national debt will consume increasingly more of the money that institutions need to provide basic services. As these institutions weaken, they will increasingly be replaced by social media enterprise. These structurally weakened institutions will drive social media innovation more than any other factor.

Specifically:

  1. Social vetting will catch everyone by surprise. Google buying Yelp is the game changer that will shake markets to the core. A market can only be as efficient as its vetting mechanism. To control vetting is to control a market – ask any despot. Where the vetting institutions of the old paradigm break down, they will be replaces by social media vetting. Nothing is sacred – the SEC, AMA, Federal Reserve – everything is vulnerable. Google knows this and will usher in an era of social media applications that will completely disrupt the gatekeepers.
  2. Everyone says that social media will monetize. It will, but not like anyone expects. 2011 is the year of the Deep Web; the deep web is the vast universe of unprocessed data that exists like dark matter in the Google-verse. Social media will monetize around data because data is the only thing that corporation, governments, and other people are willing to pay for. Google created economic initiatives for legions of entrepreneurs to create information content. The new Deep Web Search engines will create economic incentives for legions of entrepreneurs to create databases.
  3. The convergence of data will create the “new monetized innovation economy” defined by the way people interact with data. Highly localized data that will reflect the knowledge inventory of a community and will be represented by a virtual currency.
  4. It will become increasingly apparent that many of the functions of a corporation can be duplicated outside a corporation by new vetted social media applications. Networks of people will become “corporations” and trade knowledge assets through the trade of virtual currency contracts.
  5. Corporations will become technology centric rather than industry centric with open source architecture liberated to armies of diverse entrepreneurs. For example, breakthoughs in one industry will shoot across all industries like iphone apps – especially effective in environmental and “community organization” innovations. Nothing is sacred.

So there it is and be assured that 2012 will not disappoint even the hardiest eschatologist!

Sorry for not repeating the “real-time is king” mantra or singing the “people will finally pay for content” tune, or reciting the “every department is the marketing department” manifesto. Something much bigger is about to happen. The evolution away from the current financial system will drive social media more than any other factor.

Should Education be Open Source?

open-courseWe continue to challenge the relevance of the college “degree” as being an insufficient measurement for what “educated” is, or is not, in an innovation economy. With the cost of a college degree spiraling upward and the value of the degree spiraling downward, the market will tip in favor of the alternative education measurements.

It is important to note that we do not challenge the existence of institutes of higher education, only the “degree” as a unit of measurement. The four year Bachelor degree and two year Masters degree are irrelevant as a title (there is no legal title since the age of the guilds) and arbitrary in duration to respond to the diversity, speed, and scope at which new technologies become available for deployment.

Ray Barton writes: The UK House of Commons in its’ report on Re-skilling in January 2009 stated the useful life of a degree is five years. In high tech professions, the useful lifetime of knowledge can be as short as 1.5 years.

This alone disrupts the current paradigm of higher education in several ways.

When Capitalists Are Really the Socialists

SocialistMickeyYikes…

Unemployment tops 10%.  Add in the under-employed, part timers, young adults trying to enter the job market, the ones who have given up or otherwise marginalized, and we’re well into the 15-20% range.

Mediated Reality:

When will people come to the realization that a new financial system is needed to represent the new social order?  When will people realize that they have in their possession the most important tool ever devised by humanity for the benefit of humanity?  When will they shut off the TV and reject the barrage of mediated reality that blinds them with propaganda at every turn?

The Six Discovery Skills for Innovators

missing pieceHarvard Business Review contributing editor Bronwyn Fryer conducted a six-year study surveying 3,000 creative executives and conducting an additional 500 individual interviews. During this study she identified five “discovery skills” that distinguish them (reference article here)

The 5 Discovery Skills

1. The first skill is what we call “associating.” It’s a cognitive skill that allows creative people to make connections across seemingly unrelated questions, problems, or ideas.

2. The second skill is questioning — an ability to ask “what if”, “why”, and “why not” questions that challenge the status quo and open up the bigger picture.

3. The third is the ability to closely observe details, particularly the details of people’s behavior.

4. Another skill is the ability to experiment — the people we studied are always trying on new experiences and exploring new worlds.

5. And finally, they are really good at networking with smart people who have little in common with them, but from whom they can learn.

Encourage Childhood Curiosity

The study was further associated with an enriched childhood experiences and early development of the child’s curiosity.  It is difficult to disagree with any of these findings and it is of dire importance to duplicate at any expense these conditions for our children the sake of their future and the world that they will inherit.

What troubles me is the following:

The persons interviewed in the study were all outliers – the top .01% of success stories.  These are innovators who had performed according to prevailing business theory for a 20th Century American definition of “innovation”.  The probability that any single person has all 5 skills in synergistic quantity is extremely low.

The 6th Discovery Skill; discovering the missing pieces.

Suppose that a person has a high surplus in skill # 1, #2 and #4 and but an extreme deficit in #3 and #5 ?  The profile can then be just as easily associated with a sociopath destined for incarceration. So what do we do with the other 99.99% of people?  Are they incapable of Innovation?  Are they not the ones to “bet on” in the race for a cure from ourselves?

Mirror Mirror on the Wall…

It is not surprising that Harvard, the bastion of top .01% humans would, in fact, find themselves in the proverbial mirror.  However, they do leave us a hint in skill #5; the ability to network with smart people who have little in common but from whom they can learn.

The great opportunity for an innovation economy built on social media is the ability to purposely match most worthy knowledge deficit to most worthy knowledge surplus so that teams of people can be designed to simulate the ideal top .01% human and thereby vastly increase the innovation and entrepreneurial capacity of society.

Let’s rethink this

Such as structure for an innovation economy built on a social media platform is specified by the Ingenesist Project and others.  It includes a revised definition for innovation, a knowledge inventory, a  percentile search engine, a system for matching knowledge assets, and a feedback system to capture  and duplicate desirable outcomes – all integrated and securitized in a financial instrument.  Will the secret sauce resemble the 5 discovery skills that made the morning headlines?  Who knows? After all, that’s exactly how I wrote this article.

Building a Better Entrepreneur; Google 10^100

Google 10^100 award voting is Launched.  There are two sectors that we believe would have the greatest impact on the greatest amount of people; building a better banking system and funding social entrepreneurs.  You can’t have one without the other – if Google funds these two sectors in concert, the outcome would be incredible.

Build A Better Bank

In the old banking system we assume that we have the knowledge to execute a business plan and we go to the bank to borrow the money.  In the new banking system, we will assume we have the money and we go off in search of the knowledge.  Social Media is an excellent “public accounting system” for knowledge assets.

Our current banking system has gotten it backwards.

Technological change must always precede economic growth. The supranational currency may be backed by productivity and not debt.  Social media provides an excellent platform upon which to design such a banking system. People trade “social currency” at a tremendous rate.  This is evidenced by the amount of destructive innovation is occurring in many legacy sectors due to social media.

Better Banking Tools for everyone

“Partner with banks and technology companies to increase the reach of financial services across the world. Users submitted numerous ideas that seek to improve the quality of people’s lives by offering new, more convenient and more sophisticated banking services. Specific suggestions include inexpensive village-based banking kiosks for developing countries; an SMS solution geared toward mobile networks; and ideas for implementing banking services into school curriculums”.

Suggestions that inspired this idea

1.    Enable prepaid cell phone bank accounts for millions of people working in the informal economy
2.    Create a community-level electronic banking system for rural areas
3.    Build IT-enabled kiosks which provide access to financial services
4.    Create a single world bank or supra-national currency, uniform rules and transparent public accounting

Fund Social Entrepreneurs

Venture Capital is ridiculously expensive. Corporate innovation serves shareholders value over social priorities.  Some say that the financial risk of funding innovation is too high. The top ten reasons why start-ups fail are due to knowledge deficits, not money deficits.  A new banking system that trades knowledge as currency would solve this problem.

The key is to match most worthy knowledge surplus to most worthy knowledge deficit.  Google is perfectly able to build a search app for knowledge assets if there were an inventory of knowledge assets.  With the most worthy match, Risk can be reduced and new financial instruments can be developed such as the innovation bond, innovation insurance, tangential innovation markets, and destructive innovation transition contingency options, etc.

Help social entrepreneurs drive change

Create a fund to support social entrepreneurship. This idea was inspired by a number of user proposals focused on “social entrepreneurs” — individuals and organizations who use entrepreneurial techniques to build ventures focused on attacking social problems and fomenting change. Specific relevant ideas include establishing schools that teach entrepreneurial skills in rural areas; supporting entrepreneurs in underdeveloped communities; and creating an entity to provide capital and training to help entrepreneurs build viable businesses and catalyze sustained community change.

Suggestions that inspired this idea

1.    Provide targeted capital and business training to help young entrepreneurs build viable businesses and catalyze sustained community change
2.    Create a non-profit, venture capital-like revolving fund to invest in high-impact local entrepreneurs
3.    Send young American entrepreneurs to underdeveloped communities to help create small businesses that would economically benefit those communities
4.    Create schools in rural areas to teach local people how to become entrepreneurs
5.    Create a private equity fund to help immigrants in developed countries finance business development in their countries of origin

Will Facebook Currency Intermarry with the US Dollar?

Facebook is testing a virtual currency, because it’s cool and they can do it. They are not alone, the gaming industry has been at it for a long time for people who want to be more “productive” in the game space.

There is no mention, however, whether a Facebook currency could be used as a medium of exchange in the event of hyperinflation and the crash of the US dollar.  I can find nobody, writing anywhere today, that is willing to cross this proverbial line in the editorial sandbox.

I personally witnessed a devaluation in Mexico. Like a tsunami, the “adjustment” happens relatively fast as values ’snap’ fluctuate relative to other currencies.  Then very interesting things start to happen in the community. People will literally empty WalMart because most goods will be cheaper today than tomorrow.

As with other hyperinflation events, black markets form around various items such as gasoline, cigarettes, or Levis as people require some medium of exchange in order to buy necessities such as groceries and cooking fuel.

A Facebook currency may just be what communities will use to get through the event.  However, a Facebook Currency would likely be temporary because it could not be used in Banks to capitalize assets – or, by government who can’t figure out how to tax it.

Now the question becomes, what type of social currency could be intermarry with dollars?

Here is a hint; the dollar is backed by debt which is a promise to be more productive in the future. Conveniently, “innovation” is also a promise to be more productive in the future. Two such currencies are of the same species and can intermarry yielding new economic life.

The degree to which any ‘virtual’ currency is interchangable with the dollar is the degree to which it represents human innovation. Chew on that, Facebook.

The New Reverse World Order

Bank-of-Wal-Mart-Note--40279The New Reverse Order

If someone can track your spending, they can predict your behavior.  It is also true that if someone can track your behavior, they predict your spending.   The next economic paradigm is simply a higher order of the same.

On the next higher order, if someone knows your “Knowledge Inventory” they can predict how you will manage changing conditions – that is, how you will innovate.  Likewise, tracking how people innovate exposes the development of new knowledge assets (the ‘gold-standard’ of conversational currency).

Everyday some new headline shows that we are getting closer and closer to that point – for better or worse – where humanity learns to manage an innovation economy.

Profound Issues Arise.

The following article about Wal-Mart adopting the debit card (Wal-Mart to Staff: Bye-Bye Paycheck, Hello Debit Card) as a means of issuing paychecks represents a quantum leap in the monetization of knowledge assets.  We expect many more will closely follow in one of the most important financial developments in financial history – virtual currency.  If food stamps can be delivered on a debit card, why not frequent flier miles, Disney Dollars, coupons, rebates, tulip bulbs, beanie babies, or a new global currency such as the Rallod?

A Vetting Zoo

The only questions that remain are related to Vetting.  By all accounts Social Media is developing into the mother of all vetting mechanisms.  Who controls the card? What system is it replacing? Who can pull money off?  Who charges fees to whom and why? Who gets the business intelligence?  What is the PR spin?  Can advertisers interact with the card to apply discounts and rewards?  What types incentives motivate what types of people and can it go on a debit card?

A Steep Departure

Each of these questions, and the companies they spawn, will live or die by Tweet and Blog – this is a steep departure from the past.  For example; 30 years ago, if every American were told that their social security number would be tied to a credits score that is tied to their driving record, employability, insurance premium, health care, mortgage rate, and, yup, their debit card – the cities would have burned in protest.

Nobody could have seen this future except those who designed it.  Today, the designers are you and I – see the future now, see the future here at Conversational Currency.

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