The Knowledge inventory will become the most important element of Social Capitalism. Today, knowledge is largely sequestered behind the walls of corporation in the form of titles, skill codes, resumes, job descriptions, certifications, and college degrees. In order to predict the future, we point to the things that we have done in the past.
2nd Place is 1st Loser
10% of the country is unemployed and less than 10% are fully actualized in their profession. Competitive forces drive the hiring manager. The consequences of all business decisions eventually lead to win-or-lose market scenarios. People compete with each other for promotions, the boss’s time, the corner office, or just staying off the unemployment line. That is the only future anyone can truly predict based on the past. It’s easier to predict the loser than the winner – so that’s what happens.
Social media is very different.
People are organizing themselves in a new form outside the construct of the corporation. Linkedin aggregates intellectual capital, Facebook aggregates social capital, and You Tube aggregates creative capital. Millions of blogs, Twitter, and a generation of search engines reassemble all these parts in ways that create social value. People are not competing with each other, instead, they live on a bell curve. They are seeking cooperation and collaboration. People use “like” buttons, tweet counts, and analytic data to “value” the quantity and quality of another person’s knowledge. There are fewer losers, hence more winners, because there are a greater number of markets – not just one corporation. Everyone is a corporation.
No Governance, no anarchy, no problem
Since social media is outside the construct of a corporation, there is no governance. There are lots of people trying to control only to experience diminishing returns. Microsoft, Apple, Google, and Facebook must tread extremely carefully on the landscape of public opinion precisely because of their dominance. People use Facebook to attack Facebook, PowerPoint to attack Microsoft, YouTube to attack Google, and Twitter to attack everyone. Retribution would be suicide.
The Last Mile of Social Media
Now, geo-location services are filling in the Last Mile of Social Media where communities will form to produce things that are tangible and real. As a result, there is a sharp increase of interest in a form of currency that can represent this social value. Some of this is because the dollar is losing its ability to represent people’s productivity. So they engage a different economic system.
The next great leap in Social Media will happen when people reorganize themselves in an external knowledge inventory, outside of corporations, and segmented in high granularity of knowledge assets in close proximity to each other. Entrepreneurs can then assemble people in unique, efficient, and productive ways. People will then build things for profit using a new currency – a new social currency.