A prospective client asked “what do you charge by the hour?”. My response…”I don’t”. The prospect then asked “then how do you determine how much to charge me?”. My response “By the value you desire me to deliver using my knowledge”.
Knowledge needed to ring up sales at a cash register is different than knowledge needed to engage more customer that will ring the cash register or reduce lost productivity which improves business efficiency. Which has more value?
If your business is wasting time, effort and energy “producing things” and causing customers to waste time, effort and energy to interact with your business then you are wasting money. If someone had the knowledge required to help you reduce the waste and improve productivity how much would it be worth?
Let’s say you employ 50 people at an average payroll cost of $52,000 per year per employee. Let’s consider the lost productivity of employees simply misplacing or not having relevant information (which precedes not having the right knowledge).
That would represent lost productivity valued at $6,760 per employee per year ($338,000) and this doesn’t include the cost of creating lost productivity for customers and prospects (which represents even higher cost per customer than employee.) How about revenue gains from giving customers more productivity?. What is that worth?
Social Productivity Factors Driven By Knowledge Assets
Finding solutions that enable us individually and organizations collectively requires knowledge outside of an existing ecosystem. The ecosystem of any organization is largely influenced by the knowledge assets which rest with the human capital within an organization. Human capital is considered the vital engine needed to support any organization. It is this “capital” where innovation and continuous improvement comes from, if you know how to tap and use it.
The challenge of any organization is learning new knowledge that maximizes human capital effectively and efficiently. New knowledge typically comes from the outside but can be tapped inside with the right “social encouragement“. Social encouragement is not typical to corporate containers where power and fear steal “social, intellectual and creative capital” that rest within the human capital.
Social Business & Knowledge Assets
All this social stuff goes way beyond marketing and advertising which seems to be in vogue for the moment. The “social business” model is one where the ecosystem is learning how to tap all the knowledge assets resting in the human capital. Tapping this capital can be accomplished using social technology beyond marketing and advertising. Consider the knowledge assets that can be tapped if your culture and organization adopted the social business model. The productivity gains rest in functional roles and departments such as:
- Marketing, advertising and public relations
- Customer service
- Hiring and recruitment
- Workplace Collaboration
- Outsourcing
- R&D
- Operations
- Communications
- Finance
- Management
Now to optimize productivity one must consider the implications on human capital. In order to make these considerations one much engage with the humans who hold the capital. Doing so is something that requires knowledge assets not typically contained inside the corporate walls. If the knowledge assets where there well more and more organizations would be making significant strides in productivity and most aren’t.
The problem with most people claiming to be social media gurus is they are selling task oriented work, not knowledge assets to be transferred internally for everyone’s benefit. I don’t sell knowledge by the hour but not having the right knowledge cost you productivity by the hour. My cost is less.
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I like reading content that teaches me something. I don’t like reading blogs that teach the wrong thing. But how would we know the difference?
Knowing whether something is the proper perspective, the correct analysis or insightful is relevant to our existing knowledge asset in reference to other knowledge assets. A knowledge asset is simply that which we’ve learned, experienced or discovered. Our knowledge asset rest between our ears and in our hearts. We own, use, share and increase it every day, at least some of us do.
Life emerges in front of us based on our individual knowledge assets. We make choices based on what we know and we create things based on what we know. What we create is emergent properties of knowledge we think we have for others to consume. What we consume is emergent properties of knowledge others think they have. Everything in life is filtered through and by our knowledge assets. We call it an asset because everything of worth is created from and with it. The worth can be positive or negative based on how much knowledge we have and how well we use or grow it.
A Web of Knowledge?
The World Wide Web is a popular example of a decentralized system exhibiting emergent properties. There is no central organization rationing the number of links, yet the number of links pointing to each page follows a power law in which a few pages are linked to many times and most pages are seldom linked to. A related property of the network of links in the World Wide Web is that almost any pair of pages can be connected to each other through a relatively short chain of links. Although relatively well known now, this property was initially unexpected in an unregulated network. It is shared with many other types of networks called small-world networks.(Barabasi, Jeong, & Albert 1999, pp. 130-131)
Emergence of Convergence?
The word convergence implies the approach toward a definite value, a definite point, a common view or opinion, or toward a fixed or equilibrium state. One might ask what is the definite value, definite point, common view or opinion about what is emerging from all the interactions of the web today. The answer seems to be pointing towards the pursuit of “social capital, social currency” and a defined new currency. The words capital and currency are terms that related to economics. The economics of all things social seem to be the obsession of the marketplace seeking to measure a return on efforts from most things that are free.
What seems evident is that the convergence of thought and conversations are moving knowledge forward but knowledge yet to be defined with common agreement to its meaning and relevant definition. Brian Solis sparked some dialog with his “Social Capital: The Currency of the Social Economy” post. Venessa Miemis added to the dialog in two post : What Could the Future of Money Look Like? and “Social Capital is Not the Same As Whuffie”. All three of these post created a stir of dialog, definition, argument, perspectives and attempts to put new meaning into new knowledge emerging before our eyes.
The irony of all this dialog is that most of us use existing “knowledge assets” (that which we’ve learned, experience and create) to try and frame the emergence of innovation. Innovation typically is something, including knowledge, that previously did not exist. So maybe we need to “link” old knowledge to create new knowledge that can converge and create new assets. Imagine linking our collective “knowledge assets” and aiming the process at innovation that creates a new economy.
Could it be done? Yes if we could agree to a process of ego convergence.
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My post “The Emergence of the “Know” Profile” stirred numerous responses. Within these responses, and the subsequent dialog within the blogosphere , came many questions and perceptions as to the validity of someday actualizing the “know” profile as described.
Given this exchange I thought it would be worthy to examine some of the relevant issues raised and address them by sharing more details of how the “know” profile will emerge and how it will work.
How Can Knowledge be Indexed into an Inventory?
Libraries use numerical indexing to categorize books and the relevant content. The numerical indexing system applies numbers to make a search of relevant and relative words all contained in a taxonomy of subjects. These numeric indexes began in approximately 1894. This “taxonomy” of knowledge assets (contained in libraries of knowledge) can be found in places like Amazon, Encyclopedia Britannica or the Library of Congress etc. Ever seen anything like this ISBN 0-534-39200-8? That is the numerical index number for a book.
Now take that same concept and apply the related methodologies to “indexing an individuals knowledge assets” and what you create is a library of individual knowledge inventory. Computer algebra system would perform the required calculations. The new system would include various versions of algorithms used to index ones knowledge inventory based on education, learning degrees, life experiences and original published content. All of this currently rest in our social profiles but is yet to be indexed to reflect our individual knowledge inventory. Not yet but soon.
Couldn’t People Create Fake Knowledge Assets?
I suppose they could but “fake” is now transparent. College professors use software to screen student papers for plagiarism. Resumes are not vetted and education and experience is verified by computer programs. Said mechanisms could easily be used to “vet” an individuals profile. Additionally people who know and or have had relational experience with individuals will easily vet out the “lies”.
Our blogging could be added to our “Knowledge Inventory” and the numerical indexing of the content along with vetting mechanisms would verify original thought vs. copy. Ideation, creativity of thought and value of thought can all be indexed and vetted. Essentially we already have a significant system of vetting in place and much of those activities establish our social capital which could also be indexed.
How would our knowledge inventory be visualized?
Look at the graphic in this post. There are low, median and high ranges of each “knowledge asset”. Below each asset their is a related taxonomy of affinity knowledge contained within the indexes. A computer generated algorithm would create a histogram that places our individual “knowledge assets” into a range that relates to the “pool” of knowledge inventory represented by everyone’s profile and from established “knowledge” contained in Libraries everywhere. Said algorithms and histograms would create a “numerical analysis” and subsequent score that would plot our individual knowledge assets against the “knowledge inventory” library. What you get is a graphic display with plotted dots on each top level “capital category” in a picture such as that framed in the graphic on this page.
Keep the comments and questions coming. In response I will share my “knowledge assets” and define further how I envision the system working. I don’t claim to have the only “knowledge assets” on this very important subject matter so add yours and lets make it real.
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Just when we think we’ve found a solution the reality is we’ve just created a new problem. Many look at social media as a marketing solution and pursue the solution aggressively. Many then learn that not thinking through the systemic impact of “all things social” they have created a bigger problem.
Looking at social as a marketing solution without considering its impact on other “parts” of your organization reflects silo thinking.
Silo thinking is evident everywhere. We see it from suppliers of internet technology designed to contain us and our conversations within their wrappers. Doing so may create value for the moment but problems in the long term.
The model of containment reflects silo thinking. If we can get more users to our site then we can get more advertisers (Facebook, Twitter, Google etc). More advertisers represents more revenue. More revenue, more users reflects higher evaluation. The problem then arises when users find alternatives and the results from advertising begin to diminish. Sound familiar? Look at the patterns for social networks and the advertisers that support them.
When The Silo Gets Disaggregated
The expression “silos of information” is typically applied to management systems where the focus is inward and information communication is vertical. Critics of silos contend that managers serve as information gatekeepers, making timely coordination and communication among departments difficult to achieve, and seamless interoperability with external parties impractical.
Silos tend to limit productivity in practically all organizations and frustrate consumers who increasingly expect information to be immediately available and complete. Information silos are becoming far more recognized as the major reason why organizations are unable to take full advantage of the Internet’s power to interconnect business processes.
The vast number of incompatible database applications in use perpetuates the existence of silos, making it impossible for run-the-business software to take full advantage of the Internet. Consumers are feeling the waste and inefficiency of “social silo’s”. Every site they land on wants their profile, their opinion and their friends. Every brand, network and community wants to contain us, trap us and control us. Everyone wants our content so they can use it within their silo of activity. Activity within one silo to another represents wasted productivity. Wasteful activity steals value from consumers. Stealing value because of silo mentality is an anti-social mentality.
Are The Silos Coming Down?
In the old world contained communications controlled by the few was the means for shaping a story and influencing an audience. Whether the message is aimed at the world, an institution, an organization or a local community media silos shaped not only the message but the meaning.
While social technology may be viewed as a solution it is in fact creating problems because of the lack of wisdom. Omair Haque writes: The scarcest, rarest, and most valuable resource in the world today is wisdom. The countries, companies, and people that possess it will prosper. In many ways, wisdom is the opposite of strategy — and today, it is strategy, bought by the dozen from legions of besuited, back-slapping consultants, that is cheap, abundant, and worth little.
In a connected transparent world it isn’t wise to believe that capturing, controlling and tricking buyers will solve problems or increase transactions. Rather wisdom suggest doing the opposite is the new solution. However wisdom would also suggest that one should consider the problems created from giving people freedom. People set free from containers creates change unexpected. Unexpected change requires more wisdom.
It cost capital to maintain silo’s. Today capital is scarce and the more advertisers and marketers reduce their spends the less the silo’s will have to run the game. The next iteration of the internet will be aimed at setting people free. Wisdom will have to flourish in order to comprehend the value of freedom.
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If I knew what you know and you knew what I know what we we both know? If we all knew what each other knew how much value could we create from what everyone knows? Social technology will eventually lead us to a “knowledge inventory which indexes what everyone knows. Think about it.
As we share content we are sharing what we think we know or want to know. Not knowing something can mean the difference in gaining or loosing productivity, economic gain and relational value. Gaining knowledge is how people and organizations learn how to do things more efficiently and effectively which improves productivity.
The Cluster Effect
As social technology grows users tend to “cluster” around an affinity of what they know or want to know. The cluster effect is evident by the proliferation of communities centric to “knowledge” people have or want to have. Subsequently these communities converse around topical content indexed by all the search engines. The content generated comes from the people participating. The search engines index key words but what if they were able to index what lies in the brains of the people who participate? Call it a knowledge inventory which reflects what we know. How would that change the game?
The cluster effect is similar to (but not the same as) the network effect. It is similar in the sense that the affinity preferences of both the medium and its participants are based on each ones perception of others knowledge, affiliation, status and value. Thus the cluster effect usually creates and emergence of new knowledge fueled by the interactions of different knowledge nodes, i.e. me and you..
The emergence of social technology is the revolutionary wave of consumer generated “knowledge” and “connections” is controversial to say the least. The media sends a stream of opinions on “how” the systemic dynamics of social technology works and the impact of what it produces for businesses and society in general. Upon discovery of anything new everyone thinks they understand the new phenomena but few are able to truly comprehend the long term implications since there is no one historical reference to explain the dynamics in an orderly fashion.
What we are experiencing is the emergence of knowledge assets being transformed by technological. This emergence has a long tail of discovery with ongoing analysis and development of new intellectual properties being defined to explain the phenomena, i.e. new knowledge.
What does all this mean?
We’ve discussed what is converging together and creating the phenomenon of a knowledge inventory. There are a host of other factors that influence the dynamics of the emerging “knowledge inventory” and to say the least, we’ve only just begun to learn and understand what it all means to all of us as a global community of individuals with diverse interest and knowledge.
Just imagine if the medium evolved and enabled us to quickly access the knowledge needed to make better decisions, to become more productive and to revolutionize the value of the human network. What new economies could be created? How much faster could we solve relevant problems? How much more productive could we all become?
The silos of irrelevant contextual key words will come down and when they do the power of knowledge will be unleashed for all to access and use. New value will be created by what we know collectively rather than what we say individually.
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We all have profiles of ourselves everywhere. Our profiles “contain” relevant information about our educations, experience and interest. Every time we “tweet” or write a post the context of what we share is also a reflection of our “profile“.
The word “profile” carries many meanings including:
- a verbal, arithmetical, or graphic summary or analysis of the history, status, etc., of a process, activity, relationship,or set of characteristics:
- an informal biography or a concisely presented sketch of the life and character of a person.
- set of characteristics or qualities that identify a type or category of person or thing:
- a description of behavioral and personality traits of a person compared with accepted norms or standards.
Given the progress of technology in the near future our “profiles” will integrate our individual “knowledge inventory” relevant to intellectual, social, creative and spiritual capital we all possess. Today our profiles are not integrated into a “taxonomy” of knowledge assets that one would find in places like Amazon, Encyclopedia Britannica or the Library of Congress. Rather our current profiles rest in contextual containers that reflect “key words” that create our on-line identity. The problem is that none of the “contextual containers” are integrated into a taxonomy that indexes the “knowledge assets” each of us possesses.
Why The “Know” Profile Will Emerge
Content on the net represents various forms of knowledge. Content is produced, propagated and published by people. Content attracts people whom have an affinity to the context of the content as it relates to what people want to “know“. What people know is a reflection of their intellectual capital.
People socialize around content which again is produced by people. Popular content may reflect creative perspectives, innovation, new ideas and insights. People also migrate to other people based on spiritual capital meaning common beliefs, principles and practices.
People socialize around content which again is produced by people. The sphere of influence that attracts people to other people represents the collective value attributed by the four elements of “knowledge assets“. The collective value of our individual knowledge assets represent “social currency” that most of us share freely.
Now imagine being able to access a “Knowledge Inventory” that indexed people who have the right combination of “knowledge assets” that could be used to solve whatever problem people or organizations seek to solve. The Knowledge Inventory would be build by categorizing our individual knowledge assets into the following capital indexes that could be measured and vetted over time:
- Intellectual Capital reflects a taxonomy of knowledge gained from our education, experience, relationships and organizations. The common definition of intellectual capital includes relational capital, human capital and organizational capital.
- Social capital is a sociological concept used in business, economics, organizational behaviour, political science, public health and the social sciences in general to refer to connections within and between social networks.
- Creative capital implies is a mental process involving the discovery of new ideas or concepts, or new associations of the existing ideas or concepts, fueled by the process of either conscious or unconscious insight.
- Spiritual capital is a concept that involves the quantification of the value to individuals, groups and society of spiritual, moral or psychological beliefs and practices.
The Value of Creating a “Know” Profile
Whether an individual, organization or society at large having access to the right “knowledge” at the right time represents a significant increase in productivity. Productivity is what fuels the economy. Any economy is tied to productivity. Economic growth is defined as any production increase of a business or nation (whatever you are measuring). Real economic growth consists of two components. These components are an increase in production input and an increase in productivity. (Genesca & Grifell 1992, Saari 2006)
The value of accessing the right knowledge assets applied to any given problem, any new innovation or market opportunity is increased productivity. People are the “containers” of knowledge. Being able to create a knowledge inventory accessible to everyone enables everyone to increase productivity. Doing so would fuel a new economy based on a new currency and everyone could become their own “knowledge corporation”.
Shoot it down or move it forward.
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Every time we converse, post and respond on-line and off we reveal ourselves. The word reveal means to make known, disclose, divulge, to lay open to view, display or exhibit. When something or someone is revealed each of us decides whether what or who is revealed has any relevance to us.
Many of us don’t realize how we reveal ourselves. What we reveal are the things that attract others to us or us to others. Whether an organization or an individual what we reveal are common characteristics that bring us together or separate us.
These common characteristics are transparently revealed in content that is in context to four things that determine who we are, who we want to be as well as who and what we attract.
We are all assets of the human network exchanging value with others. Our value makeup is reflected by four knowledge assets that represents value to the human network. An asset can appreciate or depreciate based on many variables. The primary variable that increases or decreases an assets value is determined by the demand for use.
Do The Assets You Reveal Create Demand for Use?
When we use the term asset we think of things that stores or lends economic value. When we think of the term value many would quickly reference terms of an economic transaction. The human network creates economic value by what we do. We earn money for what we do and exchange the money for other things of value. What we do and the exchanges we make represent “value creation and exchanges” that are and continue to be produced by knowledge assets borrowed, owned or traded between two or more individuals.
Knowledge assets are contained within human beings. The human network reveals four types of capital: 1) intellectual capital, 2)social capital, 3)spiritual capital and 4) creative capital. These four knowledge assets are used to create “value” that is traded with people and things we “value”. These four assets which reveal us are defined as:
- Intellectual Capital: That which we have learned, understand, know and apply to life experiences.
- Social Capital: The relationships we build and our ability to interact with others.
- Spiritual Capital: Our sense and faith in a higher power other than ourselves, our intellect and our social capital. This capital is usually referred to as the knowledge of “God”.
- Creative capital: The insights we see and the possibilities we create. Creative capital is influenced by the internal and external interaction of 1,2 & 3.
We use our knowledge assets and share them with others, organizations, institutions and society at large. We get hired for who we are which is reflective of our knowledge assets. Organizations use and abuse our knowledge assets to their gain or lose. We share our knowledge assets with family, friends and associates. We exchange knowledge assets in the form of conversations, actions and insights.
The #1 influence over economic output is individual and collective knowledge assets of people working together towards a common aim. Imagine if our collective knowledge assets were indexed, able to be searched and subsequently used, borrowed, shared and executed more efficiently. What could happen if we were enabled to identify and connect knowledge assets for collective gain?
Our life experiences shape our knowledge assets defined and then revealed by what we say and do. Collectively our knowledge assets represent the gifts and abilities we have, both the good and bad, which are ultimately shared with others through interactions and future experiences.
The Future Web of Knowledge Assets Connected
Social technology could enable individuals to leverage their knowledge assets for the benefit of others thus creating a giving exchange that provides exponential value. The technological medium will eventually index knowledge assets and create a new economic paradigm when knowledge becomes connected and taken out of silos of information.
The future web will enrich human experiences by giving, sharing, learning, relating and re-enforcing or improving the four things that reveal who each of us really are and what we have to offer and learn from each others.
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Jay Deragon posted a series of articles recently on his Relationship Economy blog which I found especially exciting. As usual, Jay is bringing forward some very important ideas related to social media components and outcomes, but what really sets this new mindset apart is the fact that Jay is asking the same questions that have been plaguing scientists for 100 years.
In Jay’s posting “The Social Moment is Gone” He describes how organizational decisions are driven by metrics that no longer exist.
In another post: ”Measuring Social Moments”, Jay suggests that if things are in a dynamic state then measuring, a moment becomes irrelevant to what is happening the next moment.
In 
quantum mechanics, the Heisenberg uncertainty principle states that certain pairs of physical properties, like position and momentum, cannot both be known to arbitrary precision. That is, the more precisely one property is known, the less precisely the other can be known.
Scientists figured out that in order to study a sub-atomic particle, they had to stop it from moving. As soon as they did that, the nature of the particle changed. Scientists could only study their interaction with the particle, not the particle itself.
Jay is saying something similar: “How can you measure social media if it is responding as a function of your interaction with it? All you are doing is looking at yourself in a mirror – so stop it”. He’s right.
Status Quanta
Keep in mind that this comes in a time when the chorus of social media gurus are still trumpeting the C-Suite Concerto called “ROI or Die”. Maybe someone should remind them that the value of the Corporation that they so fungibly defend is in fact an approximation based on things that cannot be measured. Let me explain:
It is not surprising, therefore, that Wall Street hires Quantum physicists (affectionately known as Quants) to manage money and investments in markets and to “Innovate” new financial instruments.
The Calculus of Social Media…on Wall Street?
Heisenberg’s uncertainty principle lead to the development of a new branch of probabilistic mathematics for approximating both the position and the momentum of subatomic particles. In fact, the science of Quantum physics is entirely contained in probabilities that events will or have occurred and not necessarily based on direct observation – and so are the Wall Street Valuations.
Wall Street uses the same calculus to estimate the probabilities that financial particles will have a specific location and momentum without having to actually witness them. The result is a host of exotic financial instruments that make, bet, hedge, and securitize such approximations for the benefit of stockholders…..
Getting Back to Jay
Markets are conversations. People make products, invent things, design stuff, hold stock, buy, sell and trade everything. Those Quantum Physicists on Wall Street are estimating the position and momentum of people.
All Jay is saying is that now you can do it too.
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People ask me what the Innovation economy is, and of course I explain it to them in terms that make sense to me – while they stare back eyes-a-glaze. I see the world in terms of calculus where “derivatives” and “integrals” floating around like the dream sequence in an old Disney animation.
The Calculus will set you free
But if you take “calculus” literally, we can say that the Innovation Economy will be DERIVED from the knowledge economy by INTEGRATING the tools of the knowledge economy. So lets look at that for a second.
In my tool box, I have my knowledge, I have my friends, and I have the Internet. I also am surrounded by an economy with vendors, marketing, products, services, money, etc. All of it gets thrown into THE MEDIA where ‘controlled’ collisions (that appear random to the rest of us) produce a set of incentives and social norms that we all abide by. Some call it Culture.
….Now, along comes SOCIAL MEDIA
At first, Social media was written off as a cute little game played by bored geeks who could not find a better way to make friends. Then Corporations, Marketers and PR firms saw Social Media as another branding channel – and gosh darn cheap too. HR departments saw it as a great way to snoop on sleepy employees and the C-Suite called it a nuisance.
Blue Sky Theory
Then, out of the blue, the economy starts to disappear into thin air and nobody knows where all the “Market Value” has gone. Trying to “control the message” is like trying to control the temperature of the room by turning the thermostat with all the windows open. The Dollar is disappearing – but where is it disappearing to?
Yesterday’s article starts with the following sentence:
Making human knowledge and intentions tangible in a marketplace opens up the possibility of a whole new class of business plans. We call this Social Power by the Hour.
And it concludes with the following sentence;
The bigger your social network, the cheaper your Power By the Hour becomes. 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.
Money represents productivity
Productivity is defined as the amount that a person can produce in a certain period of time. The next economic paradigm literally INTEGRATES the tools DERIVED from the knowledge economy into a new type of business plan. The result is Power by the Hour – think about it.
America, the Integrated
Let me close this post by saying that America itself is DERIVED from the rest of the World by INTEGRATING the knowledge of the world. America is an Integration Nation. Hold on tight, it’s going to be a wild ride.
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If social media were an organization in the traditional sense it would be bankrupt. Yet organizations use it to try and create revenue.
If social media platforms continue to rely on advertising to support them they will be bankrupt. If social media wasn’t “free” it by itself would be bankrupt. So how do users insure that social media doesn’t go bankrupt? The answer lies within developments that will enable social technology to become an exchange and creation of higher value.
The Social Value Chain
A value chain represents related processes linked together and each process iteration increases value that is passed on to the next “link” of value iteration.
Fundamentally the internet is nothing more than “links” inter-connected yet the inter-connections rest in silo’s not connected. When something of value is not connected to something else the creation of new value is reduced, constrainted and sometimes not even realized.
Today the internet, in all its forms, represents a continuous flow of value contained in text, images and video. The value is created by the context of the information stored in different containers. Social media has accelerated the contributions of value however the value is not connected to anything that creates context to value sought nor is it easily identifiable or accessible. While we have search engines that primarily index content that is popular. The relational attributes of these search engines are centric to key words of affinity. Key words of affinity are not enough to create, contribute or sustain a truly functional value chain.
A New Value Bank
When we use the term bank we think of an institution that stores and lends economic value. When we think of the term value many would quickly reference terms of an economic transaction. We create economic value by what we do. We earn money for what we do and exchange the money for other things of value. What we do and the exchanges we make represent “value creation and exchanges” that are and continue to be produced by knowledge assets borrowed, owned or traded between two or more individuals.
Knowledge assets are contained within human beings. The human bank contains intellectual capital, social capital and creative capital used to create “earnings” that are traded for things we “value”. We use our knowledge assets and share them with others, organizations, institutions and society at large. We get hired for who we are which is reflective of our knowledge assets. Organizations use and abuse our knowledge assets to their gain or lose. We share our knowledge assets with family, friends and associates. We exchange knowledge assets in the form of conversations, actions and insights.
The #1 influence over economic output is individual and collective knowledge assets of people working together towards a common aim. Imagine if our collective knowledge assets were indexed, able to be searched and subsequently used, borrowed, shared and executed more efficiently. Our intellectual, social and creative capital currently sits in silos of information not being used efficiently or effectively. What productivity would be gained? What innovation would be born? What influence would it have on an economy? What currency could be created in the exchanges?
The answers and the new value bank will soon emerge and when it does all things will change yet again.
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