Pathways to Economic Value?

by Jay Deragon on 08/15/2008


As we watch networking and social media grow it is way beyond a movement and quickly becoming a segment of all industry. It is pretty clear that the path is cutting across all segments of relationships in all markets. As I watch I see a clear segmentation of relationships currently or about to be significantly affected. In my view these segments can be categorized into five communities which include:

Kids: Youth
Adults: Those have gained a degree of life experiences
Businesses: a collection of processes aim at producing economic gain from value
Institutions: Education, Non-Profit, Religious organized around common community interest
Government(s): Those organizations that govern the peoples freedoms

Myspace validated the market for the youth. It has and continues to meet a need, old or created. Linkedin, Facebook, Yahoo Forums and others has validated the need and demand, old and created, for adults. IBM has stepped out in front and is meeting the known and unknown needs of the business segments and it will begin the transformation of all industries across the globe.  Next, and just beginning is education, institutions, non-profits and religious. Each will begin to learn how to use the new medium to significantly enhance and accelerate the value chain to their constituency. Last, and usually always last, will be government (s). Generally speaking governments migrate to where the people are because without the people there would be no government, of any sort.

The collective migration will happen fast and create new economic value beyond and different than today’s definitions. We are in the middle of a cultural, economic, political and behavioral transformation like nothing every previously experienced. The transformation is also a path for each individual and subsequently we will need to learn and adapt. What is fasicnating, at least from my perspective, is the learning and adaption drives us all back to the basic tenents of healthy and mutually beneficial relationships. The old becomes new due to the emergence of enablement technology driving networks of relationships.

The dynamic of our society, and particularly our new economy, will increasingly obey the logic of networks. Understanding how networks work will be the key to understanding how the economy works.

What s your path> Resist or engage?  What say you?

{ 2 comments }

jimxo7 November 18, 2010 at 2:53 am
Dan August 15, 2008 at 11:29 am

Jay;

An excellent perspective and I can substantiate your point:

I have written many “future” business cases running everyday situations through the mill of Innovation Economics. One twist on the Home Owner’s Association is a community site where people gets together to agree upon the value of each others homes. It is not in anyone’s best interest to be overvalued in a market because none of the houses will sell quickly. It is not in anyone’s best interest to be undervalued because you money would be left on the table. So, everyone’s best interest to have correct value. They would also discuss the best ways to increase the value of their homes in a market correct manner because this is in everyone’s best interest. These values would be used to Certify Zillow Zestimates, for example, and the payoff would be that the people can keep the real estate commission or have correct equity for home equity loans. etc.

So here’s the cool part. The thing that has the highest positive impact on a home’s value is a good neighborhood and an engaged community. I believe that this is your point – one which can be similarly applied to nearly any transaction.

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