/>It seems that “media” conversations are being drawn back into an examination as to whether all this social stuff will ever produce any revenue. The most recent examination was an Associated Press story titled “Can all that Twitters turn to gold amid the gloom?“. AP says of Twitter: “It’s a potluck of pithy self-expression simmering with whimsy, narcissism, voyeurism, hucksterism, tedium and sometimes useful information.
One vital ingredient has been missing from the mix so far — revenue. That raises questions about whether the nearly 3-year-old service can make the leap from intriguing fad to sustainable business.”
Twitter is looking at numerous ways to create revenue including advertising and selling analytics of its users behavior. Other networks like Facebook and Linkedin are looking outside of advertising at additional revenue streams to support their need to increase market cap and revenue growth to support additional developments. In the meantime the world of independent application developers continues to surround these networks and push out new applications aimed at increasing utility and productivity for users. At the same time users are finding unique ways to use social technology for personal and business purposes. It seems we are all in a huge learning curve with a passion to discover innovation that produces an economic return.
What Discovery Produces The Economic Return?
The virtual chain reaction of convergent conversations perpetuates discovery of innovative ways in which social technology can be used to produce new value or lower the cost of old processes. When you think about Twitter, Facebook, Linkedin and the host of other platforms as nothing more than a technological exchange of knowledge then the value of the exchange increases with the ease of discovery. The ease of discovery perpetuates with increased technological functionality that enables people to “find or discover” new knowledge efficently and effectively. Why do you think Facebook recently changed its terms of service to state they own the content? Because with smart agent technology they can take all the content and discover new knowledge and new ways of enabling users to access it at the click of a mouse.
Think about the vast amount of conversational threads within Twitter as nothing more than “brain dumps” of ideas, observations. news and exchanges of value. If you add smart agent technology to that database you create a knowledge exchange on steriods which creates new value that can be converted to a currency of exchange. Now do you understand why Facebook offered Twitter $500 Million to take it over? Twitter rejected the offer.
Does a Knowledge Exchange Produce Economic Returns?
With the move of advanced economies from a resource-based to a knowledge-based production, many organizations have increasingly recognised ‘knowledge’ and ‘innovation’ as a significant driving forces of economic growth, social development, and job creation. In this context the promotion of ‘knowledge exchange’ has increasingly become a subject of public and economic policy. Why? Because learning begets knowledge which begets innovation which creates new economics.
The term innovation means a new way of doing something. It may refer to incremental, radical, and revolutionary changes in thinking, products, processes, or organizations. In economics the change must increase value, customer value, or producer value. The goal of innovation is positive change, to make someone or something better. Innovation leading to increased productivity is the fundamental source of increasing wealth in an economy. Since innovation is also considered a major driver of the economy, especially when it leads to increasing productivity, the factors that lead to innovation are also considered to be critical to finding economic returns.
Those who are directly responsible for application of the innovation are often called pioneers in their field, whether they are individuals or organizations. Social networks are being deemed as “the great, largely unknown, and certainly underexploited, resource” contributing to the creation of wealth and economic competitiveness. If our conversational exchanges are the bases of innovative discoveries then the economic value enabled from mining our conversations is where the real money lies. Get it? What say you?