The Earth changes – it always has and it always will. The most interesting thing about Earth is not rock, it is rate of change of rock. Yet it is this rate of change in rock that created oceans, continents and geographical features. The rate of change in the landscape is what created and affects all humanity; global warming not withstanding.
In fact, the rate at which things change is the root of all financial deals, social interactions, creative discovery, intellectual pursuit, even criminal activity. All value is created and destroyed in response to the rate at which something changes. Since change is relative to time, the rate of change is something, like death, and taxes, that you can bank on.
Money, Knowledge, and Power
As a corollary; the ability to measure rates of change in things is the ability to measure value. The ability to cause rates of change is the ability to create or destroy value. It is therefore in our interest to try and express our world in terms of rates of change. For example:
1 Money, interest, and stock price are deeply related. Therefore, the rate of change of money is related to interest. The rate of change of interest is related to growth rate. The change in growth is monetized through a public market for its stock. Stock price affects money and the cycle continues.
2 Information, knowledge and innovation are deeply related. Therefore, the rate of change of information is related to knowledge. The rate of change of knowledge is related to innovation. Innovation creates new information. And, the cycle continues
3 Attention, attraction, affinity, audience, and action are deeply related to each other. Therefore the rate of change of attention is related to attraction. The rate of change of attraction is related to affinity, etc., until finally, the rate of change in action gets everyone’s attention. And the cycle continues.
There are a few problems however. If you remove, corrupt, or disengage any of the components, the cycle fails. To complicate matters further, our three examples are also related: money, knowledge, and audience; stock price, information, and action; etc.
Points of failure can occur at any part of the cycle and it is often difficult to identify which failure caused what effect. Does a stock price fail because the public lost affinity or because information was corrupted? Does an economy fail because there is no money to invest in innovation or because our society outsources its knowledge economy? Does a school system fail to deliver the right knowledge to society because the stock market failed or because there is no public action?
Social Media and the next paradigm of economic development
Social media allows us to express the dynamics of our world in real time and at great speed. Feedback loops are shorter and cause and effect can be more easily differentiated. The data that will be generated through the integration of social media will allow entrepreneurs to identify rates of change of the rates of change! Armed with computer enabled search and analysis algorithms, they can mange these complex new relationships to create value for themselves and their community in a new era of social capitalism. Social media is a higher order calculus.
It will take everyone to accomplish this together but we can create a new landscape for our Earth, ourselves, and our children’s future. This is change we must bank on. Which change will you bank on?