Transformation of Social Wisdom

by Dan Robles on 05/30/2010

1011442.largeObviously data are related to information and information is related to knowledge and knowledge is related to innovation and innovation is related to wisdom (whew!).  But how are they related? What few people realize is that if you take out any of these components, the whole relationship falls apart.

data > information > knowledge > innovation > wisdom

For example, if data are corrupted, then everything that follows becomes corrupted; hence the advanced mathematical equation: “garbage in = garbage out”.  Few people realize that at the end of the relationship, the wrong wisdom creates the wrong data and therefore “garbage out  = garbage in” starts the process all over again.

Going from one component to the next is called transformation. If the transformation fails, no value is created. Google Transforms data into information.  Human intellect transforms the information into knowledge.  Knowledge is shared among other people and transformed into innovation.  The success and failure of innovation is transformed into wisdom.  Community wisdom, through the behavior of individuals, is transformed into data.

Entrepreneurs are  concerned with transformation – this is where value is created.  The entrepreneur identifies assets operating at a lower level and transforms the asset into a higher level.  That is what entrepreneurs do.

The key to monetization is not coffee beans, it’s the transformation of $0.20 worth of coffee beans into a $2.00 Latte.

Transformation is where the most value is created, but it is also where the most risk exists.  As such, it is the area where most entrepreneurial opportunity exists to manage risk, eliminate risk, diversify risk, and mitigate risk. To control the node of the transaction is to control the entire transaction.  This is where the garbage enters.  This is where the garbage is eliminated, this is where the garbage moves on.  It’s all about the transformation.

Any asset that fails to change fails to remain an asset.  Value is derived from the rate at which assets change. If I produce more in less time, I become more valuable.  The RATE OF CHANGE in a phenomenon carries the most interesting and valuable information about that phenomenon. This is an important distinction that many people just cannot wrap their heads around – but they must if they hope to prosper in the next economic paradigm.

Transformation of the wisdom of crowds in social media is the next great opportunity, don’t trash it.

{ 21 comments }

Siteworx June 2, 2010 at 12:30 pm

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Jolt Social Media May 31, 2010 at 8:47 am

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Mads Kristensen May 31, 2010 at 1:44 am

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Dan Wedin May 30, 2010 at 3:15 pm

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Arnold Melm May 30, 2010 at 6:22 am

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Gavin from Sendible May 30, 2010 at 6:02 am

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Linda Schenk May 30, 2010 at 5:56 am

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JobShoots May 30, 2010 at 5:56 am

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JobShoots May 30, 2010 at 5:56 am

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Alltop May 30, 2010 at 5:56 am

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Allen Howell May 30, 2010 at 5:51 am

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Joe Grasso May 30, 2010 at 5:25 am

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smconnection May 30, 2010 at 5:25 am

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AllThingsM May 30, 2010 at 4:58 am

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Achievers Network May 30, 2010 at 4:55 am

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Aron Stevenson May 30, 2010 at 4:55 am

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prblogs May 30, 2010 at 4:55 am

RelationshipEcon: Transformation of Social Wisdom: Transformation of the wisdom of crowds in social media is the n… http://bit.ly/aRBcws

StarGazon May 30, 2010 at 4:31 am

Transformation of Social Wisdom via The Relationship Economy – Obviously data are related to information … http://tinyurl.com/37vcbow

Angela Suddarth May 30, 2010 at 4:31 am

[email protected] Transformation of Social Wisdom:
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The Social CEO May 30, 2010 at 4:31 am

The Social CEO Transformation of Social Wisdom:
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JDeragon May 30, 2010 at 4:30 am

ReThink: Transformation of Social Wisdom http://bit.ly/biDuXF

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