The Next Great Leap for Social Capitalism

by Dan Robles on 07/31/2010

Igem from above cropped 300x199 The Next Great Leap for Social CapitalismThe Knowledge inventory will become the most important element of Social Capitalism.  Today, knowledge is largely sequestered behind the walls of corporation in the form of titles, skill codes, resumes, job descriptions, certifications, and college degrees.  In order to predict the future, we point to the things that we have done in the past.

2nd Place is 1st Loser

10% of the country is unemployed and less than 10% are fully actualized in their profession.  Competitive forces drive the hiring manager.  The consequences of all business decisions eventually lead to win-or-lose market scenarios.  People compete with each other for promotions, the boss’s time, the corner office, or just staying off the unemployment line.  That is the only future anyone can truly predict based on the past.  It’s easier to predict the loser than the winner – so that’s what happens.

Social media is very different.

People are organizing themselves in a new form outside the construct of the corporation.  Linkedin aggregates intellectual capital, Facebook aggregates social capital, and You Tube aggregates creative capital.  Millions of blogs, Twitter, and a generation of search engines reassemble all these parts in ways that create social value.  People are not competing with each other, instead, they live on a bell curve.  They are seeking cooperation and collaboration. People use “like” buttons, tweet counts, and analytic data to “value” the quantity and quality of another person’s knowledge.  There are fewer losers, hence more winners,  because there are a greater number of  markets – not just one corporation.  Everyone is a corporation.

No Governance, no anarchy, no problem

Since social media is outside the construct of a corporation, there is no governance. There are lots of people trying to control only to experience diminishing returns.  Microsoft, Apple, Google, and Facebook must tread extremely carefully on the landscape of public opinion precisely because of their dominance.  People use Facebook to attack Facebook, PowerPoint to attack Microsoft, YouTube to attack Google, and Twitter to attack everyone.  Retribution would be suicide.

The Last Mile of Social Media

Now, geo-location services are filling in the Last Mile of Social Media where communities will form to produce things that are tangible and real.  As a result, there is a sharp increase of interest in a form of currency that can represent this social value.  Some of this is because the dollar is losing its ability to represent people’s productivity.  So they engage a different economic system.

Social Productivity

The next great leap in Social Media will happen when people reorganize themselves in an external knowledge inventory, outside of corporations, and segmented in high granularity of knowledge assets in close proximity to each other.  Entrepreneurs can then assemble people in unique, efficient, and productive ways.   People will then build things for profit using a new currency – a new social currency.

{ 4 comments }

Jeff Mowatt August 3, 2010 at 1:29 am

From the P-CED white paper on a model for social capitalism :

“By going with the normal flow of free-market enterprise and the emerging replacement of monetary capital with intellectual capital as the dominant form of basic enterprise capitalization, it becomes easier to set up new companies primarily on the basis of invested intellectual capital. (See Post-Capitalist Society, by Peter Drucker). In plain English, socially responsible and forward-thinking companies can be set up quickly and cheaply–and these companies have indefinite potential for earnings and localized, targeted economic development. The initial objective is to develop model enterprises and communities, then implement successful strategies from those models into surrounding communities regionwide or nationwide, as needed.”

fransgaard (Robert Fransgaard) July 31, 2010 at 7:06 am

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Rt @Alltop_Social The Next Great Leap for Social Capitalism [link to post] Social-Media.alltop

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josephgrasso (Joe Grasso) July 31, 2010 at 7:05 am

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bobhayward (bobhayward) July 31, 2010 at 7:04 am

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RT @AronStevenson: The Next Great Leap for Social Capitalism [link to post] #socialmedia

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