The strategic models of social media are taking shape. The shape is scoped around the process of transformation created by accelerated conversations.
However not all conversations are vetted through the cycle of transformation rather only those that make it through the social vetting process and ultimately create new products and services for a marketplace ripe for innovation.
Monetization opportunities exist at the points of transformation:
- The transformation where information is formed. Who fomred it and from what reference point
- The transformation of information into knowledge. Who gained from it and subsequently offered it out to their “followers“
- The transformation of knowledge into innovation. Who use the knowledge gained to create something of value to the larger audience
The transformation of an asset from on phase into another phase is the “value added”. Transformation is the entrepreneurial activity of any business. In all business education, Information, knowledge, and innovation are distinct phases of human intellect. Information is facts and data; knowledge is proportional to the rate of change of facts and data, and innovation is proportional to the rate of change of knowledge.
The most important part of a social media strategy is the social vetting. This is how your content is treated by the community. It can be propagated, ignored, criticized, or held forward as an asset or a liability in the aggregation of conversations and therefore may affect the reputation of the individual or brand.
The vetting process is difficult because there is very little control over how your content is distributed or interpreted by society. Individuals and businesses have liberties to express controversial views in the construct of sound logic and reasoning. We all enjoy some immunity for our controversial positions within controlled settings, but perhaps not in the transparency of the social web.
At each and every point in the dissemination process, content can be vetted by the community of peers, colleagues, and other participants. Some examples of social media vetting tools include rating systems, stumbleupon, diggs, retweets, and a large variety of social networking applications.
This is extremely important because content that survived extreme vetting becomes a factual addition to the marketplace of knowledge. This is the highest order and the most valuable outcome of the social media exchange. Every notice how valuable conversations are those that facilitate the creation of new value and subsequently are passed on to ultimately create innovation that attracts the masses? Microsoft, IBM, Google, Facebook, Linkedin all the Fortune 500 and every business born on the landscape of commerce was born out of a conversation. Those that survive are those that continue the conversation aiming at increasing value through innovative developments that the market wants or consumes.
The value of social media is relative to the cycle of conversational transformation that is vetted through the marketplace of peers and the conversations that create the most value win. Today the media reports on the short term accomplishments created through the conversations vetted by and through social media.
Tomorrow the media, both traditional and non traditional, will report on the value created from the conversations that have been vetted and transformed into innovative products and services that drive new revenue.