Social Media Transformation Cycles

by Jay Deragon on 05/05/2011

m-cycles-of-transformationMy brain isn’t always the sharpest and it takes time for me to grasp information and its relative meaning.  Words carry lots of meaning and unless we really “read and listen to comprehend” we can miss the true value of someone’s work. If you’ve ever listen to or read something from someone smarter than you then you know what I mean.

Three years ago I read Doc Searls work and in particular The Cluetrain Manifesto.  The theme of the Cluetrain is “Markets are Conversations” and  the book discussed how the internet was propagating conversations at rates never before experienced and subsequently creating and influencing markets.

Recently I read The Cluetrain Manifesto yet again for the fourth time.  This time I think my brain cells finally connected and I saw exactly how the acceleration of conversations create cycles of transformation that  lead to expansion of existing  or creation of brand new markets.  All generated from conversations.

Cycles of Transformation

Conversations are filled with information which is shared with others.  The internet, in its current stage, enables the propagation of conversations from one to one to millions at the click of a mouse.  The acceleration of conversations at rates beyond past experiences facilitates the transformation of information into knowledge.   Subsequently a few people discern the knowledge gained and move to the creation of innovation in product, service and delivery (marketing, service and reach).

From the creation of innovative approaches in product, service and delivery market leaders create currency.  Currency comes in many different forms.  Time, productivity and monetization of both create new capital.  Subsequently the introduction of new innovation gets disseminated as information contained in conversations which now becomes known to the masses thanks to the internet.

At each and every point in the dissemination process, content can be vetted by the community of peers, colleagues, and other participants.   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  social media transformation that is vetted through the marketplace of peers. Past industries were started, enabled and created by conversations that led to innovation.  Consider a few examples:

  1. Manufacturing innovations that fueled production of products that consumers wanted. (examine any product currently manufactured)
  2. Service innovations that helped organizations and consumers improve productivty. (examine any service you use and consider its value)
  3. Technological innovation that fuels productivity, communications and creativity. (examine Google, IBM, Microsoft, Wireless, Internet, Broadcasting etc etc.)

In each case billions of new capital and currency was created.

Now we are witnessing conversations from the marketplace that confirm that the cycles illustrated are indeed the process of transformation aimed at creation of new value. The difference between today and yesterday is the rate of change created by and through the conversations propagated through social media.

Consider recent stories about KFC and Oprah, Target & Non Profits and the how Twitter is helping local businesses improve salesYou don’t have to look too far to see other examples and you can bet we’ll see a lot more who understand this cycle, whether consciously or not, and apply the thinking to create new markets or serving existing ones better.  Those that serve or create markets best win. Did I Get it? Do you?

What say you?


Peter Zmijewski May 16, 2011 at 12:31 am

Great information of Social Media Cycle, can be very useful for my online business.

James Blute May 6, 2011 at 4:10 pm

Great Post.



icqmobileclub November 11, 2009 at 3:05 pm

?????, ??????? ?? ?????? ;)

Richard Buettner October 27, 2009 at 3:24 pm

Like it and thanks for RT my article!

Linda M. Lopeke September 25, 2009 at 9:09 am

Social Media Transformation Cycles | The Relationship Economy

backbonemedia August 28, 2009 at 1:23 am

Infograph of the day: Social Media Transformation Cycles RT @bnox

Clo Willaerts August 28, 2009 at 1:22 am

Infograph of the day: Social Media Transformation Cycles

backbonemedia (backbonemedia) August 28, 2009 at 1:32 am

Twitter Comment

Infograph of the day: Social Media Transformation Cycles [link to post] RT @bnox

Posted using Chat Catcher

bnox (Clo Willaerts) August 28, 2009 at 1:26 am

Twitter Comment

Infograph of the day: Social Media Transformation Cycles [link to post]

Posted using Chat Catcher

MIrealestate (Mike Bowler Sr) July 26, 2009 at 7:26 pm

Twitter Comment

RT @Swinkler01: @MIrealestate I think they are, but the transformation is still in the early stages. You? Learning: [link to post]

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Swinkler01 (Shawn Winkler-Rios) July 26, 2009 at 7:35 pm

Twitter Comment

@MIrealestate I heard about the book but haven’t read it. I’ll get it. Powerful change is coming.

Posted using Chat Catcher

Bertrand Duperrin June 2, 2009 at 9:49 am

Social Media Transformation Cycles via

JDeragon May 29, 2009 at 6:46 am

@JohnAByrne would love to do a video interview with you and Doc Searls regarding this

Olivier P. Soares May 21, 2009 at 4:15 pm

Sent from my iPhone

MugeCerman May 20, 2009 at 11:18 pm

Social Media Transformation Cycles

Simon Mainwaring May 20, 2009 at 7:45 pm

Social Media Transformational Cycles. Creating value at a faster pace.

Rob Harvey May 20, 2009 at 11:33 am

Social Media Transformation Cycles: You don’t have to look too far to see other examples and you can bet we’ll s..

JDeragon May 20, 2009 at 10:01 am

New blog post: Social Media Transformation Cycles

Jason Breed May 20, 2009 at 8:34 am

I’m digging this, but now I want more. Just because you have alot of conversations, does not mean you can create new revenue sources (lots of unemployed “master networkers” out there).
1. Are they relationships for purpose? this ties back to developing strategy, purpose then executing, where its those who execute best who win (except now it’s in the relationship economy).

2. Is it the best utiliization of networks where utilization ties back to relationships? Consider the 80/20 rule where 20%of customers make up 80% of sales. If those networks are better utilized, can you move another 5% up to make it 75/25, thus increasing earnings?

3. Is it when you move the conversation from a transactional orientation to more of a process orientation (considering some longer tail of the relationship as a result)?

More, more, I need more!!!! (can you help :-)

Marc Meyer May 20, 2009 at 7:15 am

Jay you got it. I was nodding my head and saying yep after each paragraph and sentence..well said.

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