Author: Admin Page 11 of 23

Outsourcing Fail

On September 28, 2010

Gambling with Jobs

The US Senate recently blocked a measure designed to reduce the outsourcing of US jobs that many corporations pursue in the relentless drive to reduce costs.

Modern Globalization is a system

Globalization must be analyzed like a system. Data, Information, knowledge, Innovation, and wisdom are profoundly related in a system. If you take away one of the components, the others become worthless. If you destroy one component, the entire structure could fail.

Everyone knows that data, information, knowledge, innovation, and wisdom are related. If I corrupt the data, then the associated information, knowledge, innovation, and wisdom are also corrupted. Likewise, if I eliminate any of these elements, the system fails.

Focus on Core competency – what core?

The standard argument for outsourcing is that knowledge workers are better allocated in innovation jobs so “we can better focus on our core – and heck, we can all save a little dough in the process”. But when we outsource our knowledge economy, the innovation economy is choked off. The knowledge economy is the source of the Innovation Economy. The Knowledge economy is also the recipient of the information economy which transforms data and information into useful tools, ideas, and products.

Rate Of Change is Innovation

The rate of change of the innovation economy is directly proportional to the INCREASE not the OUTSOURCING of the knowledge economy. This is the calculus of outsourcing. If, on the other hand, it is in you best interest to keep a population poor, weak, and unable to organize into powerful collectives, then yes, outsourcing is an effective method.

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The Innovation Banker

By Admin

On September 22, 2010

In General Information

Future of Banking

When I use the term “Innovation Bank”, people conjure up the image of a cheery place where anticipation reigns as starry eyed depositors arrange their intellectual property in neat cubby boxes, Patents fly like cash register receipts and companies troll the halls looking for a cure for their bottom line blues.

This is not exactly what we have in mind, nor is it too far off either. An innovation Bank is simply a knowledge inventory that contains knowledge assets that exists in the format of a financial instrument and can be deployed for the purposes of increasing productivity. In the process, it makes 10X more of itself every time it is deployed. It mints its own money.

The Innovation Banker

This is not much different than a financial bank. In fact, in the financial bank, everyone assumes the borrower has the knowledge to execute the business plan and the bank lends the money. Oh, by the way, the money makes more of itself 10X over (fractional reserve system) every time it is deployed.

With the innovation bank, everyone assumes the entrepreneur has the money to execute the plan, and the seek to borrow the knowledge. Other than that, they can be considered identical. The key is in the scope, depth, and format in which the knowledge assets live in a community as well as the ability to track and preserve the creation of new knowledge in a community. An innovation banker is a knowledge banker

A Virtuous Circle

Together with the financial banking, these two system engage in the dance of the virtuous circle of innovation enterprise. Apart, they collapse into the swirling cesspool of eternal debt and infinite interest (pun intended).

Ingenesist.com

Music by Phil Felicia

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Calculus for Dummies and Capitalists

By Admin

On September 20, 2010

In General Information

Mathematics Dysfunction Disorder

I am continuously astonished at the reactions I get from people every time I make a reference to mathematics, especially Calculus. Most people politely glaze their eyes over and stare at an inanimate object somewhere behind my head. Others launch into a diatribe of how the linear thinkers destroyed the world in the first place. Others will simply say, “I have [insert Deficit Dysfunction Disorder here]”

Puzzled by Limits? Perplexed by derivatives?

The truth of the matter is that everyone already knows Calculus, they solve differential equations all day long – they just don’t know that they already know what I’m talking about. If you take away all the strange terms, squiggly lines, and alphabet soup notation,….

Calculus is astonishingly simple

The Banker does not care about money, he cares about the rate of change of money.
The Stock Market does not care about risk, it cares about the rate of change of risk
The Politician does not care about votes, they care about the rate of change in votes
The Meteorologist does not care about weather, she cares about the rate of change in weather
The Pilot does not care about lift, they care about the rate of change of lift
The Gymnast does not care about motion, she cares about the rate of change of motion
The Artist does not care about color, he cares about the rate of change of color
The Doctor does not care about your health, she cares about the rate of change in your health
The Baker does not care about dough, they care about the rate of change of dough
The Farmer does not care about crops, he cares about the rate of change of crops
The Scientists does not care about data, they care about the rate of change of data
Google does not care about information, it cares about the rate of change of information
Entrepreneurs do not care about knowledge, they care about the rate of change of knowledge
Markets do not care about innovation, they care about the rate of change of innovation
Our children do not care about our wisdom, they care about our rate of change of wisdom

When people can learn how to understand what they are really doing in instead of what they think they are doing, then and only then, will we be able to see, and subsequently, build the next economic paradigm. That is why I use mathematics and that is when Social Media Becomes a Science

The Capitalist does not care about value, they care about the rate of change of value

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Death By Résumé

By Admin

On September 19, 2010

In General Information

Résumé: A French word for separating the body from the brain

We are entering a renewal in the work force. The global imperative is for the United States to become an innovation economy now. This is an entirely different animal than the Industrial revolution; I have long argued that the résumé system is by far the most archaic knowledge management “currency” of trade in use today.

The entire premise of the résumé is destitute, if not destructive, in the modern world. Words on a computer screen are a very low level ‘media form’ being used to describe a very high ‘media form’; social, creative, and intellectual capital. It’s like using crayons to design an aircraft.

If the key words are so important, why have any other words?

A manager always hires people that remind them of themselves. They estimate the future success of a candidate based on their own limited, and often static, past experiences. The world is moving so fast and has become so complex that no manager can possibly know enough to capitalize the future based on a viable statistical sample of past experiences – we’re all holding on for dear life in a hurricane of change. The problems and opportunities of the future are so huge, so important, and happening so amazingly fast yet the allocation of human resources is worse than random for a candidate pool.

Here are a few comments that I’ve picked off some recent Human Resources Community Blogs:

***

1. And our future goes with it:

“Most recruiting systems I’ve seen screen out innovators. Any résumé that is unique, different or convention-defying gets surreptitiously put in the junk pile.”

2. Start by looking in the junk pile:

“The Innovation Economy requires that the talent that creates the most value for an organization must rise to the top. Innovators are playing an increasing role in creating shareholder value – one might argue that they create the most shareholder value these days – and figuring out how to find and attract this very different breed of talent is one of the most critical initiatives you can launch within your organization.”

3. What part of “share holder value” are we having difficulty with?

“The most innovative people I have ever met don’t follow conventions in their experience or in their résumé. Or, they get bored very quickly when they can’t innovate or are forced to focus on operations, and efficiency. Most might look like (and even be) job hoppers”

4. Here is my favorite comment – I wish I could hug this person:

“I think it takes more than a résumé to screen an Innovator in or out. As blogs, blog posts, social networking, more powerful search tools, personal websites, the emergence of video on the web, talent platforms that offer CRM, etc. etc. etc. continue to become additional tools for an employer to consider in making a hiring decision, is the résumé still a currency for a candidate?”

***

We have an inventory and CAD model of every nut, rivet, and panel that goes on an airplane – why would we try to build anything without one?

So Please, let’s evolve out of the revolutionary times and develop a real community knowledge inventory. It must be computer enabled and based on a taxonomy that everyone knows and understands. It must be read, analyzed, sorted and vetted by social networks and communities of practice. It must integrate with knowledge assets from anywhere in the world.

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How Knowledge Assets Live In Community

By Admin

On September 17, 2010

In General Information

Our culture organizes itself around winners and losers. Corporations reflect this competitive nature to the core of their Capitalist doctrine. Sports analogies abound across the enterprise straight through to the HR department always on the lookout for the most amount of superstar for the least amount of money.

Social media has every industry trying to understand the concept of community. Nature and our environment continues to demonstrate to humanity that there is far more cooperation going on than competition. There is tragedy looming at both ends of our political spectrum and some people are realizing that we are all in this together.

Twitter shows us that everyone is an expert at something and nobody is an expert at everything. Corporations must understand that someone not performing adequately cannot be treated as flotsam subject to jettison at the next layoff or outsourcing opportunity. They soon see that their customers disappear as well – because they are the same. Communities, people, social networks, and their integrated knowledge assets are the mis-allocated asset being squandered by losing management teams, not land, labor or capital.

Like most valuable assets, there is a perfectly legitimate market for everyone in a community – nobody need be excluded, marginalized or laid off. Social Media is turning the tables on the hierarchy. Old winners who don’t play by the new rules quickly become the new losers. Maybe we ought to run our economy like a community instead of losing so badly at trying to decimate our competition; each other.

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How Obama Will Save The World

By Admin

On September 16, 2010

In General Information

Do the math – Interest on National Debt can go all the way up to infinity while Austerity measures can only go down to zero. There is tragedy looming at both ends of the political spectrum and the Golden Goose can’t fly much longer. Captain Obama is in a tough spot.

Someone will eventually need to gently lay the economy down in a nice soft spot with a just a few critical social programs intact. A task comparable to US Airways Pilot Capt. Sullenberger who successfully landed his stalled airliner on the freezing Husdon without ripping off the wings, catching on fire, splitting the hull, or sinking the ship with all the passengers inside.

Here is how the endgame is shaping up:

Through some secret signal, all of the World’s money barons will come together and agree to simultaneously lop off three zeros (000) from all financial balance sheets. This will effectively reboot the world economy. A $50 trillion debt obligation now becomes a quaint and manageable $50 billion debt. Unfortunately, a $500,000 dollar pension becomes worth about $500 bucks. The game will reset with champaign toasts and business-as-usual in a race to conjure new debt into existence. The recovery is on … for some.

Those who have exactly as much debt as they have tangible assets will enjoy a net zero impact. Those caught at the extreme ends with too little debt or too much cash will lose spectacularly.

A stoic and sober Capt. Obama is at the controls, should we be worried?

Well, maybe. Just to give you an idea of what’s happening in the cockpit: Capt. Obama will project his glide path into the visible horizon. If he can’t make it out to Hillary’s term, he will probably try to set it down right after he is re-elected and can still blame the GOP. The GOP will try everything they can to wrestle it down before 2012 – split hull or not – so that they can claim the presidency. If they win 2012 without the landing, they’ll land it soon after 2012 and blame it on Obama. Note that none of this has anything to do with aerodynamics.

Why should this inspire anyone’s confidence?

There are a few people in the back seats working really hard to build a parachute that will hedge their fall. None of the people near the cockpit, boardrooms, or stock exchanges have any idea what these passengers are doing – they don’t seem to care – instead, they are too busy topping off their debt to equity ratios for optimum survivability upon impact.

But, the hedge instrument is playing out in Social Media, slowly siphoning the factors of production into a new economic system. Some passengers are only inches away from jump-starting an alternate economy using a social currency backed by real productivity, not debt, in a new form of capitalism. All they need is an instrument that is only a little better than what’s flying now. Then, all the money in the world will convert to the hedge currency.

Now THAT’s monetization.

The guys near the cockpit will never see it coming – they’ll only see it leaving. That’s how Obama will save the World. Let’s hope he can swim.

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Social Vetting Makes Knowledge Tangible

By Admin

On September 15, 2010

In General Information

The term “Vetting” comes from the sport of horse racing where the animal is “vetted” by a veterinarian to determine if the animal is in suitable condition to race. Today, there are many vetting mechanisms acting in society and communities. Think of it as the referee that keeps the game fair. This is important because if the game is not fair, people will stop playing.

Where the vetting mechanism fails, the system fails. This has happened in countless instances from the current financial crisis to nearly every product, market, environmental calamity, or political failure in recorded history – the referees who were supposed to keep their eye on the ball, did not. Likewise, where a vetting mechanism is effective, the system is efficient.

Today, we find severe problems in finance and government and people are investing their knowledge assets in social media as the place to “store and exchange” their present and future productivity – instead of deploying money or debt. As such, social vetting is taking many different forms to validate, qualify, and quantify knowledge assets in communities.

While the progression may not be noticeable, there will be a tipping point where the medium has built enough trust that it can support a currency. This new currency needs to be only a little bit more “trustworthy” than the currency it will replace. This is the point where knowledge becomes tangible.

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Why Two Gurus are Better Than Four

By Admin

On September 13, 2010

In General Information

Marketers need to recognize the order and permanence of human evolution. Once our species started to walk upright on two legs, we never permanently returned to walking on all fours. Such is also the case between the lower social order of communication called “Information” and the higher social order of communication called “Knowledge”. I will explain the difference now.

Social Value written or spoken to a medium is defined as Information.

Social Value which exists only between human ears is defined as Knowledge.

Likewise,

Social Value is created by transforming Information into Knowledge.

Social Value is reduced by transforming Knowledge into Information.

Once humans learn to create, store, exchange, and trade knowledge among each other, they will never return to the utterly primitive practice of mining and exploiting information.

If you agree with me then I congratulate you for your advanced state of evolution. If you do not agree with me, then I apologize for the inconvenience.

Living in the Past

Advertisers have an especially hard time with this because it is their core competence to devolve human knowledge into information through data mining, social media espionage, and machine gun marketing – all without necessarily elevating anyone to a higher state of social order. This is, by definition, a reduction of social value.

Consumers now walk on two feet in forming a strategic networks of knowledge assets in social media. Meanwhile advertisers still slither around on all fours pimping info biscuits. Consumers can easily see when Value is being stolen from them so they simply ignore the screeches and clamoring of the devolved creature. Or worse, a counter attack is a very simple – and often quite entertaining – using an evolved tool set.

Holy shit, I need a Guru:

So, the advertisers go off and hire a Social Media Guru to make the old evolutionary order all better again. The Social Media Guru does all sorts of things that look civilized to a four-legged creature, but appear increasingly ridiculous to the evolved being.

Lo and behold, the advertiser is hugely successful in attracting lots of other four-leggers and believes this to be progress!! This makes the Guru into a Celebrity. But still, the advertiser simply cannot get any attention from the two-leggers, who now control all the Value. So, the advertiser goes back to the Social Media Guru who responds by joining forces with yet another Social Media Guru….

Surely two gurus are better than one, especially to those who still believe that four legs are better than two.

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9/11 and the Convergence Economy

By Admin

On September 11, 2010

In General Information

Today, I have been reading a lot of posts related to 9/11 and the terrible events of that day. The conversation lives. It is propagated in every direction and expressed in so many different ways once unimaginable from editorialized news.

My memory of 9/11 was quite personal; I was the customer engineering account manager at Boeing – my customer was United Airlines. I was fortunate to have worked with many UAL Pilots and Flight Attendants and their Unions; UAL lost 16 employees that day – I lost 16 friends.

I remember the anxiety in the aircraft business as the unspeakable was spoken, the impossible became possible, and the unreal became real. My own identity was defined by commercial air travel and the safety and comfort of people and families. The relationship between Boeing and UAL has always been profound; but the strain caused inside the industry was foreboding.

The fact that data could shift so rapidly called everything into question. Relationships diverged, people no longer knew how to process the information that was available. This gargantuan ‘outlier’ stained every single probability chart in existence – like a crater in a barren landscape. The only clarity could be found in shorter time segments, before 9/11, after 9/11… but not 9/11.

“Google News” was one of the first information aggregation devices and was developed in response to one news junky’s need to know, as soon as possible, what is happening in the world of such micro-timing. As the subsequent political and economic swings overshot every rational stabilizing mechanism such as ‘checks and balances’, or ‘market arbitrage’ forces, the rest of us sought quicker and better ways to stay in touch with the events of the world. This meant, quicker ways to stay in touch with each other.

Today, as 9 years of “new time” has been added to the risk equations, we can see the effects of radical cultural shifts; social priorities are gaining momentum over Wall Street priorities. While governments still wrestle with the old world order, a new one is forming in it’s place. This new world has the power to perform many of the functions of corporations and government. Can twitter catch terrorists? Can Facebook entries trigger community awareness? Can instant messaging deliver instant response? How many lives are saved by Social Media? I am not certain, but it is an important question to ask that age old question: Will good triumph over evil? or in economic terms; Is humanity self-correcting?

The convergence continues. The next paradigm of economic development will continue on the micro-time scale as FB communities hit neighborhoods, Linkedin communities hit local communities of practice, and Twitter news armies grow. Cooperation Capitalism will replace competitive Capitalism and social vetting will replace institutional surveillance. Finally, a productivity backed currency will replace debt backed currency. Bring it on.

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Create 9 Million Jobs with Innovation Bonds

By Admin

On September 10, 2010

In General Information

Another approach for spending a Trillion dollars (backed by debt) would be for the government to issue innovation bonds (backed by innovation) to fund new innovation enterprise. Surely the World still greatly admires and respects American Ingenuity (social capital, intellectual capital, and creative capital) especially in the age of social media and would likely buy such a financial instrument, if not to copy, improve, and outsource on it later.

The final frontier; your backyard

The Last Mile of social media is a vastly unexploited resource with an astonishing wealth creation potential. The Ingenesist Project (TIP) specifies a structure for an innovation economy through the application of 3 simple web applications deployed to social media that will ignite “The Last Mile”.

Already, people use social media to harvest great ideas from around the world. The Ingenesist Project will enable global ideas to be applied in local economies throughout our communities.

Running Numbers:

The sweet spot for Last Mile social media is (2-6) people living within a (1-6) square mile area. Assume an average entrepreneur density is about (1) person per square mile. The United States is a little more than (3) million square miles. If only (3) of the thousands upon thousands of potential applications of Last Mile social media were implemented across the country, then (9) million jobs would be created.

Dan’s List; Leave a Tip

Here is a list of (10) hypothetical business ideas that a buddy and I dreamed up over lunch using TIP methodology for inducing an Innovation Economy. Each of these ideas has a working revenue model.

1. Zertify: This company is a last mile/vetting social media application where neighbors “Zertify their Zillow Zestimates”.
2. Start Up Neighborhood (SUN): is a last mile social media application where neighbors get together to innovate and create new businesses.
3. ScatterWatt: is a last mile social media application for decentralizing power generation aggregating local clean power generation systems (rooftop wind, solar, greenery).
4. ComPrac: is a last mile/vetting application of social media that forms and organizes communities of practice for the purpose of mentorship and cooperation in innovation.
5. CombinePac: is a last mile/vetting application of social media that combines communities of practice strategically for the purpose of tangential innovation
6. TopUse: is a last mile social media/vetting application that makes best use of already disturbed lands saving undisturbed lands from exploitation.
7. CodeVitae: is last mile/vetting service that translates CVs and job descriptions into universal decimal classification system for computerized analysis, normalization, and improved allocation.
8. Proximizer: A last mile social media application that reallocates knowledge assets for best proximity to home space for carbon credits.
9. CarbonCops: is last mile social media application to register, certify, and implement carbon savings ideas.
10. VetBucks: is a last mile/vetting site for the verifying expenditure of public funds.

Improving Information for Fun and Profit:

The degree to which information is improved in a market is the degree to which the innovation adds value. As such, monetization becomes a relatively simple matter. Furthermore, the options that are created will have a multiplier effect in the communities as neighbors learn what knowledge assets are available with which to cooperate in their communities and where their knowledge assets can be deployed productively. New ideas generate more new ideas as the markets will seek to fill in the blank spots and support more structure for innovation economy.

An Endowment for their Grandchildren:

While the leadership elders are to be respected for their wisdom and accomplishments, they have very little comprehension of the economic growth potential of social media. It is understandable that they may overlook this opportunity. The capitalization of social media lays in the hands of the young people who know exactly what to do if given the opportunity. Why not give them a shot at getting the books in order? Call it their inheritance.

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Social Capitalism And The ROI For Social Media

By Admin

On September 9, 2010

In General Information

Social Capitalism can be summed up as Classical Capitalism except with the factors of production swapped from “Land, Labor, Financial Capital” to “Social Capital, Creative Capital, and Intellectual Capital”.

This video introduces a new way of looking at social media valuation. It should be obvious by now that people create value in social media – otherwise they would not do it. The monetization paradox is stuck on “how can this value expressed as a financial instrument”?

If you engage your clients in the same currency that they are trading among themselves, the greater the likelihood you will realize the value of the new media phenomenon.

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Sell-ebrity Sects

By Admin

On September 8, 2010

In General Information

Waiting in the grocery store checkout line, there is never a shortage of glossy media about the sex lives of Celebrities. The stories are always the same, only the Celebrities change.

There are no glossy tabloids in the DIY check-out line where the objective is to check you out as fast as possible in order to meet a competitive “service quota”. In either case, however, the consumer is being extorted of value.

A sect is a group with distinctive religious, political or philosophical beliefs. In modern culture the term can refer to any organization that breaks away from a larger one to follow a different set of rules and principles. A sellebrity is someone who sells distraction for a living – they may talk about something that sounds like productivity, but it is really a distraction designed to maintain a status quo.

When marketers want you to do the same thing over and over again, you get Sellebrity Sects. When marketers want you to change your behavior, they remove the Sellebrity sects. The absence of sellebrities is equally interesting, and somewhat counter intuitive. Yet, consumers think it is the exact opposite. In either case, the consumer is extorted of value.

Sellebrity Sects refers to a set of rules or principles set out as different from the rest and used for the specific purpose of liberating you from your values; your time value, social values, financial values, even your family values.

Social media is introducing a host of new Sellebrities peddling some object designed to fortify their credibility, usually a book tour, keynote address, “Reputation”, social currency, or an A-list client. The ‘pitchman’ preoccupies the consumer into standing still long enough to create an arbitrage position for those who can exploit the TIME that you are not acting – either for branding or automating. When the arbitrage position collapses, a new sect is formed and the game continues.

Keep in mind that “Value” exists in many different forms, the game is intense, Time is the currency, and the story never changes. Look at the sellebrities all around you. Ask yourself why they are there. Try to identify the sects. Guard your social capital, creative capital, and intellectual capital very carefully – use it to increase your productivity alone. Most of all, be different – they will either ignor you or pay you.

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The Mastery of Time

By Admin

On September 4, 2010

In General Information

When I was in Music School, I learned some very important things about Time.

As a drummer / percussionist the mastery of time is more important than even the instrument itself. My instructor would place a metronome in front of me and ask me to clap my hands to the beep. If he could hear any part of the beep through my clap, I failed.

The expectation was that I must mask every beep entirely at any tempo – indefinitely and seemingly without effort. The truism is that if the instructor could not hear the beep, then neither could I. True mastery of time means that the metronome must become irrelevant.

I struggled with this challenge for an incredible amount of hours over many many months practicing this seemingly simple exercise. One day, my instructor said “it’s not about knowing where the beep is, it is about creating the space where the beep is not”. In other words: understand the space between the beeps – the emptiness, the void, the silence – and let that become the basis of your musical expression.

From then on – I could nail the beep.

When we listen to music, we derive value from the transformation of one beat to the next and the transformation of one bar to the next, one phrase to the next, and one section to the next, etc. Value is what gets created between our actions – but without actions, there is nothing to contain that value.

Social currencies resemble this dynamic in many ways. While money marks the metronome’s beep, the creative expression happens somewhere between the money – the emptiness, the void, the silence. Let this become the basis of human economic expression, not the beep itself. Value is what gets created between our actions – let’s capture it there. The true mastery of time means that the metronome must become irrelevant.

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What’s Your Cut of the $5 Trillion Knowledge Economy?

By Admin

On September 3, 2010

In General Information

People accumulate a wealth of knowledge in their lives as they pass from project to project and industry to industry. Each of our social, creative, and intellectual pursuits and exposures combines to form the person who we are and the contribution to society that we represent.

Your knowledge and experience also helps others predict what preferences you may have and what decisions you may make. Corporations, advertisers, banks, insurance companies, and politicians all want to know this and they will go to extreme and expensive measures to get it – why not just sell it to them?

Peace sells, but who’s buying?

Management of companies, little league teams, Rotary Clubs, even raising a family, is extremely valuable knowledge to a wide variety of situations. Civic service, spirituality, military service, and philanthropy provide a basis for a host of knowledge attributes. Academic accomplishment, physical achievement, artistic expression, manual dexterity, and whole body coordination provides great insight to the application of all knowledge. Physical challenges, grief, personal struggles, and the experience of injustice further add to the wealth of knowledge one accumulates in a lifetime.

Every person is unique with a different set of knowledge than any other; therefore, everyone has something to offer to someone else. Each person’s combination of formal and informal education is valuable in it’s uniqueness. With the proper system and incentives in place, trillions of dollars are on the table to bid for access to your knowledge.

The Den of Thieves:

The resumes that we post on Monster.com are woefully inadequate and so heavily gamed that predictive utility related to your future decisions and innovative capacity is severely compromised.

The credit score also measures past behavior by tracking negative events; many of which are outside the control of the subject such as a layoff, fraud, medical emergencies, etc. Again, the credit score is quite useless as a predictor of future decisions and innovative capacity.

Now we have Social Media and the mad scramble to be visible in social media space. The scourge of marketers, spammers, and fraudsters are close behind chasing your information that they are all too happy to sell to the aforementioned “clients”.

Take a Step Back … and get a grip

We are talking about your information that describes your knowledge attributes which predicts your preferences, your future decisions, and your innovation. Yet complete industries exist to collect it from you for free, organize it, and sell it to others for a great deal of money. There are 5000 job boards collecting resumes, 300 Million credit scores being securitized by Wall Street, and 12,000 social media sites aggregating your creative content, relationships, and knowledge attributes.

Join The Ingenesist Project:

The Ingenesist Project specifies a system where your knowledge attributes are expressed in a packet of code that you control, distribute, regulate, withhold and track as you wish.

The result is that you will be paid to learn, to know, to practice, and to participate in life as you wish. It becomes in your best economic interest to produce exactly what you are best at, and have a talent for producing. It will be in the best interest of corporations, marketers, Wall Street, insurance companies, and Politicians to support you in these pursuits so they can “farm” the knowledge today that will buy their products tomorrow.

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An Economic Paradigm Breaks Down

By Admin

On September 2, 2010

In General Information

Land, labor, and capital are no longer effective proxies for human productivity, creativity and intellect – end of story. We need to stop talking about social media as if Monetization is some kind of mystery.

An Economic Paradigm Breaks Down

The road to monetization is not paved upon on the roadmap of the industrial revolution. Something new needs to happen, we’ve got to move on:

From Wikipedia:

Innovation economics is a growing economic theory that emphasizes entrepreneurship and innovation. Innovation economics is based on two fundamental tenets: that the central goal of economic policy should be to spur higher productivitythrough greater innovation, and that markets relying on input resources and price signals alone will not always be as effective in spurring higher productivity, and thereby economic growth.

This is in contrast to the two other conventional economic doctrines, neoclassical economics and Keynesian economics.

Theory:

Innovation economists believe that what primarily drives economic growth in today’s knowledge-based economy is not capital accumulation, as claimed by neoclassicalism asserts, but innovative capacity spurred by appropriable knowledge and technological externalities. Economics growth in innovation economics is the end-product of knowledge (tacit vs. codified); regimes and policies allowing for entrepreneurship and innovation (i.e., R&D expenditures, permits, licenses); technologicalspillovers and externalities between collaborative firms; and systems of innovation that create innovative environments (i.e., clusters, agglomerations, metropolitan areas).^[2]^[3]

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The True Value Calculation

By Admin

On September 1, 2010

In General Information

In case anyone is wondering if Social media can drive Social Priorities against Wall Street Priorities, they need not look any further than the cover of the New York Times. Here is a story from the August 31st edition about banks that step away from no-brainer money making business venture because of the social risks to their reputations and therefore, their bottom line.

It is obvious that new sources of energy will be hugely lucrative in the future – except when blowing up pristine Appalachian mountain tops or releasing vast CO2 emissions cracking oil from Canadian sands – both perfectly legal enterprises.

In the past, the struggle between those in favor and those opposed to, say, a coal extraction project played out largely in private and was heavily biased toward those with the deepest pockets. In the past, the developers had an advantage of vast money reserves to wage legal battles, political wrangling, and public relations campaigns against the lowly community action members. Now, this fountain of money may dry up in the future if banks step away, politicians become wary, and the public becomes increasingly informed of the true value of all alternatives.

“We’re taking a much closer look at a much broader variety of issues, not all of which are captured under state and local laws,” said Stephanie Rico, a spokeswoman for the environmental affairs group at Wells Fargo.

These dynamics are converging on something called a “True Value” Calculation. The True Value Calculation is the expanded ROI of a business venture which includes the positive and negative impacts on a much wider body of stakeholders in the sum total of viability. In the very near future, we may find that the True Value Calculation will become the rational basis of our democracy as social media aspires to the role of social vetting mechanism and politicians become increasingly irrelevant to anyone but each other.

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Intellectual Property In the Cloud

By Admin

On August 31, 2010

In General Information

The Patent system is slow, static, and expensive. Sure it’s great for corporations and wealthy institutions, but what about the rest of us? How do we get paid for our intellectual property? We make rapid fire decisions every day that can make or break markets – who’s got time to patent?

Intellectual Property In the Cloud

Or maybe the last thing that Wall Street wants is for Engineers, Architects, designers, and creative people to get “royalties” on their work. Wall Street is quite happy collecting the royalties of the creative people in America – those people who actually produce something real and tangible. Social media is a social contract and Intellectual Property is our tangible currency. Hello.

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The Definition Of Innovation Must Change

By Admin

On August 30, 2010

In General Information

Innovation is currently defined as “A new idea that has a favorable economic outcome”. The problem is that nobody can solve one equation with two unknowns, i.e., what’s a new idea? and what’s the economic outcome? By this definition, you can only identify innovation after it has occurred. So, it’s not very useful – in fact, it is a tragic definition and it must be scrapped immediately.

The trick is to identify the new ideas and direct them to the appropriate economic outcome, not the other way around as many companies and agencies try to do. Most good ideas can’t find a place to be profitable in a silo, so they are scrapped. This is not the fault of talent or the idea, but invariably both are lost.

The existing definition of innovation is insufficient for use as a way to identify innovation in the present. There is no way to build an innovation economy upon a flawed definition and unpredictable value of innovative activity. This new interpretation will allow innovation to properly behave like a financial instrument.

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An IPO For Humanity

By Admin

On August 26, 2010

In General Information

The term IPO conjures images of empire-making where a hot young company with a great product offers pieces of its future-self for sale to the public as a means of raising money without incurring debt. The money is then used to create the next titan whose new jolt of growth is shared with all who participated.

Today, every annual report to shareholders touts the great team of people whose social, creative, and intellectual capital make it all happen, the worthy and stoic investors whose vision drives sound decisions, and the legions of happy customers who make it all worthwhile.

Essentially, an IPO is people buying into the productivity of other people.

Yet, the IPO is a strict and complex legal and regulatory maneuver that establishes property rights on these small pieces of future productivity – represented by “stock” in the company.

There are underwriters (usually a bank), battalions of lawyers, the securities and exchanges commission (SEC), brokers, insurers, re-insurers, institutional investors, private investors, and retail investors. There is a full infrastructure supporting the facts of incorporation, disclosure, accounting, and proper management of internal “inside” information. And, of course, there is a media /PR campaign. All are integrated to keep the game fair, yet viable.

In the Age of Social Media

I could be wrong but it seems that such vast infrastructure appears a bit awkward if the end result is simply for people to buy into the productivity of other people. This happens everyday in Social Media. At some point, we really need to ask; why can’t an individual or a group of individuals raise money without incurring debt like corporations can?

In Social Media, people own and deploy their relationships, communities, motivation, their knowledge, creativity, intellect, mentorship, leadership, teamwork, their network, and even their ability to form corporations – people own their time. Social currency is backed by the scarcity of time and the availability of surplus knowledge.

All of the structural components of the financial system are appearing in an analogous form in social media; social vetting, social gaming, aggregation, influence, knowledge inventories, communities of knowledge assets, local social, global social, tag search, deep search, semantic search, stream of consciousness search, geolocation, mobile computing, multi-media, and many more innovations are being created and deployed everyday which literally serve the functions of banks, lawyers and legislation in an invisible economy.

The Ingenesist Project tries to string this all together with just enough specificity so that an alternate financial system will jump start itself and become both visible and available to everyone.

We’ll hold an IPO for Humanity

All of the infrastructure and the potential for people to produce things would remain intact regardless of what happens to the currency. Think about what would happen if all the dollar based money system evaporated. The only safe haven for the storage and exchange of value will be in people and their communities.

The only thing missing is a system that can articulate social capital, creative capital, and intellectual capital instead of land labor and financial capital. This system can be built today.

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The Last Mile: Social Media Battleground

By Admin

On August 24, 2010

In General Information

Sure Bro…Facebook, Twitter, and Linkedin are great for broadcasting across the Ocean, but how good are they for meeting your neighbors? As wonderful as all this global chatter appears, nothing tangible happens until the rubber meets the road.

Don’t Worry, Be Neighborly…

Nothing “Economic” can happen is Social Media until real people get together to build things. Sure, Marketers are trying their hardest to penetrate the last mile, but communities are trying to defend it too. This is the final battleground of Social Media. The end game must be as follows: Social priorities must ultimately drive Wall Street priorities – not the other way around. That is the only sustainable thesis for the next millennium.

The following video describes how the components of the next economic paradigm must act locally, but share globally. For anyone wondering what to do next or where the great opportunities are, think about building out the Last mile of Social Media.

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Google CEO Warns of Information Armageddon

By Admin

On August 21, 2010

In General Information

In an interview with the Wall Street Journal, Google CEO Eric Schmidt warns of the future consequences of social media and networks, and the vast amount of personal data that users put out there on the Web.

The article goes on to describe how Google is looking for what is next – that is, a world where the Google Icon no longer dominates the center of our lives. He warns future societies about creating a “future” by documenting the past. A future president, CEO, or just a job hunter can be haunted forever by the words and images that are becoming indelible in social media today. Mr. Schmidt insists that information is social currency.

Actually, I do not believe this to be true. I believe that is more likely than not a severe disruption is on the horizon which will deeply impact social media, Google, and Facebook, etc. This disruption will alter the course of the future that Google predicts.

All it would take is for humans to step up one more rung on the evolution ladder.

Think of it like this: a dollar is used to store and exchange value yet it is completely anonymous – you don’t know very much about it’s past or future – you do not need to know much about the exchange device in order to carry out the transaction.

Google is an information company, not a knowledge company. The next economic paradigm will be based on the creation, storage , and exchange of knowledge – not necessarily information. Knowledge exists only between the ears and once it is made tangible, I will not need to know where in the past that knowledge was excecuted – college keg parties included.

Neither Google or Facebook have indicated that they realize how value can be created, stored, and exchanged while maintaining anonymity if the public knowledge inventory were properly coded. Likewise, billions of people who use Social Media are dismally unaware that nobody else needs to posess any of their personal information to execute a knowledge transaction – seriously, noone. In fact, not only is relative anonymity a possibility, it is an imperative to market efficiency in Social Capitalism.

The “next Google” will, in fact, filter out irrelevant “information” as a means of creating time. Time is the real currency. For more on this please see http://ingenesist.com/introduction.

Google needs to figure out how to get the most worthy knowledge surplus connected to the most worthy knowledge deficit in the shortest amount of time. Information brokering alone can’t do this, so it’s Armageddon for whom?

***

Please Vote for The Ingenesist Project to present at SXSW 2011

The Ingenesist Project specifies an Innovation Economy built on a platform of social media as the next economic paradigm. 60 minute solo presentation in the advanced technical track. Your help is deeply appreciated. All comments welcome. Material based on video series here

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Please Vote for The Ingenesist Project; SXSW

By Admin

On August 18, 2010

In General Information

The Ingenesist Project has submitted the following presentation to the South By Southwest Conference in Austin Texas on March 2011. We sincerely encourage our readers to vote for this presentation. It promises to be hugely compelling, deeply controversial, and boldly disruptive. This is for a 60 minute solo presentation to the Advanced Technical Track – the competition is impressive. Voting ends Friday August 27, 2010

Please select the following link to vote

Thank you very much for your support

The Ingenesist Project

Description:

Today, we have one of the most extraordinary opportunities in human history playing out before our eyes. Social Capitalism is no longer merely a band-aid for an amoral Market Capitalism, it is a new form of Capitalism in it’s own right.

In the age of social media, many entrepreneurs no longer allocate land, labor, and financial capital as a primary means of production. Rather, they deploy social capital, creative capital, and intellectual capital to the production of a vast amount of “value” that is stored and exchanged in communities. The objective of The Ingenesist Project is to make this value tangible outside the constructs of government and corporate interaction.

This presentation identifies the five essential components of Market Capitalism and demonstrates similar elements emerging in social media. It then specifies how these elements can be integrated to perform the essential analogous functions of financial institutions. Next, we specify three relatively simple social media applications that may create a new class of business plans enabling millions of social entrepreneurs worldwide. Finally, a new financial instrument is described which can be capitalized and securitized to form the basis of a fungible social currency to hedge the dollar.

The net result could create a condition where Wall Street priorities are subservient to social priorities rather than social priorities being subservient to Wall Street priorities.

Questions Answered

What can replace market capitalism when it finally runs out of steam?
What exactly are people producing when they engage in Social Media and why does it create value?
What characteristics must a social currency have in order to be fully convertible or even a replacement for the dollar?
What is a knowledge inventory, how should it be formed, and why should every community have one?
What would be a powerful strategic plan for the Internet in the absence of one today?

[Level Advanced Category Entrepreneurism / Monetization Tags monetization, Social Capitalism, Social Currency Type Solo Event Interactive 2011]

The presentation will mirror some content found in the following video series

Photo credit:

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Social Capitalism and The Innovation Bond

By Admin

On August 18, 2010

In General Information

We know the Venture Capitalists look for returns of 1000% on their investments. We also know that Corporate innovation (as reflected by the S&P 500) enjoys a long term median return rate of about 9-10%

It follows to reason that all of the innovation that could return somewhere between 10% and 1000% goes largely un-capitalized. This does not mean that the innovation does not exist – it only means that it is invisible to any existing financial system, it is accounted as “intangible” – or worse, it shows up as a liability.

Parents caring for children, Children caring for elderly parents, Mentors educating proteges, groups of people organizing, sharing knowledge, and growing families – all increase the net productivity of society. Legions of people creating options and opportunities for themselves and each other in communities, social media, and extended networks – all increase the value stored in communities. Billions of people-hours inventing better ways to do the things that they do, compensating for the shortcomings of governments and corporations – all of this innovation falls into the range between 10% and 1000% ROI, yet, remains invisible and un-capitalized.

Social media as a whole is growing at well over 200% per year where every single interaction creates incremental multiples of social value – otherwise people would not do it (to say that people are irrational is to say that markets are irrational). Where is all that value going? Meanwhile, in the current Global financial debt crisis, institutions that hold huge amounts of cash are scouring the globe for pockets of low-risk productivity as sanctuary from volatile financial markets.

Now, suppose that an innovation bond were to come along which produces a risk adjusted return of, say, 15%. This means that human productivity is being reliably increased somewhere in a community by only 15% per year. If this were the case across a broad sector of inter-related communities where productivity were denominated in a fungible currency, investors would seek refuge in the Innovation Bond. If the Innovation Bond returned say, 20% or more – all the money in the world may drop the debt based currency in favor of the innovation based currency by seeking refuge in innovation bonds. Yes, I said it – “all the money in the world”. Now, get over it.

Proceeds would be distributed to organized communities whose knowledge inventory is formatted like a financial instrument in the form of entrepreneurship. Proceeds would go to communities where the probability of success is known long before the bets are made in the form of Cheap Venture Capital. Proceeds would go to communities where productivity is defined by an un-corruptible algorithm through decreased volatility coefficients. Proceeds would go to communities where assets are valued accurately by true supply and true demand. Proceeds would go to less developed communities with the highest social arbitrage potential rather than those with the most powerful marketers and lobbyists. Most importantly, money would go to corporations that adopt the innovation economy. The stronger the institutions of Social Capital become, the greater the value of an innovation bond. New production of goods and services would reflect these social priorities in the True Value Game.

In effect, Social Priorities will drive Wall Street priorities instead of Wall Street priorities driving Social Priorities – that is Social Capitalism

In the future, there will be only one sustainable investment left – people, communities, and their natural willingness and ability to be productive with their time. The rest is history.

***

Material based on video series here

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Social Currency and Time

By Admin

On August 16, 2010

In General Information

I recently published a video suggesting that Social currency is backed by Time as part of my series on Social Capitalism. I made the argument that time is the true scarce commodity because it is not easy to debase, counterfeit, or forge; it is therefore the perfect basis for a currency.

Still, a few people always come back with the idea that influence, reputation, game tokens, tweets and more recently “checking in” (a la Foursquare), are all social currencies – citing the experts, of course.

There are several problems with this. First, none are really scarce – I can find an honest person anywhere. None are actually commodities because nobody is deploying the identical influence as any another person.

The idea that “currency” as the storage and exchange of value is also insufficient – a glass of water stores value as does a digital camera or a even a goat. Nobody in Silicon Valley is twittering feverishly about the latest surprise goat farm acquisition.

Indeed influence and reputation are valuable and may act like a financial Instrument but until the purveyors come out and actually describe it as such, I need to call them on their choice of words – and I have. A typical response is, “Well, uh, you know what I mean”. My response: “…And, uh, you DON’T know what you mean?”

Beanie babies, tulip bulbs, and CDOs were financial instruments too. Seriously kids, clarification is extremely important because the consequences of misconception, especially in this important emerging subject area, are tangible. Real people trying to make the wrong ideas real actionable are wasting their real precious time.

Here is what they mean to say:

a Derivative is something whose value is derived from the value of something else. So when we talk about influence, the value of a person’s influence can be derived from the value of many things. If you are in a burning building, the influence of the firefighter is different than an endorsement from Shaq, yet both may be valuable at different times.

The premise of my argument is that the basis of all currency is in Time. Time is limited for everyone. A good reputation saves people time. The right influence applied in the right places at the right time saves people time. Passion, purpose, productivity and persistence are measures of how someone spends their time. Checking in at the trendy hotspot on foursquare is an expression and commitment of time. Co-location is a function of place and time. Like love, the value of time is in the eyes of the beholder. Valuable yes, currency, no.

Talk about how your product lives in time and you’ll earn all the social currency that it’s worth – not the other way around.

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Author: Admin Page 11 of 23

Gambling with Jobs

Modern Globalization is a system

Focus on Core competency – what core?

Rate Of Change is Innovation

Future of Banking

The Innovation Banker

A Virtuous Circle

Mathematics Dysfunction Disorder

Puzzled by Limits? Perplexed by derivatives?

Calculus is astonishingly simple

The Capitalist does not care about value, they care about the rate of change of value

An Economic Paradigm Breaks Down

From Wikipedia:

Theory:

Intellectual Property In the Cloud

The only thing that fits all of those criteria is ‘Time’