The Ingenesist Project

The Next Economic Paradigm

Tag: billion

Look Who Is Stockpiling Knowledge

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On November 15, 2012

In General Information

Preppers were once considered among the more radical fringes of American Society, but now they are coming up with some of the more interesting ideas in sustainability.

Suppose that some financial calamity were to bring the economy to a standstill,  would  your education, intellect, wisdom, civility, and knowledge evaporate along with it?  Of course not, but that is exactly the danger that we face.

The inability to access, coordinate, and deploy our vast endowment of American knowledge assets may be the cause, not the effect, of that proverbial breakdown in social institutions for which the Preppers prep.  

Why wait?

While today’s Preppers are busy stockpiling survival gear, food, water, ammo, fuel, and even gas masks, the rest of us should be asking “where are we stockpiling community knowledge?”  Who will keep the water clean?  Who knows how to restore electricity or grow food? Who knows how to protect citizens?  Who knows how to remove a set a broken bone? Who knows how to teach children to read? Who knows how to fix stuff?

The Sequestration of Knowledge

The greatest danger to human survival may be the corporate sequestration of knowledge assets.  For example; corporations hold “knowledge” behind trade secrets, arcane job titles, and rigid processes where nobody from the outside can ever find or apply it.  Obviously, a company without knowledge cannot produce anything so understandably – whether we realize it or not – our most productive knowledge assets are locked up pretty tight behind the guilded walls of Wall Street.   This is not anyone’s fault – it is just the way we are organized.

It is time to evolve.

On the surface, a company that makes airplanes and a company that makes electric cars have very little in common.  An airplane company could never hire an engineer from a car company (and vice versa) because the job descriptions, production processes, and definitions of responsibility are cut from entirely different performance regimes.  Yet, as far as the engineer is concerned, the methods, systems and techniques for creating, say, graphite composite structures, are identical everywhere on Earth. If many industry could share engineers, not only would a great deal of diversity of new ideas be exposed, but cyclical layoffs could be avoided.

The Knowledge Commons:

What if a central knowledge inventory would represent all skills, talents, passions, and intentions of a community?  What if companies were to index their own skills ontology to a public knowledge commons instead of isolating their workers to the silos of internal processes?  Employees and companies would be more mobile and collaborative instead of secluded, protective, and competitive.

Social Equity Swaps

Suppose that a community could analyze their knowledge commons such that people could swap jobs so that everyone worked in the most qualified job that was also closest to their own home?  Billions of dollars worth of productivity could be preserved, billions of dollars worth of infrastructure could be preserved, and billions of units of energy could be saved.  Worker retention would rise and community unity would improve.

Free Market Enterprise

Suppose a company could read the knowledge commons of a community and produce the things that a community is naturally talented and interested in producing?  Quality would improve and costs would be reduced.  Innovation would increase and strong community collaboration will discourage competitors.

Everyone is an entrepreneur

Suppose that people (and companies) could locate to areas where there is a known deficit (or surplus) in their particular interest and passion? Risk and financial volatility would be reduced where people know that they will have a prosperous and interesting career / workforce.  Population density could decrease as people and companies locate to rural settings.  Countless billions will be saved on infrastructure as food and energy production can coexist with enterprise centers.

How to change everything without changing anything

These are just a few of the advantages of having a knowledge commons that is open sourced and readily accessible to markets instead of sequestered knowledge assets that force people to question their ability to survive in the future economic environment.  The next several blog posts will specify a possible system and structure for a public knowledge commons.

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The 1.6 Trillion Dollar Waste of Time

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On July 15, 2009

In General Information

Countless blog articles and news reports complain about information overload in our society.  People are so occupied filtering information that they no longer have time to act on what is deemed important.  Every thought, idea, message, and picture that enters the human mind is stored somewhere by the magnificent human brain.  But the onslaught continues in spam, junk mail, billboards, pop-ups, aesthetic pollution, and road signs.

Endless War:

It’s a war that we cannot win so we just resign ourselves to the noise. Adult attention deficit syndrome is on the rise and I personally forget ideas quickly as they are replaced by new data appearing in my field of view.  I am increasingly aware of the huge time expenditure and the tremendous loss of productivity that is induced.

Money is time:

The underlying premise of Innovation Economics is that money represents human productivity and the only way to sustainably increase the quantity of money is to increase human productivity.  The only way to do this is to innovate.  This and other articles from the Ingenesist Project predict the value of innovation economics by the amount of productivity saved through the application of IE principles.

The Ad Spend and who really pays?

In the United States 2% of the Gross Domestic Product is spent on advertisements, not including the production cost of the ad. This is equal to 280 billion dollars per year.

Although direct response professionals usually project a response rate of less than 0.1% which means that 99.9% of the views are irrelevant noise. Time, energy, bandwidth and human productivity are consumed in seeing the ad, determining it is irrelevant and moving on (or sitting through the ad if you are captive such as TV commercials).

Pass Complete Ratio:

On super bowl Sunday, 90 million people will sit through a 30 second commercial that cost the advertiser 3 million dollars to air.  For an irrelevance rate of 99.9% , 375 man-years of productivity are lost.  For an average salary of 50,000 dollars per year; 18.8 Million dollars of productivity is burned by a single commercial.  For an 18.8M dollar productivity loss on a 3 M dollar ad spend, the ratio is about 6:1.

This means that for every ad dollar spent, 6 are lost in unrealized human productivity.  For a 272 Billion dollars spend at 6:1 irrelevance, then 1.6 Trillion dollars worth of human productivity are lost every year.

The most willing viewer is the most worthy viewer

The Ingenesist Project specifies a knowledge inventory system where a person’s knowledge inventory is represented by a packet of computer code.  Since the dissemination of this code is in the power of the owner, money spent on advertising can now be spent on compensating people for their time viewing and responding to an advertisement that they are actually interested in.

Economies of scale for advertisers can be produced by supporting groups that bring communities of people together in social media activity.

Spread the word:

So if media advertising disappears, what will the rest of us do with all of our spare time?  We’ll spend it with our families, friends, communities, and groups talking about what we know best – and the great products that empower us.

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The Vicarious Search Engine

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On July 7, 2009

In General Information

The search engine wars continue as both Google and Bing develop more exotic ways of arriving at the wrong answer.  Both commit the same error as all declining industries in social media space; assuming that they can predict what people want without engaging them in a conversation.

The first development is the predictive search notably pioneered by Amazon.com for predicting future purchases based on past purchases.  While predictive search is an improvement, the next step is the “vicarious” search, that is, when the search engine sees the world through your eyes – or someone Else’s – for your benefit.

The Web is Flat

The Ingenesist Project specifies a standard knowledge inventory that may be represented as a packet of code.  If someone wanted to see the web through the eyes of another person, they could buy a packet of their knowledge inventory.  Likewise, a web article would be tagged with the representative knowledge inventory code of the author.  Each comment or re post to a blog article would contain the knowledge inventory of its aggregated vetters.

The search can be done in reverse as well.  If I find an idea on the web and want to know who can execute it locally, I can simulate the knowledge inventory in one or more local people.  This is not trivial.  It literally allows an entrepreneur to manage knowledge assets that they did not know exists and predict content that does not yet exist.

Been there, done that?

Obviously there are privacy, security, and ethics issues related to others seeing the world through your eyes.  But what if every American was told 20 years ago that their identifier number for an insolvent social security program would be attached to their personal, medical, financial, and civil records then spun through Wall Street algorithms, sold worldwide to advertisers, politicians, banks, insurance companies, demographers, and ultimately hacked?  The cities would have burned.

So why can’t social mediators monetize?

The difference today is that if packaged correctly, we can own and control our knowledge inventory.  We can allow or decline access and we can revoke access – it happens all day long on Face Book, Linkedin, Twitter, and My Space.   On-line communities represent collections of knowledge assets.  The 400 Billion dollar per year advertising budget is on the table – up for grabs.  The 100 Billion dollar “head hunting” budget is up for grabs. The multi-billion dollar election budgets are all up for grabs. What are we thinking?

The likelihood of Innovation

The innovation economy will depend on business intelligence related to society’s knowledge inventory to match most worthy knowledge surplus to the most worthy knowledge deficit.   Entrepreneurs must know supply and demand for knowledge assets as well as where to find them at what cost.  Entrepreneurs need to predict competition, disruption, risks, and volatility in knowledge assets.  They need to conduct scenario tests before expending money.  They need to predict the likelihood of innovation and all of the options that they have in the future related to those innovations.

The Securitization of Knowledge Assets

Entrepreneurs need to securitize knowledge assets in order to finance innovation on the scale that will be required to offset our massive debt. This is how the innovation economy must play out.  We cannot depend on corporations or governments to do this for us.  People must control, regulate, anonymize, and manage  their own knowledge inventory.   If only they could see their world through the entrepreneur’s eyes – perhaps they need a vicarious search engine more than anyone.

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Matchmaker, Matchmaker, Make Me a Match

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On June 22, 2009

In General Information

The $40 Billion Dollar Dowry

Every organization wants to attract the most qualified employees and match them to jobs for which they are best suited. The human resources department is responsible for matching a knowledge surplus to a knowledge deficit through the hiring process. Fortunately for them, there is no knowledge inventory in society and managers don’t necessarily know what they want.

Human resources, training, and labor relations managers and specialists held about 868,000 jobs in 2006. The following tabulation shows the distribution of jobs by occupational specialty:

Training and development specialists    210,000
Employment, recruitment, and placement specialists    197,000
Human resources managers    136,000
Compensation, benefits, and job analysis specialists    110,000
Human resources, training, and labor relations specialists, all other    214,000

An HR Generalist pulls an average income of about $50,000 per year; A Director earns up to $140,000 per year. The total HR national payroll is estimated at $40 Billion annually.

Commodity Management:

Human Resources creates the impression that people are merely commodities to be treated as expenses rather than assets; or at best, like office machines or vehicles, despite assurances to the contrary.  The HR profession is built on the assumption that people cannot manage themselves, that human behavior is random and intangible, the independent variables for success are always known by management, and that the key words on a resume is the best predictor of a good match.

Innovation Economics; the science of incentives:

Social Media is providing systems for people to organize and manage their own career.  True knowledge inventories are forming as social groups coalesce around standard taxonomies of professional practice outside the corporate construct.  Knowledge assets are being vetted in communities of peers and the resume is being replaced by a Social Network Profile and “Search Engine Footprint” which more accurately predicts the quality and quantity of knowledge assets.   In the near future, a predictive search engine will be able to predict the probability that various collections of knowledge assets can execute a specific business objective at a known cost.  Scenarios can be tested and compensation will reflect true supply and demand.

Superior Value Comes in Many Different Packages:

So what happens when top management meets the new Human Resources Training and Content Development Manager who was sent by the Social Networks Search Engine to build the new corporate Blog and Social media strategy – sporting facial tattoos, a nose ring, and a black kilt, and dreadlocks?  If the fact that a top manager is not comfortable with a person of a particular culture or lifestyle can be perceived as detrimental to the innovation capacity of the organization, that organization is threatening its own survival.

Don’t Shoot The Fiddler

The story of Fiddler on the roof centers on Tevye, the father of five daughters, and his attempts to maintain his family and religious traditions while outside influences encroach upon their lives. He must cope with both the strong-willed actions of his three older daughters—each one’s choice of husband moves farther away from the customs of her faith.  The story resolves with a slow acceptance of the new world and creeping redefinition of what love is and what love can be.

In an Innovation Economy, the perfect match is no longer determined by those inside the construct of tradition, rather, it is determined by those entrepreneurs on the outside redefining tradition – and  earning 40 billion dollars.

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