The Ingenesist Project

The Next Economic Paradigm

Tag: social credit score

Social Value Creation: How To Manufacture Wisdom

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On October 29, 2010

In General Information

We call this wisdom

In the old days, the hiring manager was the person to know if you wanted to get a job. They would read your resume and compare it with the “bell curve” in their mind.  This bell curve contains a statistical sample of all similar situations that the manager has witnessed, the variables involved, and a range of outcomes observed across their long and illustrious career…Ohhhmmmmmm

We Call This Simulated Wisdom

Modern HR systems try to simulate this wisdom through a series of innovations such as key word search, structured interviews, personality tests, and employee incentives. Now we can use Google (an information company) to derive sort of a proxy for wisdom as we assess search results in our own image.  Facebook and Linkedin go a step further by providing us with another filter through which to pass judgement upon a future employee or partner.  The problem is that the more we look into these systems, the more they deliver back to us a reflection of ourselves…Ohhhmmmmm

Social Media vs. Normalized Intellectual, Social, and Creative Capital

The Data need to be Normalized

The world has become so strange, complex, technological, and interwoven, that no single person can possibly posses such a vast and broad set of experiences as to arrive at an optimized outcome every time.   Innovation favors strategic combination of diverse knowledge unlike the Industrial revolution which favored identical packets of similar knowledge.  The Innovation Economy will require a completely new approach to social value creation.

The Social Credit Score

Not unlike the FICO score, the knowledge inventory is a collection of potential knowledge events where the social network is a reporting agency that has a vested interest in meaningful knowledge events. Unlike FICO however, the variables for knowledge can be infinite (think of the Dewey Decimal System).  Also, a Social Credit Score would respond to positive events rather than a finite set of negative “hits”.

The Percentile Search Engine

Instead of just returning information, this new search engine must return probabilities from which an entrepreneur may test scenarios related to the likelihood of executing a particular business process at a known time, cost, proximity, ROI, etc.

Example

Innovation Economics

An entrepreneur may want to know if her team has enough knowledge to execute a business plan. Perhaps the team has too much knowledge and they should try something more valuable. Maybe the team does not have enough knowledge and they should attempt another opportunity or accumulate training.

Valuation of Knowledge  The search engine can look into a network and identify the supply and demand of a knowledge asset. If it is unavailable or too expensive, the search engine can adjust for price, risk, or options that may emerge at a later date.

Business Intelligence Organizations can scan each other’s knowledge inventory and decide to compete, cooperate, acquire, or evade.

Knowledge management If a key person retires, the entrepreneur would simulate the knowledge that is lost and reassign people strategically.

The Secret Sauce  Companies such as Disney and Boeing both use Engineers, each would have proprietary algorithm of knowledge that represents their “secret sauce” of success. These recipes can be adjusted and improved to reflect and preserve the wisdom of an organization. Over time, these algorithms will become far more valuable then the Patents and Trade Secrets created by them – this will allow technologies to be open sourced much more profitably and shared across more industries.

Eventually, we will learn to manufacture wisdom …OhhhhMmmmmGeeeee

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The Social Credit Score

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On October 27, 2010

In General Information

Money Matchmaker

The function of a Bank is to match most worthy money surplus with most worthy money deficit. In the old days, the banker was the person to know if you wanted to be successful in town because they did the matching. But with the emergence of the credit score, the “banker” became digitized.  The spread of the credit score is responsible for great wealth creation because many more entrepreneurs could borrow money in the present to increasing human productivity in the future.

The Credit Score

The credit score is statistical in nature; it isolates about 30 or so indicators of your financial activity and puts them on a bell curve. These include how much debt you have, how much your assets are worth, your income, etc. These ratings are run through the FICO Equation and out pops your credit score. Anyone can predict the likelihood that you may default on your financial obligation.

All of the data that feed FICO are collected from public records, your employer, and the people who you borrow money from because these same organizations have a vested interest in a system of correct credit scores.

We are competing with ourselves

It is interesting that people do not compete directly with each other for our credit score because it is not a ranking system, it is a “normal distribution”. However, with no credit, people are invisible and the system shuts them out. With bad credit, the system also shuts them out. People are also willing to give up some freedom and privacy, but they accept these terms because the credit score provides tremendous leverage to finance a business, automobile, or a home.

The Knowledge Matchmaker

The Value Game specifically transforms financial currency into social currencies where value increases by human interactions in communities. Then, the social currency is transformed back into a financial currency or stored in a yet to be determined social currency. The efficiency of the Social Value Creation Process can be vastly improved with a Social Credit Score.  The objective, like the financial credit score, would be to match most worthy knowledge surplus to most worthy knowledge deficit.

The Social Credit Score

There are two forces that need to be combined to produce a credit score; the reporting of social activity and the independent variables that constitute social activity. We already see some elements where search engines report your social activity and we have seen a few unsuccessful attempts to use Twitter as a proxy for social productivity. Neither are functional but the nascent social credit score system will eventually improve.  But why wait if we already know what needs to be done?

Something else needs to happen

Not unlike the FICO score, the Social Credit Score is a knowledge inventory for social, creative, and intellectual assets that a community of people collectively hold. The format of the knowledge inventory must be assembled to a bell curve.

Next, a new type of search engine must be developed that can process the knowledge inventory and statistically match most worthy surplus of knowledge asset with most worthy deficit of knowledge asset given a set of business objectives. Then and only then can holistic transactions take place which can redefine human economics in social currencies, i.e., where knowledge really is an asset.


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Using Social Currency To Fight Terrorism

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On January 8, 2010

In General Information

Given the events of the last several weeks, it’s time to for the aviation industry to get serious with Social Media.   This article demonstrates how an alternate currency can be used to severely reduce or eliminate terrorist risk in commercial aviation.  Think I’m kidding, read on.

Obviously an airline will not let you board an airplane if you don’t have the financial currency sufficient to buy ticket.  Why should an airline let you board an airplane if you do not have social currency sufficient to fulfill your social obligations while in the air?

People with extreme social currency deficiencies are routinely stripped of their rights by a jury of peers and isolated from society for a period of time (where they would not board an airplane anyway).  While there are many systems in place to manage the various degrees of social currency deficiency, none appear to be able to identify a terrorist without also violating the rights of non-terrorists.

Human Writes

However, many people are willing to share information about themselves to associates with whom an economic benefit is shared or exchanged.  This happens a billion times per week on Linkedin, Facebook, and Twitter – why not among fellow passengers?  After all everyone is already connected by 6 degrees.

What would a terrorist’s Facebook profile say about them?  Do they have a lot of referrals on linkedin?  Do they post great work on Flikr? Is their community orchestra featured on My Space? Are their posts popular on twitter?

Should a social currency credit score become imperative to social transactions as the financial credit score is for financial transactions?

Banks and Insurance companies already rely on a highly invasive “Credit Score” to establish financial risk profile as a means of protecting their selves and their other clients. Why wouldn’t an airline use a social credit score to establish a social risk profile as a means of protecting their selves and the lives of their other clients?

Ruse and lose

Sure, the bad guys can adapt to social media as they have adapted to all other measures.  The problem is that the greater the size and scope of their social media ruse, the more difficult it is to maintain the ruse.  A threshold score could be set to nearly eliminate this possibility.  Those folks can then simply opt into the full body scan.

The Paradigm Shift

As the saying goes, the attacker needs to be successful only once, while the defender needs to be successful every time.   The concept of a Social media credit score flips this paradigm on it’s head. The attacker’s social credit score needs to be successful every time.  The defender needs to be successful only once.

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