Friction, hypereconomics, and social intercourse

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Friction is one of the more important concepts in the world. Many things are either made possible or impeded by friction.

Strike a match and the friction creates a flame. Yet that same kind of friction stops other things from flowing smoothly.

Perhaps the best description of the challenges that arise from friction is from the well known military strategist, Clausewitz:

“Everything is very simple in War, but the simplest thing is difficult. These difficulties accumulate and produce a friction which no man can imagine exactly who has not seen War . . . in War, through the influence of an infinity of petty circumstances, which cannot properly be described on paper, things disappoint us, and we fall short of the mark.”

From: Clausewitz, On War, Book I, Ch. VII

Recently Mark Pesce asked “What happens after we’re all connected?“, and he came up with the answer: “hypereconomics”.

Economics, fuelled by hyperconnectivity and enabled by the removal of friction in processes between people, equals hypereconomics.

And it is this removal of friction in processes, enabled by the internet and mobile technology, that creates the next frontier of opportunities for business.

The combination of mobile accessible applications and peer-to-peer social networks offers an astonishing array of new business opportunities.

In the Arab Spring and Occupy movements we have already begun to see the social and political shifts that are enabled when citizens can communicate and organize effectively through use of mobile technology coupled with social media.

The impact of these political and social movements will necessarily flow on to economic structures. This will create a gap for development of new business models based on removing friction and leveraging peer-to-peer capabilities offered by mobile devices.

Also people are getting used to helping themselves and each other, and the technology is enabling them to act collectively without a great deal of effort. This is the big shift.

We can now collaborate and act collectively even though separated geographically. No longer do we need to meet face-to-face to act. Collective action is enabled and made more efficient with mobile technology in so many hands. And it even facilitates better face-to-face meetings and action (viz. Occupy and the Arab Spring).

I am expecting to see a lot of disintermediation – shifts in the supply chain that that remove some existing intermediary players.

One of the first areas I expect to see this in is new mobile and online peer-to-peer payment models. Another area is aggregation of service providers and potential customers. Up until now aggregating those types of services required large capital investment, but now it just needs a peer-to-peer smart phone application.

If you are an existing economic or financial intermediary it’s time to start planning for this new reality. If you don’t then the dispersed peer-to-peer linked mob might just eat your lunch.

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Is 'social' the right term to use for everything online?

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There is a tendency to put the word social in front of many other words to day to describe some new use of technology. I remain uncomfortable with the way we have plonked the word ‘social’ in front of so many other things, for example; networking, media, computing, business, etc.

One reason for this discomfort is that everything that human beings do is social in some way. But that discomfort about the term aside we’ve got to call it something and that will do for the time being.

Going back to the origins of the word social we can see it comes from the Latin socius and meant companion or partner. That makes it an ideal word to use about collaborative acts or practices.

The trouble is that adding social in front of everything begins to devalue its descriptive utility. Instead it seems to become yet another piece of jargon as voiced by the shallow spruikers of the latest thing.  Using it in front of everything makes it into a joke.

I’m interested in how we keep things real. I think people need clear and simple communication. Meaningless jargon is not how we keep things real.

It makes me wonder though, is it the quality of the communicator and the truths that they speak that wipes away the feeling of jargon? Does it really all come down to trust?

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It's not content that matters, it's the stories

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When I checked on a major search engine the other day there were 247,000,000 results for the term “content is king”. Many people have said it to me over the past few years, and I admit to having said it myself on occasion. It seems that Bill Gates was saying it way back in 1996 (thanks to Craig Bailey for tracking it down)

But I’ve been thinking about this saying a bit lately. In particular I’ve been pondering what really matters online. This question arose because I’ve been doing research in recent times and the sheer amount of dross on the internet is truly remarkable.

It is clear that people on the internet are so busy creating, stealing, replicating and sharing content that many of us are too busy to tell stories. This includes those upon whom we have relied to tell our stories as a society, that is, the professional writers who are employed by newspapers and magazines.

Compelling narratives help to bring ideas to life and call us to action. And it is these that we are willing to invest our time and money to hear.

Many of our traditional newspapers are losing the art of sharing those compelling narratives, instead opting for cutting and pasting AP, AAP or Reuters news feeds. Thus they are losing their ability to tell stories in the rush to create content rather than stories.

It means that we end up with sites like Huffington Post that are finely calibrated search engine optimised content repositories. And, while there is a need and place for these kind of online publishers, it also means that we are at risk of losing the stories that do not fit into the immediacy of the search engine optimised advertising revenue generating model.

Once stories in newspapers (in the days when we had newspapers of record) and magazines were subsidised by the so-called ‘rivers of gold’ from advertising. Nothing has appeared to replace those rivers of gold to enable the continued production of stories on the previous scale (as opposed to the growing practice of regurgitating paid news feeds).

If the *business model (and cross-subsidization) that made it possible to create stories is broken then it is up to the amateurs to tell our stories. Bloggers have already begun to fill this gap, and have incurred the wrath of the establishment writers from the mainstream media organisations as a result.

Rearguard sniping and condescension from the ‘professional’ writers towards the ‘amateurs’ is amusing given the likelihood that most writers of stories will be unpaid by organisations in the not to distant future. Instead the few remaining paid jobs will be for analysts to populate the search engine optimised advertising driven sites. And that is only likely until they can find a machine to undertake that somewhat mechanical task.

It’s going to be interesting to see where our stories go in this brave new world.

* The only exception I can see to this is organisations that are either government funded or which have independent funding like The Guardian. The big risk for government funded organisations is that increasing economic constraints are likely to constrain their operations in turn.

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99.5% of self-proclaimed social media experts or gurus are clowns according to @garyvee

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This kind of stuff is why I love Gary Vaynerchuk! As he correctly identifies, we have people who are clueless about business and about technology hyping that which they do not understand. He also correctly identifies the looming social media bubble:

”99.5 percent of the people that walk around and say they are a social media expert or guru are clowns,”

he says, continuing with

“we are going to live through a devastating social media bubble.”

Source: Techcrunch

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Social Media – the US Army gets it

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Most organisations are grappling with the digital revolution and its democratization of communication. The US Army is no different.

However, they have met the organisational challenges of social media head on and have become an acknowledged leader in practice. They along with other parts of the US military – such as the US Air Force – have invested resources in adopting, using and benefiting from this digital revolution.

It is interesting that so many civilian organisations are still ignoring the potential benefits of the digital revolution while government and military adopt it so readily.

The US Army has updated their Social Media Handbook for 2011 and it’s available on slideshare as well as embedded below.

It’s worth a read no matter what stage of adoption your organisation is at – it gives some good ideas about how to communicate with people about how an organisation can use social media.

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#c3t An Agreeable Swarm: Twitter, the Democratization of Media & Non-localized Proximity

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My co-author, Brian Ballsun-Stanton, presented this at the 5th ICCIT: 2010 International Conference on Computer Sciences and Convergence Information Technology in Seoul earlier today:

You can view a full text pdf version of this paper here
#c3t #ICCIT_10

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The starship, Enterprise: social business – opportunity and risk

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Navigating the tangled web of Enterprise 2.0 enabled platforms is indeed an opportunity “to explore strange new worlds” in business…

Enterprise 2.0 has been defined as “the application of Web 2.0 technologies to workers using network software within an organisation or business” (Dion Hinchliffe, 2006). There has been much discussion over recent years about Enterprise 2.0 and how it is revolutionising business. Yet, much of the promise remains unfulfilled, especially for large and complex organisations.

The general approach to Enterprise 2.0 has been much like the approach for earlier knowledge management and collaboration initiatives. It has been largely a mechanistic approach. Simply install the tools, train the people, do a bit of change management and leave them to it.

The challenge for organisations
A big challenge for larger organisations remains getting teams to work more effectively across team and organisational boundaries.

Recent discussions with people in Australian banks indicate it is clear that there is no lack of Enterprise 2.0 enabled technology. Rather, there is a great deal of it already in place. For example, one contact in a ‘Big Four’ Bank reported that his organisation has 11 “quite different intranets”. The complexity of navigating these is so high that they have implemented “a fully-federated search that spans them all” that provides “Google-like search with page ranking/indexing and the equivalent of sponsored/suggested links to help staff find critical information faster based on an identified keyword”.

Thus, the implementation of Enterprise 2.0 enabled platforms has resulted in issues of findability, usability and relevance of the information. The answer to these problems is not simply to acquire additional technology, instead it is important to take a step back from the technology and consider the business design. Using social business design approaches are important to enable effective use of collaboration technologies.

The social business solution
Since business is an inherently social process, it is worth exploring how we can redesign business operations and processes to leverage social tools more effectively. All too often, collaboration tools are implemented as yet another piece of technology without the support of social business design to ensure that return on the investment is achieved.

We have already seen the effectiveness of consumer oriented social tools, such as Facebook and Twitter, in breaking down barriers between people. And now social networking and social media is reaching into and across organisational boundaries. Businesses are under increasing pressure to incorporate these external social networks into internal collaboration systems (for example, through the application of social CRM tools). Social business design principles enable this same capability to assist people in working across organisational boundaries and engage each other more effectively for business purposes.

With social tools we have the opportunity to reshape our business architecture so that it better creates value between the participants. No longer do our people need to conform to the way the software needs them to act or behave. Instead, we can more easily tailor the Enterprise 2.0 systems to meet the needs of the people – staff and customers – that they are meant to serve.

Social tools like Facebook are re-educating our workforce and customers in the ways of online collaboration. Further, the success of online collaboration and socially calibrated activities can readily be monitored and evaluated. Social business design enables an evolutionary approach to business practices. It is not a set-and-forget approach like old style knowledge management; rather it is a plan-do-check-act cycle.

Risk of missed opportunities
Another key challenge for businesses in effective implementation of Enterprise 2.0 using the social business design approach is filtering the firehose of information coming into the organisation via so many sources. No longer do companies receive hard copies of media results, now they receive vast amounts of information from diverse sources. That information is about their operations, competitors, customers and industry trends. The opportunity for businesses is to create real-time listening posts that filter and categorise information.

If companies do not find a way to filter and analyse this firehose of information, then they risk missing opportunities. The answer is no longer to create expensive and complex data marts to manage this largely ephemeral information and to turn it into useful information. Enterprise 2.0 technology enables the creation of listening posts that filter and sift this firehose of information and can turn it into actionable insights.

It is possible to leverage the Enterprise 2.0 platforms that already exist within many large organisations. However, key to effectiveness is adopting a social business approach to re-imagining the business architecture. And the use of real-time social listening posts creates opportunities for businesses to reassess and recalibrate their activities based on real-time feedback.

Note: This piece was originally published in Online Banking Review on 21 October 2010

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