Thursday, July 19, 2012

Sharing value to create greater value

Product is only valuable when there is a market.  If there is no market, there is no value to product.  This means a couple of things.  First, product does not have its intrinsic value.  Instead it derives its value from being put to use by customers.  If there is no customer to use it, product does not have any value.  This leads to the second observation, that is, product must be shared and used to realize its value.  A brilliant product locked inside someone's safe deposit box has no value.  It only realizes its value when people put it to use.

That is the core idea of shared economy.  In order to create greater value, you must share value that you create.  By feeding the market with your idea and product, market will return value to everyone far greater than what you originally created.

Social network works the similar ways.  People participate and spend their energy to create content for people to see.  These content get shared among many members through connected social network.  More it gets shared, overall value generated by content increases just as much.  It inspires people, engages with people, plants idea in people in a way that original content creator did not even imagine at the beginning.  Social network is a perfect example of sharing-based economy.

There were a couple of clips that I saw around this topic.  First was Tim O'Reilly talking at OSCON 2012.  He continued his theme of hidden economy and their value that is not accounted for, yet very real.

Second was Nick Hanauer and Eric Liu interview with Charlie Rose April 26, 2012.  They talked about the key idea behind their new book, The Gardens of Democracy.  Its key idea is that economy is a true ecosystem and must be treated as such.  Concentration wealth is ultimately detrimental to the entire economic ecosystem, and we must promote broad middle class in order to create consumer demand in the economy.

I believe more sharing is the next economic engine that will take us to 21st century economy.  Going back to my social network example, Tim O'Reilly, Nick Hanauer and Eric Liu created these content to be shared.  I'm getting inspired by these and in turn sharing with my readers.  Hopefully some of my readers will get inspired and will spread the idea.

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