Social computing and the medium of social networks are creating a revolution that is similar to the industrial revolution of the 19th century but on a global scope. In addition, there is a communication revolution with the development of advanced communications tools and proxies.

Now politics, products, and services are virtually citizen/consumer/user led developments. Google is a major example of a user-generated brand. In the United States, the White House and other national institutions are lobbying with influential bloggers and using cutting edge technology and communication systems to influence and inform the voters.

There is an opportunity for the global community of users/consumers/prosumers/citizens, consumer brands, corporations, non-governmental organizations and governments to play a critical role in forging this new carbon neutral economy, The Relationship Economy.

To understand the concept of The Relationship Economy, it is important to start with a basic understanding of the terminology. The word "Relationship" is defined as connection or association; the condition of being related. The word "Economy" is defined as the study of resource allocation, distribution and consumption; of capital and investment; and of management of the factors of individual production. We will define the term "capital" for this purpose as that which we give or take that creates numerous forms of value.

Therefore, the report defines the collective meaning of The Relationship Economy as: the people and things we are connected with in our personal networks who or that distribute or consume our capital, which in turn influences our individual production outputs.

This report analyzes twenty factors that are influencing an emerging economy based on the sum of factors driving massive and significant changes to the way everyone will work, play, and live. This emergence will have an especially profound effect on business. While individual factors are self-evident, the collective factors, taken as a whole, are the basis for individual conclusions for strategic opportunities to be gained from the new economy.

The report provides very specific and targeted summary and recommended solutions for each industry constituent affected by The Relationship Economy. It provides action plans relative to individual objectives. Further, the report provides the knowledge, tools and skills necessary for improved comprehension of the strategic issues required to succeed in The Relationship Economy and to provide the context of actions that enable success.

Factor analysis: Each factor covered in this report will describe the influences, benefits and related outcomes created by the convergence of The Relationship Economy. Summary recommendations for solutions are designed to address the value-add each brings to the emergence of The Relationship Economy, including how parties will be able to leverage those benefits for economic gains through transformation of relationship mediums and positions.

Factor #1: A Revolution has Begun

Scope: How will technology advances create significant changes in business and personal models? What is the rate of change? What will be the various economic impacts resulting from technological changes?

Markets are dynamic and driven by relationships. Market advancements are fluid and changes are being fueled by technological advances that accelerate the conversations amongst and between markets. This section will examine the revolutionary changes being fueled by the convergence of technology and the impact these advances are having on relationship dynamics, individuals, institutions and the global economy.

Factor #2: The Time Factors

Scope: Will technology that is currently robbing our time carry out its promise of leveraging out our time?

In any given day, our business and personal tasks include hundreds of technological exchanges that we use to increase our reach, gather new information, and advance our learning. While expanding relationships, we try to enrich those we already have relations with, both on and off line.

In the midst of all of this activity, we also try to ensure our family’s economic future. The common factor that constrains us from improving the productivity of completing our tasks is time. This report will examine the constraints on our time, how technological dynamics are stealing our time, and what solutions would free up more time.

Factor #3: The Knowledge Factors

Scope: Will accessing information and learning through relationships accelerate knowledge? Is technology the driving force?

Knowledge is changing. It develops faster, it changes more quickly, and it is more central to organizational success than in any other time in history.

Our schools, universities, corporations, and non-profit organizations, need to adapt. We need to change the spaces and structures of our society to align with the new context and characteristics of knowledge.

Knowledge depends on theory, and information is not knowledge. Experience teaches nothing without theory. Practice makes permanent, not perfect. Copying examples does not lead to knowledge. The landscape of social networking promises to bring some interesting and new mediums for business and personal life objectives. However, the silo thinking of specific networks or the copycat mentality reflects much of today’s leadership theories. What new knowledge is the medium of social networking producing?

This report will include an examination of these issues.

Factor #4: The Relationship Factors

Scope: Will technological advances drive redefining the characteristics of relationships and change relationship dynamics?

Technological advances will be a part of the new economy, as will relationships and economic factors.

Relationship is defined as connection or association; the condition of being related while Economy is defined as the study of resource allocation, distribution and consumption; of capital and investment; and of management of the factors of production. Both of these combine in the new economy to form The Relationship Economy.

The topic of Relationship Factors takes into consideration the people and things we are connected with or have an association to which distribute or consume our “capital,” and which influences our individual production outputs. In this context, the term capital means that which we give or take that creates numerous forms of value.

This section will examine the new dynamics of relationships driven by emerging technologies and the value attributes these dynamics create to facilitate the emergence of The Relationship Economy.

Factor #5: The Networked Factors

Scope: What are the pros and cons for enabling individuals to expand rational networks of relationships, and does technology play a role in those dynamics?

Technology creates different expectations and some may envision one networking platform would be better at enhancing our relationships, yet we do not stop and think about defining the cost benefit of using networks.

Mathematically we are all connected to everyone on the planet by only six degrees. What factors enable us to use this new reach effectively and to our benefit organizationally and individually? How can the divergent networks enhance networking by connecting to each other? What will be the primary networking segments that fall out of the current fragmented explosion growth of networks?

These issues will be examined in this section of the report.

Factor #6: The Technological Factors

Scope: What adaptation learning, usefulness and related ethnological factors of a relationship economy will be at the forefront in the future?

Technology is exploding at rapid rates. Daily we are introduced to new social networks, new gadgets, new network interfaces, functions and features. Technology is stealing our time and attention yet there is a consumption attitude of “we must keep up.” What lies ahead on the horizon that will facilitate efficiency in converged technology aimed at networks?

These issues will be examined and defined in this section of the report.

Factor #7: The Economic Factors

Scope: What are the personal and business economic advantages of combining relationship factors with technology?

News Corp’s famous move in acquiring MySpace early in the social networking market space is a superb case study of how social networks can produce economic returns for their owners. Rupert Murdoch reports that MySpace is “on track” to pull in $800M in 2008. Facebook, which has only started monetizing, is north of a $150M revenue run rate. Most of the revenue created for the network owners has been largely driven by advertising income generated from ad placements in their networks within user generated content areas.

Major brands are jumping into the social networking arena for fear of missing out on both the significant growth of the space and the additional revenue opportunities the mediums can bring them.

On the other side of the coin are models where users actually generate economic return; in this case that would be Second Life, where more than 800 users spent over 1 million Linden dollars or about $4,000 in one month, buying virtual property from other users. The models for user-generated revenue are still early in their development; however. As the market further matures, there are interesting models being developed based on exchanges of products and services between users. Additionally, there are developments for networks where users will actually share in the advertising revenue with the operators, thus motivating users to join and to populate the site with interesting content.

The factors that influence the next shift in adoption of social networks by the masses will be examined and defined in this section of this report.

Factor #8: The Systemic Factors

Scope: How is the convergence of media, relationships and technology creating a “system” for a relationship economy?

Look at the networking industry as a “system.” A leader must understand the system he or she is attempting to manage. Without this understanding, the system cannot be managed or improved. A system cannot understand itself or manage itself.

Optimization of the parts does not optimize the whole. System optimization requires coordination and cooperation of the parts, which requires leadership. Improving a system requires ongoing customer feedback. One problem that the industry faces is the proliferation of independent systems making it difficult and time consuming for consumers to leverage the primary value social networks offer – connecting.

The report will contain an examination of the emergence of a connected system with improved functions and features for the entire market.

Factor #9: The Digital Divide Factors

Scope: Who will lose and who will win given the premise of a digital divide?

Is there a divide between individuals who have access to digital technology and those who do not? Even for those who have access, is there a divide between those who use it and those who do not? Less than 15% of the entire population currently uses the available social networking mediums. How will this affect the 85% who have yet to adopt the medium for their personal and business advantage?

These critical issues will be examined in this section of the report.

Factor #10: The Cultural Factors

Scope: What cultures will be impacted most to least as a result of the emerging Relationship Economy?

Are there differences in how different cultures use or may use social networking mediums? Are there religious differences, social differences, or business differences? What are the differences in geographic, religious, institutional, organizational and individual cultures? Is there a common process that cuts across all cultures in terms of usage and objectives? What cultures are more likely to adopt the medium vs. those less likely?

These strategic issues will be examined in this report.

Factor #11: The Influence Factors

Scope: What are the primary factors that affect adoption and use of tools and technical advances that enable a relationship economy?

What influences individual participation in social networks? Is there a set of factors that provide the influence most to least? What are the value propositions that get the most response from community users? What markets, technology and media will influence the future of the medium most?

These issues will be examined and presented in this section of the report.

Factor #12: The Media Factors

Scope: What are the differences in definition for media relative to the old paradigm and the new paradigms resulting from The relationship economy? What benefits will these provide for individuals, organizations, etc.?

Why is the media jumping in social networks or setting up their own network? Will social networks create a shift in methodology as to how media reaches the masses with their messages? In the new economy, who and what is the media? What educational requirements will there be for the masses to understand the new media?

These and other media factors will be examined in this section of the report.

Factor #13: The Gender Factors

Scope: Is there or will there be a gender gap or differences as it relates to adoption of The Relationship Economy?

Which gender participates more in the medium of social networking and why? Are there differences in what and how the genders participate? Which gender obtains greater satisfaction and utility from the social networking medium?

These issues and more will be examined in this report.

Factor #14: The Age Factors

Scope: Is there or will there be an age gap or differences as it relates to adoption of The Relationship Economy?

Most everyone is aware of the mss adoption of social networking by the “youth market” and its migration to MySpace by the millions. What are the age factors that influence the “adult” market to adopt the medium of social networking? Are there different factors by age segments? Do different influences, different media and other factors of influences create a set of common drivers?

These issues will be addressed in this section of the report.

Factor #15: The Individual Factors

Scope: What are the values and benefits that motivate individual adoption of social networking and eventual usage of The Relationship Economy attributes?

People are individuals and each person has a set of interests, motivators, associations, affinities and objectives. Each individual’s background, education, history, gender, geography and age create a collective set of factors that the medium of social networking appeals to and thus creates a common value proposition.

What are these factors and are they changing? How does an organization, network operator, media, etc. draw on these factors to drive adoption and usage?

These factors will be examined in this report.

Factor #16: The Us Factors

Scope: What benefits to a gathering of individuals will The Relationship Economy bring? What are the behavioral attributes that motivate individuals to become “us” versus “I”?

Individuals migrate to swarms based on searches that result in referrals to and what the swarm’s communications reflect as the point of identification or identity with one’s own brand. However, in today’s virtual network environment the collision of swarms are what appears to be creating confusing communications, instructions and positions, which only add to the chaos.

The challenge for the operators and the individual is to be able to sort through the chaos for the purposes of creating our individual and collective value using today’s networking mediums. Each social networking operator and each individual has his or her own vision and purpose for creating and using the networking medium. Some of the affinities of purpose include improved economic positions, productivity enhancements, social enrichment and value creation. Each network operator and individual also has his or her own vision and “rights of passage” as to how to accomplish the vision.

What are the dynamics of the “us” factor that create swarms in the adult market? Can we learn from anthropology, society, and our physical worlds?

These and other related factors will be examined in this report.

Factor #17: The Political Factors

Scope: What will be the political issues of The Relationship Economy? What are the current issues surrounding the field of social networking? Will standards become legislated?

Politics is often said to be an influence factor for swarms with common interest or objectives. What political factors are or will come into play with the emergence of social networking as a medium to reach the masses? Will the medium enhance “we the people” to have a stronger collective voice unfiltered by the traditional media?

These related issues will be examined in the final report.

Factor #18: The Human Factors

Scope: What is the human appeal and what are the advantages of The Relationship Economy? Will it create social improvement and advancement for mankind?

What are or will be the technological attributes that enable “networks” to perform like human nature? How far off are we from having a technologically based human matrix? Will the advancement of technology create a human matrix in our lifetime? What impact does technology have on human factors?

These and other related issues will be examined in the final report.

Factor #19: The Future Factors

Scope: What does the future look like for The Relationship Economy, and what will be the driving issues of advancement or constraints?

Each factor provides an indicator of the future. The Future Factors take into consideration the collective meaning of all the factors examined in this report and provide a pathway of strategic thinking that is different from previous strategic thinking methodologies.

We will introduce a new model of strategic thinking using the “systemic factors” outlined here and in the future as a model for consideration, as the medium of social networking influences and changes most all past paradigms about society, business, politics, and relationships and breathes air into the emergence of a new economy.

In addition to a summary discussion of the Future Factors in this report, supplemental reports to all subscribers of this initial report will address these ever-changing Future Factors in detail and on an ongoing and current basis.

Factor #20: The Planning Factors

Scope: What are the baseline constants that individuals, organizations and institutions can use in planning for The Relationship Economy?

Successful planning in a dynamic, ever-changing market is extremely difficult if not close to impossible. However, when you consider all the previous factors outlined within this report, there are a set of constant assumptions that one can use when developing plans around disruption brought on by any medium of social networking.

This report identifies components that are constant in this market and how these constants can be used as the fundamental basis for a continuously changing planning process.

• Corporations: will find significant insights which will enable them to strategically plan for the significant shifts caused by the emergence of The Relationship Economy
• Technology Vendors: will garner intelligence which will assist them in the development and deployment of social media and social networking applications, infrastructure, analytics and advertising platforms
• Media Companies: will benefit from informed perspectives regarding changes they will need to make in order to increase the reach and richness of their brands
• Network Devices Vendors: will learn how to use the concept of The Relationship Economy to facilitate increased sales of routers, servers and other critically important devices
• Wireless Carriers: will find methods for coping with the changes to their traditional businesses and will understand how to "turn the retreat into a parade"
• Educators: will learn how the instructional yield from one-to-one computing will be multiplied and significantly altered by the dynamics of The Relationship Economy and will be able to share that knowledge
• Government and Private Institutions: will be able to capitalize on the new abilities that will be ushered in by The Relationship Economy which will enable them to reach and effectively communicate with constituents and legislators
• Individuals: will become aware of the benefits of forming swarms migrating to common interests and how to leverage opportunities to expand relationship capital for economic gains

Introduction: Our History with Technology and Relationships

Factor #1: A Revolution has Begun

Factor #2: The Time Factors

Factor #3: The Knowledge Factors

Factor #4: The Relationship Factors

Factor #5: The Networked Factors

Factor #6: The Technological Factors

Factor #7: The Economic Factors

Factor #8: The Systemic Factors

Factor #9: The Digital Divide Factors

Factor #10: The Cultural Factors

Factor #11: The Influence Factors

Factor #12: The Media Factors

Factor #13: The Gender Factors

Factor #14: The Age Factors

Factor #15: The Individual Factors

Factor #16: The Us Factors

Factor #17: The Political Factors

Factor #18: The Human Factors

Factor #19: The Future Factors

Factor #20: The Planning Factors

Biographies, Indexes, References