Tuesday, September 25, 2007

Online Social Capital

The web is increasingly becoming a standard way to organize relationships. Traditionally, we managed our social and professional networks manually, either in a paper or electronic based address book. Now, social networking sites like Facebook and MySpace have entered the scene, creating new ways for people to exchange personal contact information and stay connected. What makes these tools even more powerful than a personal address book, is that you have access to your "friends'" address books as well. All of a sudden your social network is raised to another power (i.e. your 100 contacts have 100 contacts, thus giving you access to 100,000 contacts).

Professional networking sites like LinkedIn and Plaxo have seen the value of these tools and have rebranded them to a professional networking audience. They provide easy tools to find people in your immediate and extended network that have particular interests, skills, relationships, etc.

An example of the power of this in action: One of my technical consultants had a desire to work at a particular client that we had not yet formed a relationship with. I did a search in my LinkedIn network for that company name. I found an individual in a management position at that company that happened to be a graduate school classmate of one of my college fraternity brothers. Without this utility we never would have been connected or realized we had this common relationship. Pretty powerful stuff. Solstice uses this same platform for finding talented individuals that have a particular skill set we're looking for.

Fast Forward: There is a real-time social networking trend out there that is evolving from the idea of "virtual worlds". Companies like Second Life create a venue for you to create a three-dimensional representation of yourself and explore a virtual earth where you can interact with other individuals, real time. Second Life is quickly expanding and has an online economy with currency that you can use to buy and sell virtual goods and virtual land. There is even an exchange rate between the virtual currency (Linden Dollars) and the US Dollar. Some individuals have utilized this economy to become Real Life Millionaires. Companies are starting to see the potential of this platform for commerce purposes. Forward thinking companies like Sun Microsystems and IBM have set up virtual corporate headquarters. Reuters has a news center in Second Life that reports on virtual world news. Real life politicians are giving speeches in Second Life.

So what's the big deal? OK, picture this. You're online buying a camera from Amazon.com. Given the popularity of Amazon, as you're looking at that Nikon, a couple dozen other people are online at the same time, looking at that same camera at Amazon.com. Imagine if you could just look around you and see all the virtual users that are looking at that product and ask them a question "Hey, I noticed you're looking at the Nikon, have you compared it to the Cannon?". Hard to fathom that in the 2-D web, but a virtual world web makes this more palatable. Amazon could even have a sales rep walk up to you and ask if you'd like any assistance. A lot less intrusive than a pop up flashing in your face.

Virtual worlds are a real-time social networking platform that have great commerce potential. We may be a few years away, but wouldn't now be a good time to buy some virtual real estate and set up your virtual corporate headquarters?

A little too "Matrix-y" for you? OK, for now, let's just get LinkedIn.

-J

3 comments:

tamirsa said...

My comments are more social than technical, after all, web is a social technology. I wonder whether my fourth dimension, that is "Time", can also be stretched and virtualized in 2nd life. As it is, 24hrs are not enough in real world, where are these folks finding time to live a parallel life in virtual world. Will all these 2nd life avatars age with ur real life or will they always be looking young as if every one on second life, at birth of the avatar, is given a dose of vaccine from the "fountain of youth".

J Schwan said...

It's funny, as Second Life evolves, you see more and more "strange" looking avatars. It seems everyone starts off their avatar as a thin, attractive, young version of themselves, but quickly come to realize that they look exactly like everyone else. The definition of "attractive" begins to change as avatars become more "distinct" looking. I'm sure there is a sociological experiment (or two) lurking in there somewhere.

As for time, I anticipate 2nd life will ultimately take the place of some of the time we spend in web browsers, not supplement it.

Joseph said...

Great post. Facebook, LinkedIn and SecondLife are all doing their part to move the web forward. It was a bold move for Facebook to open it's platform to third party developers.

But here's what bothers me -- it's still their platform. Just imagine if Tim Berners Lee had developed a proprietary platform on top of the internet called - My World Wide Web (M-WWW). If he had, I don't think the web would be where it is today.

I am fascinated with the concept of Open Services. I am not sure if Google services, Facebook, etc are a step in the open direction or a step away from it.