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Discussing "The Tipping Point"

In “The Tipping Point” by Malcolm Gladwell, the author discusses the dynamics by which social networks possess the power to spread messages of epic proportions. The epidemic-like trends we see in a rapidly evolving, technology-driven market force us to ask how we can recognize them early on, or better yet…create them ourselves. According to Gladwell, the geometric progression we see in epidemics is a function of: 1) the contagiousness of the messenger, 2) the stickiness of the message or idea, and 3) the environment or context in which the message is delivered. Finally, Gladwell illustrates that it only takes a few people to start these massive trends and defines these roles as such: Mavens act as an information source, intrinsically motivated to share knowledge. Salespeople have the ability to decipher information and communicate it in a persuasive manner, and connectors serve to link unassociated groups through the masterful art of managing weak ties.

With the advent of social networking websites, the dynamics of this phenomenon have shifted. Kids today are far more connected, both to information and each other, than they were just 5 years ago. This raises a fairly new issue of replacing human interaction and the effect it has our youth. Does the ability to create a digital persona help or hinder our evolution as human beings? Maybe this alleviates some of the self-esteem issues we see so commonly in generation Rx. On the other hand, it gives rise to a plethora of identity modification and misuse of the ability to hide behind a string of 0’s and 1’s. Are we supposed to “pay no attention to the man behind the curtain”, or just accept the “wizard” as the character he portrays?

In a world where information and processes have become commoditized, we must recognize the power of networks and continuously learn how to leverage them. This was exactly the case with Jerry Sanders, as he mastered the skills of rapport building, understanding mindsets and negotiation. These “people skills” held more value as, all things being equal; people prefer to do business with people they know. Jerry’s skills paid off when he was introduced to Marguerite McHenry because of the network he had built. Luckily, McHenry was a “connector” with a vast network and played an intricate role in the success of X-Cardia. Upon seeking investment, Jerry proposed they use the “six degrees of separation” approach to reach prospective investors. Here, he took careful steps to make sure an introduction was favorable by persuading each person in the chain. He understood the value of reputation and even suggested letting smaller investors make money first to solidify a positive introduction to larger investors. Finally, Sanders’ ability to network led him to develop San Francisco Science, which itself had plans to act as a “connector” of inventors, physicians, investors and companies.

Are there opportunities in simply “connecting” similar groups? MySpace was recently sold for half a billion dollars and all they do is provide a platform for people to connect. It seems that creating network externalities is a must in today’s online market. Social networking sites are giving people access to entirely new networks and even markets that can not been attained in the physical realm. What’s crazy is that this next generation of well-connected individuals will inevitably gain a selective advantage over the aging population of disconnected boomers. Whatever will they do with this newfound intelligence?

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