Social Capital - The Driving Force Behind the 4th Industrial Revolution
Created by Rigved Raut at Mar 7, 2020, 4:12 AM

The future is here and many see us in the midst of the 4th Industrial Revolution. One of the key components within this is the importance of Social Capital and its impact on the 4IR.

For years the manufacturing world has been a segregated industry and it’s been over a century since it has seen any changes. In recent times, however, there has been a shift from ownership to access as well as from market to a system of interconnected people or things. Recently it seems that placing a company in a network of mutually beneficial reciprocal relationships designed to optimize the collective effort, results in success being more likely guaranteed.

By forging interpersonal relationships, the manufacturing industry can develop a shared sense of identity, understanding, trust, cooperation, and reciprocity. A group whose members manifest trustworthiness and place extensive trust in one another will be able to accomplish much more than businesses who remain segregated. In the dawn of the 4IR the industry is moving from being solely service-related to experience-oriented - using Airbnb as an example in the travel industry. The time is ripe for a collaborative manufacturing experience.

Cooperation and team approaches to problem solving, allow a group of partners to respond more quickly to changes. Most importantly, it’s the spontaneity and creativity that flows from network-based collaboration that gives participants a collective edge in this new, more demanding high-tech economy. Because being in a network involves more detailed information flow, a steady amount of feedback and rewards “outside the box” thinking, participants in that network are more likely to forge new connections, produce new ideas, come up with new scenarios, and initiate new plans of action in our hypocommercial environment.  

The natural outgrowth of the 4IR is the social economy. The higher a company moves up the “Social Economy Pyramid”, the quicker the rate of value acceleration - since they are able to more easily access a slew of social value drivers. Examples of these Social Sharing companies are, of course, Uber and Airbnb. The Social Economy is transforming how we consume, live day to day, work, and even travel and the democratization of goods and services by Social Sharing companies are leading to structural disruption over a much wider range of old-school sectors. The underlying reason for these shifts and accelerations is Social Capital.

Just as physical capital is created by changing materials and forming tools that create production/products, social capital is created when relations among persons change or interact in ways that create action. Therefore a social platform that embodies supply and demand in the manufacturing sector, is a natural outgrowth of both. The 4IR is driving long term shifts from industrial production to cultural production.

Though social capital was generated in a period which preceded industrialization, the early phase of industrial growth drew on that social capital and strengthened it further. Now in the midst of the 4IR, social capital, again, offer an atmosphere where intertwining supply and demand leads to growth and benefits the entire Manufacturing Industry.

This new world structured around access relationships is already producing a different kind of human being who values relationships. Manufacturing can no longer be a solo island but a part of a new Pangea. The future is Collaborative Manufacturing.

McPond was formed with an eye to benefiting the entire manufacturing industry by bringing businesses together and driving social capital in the manufacturing industry. A business looking to reap the benefits of the 4IR, or just aiming to be part of this era of innovation can do so by being a part of McPond’s growing community. The platform is a natural outgrowth of the age of social sharing and any business who chooses to participate, is also participating in the evolution of industrialization in our millennium.

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