Work from the core

[This month’s Carnival of Journalism asks how organizations like the Knight Foundation and the Reynolds Journalism Institute can encourage innovation in journalism. My humble thoughts follow.]

Because journalism has been removed from its swaddling of newspaper advertising, we now have the opportunity to discover the essence of journalism and what it truly contributes to our society and to Democracy.

The tools of the digital age are revealing blind spots in our previous vision. What we face is the discovery that what many of us thought was journalism actually is not.

Helping us sort things out with their grants, programing and activism are you, the Knight Foundation and the Reynolds Journalism Institute.

At this key moment of change, I would urge you to crystallize your missions in your mindset so you can work from the core and jettison what is superfluous.

I’ve taken a stab at what this crystallization looks like. To me, you share a similar core: your mission is about social change that supports Democracy. You would prefer systemic social change, the kind that sticks and evolves. [View Knight’s mission. View RJI’s mission.]

Both of you see information and community as essential parts of an equation leading to social change that will strengthen Democracy.

But what happens when you uncouple journalism from its traditional role as the messenger that delivers information to the community and instead begin to see journalism as a catalyst, an agent that provokes or speeds change, among community?

And what happens when you uncouple journalism from the tangible hard media of newsprint and instead couple it with the intangible streams and flows of the digital sphere, including data movements and agile multimedia reporting?

Variables are unleashed and recombined in unforeseen ways. [In understanding what these variables might look like, consider the beat areas for the RJI Fellows, and the KDMC program categories.]

What arises out of this mixed-and-match chaos will continue to look very different from anything we have had before. As the entire online world struggles to find a sustainable revenue model — strange and alien revenue forms will undoubtedly appear.

So Knight and Reynolds, you must continue to do as you have been doing: track and map the relevant variables as they emerge. You must be nimble in collecting and vetting operational categories and ideas as they fly your way.

So how can you best operate to encourage inovation?

Map the principles of journalism as they emerge in new forms. Cease worrying about the appearance of journalism. Instead connect with the principles and see how they could play out.

Be open. Like a baby in its first months of life, be open to the stimulus that comes your way and divide it broadly into buckets of information, assigned along your principle map.

Look for bright spots of activity and life. Look to the edges of change because the configuration of what will work has not shown itself yet.

Thrive amid uncertainty. Look for leaders but understand the principle of social proof. Understand that promising ideas will emerge from the crowd, and within them might be a kernel for success but not necessarily the full plan.

Shatter the silos. Look to other domains of business, Web technology, economists, anthropologists, non-profits, government and communicators who have been building the online world for two decades now. Note the conferences and learning opportunities in the maturing online world and make them available to Journalist entrepreneurs. [That’s what I do as a service every day on my Twitter and Tumblr streams]

Don’t be wedded to your ideas. Hold them loosely — like a dove that has alighted on your hand — and let them go. If they have wings they will leverage on your behalf and bring many iterative returns and successes.

Be courageous. Stand out from the crowd of philanthropy. To the best of your ability while still being responsible, cast off the shackles of foundation-think that judges “safe” as being equivalent with “success.”

Support our entrepreneurs. One concrete possibility: Knight, Reynolds take the lead and join together with affinity foundation partners to create an entity dedicated to fostering entrepreneurship among journalists and their creations.

More than a decade ago when I first started reporting on entrepreneurship as an independent journalist [and learning to work for myself], I came across the Kauffman Foundation whose mission is:

To help individuals attain economic independence by advancing educational achievement and entrepreneurial success

It was after the dot-com bubble had burst in 1999 and before entrepreneurship was a field of study at business schools. It was not nearly as ubiquitous as it is today. I was helping entrepreneurs write books about their experiences and learning the ropes of the angel and venture capital worlds.

Today, Kauffman says it is looking for partners to leverage resources and capability.

Maybe you and Kauffman and others could talk about how to jointly create a home for training, experimentation and comradry for the emerging new class of Journalist entrepreneurs.

Unlock the digital economy, please? Thank you!

“Unlock the Digital Economy” is the theme for this year’s Web 2.0 Expo in San Francisco, the signature conference and tradeshow put on by O’Reilly Media and UBM TechWeb.

I spoke with Sarah Milstein of UBM TechWeb to get a sense of some of the highlights.

“The web is maturing,” Milstein said. “The business side is increasingly important and viable. We are interested in people who are figuring out how to exploit that.”

So who’s making money on the web and how are they doing it?

Zynga is. Milstein says that the creators of Farmville — whose branding says the company is connecting the world through games — is pulling in hundreds of millions of dollars a year from games that include CityVille, TreasureIsle and Mafia Wars.

In an article published yesterday by the Chicago Sun-Times, colleague Sandra Guy says market experts value Zynga’s worth as high as $10 billion.

The games operate from a few simple concepts: You can play the game for free. But each game has its own internal economy, Milstein says. Buy a business, give a resource. Eventually, real money is exchanged.

I’m constitutionally unsuited to these games. I lack patience. Don’t buy me tulips, please, they’ll die from lack of watering. But I do see some synergy between the news world and games. Beyond interactive 3-D crossword puzzles and chess, games hint at a sophisticated landscape that could promise anonymity and new dimensionality in solving the problems of government or create exciting new ways to connect news streams with advertising bases in localities. The Knight Foundation sees this synergy too as it is investing considerable cash into several civic–based solutions with a game interface.

Zynga holds the title of most used Facebook application with 40 million active users. The company has reportedly spent $50 million on Facebook ads alone.

So here in Chicago when my SallyVille [within CityVille] visits friend Rogers Park – my virtual version of my home neighborhood. I can fantasize that someday Zynga will build a game that will allow Rogers Park online to mirror and nourish what is happening in the real economy and community of the neighborhood that is Rogers Park.

These games are a far cry from that robust and useful potential now, but the internet is developing in unforeseen ways – one can dream?

Another company posting some success that will be appearing at Web 2.0 Expo is LinkedIn.

On March 25, I and 999,999 other professionals received email correspondence from Linked In Founder Reid Hoffman thanking us for being early adopters in the first million. I was member 897312. Linked In now has 100 million members.

Hoffman’s scheduled to speak Thursday, March 31. For now, LinkedIn’s key to “Unlock the Digital Economy” is an IPO.

LinkedIn is the pin-striped, always chipper-faced network for folks looking to make business connections — whether for sales or job leads; it will seek $175 million in the public market.

Anthony Ha of VentureBeat did a break down of the company’s fundamentals in January.

How much money is LinkedIn making now? In the nine months ending on Sept. 30, LinkedIn says it made $1.85 million in profits on $161.4 million in revenue. In 2009, it lost $4.0 million on $120.1 million in revenue

Linked-In’s revenue comes from three kitties: user subscriptions, advertising sales and hiring solutions. Its Hiring Solutions services brought in 41% of total revenue. This revenue mix doesn’t sound much different from that of an online newsroom — Help Wanted ads anybody? [If this sounds like a genie that’s disappeared from the bottle, it might find its way back in.]

A good portion of the IPO cash will beef up LinkedIn’s field services in geographic locations, basically sales of its Hiring Solutions in various cities around the US and the globe. LinkedIn shares a problem with the emerging news business. The company has a robust online site, but to grow its successful business model it needs to expand its real world field work in sales. Internet based businesses have been struggling to effectively bridge the online-to-earth gap for a decade at least. It’s one of the reasons that reinvented newspaper brands and their paper distribution streams might be more valuable than some think.

Milstein says gaming companies are doing well if they can transition from desktop to mobile. She says other hot topics include group buying and new buying models, such as those offered by chicago-based Groupon.

There’s so much online news organizations can learn from the Web 2.0 world.Check out the website and if you’re in the Bay Area, the conference runs March 28 through March 31. If you can’t make it this year, you can view sessions later online on the Web 2.0 website on O’Reilly’s YouTube channel.

O’Reilly and UBM TechWeb have another show in the fall. Milstein says the Web 2.0 New York show is historically weighted more toward exploring digital innovation in the media, so you might just want to take out your calendar and ink in Oct. 10-13, Web 2.0 this fall in New York.

You can follow Web 2.0 on its blog, at Twitter hash #w2E or on its Facebook and LinkedIn pages.

Web 2.0 Expo happens March 28-31, 2011 at Moscone West in San Francisco, CA. Now in its fifth year, Web 2.0 Expo is for the builders of the next-generation web: designers, developers, entrepreneurs, marketers, and business strategists.