Thursday, April 17, 2008

Next Step in Enterprise 2.0 looks to Prediction Markets

The current tools used for enterprise 2.0 are blogs and wikis. As reported in the New York Times on April 16th, there is a new tool coming about: Prediction Markets.

A prediction market is a new web 2.0 tool that allows members in the company to bid on future events occurring. With a fake currency, they bid on the event they actually think will happen, and the person closest to the real outcome wins a small prize, such as an IPod. Companies now using this approach: Intercontinental Hotels, GE, Hewlett Packard, and Best Buy.

This new innovative product can help corporations see what can happen in the future. In the article they discuss how workers at Best Buy participated in this, betting on whether or not their first store in China would open early. Most participates bid no, and so Best Buy was able to prepare themselves financially when the store didn’t actually open on time.

This new, innovative enterprise 2.0 service is gradually catching on in the mainstream markets. Best Buy plans to expand the bidding process to more of its employees for other future events and efforts. So how can this help your company? The possibilities seem widespread. It will lead to collaboration among employees that you can directly measure against and help executives in their forecasts and planning. Of course, just as with other enterprise 2.0 tools, it's value depends on creating the optimal experience that gives participants a chance to feel they have a direct impact and can truly provide insight and feedback on future event. But when all of this is considered predictive markets can be a powerful tool could be an even more powerful tool with direct results to the bottom line.

1 comment:

Dawn said...

IIR is in the process of researching Prediction Markets as the main theme of a new conference. I am the producer assigned to the event and am interested in gathering some prelinary information from knowledgeable and experienced professionals in this industry. IIR produces hundreds of conferences every year. Prediction Market is a topic that we are hoping to tackle this year. I would greatly appreciate any insight and tips experts are willing to offer. Thank you in advance for your contributions.

Best,

Dawn Olsen
Conference Producer
Marketing & Business Strategy Division, IIR
708 Third Avenue, 4th Floor, NY, NY 10017
646-895-7329
Dolsen@iirusa.com