Is it a good idea to encourage ALL employees to trade in these markets? Should insiders and/or highly uninformed people be allowed to trade? Do they help or hurt the market?
Yes, I think it’s a good idea to encourage all employees to trade in prediction markets for a variety of reasons. First, it can provide companies with valuable statistical data from a large population, helping them to make better business and forecasting decisions. This in turn can be use for marketing purposes and finding new and upcoming trends. Another important reason is this information can be free. Companies spend thousands, if not millions of dollars researching marketing trends, and companies can use this tool to cut these costs. Also, the company will save the end customer money through the cost savings. Finally, this strategy fits very well with the Google’s philosophy of democracy works best. The more people are involved, the more accurate these markets will become. Furthermore, I think insiders and highly uninformed people should be allowed to trade as well, because it not only simulates the real world but also informs everyone. If the insiders did not participate, then there would be information gap between the insiders and the public. By not freely releasing information, they will hurt the market by creating arbitrage opportunities and inefficiencies. The bottom line is that prediction markets are still a prediction and have some margin of error. Therefore, people and companies will need to know and understand these risks before jumping in with both feet.
Thursday, April 23, 2009
Thursday, April 16, 2009
Threadless
In what other industries or areas would Threadless’ community-driven product development model work well? And not so well?
The Threadless model is where people can post their own designs and the community or members will vote on the product before it is produced. This type of model could work well in other industries or other online business like the automotive industry or online art and music sales. For the car industry, I think you could have people submit their own designs online to the manufacturers. Then the manufacturers post the feasible designs online and have the public choose the best designs. I think this could work because it would involve the customers more in the production process, therefore adding value to the end product. The online art and music can work the same way. Artist can post material and have the community pick the ones they like the best for production. The industries where this would not work so well are ones where there is little or no product differentiation, like household goods. Also, industries that require expert knowledge and opinion like pharmaceutical industry. Having general opinions would provided no real benefit and would really waste the time of the companies and employees.
The Threadless model is where people can post their own designs and the community or members will vote on the product before it is produced. This type of model could work well in other industries or other online business like the automotive industry or online art and music sales. For the car industry, I think you could have people submit their own designs online to the manufacturers. Then the manufacturers post the feasible designs online and have the public choose the best designs. I think this could work because it would involve the customers more in the production process, therefore adding value to the end product. The online art and music can work the same way. Artist can post material and have the community pick the ones they like the best for production. The industries where this would not work so well are ones where there is little or no product differentiation, like household goods. Also, industries that require expert knowledge and opinion like pharmaceutical industry. Having general opinions would provided no real benefit and would really waste the time of the companies and employees.
Wednesday, April 8, 2009
Online social networks
Online social networks have become ubiquitous in the past few years. What forms of value do users get from these services and who is most likely to sign up on LinkedIn versus other sites?
The evolution of online social networks over the past few years is really amazing phenomenon because it went from a little known platform of personal expression to capturing the attention of millions of people. These social networks have allowed people to reconnect with friends, meet new people and share what is happening in their life, like watching NASCAR races and drinking beer. The value that the customer receives from these sites is from being able to post material about their life either through blogs, pictures, videos, messages, and allow their friends and family to see and comment on them. Social networks provide an easy way for many people to keep in touch that would have been nearly impossible otherwise. LinkedIn is a social network design for business people. It provides an easy way for business people to network, recruit, or connect with other likeminded people. This network provides a platform where; jobs can be posted, people can search for industry experts, and people can sell ideas or businesses.
The evolution of online social networks over the past few years is really amazing phenomenon because it went from a little known platform of personal expression to capturing the attention of millions of people. These social networks have allowed people to reconnect with friends, meet new people and share what is happening in their life, like watching NASCAR races and drinking beer. The value that the customer receives from these sites is from being able to post material about their life either through blogs, pictures, videos, messages, and allow their friends and family to see and comment on them. Social networks provide an easy way for many people to keep in touch that would have been nearly impossible otherwise. LinkedIn is a social network design for business people. It provides an easy way for business people to network, recruit, or connect with other likeminded people. This network provides a platform where; jobs can be posted, people can search for industry experts, and people can sell ideas or businesses.
Thursday, April 2, 2009
Wikipedia's
How do Wikipedia’s processes for creating and modifying articles ever lead to high-quality results?
Wikipedia’s process allows them to control who can post material and by allowing other posters to edit and delete inaccurate articles. By having people register with Wikipedia, they can control the contributions made by each user and if need be, revoke their access rights. Furthermore, Wikipedia banks on the fact that other users want accurate and high-quality information and they will monitor and correct inaccurate information. This hypothesis will stay true as long as users demand good information.
Wikipedia’s process allows them to control who can post material and by allowing other posters to edit and delete inaccurate articles. By having people register with Wikipedia, they can control the contributions made by each user and if need be, revoke their access rights. Furthermore, Wikipedia banks on the fact that other users want accurate and high-quality information and they will monitor and correct inaccurate information. This hypothesis will stay true as long as users demand good information.
Thursday, March 26, 2009
Blogging at DrKW
What are the advantages and disadvantages of implementing internal versus external employee blogs in a corporate setting? Are there certain industries where one of these strategies makes more sense?
In today’s business world, the faster your company can assimilate information, the greater chance of survival. One method of transferring information, not only from customers to company but also between employees is through blogging. Some of the advantages of internal blogging are increasing the communication between departments and divisions, helps getting vital information out faster, and creates a library of information for future references. However, there are several disadvantages that we need to look at. First, is controlling of information and content. Unless a company designates person to monitor the blog, tons of useless information can be posted making the blog worthless or hard to use. Another disadvantage is the lack of outside information or input. This could lead to a lack of problem solving or having fresh ideas. A final disadvantage is that employees could feel that they are being watched and only post positive information instead of what they truly feel or know.
External blogs can be really useful for most companies. First, it can provide a direct link between the company and their customers. Next, it can help them gather information from outsiders, who are experts in that particular field or industry. Finally, it can be use to promote or advertise new or unknown products. Although, there are a lot of positives for blogging, there could risks involved. The biggest disadvantage is this provides another avenue for private information and company secrets to get out. Again controlling the information that gets posted can be difficult.
Some of the industries that could benefit from the use of internal blogging are ones that are highly secretive or highly competitive; i.e. gov’t organizations, manufacturing companies like Boeing, pharmaceutical companies, NASCAR and so on. Industries that can use external blogging are ones that need high customer input; like software companies, service industry and so on.
In today’s business world, the faster your company can assimilate information, the greater chance of survival. One method of transferring information, not only from customers to company but also between employees is through blogging. Some of the advantages of internal blogging are increasing the communication between departments and divisions, helps getting vital information out faster, and creates a library of information for future references. However, there are several disadvantages that we need to look at. First, is controlling of information and content. Unless a company designates person to monitor the blog, tons of useless information can be posted making the blog worthless or hard to use. Another disadvantage is the lack of outside information or input. This could lead to a lack of problem solving or having fresh ideas. A final disadvantage is that employees could feel that they are being watched and only post positive information instead of what they truly feel or know.
External blogs can be really useful for most companies. First, it can provide a direct link between the company and their customers. Next, it can help them gather information from outsiders, who are experts in that particular field or industry. Finally, it can be use to promote or advertise new or unknown products. Although, there are a lot of positives for blogging, there could risks involved. The biggest disadvantage is this provides another avenue for private information and company secrets to get out. Again controlling the information that gets posted can be difficult.
Some of the industries that could benefit from the use of internal blogging are ones that are highly secretive or highly competitive; i.e. gov’t organizations, manufacturing companies like Boeing, pharmaceutical companies, NASCAR and so on. Industries that can use external blogging are ones that need high customer input; like software companies, service industry and so on.
Thursday, March 19, 2009
iPod vs. Cell Phone: Mobile Music
Has the digital music market irreversibly tipped in Apple’s favor?
No. Although, I think Apple has the advantage in this industry, I do not think that it is irreversible for several reasons. First, I think the digital music market can be split into two groups; people who want to own the music and people who like streaming music, i.e. Pandora, Yahoo Music and others. As of right now, Apple has the iPod, which at this point cannot have streaming music, so this eliminates this market. However, if Apple does create the iPhone, they will be able to further their market dominance.
However, this brings up another disadvantage of the iPod and that is not being able download music whenever you want. If cell phone carrier or Microsoft or Google; develop a mobile music device that can connect through the use of cell network or Wi-Fi internet, they will have a major advantage over the Apple iPod. This could enable the competition to steal Apple market share and establish themselves as the leader. The use of DRM’s can lock-in the customer but it can also scare away others. I think since Apple was the first to introduce this platform and gained the first mover advantage, they made it hard for consumers to switch platforms because of high homing and switching costs. On the other side, they have created anti-Apple sediment. So at the end of the day, I think it is hard to say what the actual net effect is.
No. Although, I think Apple has the advantage in this industry, I do not think that it is irreversible for several reasons. First, I think the digital music market can be split into two groups; people who want to own the music and people who like streaming music, i.e. Pandora, Yahoo Music and others. As of right now, Apple has the iPod, which at this point cannot have streaming music, so this eliminates this market. However, if Apple does create the iPhone, they will be able to further their market dominance.
However, this brings up another disadvantage of the iPod and that is not being able download music whenever you want. If cell phone carrier or Microsoft or Google; develop a mobile music device that can connect through the use of cell network or Wi-Fi internet, they will have a major advantage over the Apple iPod. This could enable the competition to steal Apple market share and establish themselves as the leader. The use of DRM’s can lock-in the customer but it can also scare away others. I think since Apple was the first to introduce this platform and gained the first mover advantage, they made it hard for consumers to switch platforms because of high homing and switching costs. On the other side, they have created anti-Apple sediment. So at the end of the day, I think it is hard to say what the actual net effect is.
Thursday, March 5, 2009
Brightcove
What are the strengths and weaknesses of Brightcove’s business model?
The main strength of Brightcove business model was their extensive platform and cost structure. The platform made it easy for their customers to build and distribute video faster and cheaper. Furthermore, it came equipped with tools that allowed the publishers to manage, track, and customize options, usage and content rights. The cost structure was a major selling point for Brightcove because they were only charge when their content was actually viewed and not a single fee service. The main weakness of Brightcove’s business model is their lack of focus. I think by trying to cater to the publishers, advertisers, affiliates, and consumers; Brightcove took too long to develop their platform and service allowing other competitors, like YouTube, to step in and take the first mover advantage. Furthermore, this broad focus put a strain on financial resources and delayed the starting date of platform. For these reasons, Brightcove lost their first mover advantage and fell behind in the internet TV industry.
The main strength of Brightcove business model was their extensive platform and cost structure. The platform made it easy for their customers to build and distribute video faster and cheaper. Furthermore, it came equipped with tools that allowed the publishers to manage, track, and customize options, usage and content rights. The cost structure was a major selling point for Brightcove because they were only charge when their content was actually viewed and not a single fee service. The main weakness of Brightcove’s business model is their lack of focus. I think by trying to cater to the publishers, advertisers, affiliates, and consumers; Brightcove took too long to develop their platform and service allowing other competitors, like YouTube, to step in and take the first mover advantage. Furthermore, this broad focus put a strain on financial resources and delayed the starting date of platform. For these reasons, Brightcove lost their first mover advantage and fell behind in the internet TV industry.
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