Idea Stock Exchange 160
Retrospeak writes to tell us The New York Times has an interesting article on an interesting business strategy used by a company called Rite-Solutions. The system recognizes the need for harvesting ideas from the entire company instead of just one or two "idea-men" in a stock-market-esque idea exchange. From the article: "We're the founders, but we're far from the smartest people here," Mr. Lavoie, the chief executive, said during an interview at Rite-Solutions' headquarters outside Newport, R.I. "At most companies, especially technology companies, the most brilliant insights tend to come from people other than senior management. So we created a marketplace to harvest collective genius."
Re:Google (Score:2, Informative)
Google has done some good things, but please don't give them more credit than due. Picasa was acquired [google.com].
"Idea Futures" (Score:4, Informative)
Re:Google (Score:3, Informative)
I'm not sure what personal-project time has to do with having an internal ideas market, but Google does coincidentally have an internal prediction market, which they described in their official blog last year [blogspot.com]. From the description:
At Google, we're constantly trying to find new ways to organize the world's information, including information relevant to our business. Building on the ideas of Friedrich Hayek and the Iowa Electronic Markets, a few Googlers (Doug Banks, Patri Friedman, Ilya Kirnos, Piaw Na and me, with some help from Hal Varian), set up a predictive market system inside the company.
The markets were designed to forecast product launch dates, new office openings, and many other things of strategic importance to Google. So far, more than a thousand Googlers have bid on 146 events in 43 different subject areas (no payment is required to play).
We designed the market so that the price of an event should, in theory, reflect a consensus probability that the event will occur. To determine accuracy of the market, we looked at the connection between prices of events and the frequency with which they actually occurred. If prices are correct, events priced at 10 cents should occur about 10 percent of the time.
We also found that the market prices gave decisive, informative predictions in the sense that their predictive power increased as time passed and uncertainty was resolved. When a market first opens there may be considerable uncertainty about what will eventually happen; but as time goes on, some outcomes became more likely than others. The market prices should reflect this phenomenon, with the implied probability distributions becoming more concentrated over time.
Our search engine works well because it aggregates information dispersed across the web, and our internal predictive markets are based on the same principle: Googlers from across the company contribute knowledge and opinions which are aggregated into a forecast by the market. Sometimes, just feeling lucky isn't enough, and these tools can help.
Re:We tried to get HP to do this... (Score:3, Informative)
Indeed, executive decision support systems like this are precisely what the executive suite needs and it tends to be the layers just below them that are the most resistant so it's a catch-22. The executives typically have the mentality of the stock analysts and their immediate underlings are all-too-aware that upon this weakness their jobs depend.