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| Version | User | Scope of changes |
|---|---|---|
| May 7 2007, 1:03 PM EDT (current) | laschmitt | 1 word added, 1 word deleted |
| Apr 26 2007, 8:29 PM EDT | laschmitt |
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When multiple new alternatives are being considered it is imperative to assess and prioritize them in a way that stands up to scrutiny. Without this, alternatives become an undifferentiated list and the collective insight of the organization is left untapped. Collective assessment of alternatives provides a leading indicator for potential and enhances traditional analysis, development and experimentation.
Past approaches to group evaluation and assessment have used mechanisms ranging from a simple vote to various ranking schemes including the famous (or infamous) post-it note techniques. All of these methods result in limited information. The richness and depth of the knowledge of the organization is left untapped.
A new technique using auction methods leverages recent research into the ‘wisdom of crowds’ and the power of markets to evaluate alternatives. Market-based mechanisms are often the most accurate means to determine the future value of an idea or concept. Market-based mechanisms rely on the aggregate intelligence, opinion, experience and instinct of diverse people making independent judgments. From these judgments comes the ‘Wisdom of Crowds’ – a phenomenon where the collective assessment of value is almost always more accurate than any individual’s, or even small group’s own judgment.
Inovo has developed an efficient and easily implemented method to apply market methods to evaluate and track alternatives. The Concept Auction can be used to determine the relative value of ideas, opportunities, products, experiences or any other entity where one is trying to determine the relative value of a number of future possibilities. The market dynamic of an auction provides insight into:
The Auction is more than just a way of prioritizing ideas – it’s also a way of taking the pulse of the organization. The auction should not lead policy, but can be a valuable source of information for future analysis and commitments. It is always wise to know what the organization prefers to support.
Depending on the sources and representation of ideas and concepts, this whole process can take from just a few days to several weeks. The actual bidding process, distributing the analyst reports, bid sheets and getting the bids in, takes very little time. The auction process is most valuable with a large and diverse community of bidders. Fewer people can be used but there should be at least twice as many bidders and there are concepts being bid on.
A typical auction has between 10 and 15 concepts. Each concept is presented as a one-page analyst report that takes about 5 minutes to read. It is important that each concept be represented with approximately the same amount of information otherwise you will get information bias (bidders will tend to bid on concepts that have more information).
More detail on the Concept Auction Decision Support Tool can be found on the following Wiki pages.
Past approaches to group evaluation and assessment have used mechanisms ranging from a simple vote to various ranking schemes including the famous (or infamous) post-it note techniques. All of these methods result in limited information. The richness and depth of the knowledge of the organization is left untapped.
A new technique using auction methods leverages recent research into the ‘wisdom of crowds’ and the power of markets to evaluate alternatives. Market-based mechanisms are often the most accurate means to determine the future value of an idea or concept. Market-based mechanisms rely on the aggregate intelligence, opinion, experience and instinct of diverse people making independent judgments. From these judgments comes the ‘Wisdom of Crowds’ – a phenomenon where the collective assessment of value is almost always more accurate than any individual’s, or even small group’s own judgment.
Inovo has developed an efficient and easily implemented method to apply market methods to evaluate and track alternatives. The Concept Auction can be used to determine the relative value of ideas, opportunities, products, experiences or any other entity where one is trying to determine the relative value of a number of future possibilities. The market dynamic of an auction provides insight into:
- Depth and Breadth of support
- Whether closely-ranked ideas are truly close alternatives
- The distributions of priorities
- The confidence in each ranking
- Consensus
- Where does opinion ‘cluster’
- Where do ideas and concepts ‘cluster’
- Who are the most astute ‘investors’
- Those investors who are best at estimating the future value and anticipating organizational receptiveness
The Auction is more than just a way of prioritizing ideas – it’s also a way of taking the pulse of the organization. The auction should not lead policy, but can be a valuable source of information for future analysis and commitments. It is always wise to know what the organization prefers to support.
Auction Framework
The concept auction proceeds in threefour stages as shown in the figure below.A typical auction has between 10 and 15 concepts. Each concept is presented as a one-page analyst report that takes about 5 minutes to read. It is important that each concept be represented with approximately the same amount of information otherwise you will get information bias (bidders will tend to bid on concepts that have more information).
More detail on the Concept Auction Decision Support Tool can be found on the following Wiki pages.
