Auren Hoffman’s recent article in Forbes, “What You Know Beats Who You Know,” makes the point, in a world that is as connected as ours, where networks are transparent, and where information is transmitted with the click of a button, “what you know” is rapidly becoming more important than “who you know.”
In support of Hoffman’s perspective, today, there is greater access to people and to capital than ever before. Our ability as a society to search for information and knowledge has never been greater. This can be both a blessing and a curse, as we are faced on a daily basis with more information than we can actually process. Managers are constantly faced with paralysis by analysis. How then can business overcome this glut of information and its subsequent effect of actually slowing down decision-making?
Prediction markets can be an integral part of this solution. This is especially true when these powerful, knowledge aggregating tools are paired with specialized communities of experts. As Hoffman states, experts are easy to find, but with a prediction market the knowledge of many is easily aggregated into a predictive answer.
For example, our Consensus Point client, YourEncore, is proving the importance of just such a community of experts with the recent launch of the YourEncore Oncology Market. This prediction market, made up of PhDs and MDs, is providing life science companies with powerful intelligence around drug approvals, regulatory issues, and even new product development.
Prediction markets bring together the “what you know” and the “who you know” to provide more accurate information from the connectivity of experts.