Collective intelligence web technology
Collective intelligence web technology is a new technology in the web space. Gartner rated this technology as transformational Web 2.0 technology. Collective intelligence enables new ways of doing business across industries that will result in major shifts in industry dynamics. It is expected that the CI web technology to reach mainstream adoption in five to ten years. Collective intelligence is an approach to producing intellectual content (such as code, documents, indexing and decisions) that results from individuals working together with no centralized authority. This is seen as a more cost-efficient way of producing content, metadata, software and certain services.
Business opportunities of Collective Intelligence
I first encountered the collective intelligence a few years ago when Max introduced the book “Wisdom of the Crowds” to the stock-poll group. Since then, I have thought that there are many success stories about the wisdom of the crowds. One of the examples is the Linux project and its associated open-source software development. Another example is the Wikipedia. Its success is beyond imagination. Now Wikipedia is probably one of the best encyclopedias in the world.
A Business Week story about Digg.com strokes me so deep that I feel that I have to do something about this emerging technology. The power of collective intelligence combined with the Internet connected with diverse individuals is the potential to do great goods to the society.
I talked with Zhao Zhen about my thinking. I think we should combine this collective intelligence web technology with our current thinking about optimal investment portfolio based on historic data. If the two methodologies can be fused together we could create a superb technology for intelligent investments. Yesterday we met again at Starbucks and talked more about this new endeavor. We have arrived at the following basic three-part model.
We will define our space as three independent parts --- Investment Securities, Information Sources, and Evaluation Agents.
The investment securities are all investment vehicles available to individual investors, including mutual funds, closed-end funds, exchange-trade funds, individual stocks, and bonds. For each investment vehicle, we will calculate its investment merit points. We expect to associate the investment merit points with investment potential gains. The higher investment merit points should mean higher investment potential gains. Each investment vehicle will be assigned a total merit based on the evaluation agent’s multiplying factor and the credit-worthiness of the information sources used.
The second part is the information sources. We currently can think of the information sources as the basic building blocks to form intelligent decisions for individual agents. Some of the investment sources including (1) mass media such as news paper like the Wall Street Journal and magazine like Business Week, (2) academic studies such as investment theories recognized by Nobel price or accepted by the practicing industries, (3) Fund managers such as those who have established proven records like Warren Buffett and Peter Lynch, (4) brokerage analyst reports, (5) government statistics reports, (6) Fund management companies such as Vanguard and Fidelity, and (7) new information sources generated by the evaluation agents. Each information source will be assigned credit-worthiness scores given by the evaluation agents. The credit-worthiness scores of information sources will be determined by its independence and originality.
Charlie has established a guru focus website. He has indicated that the website has attracted many visitors. This website has only listed about 30 plus value investors. In the fund managers information source category we will have many sub-categories. Besides value investors, we can have growth investors, balanced investors, commodities investors, real estate investors, etc.
The third part is the evaluation agents. Each agent can work independently or cooperatively on recommending or evaluating any investment vehicles based on available information sources. Each agent will evaluate each investment vehicle with a buy/sell/neutral rating. A multiplying factor is used to carry the different weights of different evaluation agents. The multiplying factor weight is determined by the evaluation agent’s past performance of recommendations and power points given by other evaluation agents.
What is Collective Intelligence?
Collective intelligence is a human enterprise. I first recognized it in the early 1990s when I was thinking about the societal brain and societal body. I was thinking that the Internet was the backbone for the new societal brain to develop. It is paramount for people who believe in collective intelligence who have the mind-sets and willingness to share, and openness to the value of distributed intelligence for the common good of the society. Individuals who respect collective intelligence are confident of their own abilities and recognize that the whole is indeed greater than the sum of any individual parts.
In order to really utilizing or maximizing collective intelligence, an enterprise should strive to avoid groupthink. Groupthink is the tendency of all individuals in a group to think the same way.
Business opportunities of Collective Intelligence
I first encountered the collective intelligence a few years ago when Max introduced the book “Wisdom of the Crowds” to the stock-poll group. Since then, I have thought that there are many success stories about the wisdom of the crowds. One of the examples is the Linux project and its associated open-source software development. Another example is the Wikipedia. Its success is beyond imagination. Now Wikipedia is probably one of the best encyclopedias in the world.
A Business Week story about Digg.com strokes me so deep that I feel that I have to do something about this emerging technology. The power of collective intelligence combined with the Internet connected with diverse individuals is the potential to do great goods to the society.
I talked with Zhao Zhen about my thinking. I think we should combine this collective intelligence web technology with our current thinking about optimal investment portfolio based on historic data. If the two methodologies can be fused together we could create a superb technology for intelligent investments. Yesterday we met again at Starbucks and talked more about this new endeavor. We have arrived at the following basic three-part model.
We will define our space as three independent parts --- Investment Securities, Information Sources, and Evaluation Agents.
The investment securities are all investment vehicles available to individual investors, including mutual funds, closed-end funds, exchange-trade funds, individual stocks, and bonds. For each investment vehicle, we will calculate its investment merit points. We expect to associate the investment merit points with investment potential gains. The higher investment merit points should mean higher investment potential gains. Each investment vehicle will be assigned a total merit based on the evaluation agent’s multiplying factor and the credit-worthiness of the information sources used.
The second part is the information sources. We currently can think of the information sources as the basic building blocks to form intelligent decisions for individual agents. Some of the investment sources including (1) mass media such as news paper like the Wall Street Journal and magazine like Business Week, (2) academic studies such as investment theories recognized by Nobel price or accepted by the practicing industries, (3) Fund managers such as those who have established proven records like Warren Buffett and Peter Lynch, (4) brokerage analyst reports, (5) government statistics reports, (6) Fund management companies such as Vanguard and Fidelity, and (7) new information sources generated by the evaluation agents. Each information source will be assigned credit-worthiness scores given by the evaluation agents. The credit-worthiness scores of information sources will be determined by its independence and originality.
Charlie has established a guru focus website. He has indicated that the website has attracted many visitors. This website has only listed about 30 plus value investors. In the fund managers information source category we will have many sub-categories. Besides value investors, we can have growth investors, balanced investors, commodities investors, real estate investors, etc.
The third part is the evaluation agents. Each agent can work independently or cooperatively on recommending or evaluating any investment vehicles based on available information sources. Each agent will evaluate each investment vehicle with a buy/sell/neutral rating. A multiplying factor is used to carry the different weights of different evaluation agents. The multiplying factor weight is determined by the evaluation agent’s past performance of recommendations and power points given by other evaluation agents.
What is Collective Intelligence?
Collective intelligence is a human enterprise. I first recognized it in the early 1990s when I was thinking about the societal brain and societal body. I was thinking that the Internet was the backbone for the new societal brain to develop. It is paramount for people who believe in collective intelligence who have the mind-sets and willingness to share, and openness to the value of distributed intelligence for the common good of the society. Individuals who respect collective intelligence are confident of their own abilities and recognize that the whole is indeed greater than the sum of any individual parts.
In order to really utilizing or maximizing collective intelligence, an enterprise should strive to avoid groupthink. Groupthink is the tendency of all individuals in a group to think the same way.
posted by Unknown at 9:16 AM
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