Suggest two other business cases in which this method can be used to collect information. What problems do you see besides the ones mentioned in the Background information section? What kind of information system do you need to design to support this method of collecting information? Provide a simple hardware/software configuration.
There are two other business cases other than Hewlett Packard’s where an electronic market could be used to collect information with information aggregation:
1- Market research, more specifically, product testing or research.
For example, a market like the one used on this case could be used to compare two products against each other and see which one has the better ratio of trading and thus figuring out which product has better potential before it is even launched
2- Commodities’ prices for various products, including gold or utility prices and or currency exchange.
In this case an electronic market can be used to find out how a particular utility or commodity is expected to perform in the future. For example if an international, company is planning to invest into a factory in a particular country but has concerns about the possible appreciation of the local currency which will make exports very expensive. If can predict that the currency is going to appreciate or not it may decide to do the investment or not.
On both cases derive several problems. First, actual results may not reflect accurately future results or real performance of the products being tested or traded. Even if you get what look good feedback from the market it may not reflect what it will really happen. Additionally, the format of the electronic market has to be design to give the most appropriate feedback. For example, the market for the product research has to be designed what is going to be exchanged in order to work and in a auction or trading format that gives the best feedback
The class project only involves several people and professor Vragov keeps track of the results on a spreadsheet. Of course if this method of collecting information involves many people an automatic information system is needed. The only hardware needed would be an on-line server or virtual server with an interface allowing participants to access it and trade. That interface could be configured for different market types, allowing for different auction types and or for posting bids and puts. All transaction will automatically be recorded and executed after they are confirmed by both parties without human interaction. The results will then be recorded into a database where the relevant information can be extracted.
There are two other business cases other than Hewlett Packard’s where an electronic market could be used to collect information with information aggregation:1- Market research, more specifically, product testing or research.
For example, a market like the one used on this case could be used to compare two products against each other and see which one has the better ratio of trading and thus figuring out which product has better potential before it is even launched
2- Commodities’ prices for various products, including gold or utility prices and or currency exchange.In this case an electronic market can be used to find out how a particular utility or commodity is expected to perform in the future. For example if an international, company is planning to invest into a factory in a particular country but has concerns about the possible appreciation of the local currency which will make exports very expensive. If can predict that the currency is going to appreciate or not it may decide to do the investment or not.
On both cases derive several problems. First, actual results may not reflect accurately future results or real performance of the products being tested or traded. Even if you get what look good feedback from the market it may not reflect what it will really happen. Additionally, the format of the electronic market has to be design to give the most appropriate feedback. For example, the market for the product research has to be designed what is going to be exchanged in order to work and in a auction or trading format that gives the best feedback
The class project only involves several people and professor Vragov keeps track of the results on a spreadsheet. Of course if this method of collecting information involves many people an automatic information system is needed. The only hardware needed would be an on-line server or virtual server with an interface allowing participants to access it and trade. That interface could be configured for different market types, allowing for different auction types and or for posting bids and puts. All transaction will automatically be recorded and executed after they are confirmed by both parties without human interaction. The results will then be recorded into a database where the relevant information can be extracted.
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