Monday, August 07, 2006

Why Web 2.0 is a bubble...

Do read this brilliant post by Rob from Businesspundit...Here's a nugget, but the whole post is worth reading, even if its a little on the longer side.

Wisdom of crowds fails in many cases because the members making the decision don't understand the context surrounding it. You shouldn't rely on a crowd for advice in your industry, because the crowd doesn't know anything about your industry.

The wisdom of crowds is a byproduct of other processes, not a process in and of itself. People trying to figure out how to harness the wisdom of crowds are already thinking about it the wrong way. It cannot be your end goal. You have to establish a process that allows people to make their own individual decisions and reap the rewards and consequences of their decisions individually. Then, and only then, can you look to see if you can tap into the collective wisdom for some extra benefit.

Wisdom of crowds is really a misnomer. It should be referred to as "the aggregated wisdom of lots of individual decision makers." Crowds tend to feed of themselves and they get stupid as a result. Unless members of the crowd have an incentive to act honestly and seriously, and aren't influenced by other crowd members, the results of the crowd will likely be wrong.

2 comments:

Anonymous said...

where the link????

Neelakantan said...

Right at the top, at the title of the post...