presentation_tribeqa-the real last presentation

8/14/2019 Presentation_TRIBEQA-The Real Last Presentation

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The TribeQa Company

How To Build A Collective Intelligence System?A Common Sense Approach

a publication for Investors & Strategic Partners


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Acknowledgement

TribeQa owes much of the content of this presentation to two diverse,but excellent papers:

Mapping the Genome of Collective Intelligenceby Thomas W. Malone and his group at MIT

The Business Experiment by Rob May

The Business Experiment (TBE) offers a real-life experience while askingtough questions on crowd-sourcing. MIT brings a deeper understanding ofcollective intelligence systems

MIT = Centre for Collective Intelligence of the Massachusetts Institute of Technologys Sloan School of Management


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How to build a Collective Intelligent System

Index

1. About TribeQa2. Part 1 - Collective Intelligence

3. Part 2 - The Building Blocks of Collective Intelligence4. The End

We hope this presentation starts to give some deeper understandingof the fascinating potential of crowd/employee participation models.


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1. What does Tribeqa offer?

TribeQa primarily designs new online business models. After developingearly beta versions, we seek financial and strategic partners to accelerateexpansion. All of our business cases incorporate some form of -

collective intelligence of the smart crowd

and/or

active crowd participation in strategy, operations anddecision-making

With our practical experience, TribeQa also advises companies on how to setup social finance, online sales and other collective intelligence ventures.


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2.1Social Finance A New Paradigm?Financial consumer brands have lost their credibility as trusted partners.Consumers, however, see no viable alternatives, so they continue their busi-ness as usual. But the resentment against bankers & brokers offers new ini-tiatives a great opportunity.

TribeQa believes that any viable alternative needs to incorporate some sort ofcollective intelligence system. These systems are the best in (a) capturing theneeds of specific consumer groups and (b) harvesting the knowledge of em-ployees (close client contact) and other stakeholders.

This approach ensures a much more consumer-centered operation, whichcould define a new or revive a tarnished brand.


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2.2 Is the crowd really smarter, all the time?

Collective intelligence is already a proven system, and TribeQa feels thatcollective intelligence systems can be improved even more if the Crowd isselected on specific, but vital traits. For us, the Smart Crowd is a talent poolbuzzing with intelligent, competitive, independent-thinking, ambitious people

having fun to compete finding better solutions.

We recruit them from a broad spectrum of social, professional and genera-tional backgrounds, avoiding the conformist GroupThink of the FinancialEstablishment, that lies at the root of the Financial Crisis.

The Smart Crowd will outperform any expert,..... most of the time!


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2.3 Making Life simpler?Fortunately collective intelligence has drawn a lot of academic interest, butfor TribeQa it is simply a common-sense tool to make life easier for (financial)consumers and .... more profitable.

make your site useful even if you only have one user. Sites arenot useful, where users can share valuable stuff, unless there is

critical mass. Del.icio.us is useful even without the user base. The Business Experiment

In the GroupIQ, we essentially created an investment decision-making toolthat filters and validates the overkill of information. We create order in thechaos by ranking the Top10% solutions and integrating the superior productsin solid designed personal portfolios, with all the advanced expertise underthe hood.

This is valuable even for one user!


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based on an MIT analysis of 250+ examples of Web enabled collective intelligence

3.1 The Building Blocks of Collective Intelligence?

3.2 WHO? - the hierarchy or the crowd

3.3 WHY? - the incentives for the crowd

3.4 WHAT? - the actions of the crowd

3.5 HOW? - the crowd creates

PART 2The Building Blocks


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3.1 The Building Blocks of Collective Intelligence

TribeQa designs collective intelligence systems from a relativelysmall set of building blocks. This framework is important in designingany system for collective action, be it a traditional organization or anew kind of online endeavor.

MIT defines the building blocks as the answers to one of the key questions associated with asingle task in the system.

Who is performing the task?Why are they doing it?What is being accomplished?How is it being done?


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3.1 The building blocks of Collective Intelligence

MIT research of 250+ projects reveals a small set of main blocks

Who? Hierarchy or Crowd

Why? IncentivesMoney/ Love/ Glory

What? Create & Decide

How? Creating with or without the input of othersCollection/ Contests/ Collaboration

Types Group DecisionsVoting/ Consensus/ Averaging/ Prediction Markets

Types of Individual Decisions

Markets/ Social Networks


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3.2 Who? The Hierarchy or the Crowd

In her research MIT has found that reliance on the crowd is a centralfeature of online collective intelligence systems. But, almost always,some form of hierarchy is included in the decision-making process.

Hierarchy. In traditional hierarchical organizations, managers assign employees to performcertain tasks.Linux community is not a traditional firm, LinusTorvalds still uses Hierarchy to decidewhich modules are included in the next release.

Crowd. Activities can be undertaken by anyone who chooses to do so, without being assigned bysomeone in a position of authority.Anyone can submit a module for possible inclusion in Linux.


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3.2 Who? The Hierarchy or The Crowd Part II

TribeQa strongly favors crowd models for its effectiveness in many situationswhere knowledge is scattered widely among the members of a group.

In prior decades, due to high costs, movies were made by only a few. But creativeideas have always been widely distributed in the population, and now with cheaper

systems anyone can create and share their own videos. Center for Collective Intelligence, MIT

Many collective intelligence systems use the crowd for creation and someintermediate decisions, but leave the final decision to a small group assignedto the task.As an exception, TribeQa designed a crowd model for the GroupIQ, in which power is almost com-pletely handed over to the Smart Crowd. The GroupIQ is now the first financial company in the worldmanaged by the collective intelligence of the Smart Crowd. A unique market position.


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3.3 Why? The incentives for the Crowd

Crowd models that depend on free contributions carry big risks. People needincentives to act: Love, Glory or Money.

What is novel about many of the collective intelligence systems thathave emerged in recent years is their reliance on Love and Glory, incontrast to traditional organizations, which have relied on Money as motivation.

Center for Collective Intelligence, MIT

TribeQa feels that money should be part of the equation. Especially becauseas TBE noted intangible, long-term incentives might not be a good way to getpeople involved.

And even money will not suffice for rainmakers and opinion-leaders withenough money, contacts & ideas. They simply lack the time. For them sacrific-

ing one hour is big and the marginal value of money becomes less and less.


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3.3 Why? The incentives for the Crowd part II

In the GroupIQ strategic and investment solutions are rewarded by Love,Glory and Equity Points(!!). On the other hand, operational tasks are reward-ed with Cash, Love, Glory and Equity Points.

The Top50 Producers share a 50% (!!!) stake in the company, the revenuesand the profits. Also, we use solutions to reduce the Time Factor forhigh-profile opinion-leaders

Getting the motivational factors wrong could well be thesingle greatest factor behind failed efforts to launch new collectiveintelligence systems. Appealing to Love and Glory may reduce costs,but could also provoke accusations of exploitation and freeloading.



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3.4 What? The actions of the Crowd

The many organizational goals encountered in collective intelligence systemscan be boiled down into two basic activities.

Create. the crowd generates something newa piece of software code, a blog entry,a T-shirt design.

Decide. the crowd evaluates and selects alternatives deciding on selections.

Each week, Threadless relies on the crowd to create a group of new T-shirtdesigns, and then decides which ones to produce through a combination ofvoting (by anyone who is interested) and a hierarchical decision (by Thread-less management).


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3.4 What? The actions of the Crowd Part II

Crowd production works most efficient if (a) work is divided in small pieces(micro-chunks) and (b) the members get an understanding of the contextassociated with the work.

Crowds often do what is popular, fun, exciting, novel or cool. Crowds

dont make decisions that say lets bite the bullet and endure thistemporary pain for the long-term benefit (look at the political systems).

The Business Experiment

In the GroupIQ project, TribeQa developed the whole system by itself first.The Crowd now gets the free hand to improve it within specific strategy, qual-ity and timeline constraints.

Because members can see the whole project, they have the context theyneed to improve the micro-chunked issues.


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3.5 How? The Crowd Creates

In the Creation Process projects could use

Collections. Useful if it is possible to micro-chunk actions done independently bydifferent members of the crowd. In the GroupIQ members find great articles; clip valuableopinions, and based on that define the right questions? Ergo, they create a large portfolio of valuable

knowledge.

Contest. Useful if one needs to select a few top solutions.In the GroupIQ the contest is thedriving element on various levels, all because the challenge is to find the best solutions out of large universeof opportunities.

Collaboration.Useful when micro-chunking becomes too difficult.On thelevel of strategy the GroupIQ selects or layers the Crowd in smaller units who collaborate on creatingbetter solutions, headed by a senior member.


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3.5 How? The Crowd Creates Part II

The complexity (risk) of the creation process is determined by the level of col-laboration (often under time pressure). Will the chain in the work-flows not bebroken frequently, if dependency is high? How will you manage a process likethat, if members work for free?

Many collective intelligence systems still use hierarchies for some oftheir tasks, but what is novel is how they use crowds for Creationand Decision-making. A key {notion} ....is whether the different membersof the crowd make their contributions and decisions independently ofeach other or whether there are strong dependencies between their contributions.


In each project TribeQa analyses carefully what part of the work-flow can beassigned to independent contributions and which issues need a collaborative

effort.


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3.5 How? The Crowd Decides part III

Who controls what? How much power is handed over to the Crowd?Always a hot debate as it defines the total enterprise.

Having decided on the power of the Crowd, the next question is how to

organize the decision-making process. And this NOT a big problem; manyproviders offering the tools for it.

Normal, implicit or weighted votingConsensusAveragingMarketocracy runs an investment portfolio selected by averaging the opinions of the top 100investors from over 55,000 on the website.

Prediction MarketMicrosoft used it to estimate project completion. Within minutes, the market indicateda 1% probability of on time completion. The project ended up three months late.


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3.5How? Individual Decision part IV

The wisdom of crowds is a byproduct of other processes, not a process in and of itself.You have to establish a process that allows people to make their own individual decisions andreap the rewards and consequences of their decisions individually.

The Business Experiment

TribeQa tracks consumers making their normal day-to-day (financial)decisions and converts their actions into a market action (buy/sell). This feedsthe system with important independent, personal input that will be much larg-er than the group of active members.


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PART 3

You See It or You Dont See It


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The End!

TribeQa seeks investors and strategic partners to improve andaccelerate new or existing projects by improving scalability, interactivity andpersonalization.

Being ahead of mainstream thinking, we realize that most investors/poten-tial partners feel comfortable following the herd, especially in cases withouthigh-profile managers.

Thus, our challenge is to identify, convince and recruit original- thinking crowdinvestors ($10.000), angel investors ($250.000) and potential partners tolaunch and participate in other collective intelligence projects we are cur-

rently developing.

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