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THE INKLING GUYS ARE RIGHT about the future of corporate prediction markets:
We've always felt this how [corporate prediction markets] may evolve: Instead of [..] a standalone marketplace, we expect to be fully integrated instead with an ERP system like SAP or Oracle, CRM systems like salesforce.com, or other mission critical systems of the same ilk. [I]f you think about it, the business processes prediction markets have seen success (financial forecasting, project management, product performance, competitive analysis, etc.) are many of the same inputs used in these systems. [Edits mine]
I completely agree. A corporate prediction market that talks or integrates with other corporate services confers tons of benefits. Among them:
  • The market can talk with business intelligence software, corporate datawarehouses or document indexes to show relevant graphs, tables or files to traders. Better informed traders will improve predictions.

  • The market can talk to HR databases to authenticate users and ensure that no employee signs up twice. In a large company, the HR databases can also help the market group employees into teams to facilitate competition among or within smaller populations.

    • Don't forget: One day, the dream of employee bonuses for good trading might come true. On that day, the market will need to talk to the HR and compensation systems.

  • Integrated markets can display where managers and employees are already looking. No need for an intra-firm marketing push to get people visiting the trading site. Placing the markets there also confers authority and legitimacy to the practice.
I could go on about this potential. The interesting question is: What does this mean for companies selling prediction market software?
  1. Does this require the markets to be hosted completely within the firm? My impression is that the current generation of corporate prediction markets are hosted on outside servers. Access to the service is limited to those within an IP range or with a functioning login. For policy or technical reasons, these markets may not be able to talk to firmware behind the firewall.

  2. If Inkling (or other firms) offered APIs, would clients use them? Conversely, would clients let Inkling use the APIs of their internal systems? (Ed: Do clients even have APIs for their firmware that can be used to talk with Inkling? Many don't.)

  3. How much connectivity with corporate services is necessary? A one-time dump of HR data into Inkling, or a one-time paste of JavaScript code into a dashboard page would be an easy way to integrate markets. How many of these opportunities exist? How feasible are they?

  4. Firmware providers such as Oracle, SalesForce or MicroStrategy could be best positioned to deliver integrated PMs. Will they ever make an investment in developing or acquiring PM software? Would they be receptive to a sales pitch to acquire a startup?

  5. Can corporate PMs (and corporate PM companies) flourish without a major firmware provider for distribution?
Going the firmware integration route doesn't look easy for the current generation of PM startups. Do share your strategies for this (if you don't consider it too sensitive).












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