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2014/2015  BA-BSSIO1003U  Prediction Markets and Crowdsourcing for Firm Innovation: Service and Innovation

English Title
Prediction Markets and Crowdsourcing for Firm Innovation: Service and Innovation

Course information

Language English
Course ECTS 7.5 ECTS
Type Mandatory
Level Bachelor
Duration One Quarter
Course period Third Quarter
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for BSc in Service Management
Course coordinator
  • Carina Antonia Hallin - Department of International Economics and Management (INT)
Main academic disciplines
  • Innovation and entrepreneurship
  • Management of Information and Knowledge Management
  • Statistics and mathematics
  • Corporate and Business Strategy
Last updated on 20-08-2014
Learning objectives
This course builds students’ ability to set up and run ongoing prediction markets and crowdsourcing with the purpose of aggregating collective intelligence from the firms’ important stakeholder groups such as employees, customers and suppliers for use in effective strategic decision making and innovation management. That is, the course builds students’ ability to analyze, select and develop innovation strategies by introducing prediction markets and crowdsourcing as emergent business information aggregation tools to assess changes in the firm’s internal and external environments. The students will learn about the dynamics of stakeholder sensing of the internal and external firm environments and how such sensing activities may be utilized in strategic decision processes for strategic outcomes that can contribute to the development of sustainable competitive advantage. Students will learn basic theories of collective intelligence, environmental sensing, judgmental predictions, prediction markets, crowdsourcing and dynamic strategic decision making with focus on responsiveness and innovative behaviors. The course provides a framework for analyzing the competitive environment and potential effects of important stakeholder interactions.
Course prerequisites
English language skills equal to B2 level (CEFR) and math skill equal to Danish level B are recommended.
Prediction Markets and Crowdsourcing for Firm Innovation: Service and Innovation:
Exam ECTS 7,5
Examination form Home assignment - written product
Individual or group exam Individual
The assignment must be written in groups of 2-3 members, but is graded individually. It must therefore be clearly identified in the paper which student is responsible for which parts of the paper.
Size of written product Max. 20 pages
The project size should be:
1 student: max 10 standard pages
2 students: max 15 standard pages
3 students: max 20 standard pages
Assignment type Case based assignment
Duration Written product to be submitted on specified date and time.
Grading scale 7-step scale
Examiner(s) Internal examiner and external examiner
Exam period Spring Term
Make-up exam/re-exam
Same examination form as the ordinary exam
Description of the exam procedure
The exam is a written group project based on a company case assignment. The groups may choose between working with a given case study or a real company case. Both of the formats include fieldwork. The case exam assignment is given to the students on the first course day, and the deadline for handing in the final product is a week before the course ends.
Course content and structure

The study of Prediction Markets and Crowdsourcing is essentially the study of ‘bottom-up’ information aggregation processes from the firm's important stakeholders as they sense changes in the firm’s environmental spheres for use in strategic decision making and innovation processes. Prediction markets and crowdsourcing in businesses can be used in relation to assessment of changes in environmental and operational conditions; risk management; strategic issue management; strategic planning, prediction of promising projects, products and performance metrics, and to evaluate the likelihood of meeting strategic goals. 

The course starts with the premise that business strategy is a dynamic process which is both reactive and proactive in dealing with ongoing changes and innovation processes within the firm. The course analyzes the phenomena of environmental sensing by employees, suppliers and customers and presents various tools to aggregate such information for predictive purposes that can be used to modify, adapt, and change new service designs and other business initiatives that affect the firm’s strategic outcomes.  

Teaching methods
The teaching sessions will normally be divided between lectures and class discussion. The sessions have been designed to facilitate as much active class participation as possible using classroom clickers, student presentations and the proportion of time allocated to lecture although discussions will vary somewhat in intensity week by week.
Expected literature
There is not a single text for the course. Instead, the lectures will be based on material from published papers, downloadable from CBS Library databases or to be made available on Learn.
Last updated on 20-08-2014