This document discusses the power of swarm intelligence and digital swarming. It defines a swarm as a decentralized and self-organizing system consisting of many individuals that coordinate using simple rules. Examples are given of prediction markets that utilize swarm intelligence such as Intrade and Hollywood Stock Exchange to aggregate predictions from large groups of people. The key points are that swarms can leverage collective intelligence to make accurate predictions, establish norms of behavior, and self-police in a robust and efficient manner.

1. “The Power of the Swarm”
Melda M. Washington
Information Culture, October 15, 2012

2. Overview
 Introduction
 The Swarm
 Examples
 Conclusion

3. Introduction
 Focus on the few quotes that address the masses
or the swarm:
 Dumb parts, properly constituted into a swarm, yield
smart results.
 The aim of swarm power is superior performance in a
turbulent environment.
 The net demands wiser customers.
 Expertise now resides in fanatical customers. The
world's best experts on your product or service, don't
work for your company. They are your customers, or a
hobby tribe.

4. The Swarm cont.
 The Internet made collecting the wisdom of crowds
much easier than before.
 When diverse, independent and decentralized, their
combined decisions are on point.
 Swarms can tell us where the next big trends are.
 If given free reign, the swarm is much more capable of
setting up its own ethics and rules of operation than a
formal group. It’s a stable, robust, and self-correcting
system.
 The swarm is very efficient in policing themselves.
 It is in essence self-correcting and self-policing.

5. The Swarm cont.
 Digital Swarming
 Is defined as the swarm of people, data, objects,
and machines
 is becoming a new model for how organizations
work to address challenges and meet goals.
 Is the new model that delivers information and
support decision making across the network or
collective
 It addresses the need for agility in the face of
rapid change

6. The Swarm cont.
 Facebook and Twitter are examples, while
they seamless appear to operate without
regulations, in actuality they follow well defined
restrictions and rules.

7. Prediction markets
 where large groups of people or the swarm
steer decision making on a large scale such as
in the stock markets.
 they demonstrate the value of collective
intelligence
 the ability to act collectively to make decisions
and solve problems—even if the people in the
groups aren’t always aware that’s what they’re
doing.

8. The Wisdom of Crowds

9. Intrade
Intrade is a
prediction market.
It allows you to
make predictions
on the outcome of
hundreds of real-
world events.
Prediction
markets find the
probability of
something
happening - a
predefined,
uncertain future
event.

10. The simExchange
Utilizes the
Wisdom of
Crowd to predict
the upcoming
best selling and
top rated video
games.
Stock market for
video games
Use virtual
money to buy
stock in games

11. HSX
Hollywood Stock
Exchange is The
Entertainment
Market™ where you
can buy and trade
movies, stars and
more.
Prices rise with a
blockbuster opening
Prices plummet with
a bomb

12. Conclusion
 The network economy has shifted the focus
from exchange of goods and services to
exchange of ideas.
 At the forefront of this network economy and
spreading these ideas are the champions of
this exchange:
 The
diverse, independent and decentralized—
Swarm.

13. References
http://en.wikipedia.org/wiki/Prediction_market
http://blog.tmcnet.com/digital-swarm/
http://www.kk.org/newrules/blog/