Real Experts Still Matter

In the June 11, 2007 edition of Fortune magazine, there are a couple of feature stories that enforce the notion that professional experts serve an important purpose. With the "wisdom of crowds" moment on the Internet (digg, Yelp!), I had previously challenged the need for experts, when we can harness the collective intelligence of the masses to produce similar end results of experts.

The Fortune article "No Test Dummies" takes a detailed look at the process Consumer Reports takes in order to produce its automotive reviews. Consumer Reports has a 327-acre site which puts each model/make automobile through a battery of safety, performance, and reliability tests. Consumer Reports actually buys their vehicles new and some 5000 miles and 10-months of testing later, they resell the cars for the maximum value they can get. They are spending nearly $3 million on 84 cars this year alone. The fact that Consumer Reports has a circulation of 4.3 million and another 2.7 million on-line subscribers allows them to produce these massively labor and cost-intensive reports. You can get some great insight in regards to a car and manufacturer's reliability and service from current and previous owners through various on-line sites. The side-by-side testing of new vehicles and models is not something that can be reproduced without a Consumer Reports-type agency footing the bill. When making a significant purchase like an automobile, consumers are looking to make an educated buy. That means they are willing to read, research and pay for relevant, timely information that will give them the necessary data in order to make an educated purchase.

Fortune's "Life at the Top" section provides a glimpse of luxury auctions (cars, watches, wine). Looking to buy or sell a 7-figure vintage 1957 Ferrari 410? This article can show you how, where, and which auction house to get the deal done. Hint, the auction house does not rhyme with MeRay. Also, it will cost buyers and sellers significantly more to use a luxury auction house than this Internet-auction giant. The cost for Christie's is typically 10% for the seller and 10% for the buyer. Not exactly chump change on what could be a $1,000,000+ transaction. Besides the obvious importance of attractive the proper audience, Christie's provides important value-adds to these extragant auctions. Prior to the auction, Christie's will do a comprehensive assessment of the items up for bid. An expert analyst will establish a value estimate, as well as a comprehensive authentication procedure. The analyst will provide the history, condition, and specification listing for the bid items.

There is "wisdom in crowds". However, the depth in which an expert can devote towards a topic provides a tradeable and valuable knowledge set. If you are one of the top authorities on valuing highly subjective values on rare, antique automobiles, your services will continue to be in demand for the forseeable future. Also, if your research organization can devote millions of dollars and thousands of man-hours towards a specific study, this research will not be replaceable by Web 2.0 technology and a large, vocal community. The voice of the majority will commoditize generalists and require a stronger level of detail and depth from those making or looking to make a living by providing expert advise. Experts will also need to hold up to the scrutiny of the now non-silent majority. The business of being an expert is not obsolete, but it changing and will continue to evolve as more information comes on-line.