{"id":19171,"date":"2016-11-18T16:22:57","date_gmt":"2016-11-18T21:22:57","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/going-once-going-twice-sold-to-technology\/"},"modified":"2016-11-18T17:02:53","modified_gmt":"2016-11-18T22:02:53","slug":"going-once-going-twice-sold-to-technology","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/going-once-going-twice-sold-to-technology\/","title":{"rendered":"Going Once\u2026 Going Twice\u2026 Sold to Technology!"},"content":{"rendered":"<p>Going once, going twice\u2026 SOLD! Art auctions are synonymous with red velvet ropes, infamous auctioneer podiums, and gilded posh auction rooms full of beautiful artwork. \u00a0Can this truly be a thing of the past?\u00a0 In recent years, technology has disrupted, and ultimately been incorporated into, the art auction business at Sotheby\u2019s.<\/p>\n<p><strong>Painting a picture of Sotheby\u2019s operations<\/strong><\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Sothebys.jpeg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-19096 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Sothebys-300x169.jpeg\" alt=\"sothebys\" width=\"563\" height=\"317\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Sothebys-300x169.jpeg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Sothebys-768x432.jpeg 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Sothebys-1024x576.jpeg 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Sothebys-600x338.jpeg 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Sothebys.jpeg 1920w\" sizes=\"auto, (max-width: 563px) 100vw, 563px\" \/><\/a><\/p>\n<p style=\"text-align: center\"><em>Source:\u00a0http:\/\/www.newsoftheartworld.com\/wp-content\/uploads\/sites\/4\/2015\/01\/impressionist_n09035-jpg-webrend-2000-11251.jpeg<\/em><\/p>\n<p>Sotheby\u2019s is one of the two largest premier auction houses in the world, rivaled only by Christie\u2019s.\u00a0 Founded in London in 1744, it served as the hallmark of art auctions catered to the privileged class for the better part of three decades.\u00a0 To give a sense for how intertwined \u201ctradition\u201d is with Sotheby\u2019s, just consider that Sotheby\u2019s is the oldest company traded on the NYSE. \u00a0Auctions are typically held twice a year, exclusively in New York, but buyers can be geographically located anywhere so long as an in-person representative is present in the room [1].<\/p>\n<p>An example of traditional operations is:<\/p>\n<ul>\n<li>Send out personal invitations to \u201cpre-screen\u201d art pieces in-person prior to bidding (art gallery style)<\/li>\n<li>Hire an auctioneer to \u201cperform\u201d for the clients. Ultimately, the auctioneer plays a large part in the auction experience, functioning almost as a theatrical persuader to excite the audience and encourage competition<\/li>\n<li>Holding an in-person bidding lasting 1.5 hours in a Sotheby\u2019s auction room where either the buyer or a buyer\u2019s representative bids<\/li>\n<\/ul>\n<p>Notably, this is how auctions have been held (with minor tweaks) for decades.<\/p>\n<p><strong>The Landscape: Bold Strokes on a White Canvas<\/strong><\/p>\n<p>With the advent of technology and the dominating presence of e-commerce, it was only a matter of time before online art auctions would catch on.\u00a0 Companies such as Paddle8, Artsy, and Auctionata have opened up the once cliquish art world to the masses and provided additional transparency on pricing.\u00a0 Just last year, online art auctions made up 6% of all art sales, which was a 32% increase from the previous year [2]. \u00a0No wonder it was only a matter of time before Sotheby\u2019s jumped on the bandwagon. \u00a0New initiatives by Sotheby\u2019s in response to technology have risen rapidly since 2004 [3].<\/p>\n<ul>\n<li><strong><u>MySotheby\u2019s: <\/u><\/strong>This platform launched in 2004 and for the first time, offered buyers the opportunity to peruse the Sotheby\u2019s website for new paintings prior to auction. No longer were in-person visits needed to get a real-time look at paintings up for grabs.\u00a0 The system allowed buyers to track lots and create \u201cwishlists\u201d for pieces.\u00a0 These lists were automatically updated as new works became available [4].<\/li>\n<li><strong><u>BidNOW:<\/u><\/strong> In 2005, BidNOW was launched to allow bidders to bid in real-time while watching broadcast auctions (available through streaming). The BidNOW tool was essentially a way to connect the buyer to what was happening in the room via video.\u00a0 Thus, they could bid as they saw pieces they liked [5].<\/li>\n<li style=\"text-align: center\"><strong><u>Partnering with eBay:<\/u><\/strong> It was not until 2015 that a full digital platform for bidding, where both the auction and bidding took place online, was launched. Sotheby\u2019s sought a partnership with eBay to develop the interface which allowed pieces to appear virtually on-screen and take bids.\u00a0 This movement to purely online was attractive to Sotheby\u2019s since it required very little upfront costs; there was no production cost, no catalog cost, and no auctioneer to pay. Instead, the platform contained photographs, video \/ audio components.\u00a0 At first, only five auctions were held, but since then, the online auctions have become more frequent [6].<img decoding=\"async\" class=\"aligncenter\" src=\"http:\/\/www.privateartinvestor.com\/wp-content\/uploads\/sites\/4\/2015\/03\/Sothebys-and-ebay-.jpg\" \/><em>Source:http:\/\/www.privateartinvestor.com\/wp-content\/uploads\/sites\/4\/2015\/03\/Sothebys-and-ebay-.jpg<\/em><\/li>\n<li><strong><u>Mobile App:<\/u><\/strong> Sotheby\u2019s most recent technology is its mobile application. Not only does it offer the same things as what\u2019s on MySotheby\u2019s, but it also has a mechanism for people to leave absentee bids, view auction results in real-time, and search upcoming lots [7].<\/li>\n<\/ul>\n<p style=\"text-align: center\"><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/App-1.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-19124\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/App-1-300x250.png\" alt=\"app\" width=\"300\" height=\"250\" \/><\/a><\/p>\n<p style=\"text-align: center\"><em>Source:\u00a0http:\/\/tahoerealestatediary.com\/wp-content\/uploads\/2012\/05\/phones.png<\/em><\/p>\n<p><strong>Framing the Future<\/strong><\/p>\n<p>As Sotheby\u2019s continues to push forward, there remains a couple things that could be implemented:<\/p>\n<ul>\n<li><strong><u>Virtual Reality headsets:<\/u><\/strong> This would be an innovative way to bring the traditional auction experience into the home of the online bidder. Instead of looking at pictures online, the bidder could use a Virtual Reality headset to observe pieces, walk around the room, and feel the space of the room. \u00a0Thus, the buyer still gets the emotional and competitive experience of bidding without having to physically attend; such an experience usually leads to higher selling prices for artwork.<\/li>\n<li><strong><u>Artificial Intelligence:<\/u><\/strong> Like IBM\u2019s Watson, an artificial intelligence auctioneer could also disrupt the auction experience. Sotheby\u2019s Watson could spew out painting facts and survey the room for probabilities for bids. \u00a0It would know when to stop letting people bid. \u00a0The publicity alone generated from it would be worthwhile.<\/li>\n<\/ul>\n<p>Overall, while the traditional art auction will probably never go away completely, the world of art is slowly being digitalized. \u00a0For such a historically unaltered operation, the last few years of technological advancement has jolted big change. Get onboard before it\u2019s gone!<\/p>\n<p>(798 words)<\/p>\n<p>&nbsp;<\/p>\n<p>Sources:<\/p>\n<ul>\n<li>Lauchlan, S. (2016, August 11). Sotheby\u2019s bids on digital transformation. Retrieved November 18, 2016, from Digital enterprise in the real world, http:\/\/diginomica.com\/2016\/08\/11\/southebys-bids-on-digital-transformation\/<\/li>\n<li>Economist, T. (2016, January 30). Going once, going twice, going online. Retrieved November 18, 2016, from http:\/\/www.economist.com\/news\/business\/21689621-online-auctions-are-changing-art-market-not-yet-upending-it-going-once-going-twice<\/li>\n<li>Tully, K. (2013, August 28). Can Sotheby\u2019s keep its edge? Forbes. Retrieved from http:\/\/www.forbes.com\/sites\/kathryntully\/2013\/08\/28\/can-sothebys-keep-its-edge\/#37d082e14095<\/li>\n<li>(2016). How Sotheby\u2019s and Christie\u2019s rely on digital technology to meet market needs and attract new customers. Retrieved November 18, 2016, from http:\/\/www.widewalls.ch\/sothebys-christies-digital-technology\/<\/li>\n<li>Auction glossary of terms. (2016). Retrieved November 18, 2016, from http:\/\/www.sothebys.com\/en\/Glossary.html<\/li>\n<li>Reaney, P. (2015, March 17). EBay, Sotheby\u2019s launch new online auctions platform. Retrieved November 18, 2016, from http:\/\/www.reuters.com\/article\/us-auctions-internet-idUSKBN0MD0BK20150317<\/li>\n<li>Villarreal, I. (1996). Sotheby\u2019s launches App for iPhone and iPad. Retrieved November 18, 2016, from http:\/\/artdaily.com\/news\/41732\/Sotheby-s-Launches-App-for-iPhone-and-iPad#.WC9OA_krJEYIn-line Citation:(Villarreal, 1996)<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Ever wonder how the world&#039;s most prestigious and mysterious operations might be disrupted by technology?  Walk into the infamous art auction house, Sotheby&#039;s, and see how the oldest stock on the NYSE has altered its business to keep up with the times!<\/p>\n","protected":false},"author":2213,"featured_media":19188,"comment_status":"open","ping_status":"closed","template":"","categories":[],"class_list":["post-19171","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/digitization-challenge-2016\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Going Once\u2026 Going Twice\u2026 Sold to Technology! - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/going-once-going-twice-sold-to-technology\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Going Once\u2026 Going Twice\u2026 Sold to Technology! - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"Ever wonder how the world&#039;s most prestigious and mysterious operations might be disrupted by technology? 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