Crowd Sourcing 1-4

7/31/2019 Crowd Sourcing 1-4

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Defination

Official Definition

The act of a company or institution taking afunction once performed by employees andoutsourcing it to an undefined (and generally large)network of people in the form of an open call

- Jeff Howe

Is the act of sourcing tasks traditionallyperformed by specific individuals to a group ofpeople or community (crowd) through an opencall.


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Meaning

CROWDSOURCING is the solution for enterprises that areseeking to collaborate in-network leveraging theircustomers, employees, partners or constituents togenerate ideas that lead to value and drive success.

With Crowdsourcing, you can sharpen your focus on thosebig ideas that show the most promise of successideas thatadvance your company or organization through:

Improved product or service offerings

Strengthened competitiveness

Better allocation of resources Greater productivity

Increased customer retention and loyalty


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Crowdsourcing is a newly developed term

which refers to the process of outsourcing of

activities to an online community or crowd in

the form of an open call.

Any member of the crowd can then complete

an assigned task and be paid for their efforts.


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Example

Chiquita banana brand asking consumers tosubmit design ideas for the stickers on itsbananas.

Another example of crowdsourcing isMountain Dews DEWmocracy campaign,which put consumers in charge of creatingnew beverage flavors, naming them, anddeveloping packaging and ads to marketthem.


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Both of these ideas were immensely popular

with more than 100,000 people submitting

and voting on the preferred designs. So

crowdsourcings point is if you get enoughTerrys to submit designs, youre sure to find

at least a handful of good ones.


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Origin

The term Crowdsourcing was introduced by Jeff Howe and MarkRobinson in a Wired

Magazine article in June 2006. It describes a process of organising labour,where firms parcel

out work to some form of (normally online) community, offering paymentfor anyone within the

crowd who completes the task the firm has set. The advantages for afirm of outsourcing to a

crowd rather than performing operations in-house is that firms can gainaccess to a very large

community of potential workers who have a diverse range of skills and

expertise and who are willing and able to complete activities within a short time-frame and often

at a much reduced

cost as compared to performing the task in-house


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Importance

Product Development A common marketing task for which crowdsourcing is being applied in these

early days of the medium is for purposes of product development and design.Firms use crowdsourcing to get input and advice on their own productdevelopment efforts from existing end-users, and experts who may be able tosolve a certain scientific or design problem.

Advertising and Promotion The second generalized marketing area where crowdsourcing has been utilized to

date, is fort asks related to advertising and promotion. In this area it is possible

to distinguish two distinct forms of crowdsourcing activities, one is the use ofcrowdsourcers for rather laborious, menial tasks which the hiring firm hasneither the time nor manpower to complete themselves, the second form isagain the use of experts who are used by some firms to help create and developadvertising and promotional campaigns.


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1. Reduces Marketing Costs rather than spending thousands (or

more) on marketing to the masses, and hoping you have the right

message, you can have the consumer / client/ customer give you

feedback on what they like BEFORE you launch the marketing

campaign.

2. Eliminates Need for Test Groups what better test group than the

actual target audience? Engaging the audience in your marketing

efforts and plan can help to eliminate the need for costly (and often

biased) test groups.

3. Real Answers for Little to No Cost from your Targeted Audienceyour target audience is who you are truly trying to reach so why not

ask them for their input in what they like about your product or

service and then USE that valuable information to make your

marketing that much more effective.


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1. Be Very Clear in Your Brief

Whether youre doing behind-the-scenes crowdsourcing orasking consumers to pick the next flavor of your soft drink,you need to be very specific about what youre asking themto do. Setting clear guidelines in a brief will also help youavoid a disastrous situation in which consumers aretrashing your brand.

Example - Thats what happened when Chevy ran acrowdsourced program in 2006 asking consumers to makevideos for its Tahoe SUV. Consumers seized the chance tocriticize the vehicle for its environmental unfriendlinesswith lines like Its Global Warming Time.

ff d i


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2. Offer Good Incentives

When it comes to crowdsourcing, cash is king.

If you want high production values, you have

to open up your wallet a bit. Dont dangle a

trip as a prize since consumers may not be

able to take it for one reason or another.


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3. Dont Overwhelm the Consumer


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4. Prepare to be Overwhelmed by Ideas

The difficulty in crowdsourcing a campaign

often is not getting the ideas, but keeping

track of them all.

You get a huge chunk of ideas and Best ones

needed to be sorted out.

5 R b C d i D


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5. Remember: Crowdsourcing Doesnt

Equal Unprofessional

,Professional is a term that has been sorely tested in recent

years, thanks to crowdsourcing. There are industries, like

medicine and engineering, where it would be unthinkable to

have a stranger come in off the street and do the job youve

been working at for 20 years better than you, but advertisingisnt one of them.


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Advantages

Cost-effectiveness- Comparatively speaking, crowdsourced research can be doneat a fraction of the cost of traditional research.

Quick Turn Around- The time it takes to gather, execute, and analyze is shorterthanks to a purely digital foundation.

Flexibility- As trends emerge in findings, researchers can easily adjust theirstrategy to catch any shifts or surprises.

Collaboration- Crowdsourced research allows brands to collaborate easily withcustomers to ideate or improve upon products, to test concepts, ads, andexperiences, and to continue the conversation over a longer term.

Velocity- Crowdsourced research can travel at the speed of digital, allowing forreal-time consumer behavior analysis and insight for new technologies, memes,trends, and conversations.

Marketing and Marketing Research- Even though its frowned upon and often

times refuted in traditional research, the nature of crowdsourced research impliesthere will be some form of marketing intertwined as consumers share their stories,insights, and ideas for brands they support.


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Disadvantage

Crowdsourcing the wrong thing We discussed that R&D is also getting crowdsourced but in case if you have anidea or a task to be done, there is an assumption that it will not be leaked. Make sure whatever information youprovide while you crowdsource even if gets leaked you dont lose anything.

Whose stuff is it anyway A major issue that I see with Crowdsourcing is that of copy rights. If Nokia claims thatthe artwork that LG has used by crowsourcing is a Nokia copyright, then what? Its true that LG need not pay theroyalties but would have to at least withdraw that phone off the market. What if while the crowdsourceeparticipates in the contest he also provides the same design to Nokia and before LG comes up, Nokia throws asimilar piece in the market. The genuineness of the crowdsourcee needs to be checked.

Wrong Marketing At times Crowdsourcing can result in wrong marketing by passing the bad word of mouth

publicity. Take for examples an automobile company tries to crowdsource its next model design. In case if the endproduct is proved not good from the comfort aspect and not good in aesthetics, who is to be blamed? People willsimply say that the company no where takes quality seriously and rather tries to crowdsource to get the workdone in pennies.

At times you have to give that buck For saving the crowd from crowdsourcing providers who are just trying tofool certain websites mandate you to guarantee you at least 25 options to choose from but once you get you haveto chose from those 25 and pay the price. Now not necessarily you get that eye catching website you dreamt ofbut still you have already escrowed the money and hence you would have to live with it.

Ideas are open To impress you there would be people who will show you a glimpse of what they can offer, thiscan be risky because if you wanted a completely unique product, there are chances others too had an eye on it.

And you paid for it where as others just picked it from your order page free. You get it cheap but it cant be costlierThats an irony. Take for example to get your job done you can outsource,

and by paying more you can get better results (mostly). While in crowdsourcing this might not always be true.There are various individuals satisfying your need; some might be OK with a 100 dollar bill while others try to getat least 250. The prices are random and by increasing them, you not necessarily increase the quality of work, so tosay.


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Size of Market

Crowdsourcing is fundamentally changing business,government, non-profits, education, research, andother sectors.

Remarkably, were just seeing the tip of the iceberg.

Thus there is huge potential for crowdsourcing.

U.S., Canada, Greenland, India and many othercountries leverage crowdsourcing to solve public andcomplex private industry problems.

To see more government projects(http://www.challenge.gov is a recent good example)
http://blog.crowdspring.com/2010/03/government-crowdsourcing/http://www.policyresearch.gc.ca/page.asp?pagenm=CAN150_indexhttp://blog.crowdspring.com/2010/07/crowdsourcing-government-rupee/http://www.challenge.gov/http://www.challenge.gov/http://blog.crowdspring.com/2010/07/crowdsourcing-government-rupee/http://www.policyresearch.gc.ca/page.asp?pagenm=CAN150_indexhttp://blog.crowdspring.com/2010/03/government-crowdsourcing/


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Growth Rate

Crowdsourcing businesses will evolve their businessmodels to provide more sophisticated crowdsourcedservices. There are already many innovative crowdsourcingbusiness models an we will continue to see innovation inthe space.

. Consumers like being heard from regarding feedback onproducts they use.

There is something about claiming ownership in a processor product development.

So down the road when you see a product or concept thatyou were asked to provide feedback about, you can say Ihelped invent that or I helped launch that.Crowdsourcing capitalizes on that aspiration.


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Problems

1. While the promised prize of naming a new product will certainly guaranteelarge numbers of entrieswhat happens if there arentany good/acceptable/greatideas amongst the pile? Your brand has nocontrol over the quality of entries.

2. Your company becomes blinded by the success of the buzz and attentionthe competition has generated what if they choose the wrong winner?

Over 40,000 entries and the best they could choose was iSnack 2.0?3. Condorcets jury theorem a political science theorem which states that if

a crowd is slightly more likely to be wrong about a subject the bigger thecrowd the more likely you are to get the wrong answer (iSnack 2.0anyone?)

4. The public arent professionals or experts in

branding/advertising/marketing, and while thinking outside the box canresult in some innovative ideas, how can you ensure that they will choose agood one? OzSoapBox explains the danger ofallowing another IT nerd toname anything ever again.

5. This process still requires the guiding hand of an expert in the subject, andcannot be expected to be fool proof exercise.
http://en.wikipedia.org/wiki/Condorcet's_jury_theoremhttp://ozsoapbox.com/rest-of-australia/isnack-2-0-kraft-have-lost-the-plot/http://ozsoapbox.com/rest-of-australia/isnack-2-0-kraft-have-lost-the-plot/http://ozsoapbox.com/rest-of-australia/isnack-2-0-kraft-have-lost-the-plot/http://ozsoapbox.com/rest-of-australia/isnack-2-0-kraft-have-lost-the-plot/http://ozsoapbox.com/rest-of-australia/isnack-2-0-kraft-have-lost-the-plot/http://ozsoapbox.com/rest-of-australia/isnack-2-0-kraft-have-lost-the-plot/http://ozsoapbox.com/rest-of-australia/isnack-2-0-kraft-have-lost-the-plot/http://ozsoapbox.com/rest-of-australia/isnack-2-0-kraft-have-lost-the-plot/http://ozsoapbox.com/rest-of-australia/isnack-2-0-kraft-have-lost-the-plot/http://en.wikipedia.org/wiki/Condorcet's_jury_theorem


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Examples of crowdsourcing

Pepsi launched a marketing campaign in early 2007which allowed consumers to design the look of a Pepsican. The winners would receive a $10,000 prize, andtheir artwork would be featured on 500 million Pepsi

cans around the UK.

Facebook has used crowdsourcing since 2008 to createdifferent language versions of its site. The company

claims this method offers the advantage of providingsite versions that are more compatible with localculture.
http://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/Facebookhttp://en.wikipedia.org/wiki/Facebookhttp://en.wikipedia.org/wiki/Pepsi


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Documents

Crowd Sourcing 1-4