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©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence 1©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence
HarnessingthePoweroftheCrowd– theNextGenerationforSoftwareOutsourcing?
ArleneMinkiewicz,ChiefScientist
©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence 2
Agenda
§ Introduction
§ CrowdsourcingDefined– Crowdsourcingingeneral– CrowdsourcingSoftwareDevelopment– BenefitsandChallenges
§ CrowdsourcingExamples
§ CrowdsourcingSoftwareDevelopmentPlatforms
§ Cost,ScheduleandQualityImplicationsofCrowdSourcing
©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence 3
Introduction
§ Crowdsourcing– thepracticeofusingthecrowdtosolveaproblemoraccomplishcertaintasks– hasbeenaroundforaverylongtime
§ Recenttechnologyadvanceshavecreatedanenvironmentwhereitiseasyandeffectivetoengageacommunityofinterestedpersonstosolvemanytypesofproblems– Designofsoftware,logos,businesscards,websites,etc
– Testingofsoftwareapplications
– Documentation
– Fundingandsupportinginnovativeprojects
– Solvingcomplexmathematicalandalgorithmicchallenges
– Creatingnewandinnovativeproductswithinanexistingproductline
§ Manyarguethateffectiveandsensibleapplicationsofsoftwaredevelopmentcrowdsourcingcreateopportunitiestoimprovecost,scheduleandqualityofsoftwareapplications
§ Thispaperdiscussescrowdsourcing,softwaredevelopmentinacrowdsourcingplatformanddiscussescostandqualityconsiderationswhilecrowdsourcing
©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence 4
CrowdsourcingDefined
§ TheexpressionCrowdsourcingwascoinedasaportmanteau(alinguisticblendofwords)ofthewordscrowdandoutsourcing
§ Crowdsourcingisaparticipativeonlineactivityinwhich:– Individual,institutions,nonprofitsorcompaniesproposethevoluntaryundertakingofatask
ortasksofvaryingcomplexityandmodularityto….– Agroupofindividualsofvaryingknowledge,heterogeneityandnumberviaa….– OpencallissuedonlinegenerallythroughaCrowdsourcingplatform…
§ Somewellknownexamplesinrecenthistory– Wikipedia– Linux– Lays‘Doyourselfaflavorcontest’
§ Crowdsourcingcanbe….– Competitive– onlyselectedparticipantswillwin,inhighlycompetitivesituationsmanywill
competebutonlyasfewwillwin– Non-CompetitiveorCollaborative– groupsofindividualsworktogethertoaccomplishtasks
©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence 5
CrowdsourcingDefined(Continued)
§ Typesofcrowdsourcing:– Crowdfunding– projectsarefundedbyalargegroupofpeoplewhoareinterestedintheproject
– Crowdsourceddesign– projectsarefundedtoengagethecrowdinanefforttodesignsomething(likeawebsite)
– Crowdwisdom – Usersaskquestionstothecrowd(likeYahooAnswers)orcorporationsposecomplexscientificortechnicalproblemstotakeadvantageoftheknowledgeofthecrowd(likeInnoCentive)
©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence 6
CrowdsourcingDefinition(Continued)
§ Definitions– Crowdworker – onewhoacceptsanonlinecrowdsourcingtasksandcollaboratesorcompetesforsuccessfulcompletion
– Crowdsourcer – anorganizationorindividualthatproposedtohavesomeoralloftheirtasksaccomplishedthroughcrowdsourcing.
– Crowdsourcingmarketplace– environmentorplatformthatactsasanintermediarybetweenthecrowdsourcer andthecrowdworker throughaplatformforintegrationbetweentheparties
§ CrowdsourcingvsOutsourcing– Outsourcinginvolvesoutplacingofspecificcorporatetaskstoathirdpartycontractorororganizationforanegotiatedfee
– Crowdsourcinginvolvestasksbeingallocatedtoanundefinedgroupofunknownindividualswho,whensuccessful,arerewardedfortheireffortinperformingthetask
©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence 7
Crowdsourcingexamples
§ Waze.com– themassescontributerealtimeinformationabouttrafficconditions,locationofspeedtraps,generaltraveltime– thisinformationisbroadcasttoallusers
§ Wikipedia– anencyclopediawrittenbypeopleacrosstheglobe– bothexpertsandamateurs.
§ Kickstarter– morethan$2.7Bpledgedtoprojectsbyacommunityofpeopleinterestedintheprojects– novels,artprojects,movies,etc.
§ Lego– usersdesignnewproductsthatotherusersvoteon.Theideawiththemostamountofvotesisproducedandthecreatedreceives1%royaltyonnetrevenue
§ AirBnB – peoplewhoneedaplacetostayfindpeoplewhohaveaplaceforthemtostayviaanonlineapplication
©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence 8
CrowdsourcingBenefitsforCrowdsourcers
§ Accesstothecollectiveknowledgeofalargegroupofindividualswithawidediversityandbreadthofideasandknowledge
§ Innovationonsteroids– Optimizescreativity
§ Costsavings– generallylessexpensivethanhiringdedicatedprofessionals
§ Reduceoverhead
§ RapidAcquisition– findingsolutionsthatalreadyexist
§ SolutionDiversity
§ SolutionScalability
©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence 9
CrowdsourcingBenefitsforCrowdworkers
§ Economic– winnersarepaidfortheirsolutions
§ SocialRecognitionorStatuswithinthecommunity
§ Acquisitionofnewknowledgeinthefield– Attemptingcontestswheretheyneedtolearnnewtechnologies– Throughdiscussionboardswithfellowcontestparticipants
§ Experienceintheirfield
§ Thrillofcompetition
©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence 10
CrowdsourcingChallenges
§ Openingthedoortothecrowdwillnotonlyresultincreative,innovativeideas,therewillalsolikelybesomehalf-bakedideaswhichrequiretimeandefforttoreviewandevaluate
§ Toomanychefsmaycreatechallengestoeffectivedecisionsandtimelyprogress
§ Cheaplabormaynotbethebestlabor
§ Intellectualpropertyissues
§ Nocontract– noconsequencesfornondelivery
§ Scheduleissuesifnoonesignsupforcertaintasksortheygounfinished
§ QualityControl
©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence 11
SoftwareDevelopmentCrowdsourcing
§ Opencallforparticipationinsoftwaredevelopmenttasksincluding:– Concept– Requirements– Design– Coding– Testing– Documentation
§ Insteadofbeingaccomplishedbyanon-premise oroutsourcedsoftwaredevelopmentteam– thesetaskscanbeassumedbymembersofthegeneralpublicwhoarepartoftheassociatedcrowdsourcingplatformcommunity
©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence 12
SoftwareDevelopmentCrowdsourcing
§ Technologyadvancescryfornewwaystodevelopsoftware…– Cloudcomputing– BigDataanalysis– MobileComputing– Increasedsupportforcollaborationinsoftwaredevelopment
§ Paradigmshiftinthesoftwaredevelopmentareaofpeerproductionsoftware– Likelytobecomethenextgenerationofoutsourceoroff-shoring
©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence 13
SoftwareDevelopmentCrowdsourcing
§ Howdoesitwork?– Crowdsourcer developsaspecificationfortheworkdesiredandtheassociatedtasksanddeliverables
– ThesetasksarepublishedonlineviatheCrowdsourcingplatformtothatplatform’scommunity
– Inadditiontheamountofrewardandrequiredtimeframefordeliveryarepublishedaswell
– Communitymembersaccepttasksandbeginwork(potentiallysomeintermediatebackandforthforclarification)
– Uponcompletiontasksaresubmitted– Theone(ormore)bestsolutionsareselectedandrewardsareissuetothecrowdworkers responsibleforthewinningsolutions
©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence 14
SoftwareDevelopmentCrowdsourcingExamples
§ Harvard– a2weeklongTopCoder Marathonmatchresultedina976xincreasetocomputationspeedforalgorithmsfordifficultgeneticsbasedchallenges
§ NASA– turningtothepublicforout-of-the-boxthinkingontopicssuchasanewalgorithmtoimproveRobonaut’s tooltotakeadvantageofmaterialsfoundonasteroids,themoonorMars
§ Humana– usedTopCoder todeliveranASP.Net applicationrevampingtheirwebsitewhichhadfallenbehindindustrystandards– within12weekstheywereabletobetterprovidetheircustomerswithneededpharmaceuticalservices
©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence 15
SoftwareDevelopmentCrowdsourcingPlatforms
§ Mostsoftwaredevelopmentcrowdsourcingplatformsfocusonasingleareaofsoftwaredevelopment
§ ForDesignthereareplatformssuchas– DesignCrowd– CrowdSpring– 99Designs
§ ForTestingthereareplatformssuchas– CrowdsourceTesting– bugFinder– Mob4-hire– appStori (Betatestingandcrowdfundingfornewapps)
§ TopCoder andGetACoder appearstobeonofthefewplatformsthattranscendstheentiredevelopmentprocess
©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence 16
TopCoder
©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence 17
CostandQualityConsiderations
§ Crowdsourcingcreatesanenvironmentwheresomepercentageofcostsandschedulecanbecontainedforaproject
§ Organizationstakingadvantageofcrowdsourcingopportunitiescancontrolcostandscheduleforcrowdsourcetasks– Prizeamountsaregivenbythecrowdsourcer– Deadlinesforcompleteddeliverablesaregivenbythecrowdsourcer
§ Smallprojectswheremostorallofthetasksarecrowdsourcedwillbeabletodetermineprojectcostsfairlywell– Thoughthereshouldbeconsiderationformanagingtheproject,developingspecifications,
reviewingsubmissions,assessingquality,finalintegrationorintegrationwithothercapabilities,etc.
– Thereshouldalsobeconsiderationsforsituationswherenooneacceptsataskoracceptersfailtodeliverasolution– theseshouldbeconsideredpartoftheriskofacostassessment
§ Largeprojectsshoulddeterminecostbasedonthecapabilitytobedeliveredanddiscountforcrowdsourcingtasksbasedonhistoricalknowledge– ReviewofcompletedtasksonTopCoder orsomeotherplatformprovidesgoodhistoricalinformation
aboutpreviouscrowdsourcedtasks
©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence 18
CostandQualityConsiderations
§ Whenusingcheaplabor– thereisalwaysaconcernforquality.– Ingeneralcrowdworkers doitfortheexperienceandcompetitionaswellasthemoney,sohighqualitysolutionsarequitelikelyhowever….• Clearqualitystandardshouldbedefinedandenforcedbythecrowdsourcerwithrewardsonlygoingtothehighestqualitysolutions• Peerreviewsofsolutionsshouldbeanessentialpartofthereviewprocess• Historicaldataonqualityismoreillusivethanforcostandschedule–organizationsshouldstrivetocreatetheirownqualitymetricscollectionstobetterunderstandthequalityriskswhencrowdsourcingonaparticularcrowdsourcingplatform
©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence 19
Conclusions
§ Crowdsourcing– whileit’sbeenaroundforalongtime– isstillgainingtraction– especiallyinthesoftwaredevelopmentarena
§ Crowdsourcingplatformsexistforvarioussoftwaredevelopmenttasks,andhavebeenusedsuccessfullyinvariouscontexts– Lotsofsuccesseswithwebdesignandsoftwaretesting– Lotsofsuccesseswithsolvingcomplextechnicalandalgorithmicproblems
§ Careshouldbetakenwhendecidingtousecrowdsourcingbasedon:– Criticalityoftheprojecttothebusiness– Criticalityoftimetomarketfortheproject– Organization’sexperiencewithcrowdsourcing
§ Aswithallsoftwaredevelopmentendeavorsitisimportanttoassesstherisksoftheprojectinthecontextofhistoryandexperience
©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence 20©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence
Q&ASESSION
ArleneF.MinkiewiczChiefScientist
PRICE® Systems,LLC.17000CommerceParkway– SuiteA
Mt.Laurel,NJ 08054Office856-608-7222 Mobile856-630-9408
©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence 21
References[1]Codabux,Z.,Williams,B.,”Managing TechnicalDebt:AnIndustrialCaseStudy,2013,InternationalWorkshoponManagingTechnicalDebt,SanFrancisco,CA,May2013,p8-15
[2]Ergin,L.,“TechnicalDebt- DonotUnderestimatetheDanger”,availableathttp://www.slideshare.net/lemiorhan/technical-debt-do-not-underestimate-the-danger (Retrieved3/12/2015)
[3]Curtis,B.,Sappidi,J.,Szynkarski,A.,“EstimatingthePrincipalofanApplication’sTechnicalDebt”,IEEESoftware,vol 29,no.6,pp34-42,Dec2012
[4]Curtis,B.,Sappidi,J.,Szynkarski,“Estimatingthesize,codeandtypesofTechnicalDebt”,ThirdInternationalWorkshoponManagingTechnicalDebt2012,2012
[5]Curtis,B,“MeasuringandManagingTechnicalDebt”,availableathttp://omg.org/news/meetings/tc/tx-14/special-events/cisq-presentations/CISQ-Seminar-2014-6-17-BILL-CURTIS-Measuring-and-Managing-Technical-Debt.pdf,(Retrieved3/12/2015)
[6]SWEBOKVersion3andGuidetoSWEBOKavailableathttp://www.computer.org/web/swebok/v3
©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence 22
BackupInformation
©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence 23
CrowdsourcingDesignPlatforms
§ DesignCrowd – logoorwebsiteoranycreativeprojects– Postadesigncontest….
• Postsabriefdescribingwhattheywantdesigned–alongwithwhattheywanttopayforthedesign
• Designersreadbriefandstartworking• Getfeedback,eliminatedesignsyoudon’tlike,suggestchanges
• Selectadesignandthesubmitter(s)arecompensated
§ CrowdSpring – graphicdesign,websiteandmobileappdesign,productdesign
©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence 24
CrowdsourcingTestPlatforms
§ CrowdsourcedTesting
§ BugFinder– DefineProjects– ProjectsareManagedbyBugFinder– ReviewBugs– BugsarefixedbyBugFinder Community– Softwareisreleased
©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence 25
SoftwareDevelopmentCrowdsourcingPlatforms
§ TopCoder.Com– Projectsfallintooneofthefollowingtracks:Design,DevelopmentandDataScience.Withinthesetracksprojectscanbefurthercharacterized:• AlgorithmsandAnalytics• AppDesignandDevelopment• AppModernization• CommunityBuilding• InnovationPrograms• StaffAugmentation
– TopCoder presentschallengesfromtheircustomersinoneofthethreetracks• RealworldsystemsarebrokenintotaskareassotheCrowdworker canworkinareastheyknowbest• Crowdworkers competetodevelopthebestsolutioninthegiventimeframe• Alsoregularcompetitions(SingleRoundMatches)forfunandskilltesting/development
– Despitethecompetition,anenvironmentofcollaborationexistsasacommunityisdeveloped– tipsaresharedamongcompetitorsviadiscussionforums
– Peerreviewensuresthatthesolutionsdevelopedmeetthehighestqualitystandards
©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence 26
TopCoder
©2013PRICESystems,LLCAllRightsReserved|DecadesofCostManagementExcellence 27
Aportmanteauisalinguisticblendofwords!