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Crowdsourcing
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What is it?
Image credit: Alexander Kesselaar
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“Crowdsourcing is the act of taking a task traditionally performed by an employee or contractor and outsourcing it to an undefined, generally large group of people in the form of an open call” (Wikipedia).
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Its not a new idea…
The 19th century Oxford English Dictionary was crowdsourced.
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In 1714 the Longitude prize was awarded for the simplest solution for determining a ships longitude.
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Then came the Internet
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Now the crowd:
•Is larger•Is more connected•Offers more levels of skill for contributions
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The Internet:
•Provides a global distribution channel•Allows for faster publishing•Means ideas are now regulated by value
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Organisations can gain insight into their customers’ needs and desires and build products and services that meet them.
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Commercially clients can:
•Pay once-off for numerous solutions•Pay only for solutions they use•Not limit themselves to ‘traditional’ solutions
Image Credit: Creative commons, AMagill
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Non-commercially the crowd can create a pool of info and ensure it is accurate.
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e.g. Wikipedia: http://www.wikipedia.org
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Early adapters of crowdsourcing:
Threadless (www.threadless.com)iStockphoto (www.istockphoto.com)InnoCentive (www.innocentive.com)
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The “rise of the amateur”
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An idea that took ten minutes to come up with may be as good or better than one that took ten hours to develop.
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Four types of crowdsourcing:
•Invention•Creation•Organisation•Prediction
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Invention – sourcing ideas for new or existing product development. e.g. My Starbucks Idea (www.mystarbucksidea.com)
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Creation – new content created, owned and maintained by a community on an existing platform.e.g. Idea Bounty (www.ideabounty.com).
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Organisation – Create new content by organising already existing content. e.g. Digg (www.digg.com)
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Prediction – predict trends by asking the community to submit ideas and vote.e.g. Yahoo! Buzz (www.yahoo.com/buzz)
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How does it work in business?
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•To develop products•For new business and initiatives•To communicate ideas•Prediction and forecasting
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Two approaches to managing a campaign:
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1. Centrally located:
A guiding force is used to channel ideas and formalise the process.
Idea Idea Idea
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2. Community controlled:
The community controls the process and the outcome.
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The Community
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•The most important asset in crowdsourcing•Aim to understand why they exist and what motivates people to participate
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It is vital to understand and address community needs:
•How should it be managed?•What rewards should be put in place?
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Pros of crowdsourcing
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•Consumer involvement•Fresh input•Opportunities and connections that did not exist before•Problems can be explored quickly at low cost
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•Only pay for what is used•Tap into a range of talent outside internal resources•Gain valuable insight into the desires of their customers
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Cons of crowdsourcing
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•Lack of agency guidance or strategic direction•Little control over production value•For spec work the risk/reward ratio is high•Ethics and opinions could be questionable, leading to incorrect assumptions of reliability
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•IP of work is often disregarded with no written contracts etc.•Added costs may be needed to bring a project to a conclusion•Lack of financial motivation or reward may lead to lower work quality•Difficulties may arise in maintaining a working relationship with the community
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The new agency model
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Marketing and branding are no longer owned and managed by one agency.
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Through crowdsourcing, amateurs can now communicate ideas to global brands.
This generates PR and direct interaction with a consumer base.
Image credit: ming888
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But a marketing agency will still be needed for brand strategy development.
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Remember...
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•Proper planning is essential!•Remunerate communities adequately to avoid a negative PR backlash•Use crowdsourcing to tap into the collective knowledge of more than one billion people