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CROWDSOURING AS A STRATEGY FOR ECONOMIC AND SOCIAL IMPACT IN THE DIGITAL WORLD
28 Jan 2013 Presentation for the Multilateral Investment Fund/Inter-America Development Bank
Carl Esposti, Founder & CEO
© 2013 Crowdsourcing.
massolution’s unique data assets. massolution provides research and analysis covering Crowdfunding models.org. ADVISORY. investors and campaign data and analysis. use cases and the adoption of crowdsourcing by nations. enterprises. drive forward-looking and actionable insights that inform the strategies and operations of business leaders and market stakeholders. and social enterprises.org
. governments. fact-based research and proprietary intellectual property. massolution provides research and analysis covering Crowdsourcing Service Providers (CSPs).
For crowdsourcing. public. RESEARCH. design and implementation of crowdsourcing and crowdfunding solutions for private.CROWDSOURCING AND CROWDFUNDING STRATEGIES
INSIGHTS. platforms (CFPs). LLC | research@crowdsourcing. massolution also operates The Industry Website™ Crowdsourcing.
For crowdfunding. massolution specializes in research. and institutions. entrepreneurs.
Industry think tank.
or are accorded authority and status by their peers.
!"#$%&'()#%*+. or abstract. to development. the crowdfunders. concrete. to actualization.
© 2013 Crowdsourcing. where an idea is understood as a basic element of thought that can be visual.
Ideation-based tasks are completed by online workers engaged in the creative process of generating. LLC | research@crowdsourcing. and communicating new ideas.
Expertise-based tasks are completed by online workers who are widely recognized as a reliable source of a technique or skill.CROWDSOURCING CATEGORIES
Crowdfunding is a type of capital formation where both fundingneeds and funding-purposes are communicated broadly via an open call in a forum where the call can be evaluated by a large group of individuals. Ideation is all stages of a thought cycle.
CROWDSOURCING IS AN ONLINE DISTRIBUTED MODEL FOR PRODUCTION. developing. or possess theoretical or practical knowledge of a subject based on a familiarity with someone or something and/or skills acquired through experience or education.org
Micro-Tasks are short-duration tasks completed by online workers. ADVISORY. PROBLEM SOLVING AND CAPITAL FORMATION. RESEARCH.-(
!"#$%"&'()*+". from innovation. Micro-Tasks require no specialized knowledge or expertise other than a basic level of comprehension and cognitive judgment.
FOUR UNDERLYING MODELS FOR ENGAGING THE CROWD
Distributed Human Intelligence Tasking
Managed Asset Discovery
Peer Vetted Creative Process
Daren C Brabham. 2010): dbrabham.CROWDSOURCING DEFINITION (NEW)
. RESEARCH. University of North Carolina at Chapel Hill
© 2013 Crowdsourcing.wordpress.com/crowdsourcing/] Assistant Professor. LLC | research@crowdsourcing.D. Ph.
OUTSOURCING. BPaaS.) driving the standardization and externalization of key business activities and processes Specialized providers organizing. THE NEXT DISRUPTIVE PARADIGM
Reliable and fast technology (broadband and mobile) connecting a potential workforce of 3 billion people who will be online by 2016 Changes in workforce structure that both enable and demand flexible working patterns driving a shift from “captive labor” to “crowd-based” labor models New payment systems and regulatory oversight making the transfer of small payments affordable Cloud-based technologies (SaaS. harnessing and enabling on-demand access to labor and expertise
© 2012 Crowdsourcing. OFFSHORING AND CROWDSOURCING
. RESEARCH. etc. LLC | contact@crowdsourcing.
ADVISORY. Starting now.CROWDSOURCING
Crowdsourcing is already being leveraged by leading enterprises across many business activities and processes. LLC | contact@crowdsourcing. large elements of enterprise models will be moved into crowdsourced models for service delivery will be managed very differently.org
© 2012 Crowdsourcing.
CROWDSOURCING – THE NEXT DISRUPTIVE PARADIGM
The outsourcing industry is poised for a disruptive shift that has the potential to be larger than the shifts that drove the outsourcing of work and the distribution of work offshore.
© 2013 Crowdsourcing.5MM words in two months. processors (32 and 64 bit) and 9 languages. Fiat built a web platform and assembled a group of contributors “that outstripped their expectations.Eliminating the cost and burden of staffing and supervising seasonal workers and improving the accuracy of highly sensitive data and information.org PAGE 8
.This multinational computer.. English. and Russian. transcription of audio and video content.03 per word. RESEARCH. There were multiple software versions.
IBM . providing Council members a means to collaborate and identify solutions on information governance best practices.
Defense Advanced Research Projects Agency (DARPA) .000 permutations in just the desktop environment alone. Suggestions included what people want most from their cars like size. ADVISORY. for a cost of around $0.
Pennsylvania Department of Revenue . Technology to breakdown and distribute sensitive data such as social security numbers and credit card numbers to distribute as unidentifiable packages of work to a crowd which are processed and then re-compiled. Using crowdsourcing to build a team of researchers.Brazil’s most popular automotive brand called upon the powers of crowd-sourcing to build a new car.000 suggestions from over 160 countries.” Fiat‟s website received over 10. translation. Mobiliar – Testing of a Window-based application for pensions and insurance .CROWDSOURCING USE CASES Micro Tasks
INSIGHTS.000 products . editors and content writers. Fiat Mio .Microsoft was able to achieve a spend reduction across data entry. LLC | research@crowdsourcing. which were then vetted by the team and presented to Fiat.
Microsoft – Reducing Contingent labor Spend via Enterprise Crowdsourcing . data verification and de-duplication. including Arabic. Working with Sao Paulo-based digital agency Agencia Click Isobar. classification and keyword tagging of up to 30% and improved cycle time by up to 200% Target – Building an on-line product catalogue of 40. Chinese. one-tenth the cost of using professional translators. resulting in more than 60 different configurations and over 1. technology and IT consulting corporation implemented an ideation platform to power the IBM Data Governance Council online community.Updating machine translation technology by informal language used on social media DARPA was able to translate 1.Via traditional methods it would require six years of effort for a single FTE or nine-months dedicated work from the internal content team. Target was able to complete the task in two months.Crowdtesting was not only more cost effective but does things that companies cannot reproduce in a lab environment. environmental specifications and entertainment options.
it exhibits almost equal share of every segment. Ideation is focused primarily on large and medium size enterprise clients that have matured to the point that they are looking to innovate and engage constituents in the process of product and service development. http://crowdsourcing.org
. The utilization of crowdsourcing in the form of Micro-tasks are heavily utilized by medium size enterprises companies often experiencing highgrowth. RESEARCH.org/l/8346
© 2012 Crowdsourcing. ADVISORY.
MARKET GROWTH AND REVENUE COMPOSITION BY SECTOR
Start-ups & small businesses (<$10M in Revenues)
Detailed analysis of crowdsourcing revenues by size of enterprise reveals that the adoption pattern varies for each category of crowdsourcing.$1B in Revenues) Large enterprise (>$1B in Revenues) 23% 21% 31% 35% 30% 25% 40% 10% 40% 2% 15% 81% 3% 30%
Crowdsourcing Industry 53% revenue growth 2009-11
Source: massolution Crowdsourcing Industry Report – Enterprise Crowdsourcing: Market.$100M in Revenues) Medium enterprise ($100M .ENTERPRISE CROWDSOURCING MARKET COMPOSITION
THE ADOPTION OF CROWDSOURCING VARIES BY SIZE OF ENTERPRISE
Small enterprise ($10M . LLC | contact@crowdsourcing. Expertise-based crowdsourcing is the most diversified in terms of target client segments. They are also using crowdsourcing to create meaningful engagement with customers. Provider and Worker Trends.
in most cases due to new companies entering the market.5% 67. The fastest growing areas of the crowdsourcing workforce are Software services and Micro-tasks. based on a sample of 26 CSPs
6.1% 90. LLC | contact@crowdsourcing. based on 26 providers sample 151. which posted 151% and 133% growth respectively in 2011 over 2010 numbers.WORKER TRENDS AND COMPOSITION
Growth in the total number of crowdsourcing workers in 2010-2011 by crowdsourcing category Number of workers.org PAGE 10
November 2012 © 2012 Crowdsourcing.34
3. PRIMARILY IN SOFTWARE SERVICES AND MICRO-TASKS
Total number of crowdsourcing workers continues growing explosively.3% 133.org. RESEARCH. ADVISORY. the industry continued signing up new workers at a pace of 103% growth in 2011 over 2010.
Total number of crowdsourcing workers 2009-2011 Number of workers.0%
NUMBER OF CROWDSOURCING WORKERS GROWS FAST. After posting an impressive 131% increase in 2010 over 2009.6% 88.29
EASTERN EUROPE 2
Average worker salary per location for Micro-Task category only $US per hour 10.2
SALARIES OF CROWDSOURCING WORKERS REFLECT GLOBAL LABOR ARBITRAGE
Overall average salaries of crowdsourcing workers across all categories of crowdsourcing show clear alignment with global labor arbitrage with Western Europe leading at $15.1
Notes: 1 Data excludes Ideation category where salary of workers varies dramatically.S.S.org.5 9.50 per hour. LLC | firstname.lastname@example.org 7.g.g.WORKER TRENDS AND COMPOSITION
INSIGHTS.6 5. Czech Republic).2 13.2 10.2 4. Typical salary of a crowdsourcing worker is dependent on multiple factors.8 15.2 per hour1.
Source: Crowdsourcing. with India trailing at $7.
Average worker salary per geographical location $US per hour 15.8 per hour.6 8. 2 The Eastern European salaries are higher on average as a result of the faster adoption of crowdsourcing in the higher income Central European countries (e. ADVISORY. including skills. Poland. closely followed by the US. For example Micro-task workers earn ~50% less than an average worker in every geography and some workers earn as little as $1.. crowdsourcing category and type of work performed. 2011
© 2012 Crowdsourcing.. RESEARCH. Ukraine)
U. based on the specific nature of work. rather than in their lower income Eastern European counterparts (e.
TARGET SALARIES OF CROWDSOURCING WORKERS VARY SIGNIFICANTLY
Depending on type of work.org. For example.
Monthly earnings of top five workers by crowdsourcing category $US per month 8300
Expertise & Software-based services
Source: Crowdsourcing. RESEARCH. ADVISORY.000 per month on Expertise-based and Software services platforms. earn on average from $500 per month on Micro-task platforms to an average of more than $8. crowdsourcing workers can earn a broad range of salaries.WORKER TRENDS AND COMPOSITION
INSIGHTS. number of hours and the workers’ efficiency in performing the work. 2011
November 2012 © 2012 Crowdsourcing. the top five workers by total earnings. LLC | email@example.com PAGE 12
. This illustrates clearly one of the most fundamental characteristics of crowdsourcing from the workers’ point of view: flexibility.
CRM / F&A) Improved with shifting end-to-end accountability Separation of systems from people (e.g... RIM / ERP Integration) FTE/Staff Augmentation evolving to deliverable based (sometimes with performance incentives) Accountability at lower cost Flexibility still a Myth
SaaS BPaaS Platform BPO Standardized and externalized Highly scalable cloudbased technologies
> 68 Use Cases and growing
IT Infrastructure Applications Horizontal BPO Vertical BPO Defined and selectively retained and sourced Sophistication systems monitoring. ADVISORY. reporting and governance tools Input Based evolving to output based
THE EVOLUTION OF WORK INTO THE CROWD
OUTSOURCING Scope Processes Technology Pricing Model Benefits Savings
Remote Infrastructure/ Applications Support BPO Specialties (e.MARKET EVOLUTION
. adjudication and worker management Can reach full variability and up to 100% performance based Changes the paradigm for existing and new scope
On-demand and usage based
Accountability Flexibility a Myth 15%-20% ( up to ~30% for transformational OS)
Scalability and improved efficiency and speed
30%-40% (driven by labor arbitrage)
© 2012 Crowdsourcing. RESEARCH.g. LLC | contact@crowdsourcing.
Crowdsourcing.org: Crowdsourcing and Crowdfunding Resources
use cases and the adoption of crowdsourcing by enterprises. massolution specializes in research. fact-based research and proprietary intellectual property. Founder and CEO Email: carl@crowdsourcing. drive forward-looking and actionable insights that inform the strategies and operations of business leaders and market stakeholders.
massolution’s unique data assets. enterprise implementations.org
. Carl Esposti. massolution provides research and analysis covering Crowdfunding Platforms (CFPs). entrepreneur.org.
For crowdsourcing. design and implementation of crowdsourcing and crowdfunding solutions for private.
Crowdsourcing Inc. and social enterprises.crowdsourcing. massolution provides research and analysis covering Crowdsourcing Service Providers (CSPs). investor and campaign data and analysis.com www.org Twitter: @Crowdsourcing_ +1 310. public. For crowdfunding.948.1258 www. massolution also operates The Industry Website™ Crowdsourcing.ABOUT MASSOLUTION
Industry think tank.massolution.