CROWDSOURCING

Introduction:

The word is a combination of the words 'crowd' and 'outsourcing'. Crowdsourcing is an invitation to all
people in the crowd to create, discuss, refine and rank meaningful ideas or tasks or contributions. Ex.
Wikipedia, Fiat Mio-create a car.

Who can use Crowdsourcing:

1. Established corporate
2. Startups
3. Government
4. Non Profit Organizations
5. Individuals
6. Any organization that needs resources engagement and ideas

When to use Crowd sourcing:

1. Collective Knowledge-When you need knowledge & Information

2. Crowd funding- When you need money/funding support
3. Crowd labour-When you need work force to complete tasks or organize things
4. Crowd creativity-When you want to choose the best work (Creative and content)
5. Crowd reviews- When you need opinions
6. Open innovation- When you need to generate innovative ideas
7. Civic engagement – When you need support for the cause.

Why to use Crowd sourcing-

Business-

1. Reduce cost
2. Reduce time
3. Easy access to resources
4. Increased efficiency
5. De-centralization of tasks

Marketing-

1. Good word of mouth

2. Brand equity and reputation
3. Pipelines of prospects and referrals

Innovation-

1. More thinking heads

 2. Fresher perspective
3. Talent access
4. Co-creating values-open ideas

Human aspect-

1. Creating stakeholders
2. Responsive organization
3. Community &belongingness

How does Crowd sourcing work-

Task/ Independent Dependent

Contribution
Create Collection Collaboration
-Contest
Decide Individual decisions Group decisions
-Markets -Voting
-Social networks -Consensus
-Averaging

Methodology-

1. Identify Problem/ Need

2. Broadcast the problem- needs online/ right plateform
3. The crowd submits solutions
4. The crowd & company reviews the solutions
5. Reward/ Compensate the winning contribution/ solution providers
6. Organization and community profit

Pros & Cons-

Benefits
-Crowdsourcing’s biggest benefit is the ability to
receive better quality results, since several people
offer their best ideas, skills, & support.
-Crowdsourcing allows you to select the best
result from a sea of ‘best entries,’ as opposed to
receiving the best entry from a single provider.
- Results can be delivered much quicker than
traditional methods, since crowdsourcing is a form
of freelancing
Cautions
-Clear instructions are essential in crowdsourcing.
You could potentially be searching through
thousands of possible ideas, which can be
painstaking, or even complicated, if the
instructions are not clearly understood.
- Some forms of crowdsourcing do involve spec
work, which some people are against.
- Quality can be difficult to judge if proper
expectations are not clearly stated.