In layman terms Crowdsourcing is a technique used by individuals/companies to reach customers and other stakeholders for ideas and suggestions in order to take “informed” decisions. In other words, it is an open call, asking the masses for relevant suggestions and ideals. To clarify how it all works, let us take the example of Radio Traffic Reporters- the most fervent users of Crowdsourcing. In essence Traffic Reporters reach out to commuters/motorists to call in and report traffic conditions on particular routes. This allows reporters to piece together a clear image of the whole traffic situation, which in turn is passed onto the listeners. It is a mutually beneficial relationship entirely dependent upon Crowdsourcing or mass participation.
The term “Crowdsourcing” is a combination of two words “
crowd” and “
outsourcing” and was first used by Jeff Howe in a “Wired” magazine article titled "The Rise of Crowdsourcing". In recent years the term has become extremely popular with journalists, authors, and businesses as a tool of mass collaboration and innovation. Basically, what makes Crowdsourcing so great is the multitude of advantages it offers at relatively “zero” cost. Some of its principle advantages include:
Brainstorming for Success – For companies Crowdsourcing generates an avalanche of new ideas and choices. A company can acquire an army of “thinking” volunteers to help solve problem or design better products. In an ever changing world, it is an immensely valuable resource.
Value for Money - Traditionally volunteers are only paid if their ideas are used, thus hundreds, and even thousands of ideas can be generated without any maintenance or monitoring costs.
Test Drive HR - Companies can use the technique to find the “right” people - problem solvers who can fix particular problems. In other words Crowdsourcing turns recruitment and selection on its head and helps talented individuals find the company, thus saving the company a bundle in HR costs.
R&D Savings - The technique not only enables companies/organizations to expand their mental scope but also allows them to gain a deeper insight into the customer’s “black-box”. This knowledge helps companies reduce R&D costs. In 2008, Facebook used the technique with great success during its localization program.
Free Marketing – Asking for options with regard to new product design, or problem solving can be an effective marketing gimmick. LG recently attracted a lot of fanfare with its “Design the Future” Crowdsourcing program.
All in all web2.0 is bristling with ideas and examples concerning Crowdsourcing; from enlisting volunteers to online blogs and participation rewards (including free products and giveaways) there are hundreds of ways a company can leverage mass collaboration and innovation. There are even companies specializing in delivering crowds to clients, so that they can be utilized instantly for idea generation and innovation - companies like IdeaScale and InnoCentive are all the rage in the West.
Crowdsourcing is an extremely important resource, especially in a world where competition is rife, and a little advantage can spell the difference between success and failure.
