Crowd sourcing is an evolving platform that is helping business problems solve faster, with best quality and at the least possible cost. It is emerging as a new on-line distributed network, where crowd of people join hands to complete a task. The scalable workforce is highly accessible; thereby enterprises are readily implicating the concept in their projects. No one knows everything, everyone knows something and all the knowledge resides in humanity. Crowd Wisdom reflects on the dramatic, economic, cultural and political implications of applying the open source idea to a variety of fields other than the IT sector and addresses the unique opportunities in building a new Business Model. This paper provides an insight to both theoretical and exemplar cases distinguishing it from open source production. The paper also set possibilities to explore the potential of setting a business model, as a new trend setter by canvassing a large crowd of people with ideas, skills and participation. It also exploits crowd of innovators and the potential of using it beyond profit sectors.
Table of Contents
1. Introduction
1.1 All Knowledge resides in Humanity
2. Some Cases:
3. Crowdsourcing, Open Innovation, User Innovation, Open Source
3.1 Open Innovation
3.2 User Innovation
3.3 Open Source
4. Crowdsourcing vs. Outsourcing
5. Benefits of Crowdsourcing
6. The downsides of crowdsourcing
7. Applications:
Research Objectives and Core Themes
The primary objective of this paper is to explore the paradigm of crowdsourcing as an innovative business model that leverages the collective intelligence of distributed networks. It investigates how organizations can transcend traditional firm-based limitations by utilizing open calls to harness ideas, skills, and participation from a global community to solve complex problems more efficiently and cost-effectively.
- Theoretical foundations of crowdsourcing and distributed problem-solving.
- Comparative analysis of crowdsourcing against traditional outsourcing models.
- Examination of related concepts: Open Innovation, User Innovation, and Open Source.
- Evaluation of real-world implementation through corporate case studies.
- Assessment of the benefits, risks, and strategic applications of crowdsourcing in modern business.
Excerpt from the Book
1. Introduction
Crowd sourcing describes a new web-based business model that harnesses the creative solution of a distributed network of individuals though what amounts to an open call for proposals. The year 1998 witnessed the concept, when the American pharmaceutical company Eli Lily created a Crowdsourcing platform named as InnoCentive for dealing their issues. The word comes in limelight in the year 2006 in an article by Jeff Howe and Mark Robinson in the Wired magazine. Howe offers the following definition:
Simply defined, crowdsourcing represents the act of a company or institution taking a function once performed by employees and outsourcing it to an undefined(and generally large) network of people in form of an open call. This can take form of peer-production (when the job is performed collaboratively), but is also often undertaken by sole individuals. The crucial prerequisite is the use of open call format and the large network of potential laborers. (Howe 2006).
Enrique Estelles-Arolas and Fernando Gonzalez Ladron-de-Guevara developed a new integrating definition:
"Crowdsourcing is a type of participative online activity in which an individual, an institution, a non-profit organization, or company proposes to a group of individuals of varying knowledge, heterogeneity, and number, via a flexible open call, the voluntary undertaking of a task. The undertaking of the task, of variable complexity and modularity, and in which the crowd should participate bringing their work, money, knowledge and/or experience, always entails mutual benefit. The user will receive the satisfaction of a given type of need, be it economic, social recognition, self-esteem, or the development of individual skills, while the crowdsourcer will obtain and utilize to their advantage that what the user has brought to the venture, whose form will depend on the type of activity undertaken".
Summary of Chapters
1. Introduction: Defines crowdsourcing as a web-based business model and provides historical context, including key definitions from scholars like Howe and Estelles-Arolas.
1.1 All Knowledge resides in Humanity: Explores the principle that collective intelligence across a distributed network often outperforms traditional, localized problem-solving methods.
2. Some Cases: Illustrates the practical application of crowdsourcing through corporate examples such as InnoCentive, Threadless, and iStockphoto.
3. Crowdsourcing, Open Innovation, User Innovation, Open Source: Provides a theoretical differentiation between crowdsourcing and related paradigms like Open Innovation, User Innovation, and Open Source principles.
3.1 Open Innovation: Discusses the purposive inflow and outflow of knowledge to accelerate internal innovation and expand external market opportunities.
3.2 User Innovation: Analyzes the shift where end-users refine or develop products at the site of implementation, bypassing traditional supplier-centered systems.
3.3 Open Source: Examines open source as a production mode that liberates code and emphasizes creative problem-solving principles.
4. Crowdsourcing vs. Outsourcing: Contrasts the two by highlighting that crowdsourcing targets an undefined crowd rather than a specific, contracted company.
5. Benefits of Crowdsourcing: Outlines the advantages of the model, specifically focusing on quality, cost reduction, and risk mitigation.
6. The downsides of crowdsourcing: Addresses the challenges regarding the lack of direct organizational control over participants and potential public relations risks.
7. Applications: Lists various business domains, from product design to customer support, where crowdsourcing is successfully deployed.
Keywords
Crowdsourcing, Open Innovation, User Innovation, Open Source, Distributed Network, Collective Intelligence, Business Model, Cost-effectiveness, Problem Solving, Innovation, Peer-production, Knowledge Management, Outsourcing, Web-based platform, Competitive Advantage
Frequently Asked Questions
What is the core focus of this research paper?
The paper examines crowdsourcing as an innovative, web-based business model that utilizes distributed networks of individuals to solve problems, generate ideas, and create value.
What are the primary thematic areas covered in the document?
Key themes include the definition and evolution of crowdsourcing, its practical application in various industries, and its theoretical relationship to Open Innovation and User Innovation.
What is the ultimate goal of the research?
The goal is to provide insight into how companies can leverage large, diverse crowds to enhance quality, reduce costs, and foster innovation compared to traditional firm-based methods.
Which scientific approach is utilized by the author?
The author uses a qualitative research approach, synthesizing existing academic definitions and analyzing specific business case studies to demonstrate the model's viability.
What is covered in the main body of the text?
The main body details the mechanics of crowdsourcing, differentiates it from outsourcing and other innovation models, and explores both the benefits and potential downsides for organizations.
Which keywords best characterize this work?
Key terms include Crowdsourcing, Open Innovation, Collective Intelligence, Distributed Networks, and Business Model innovation.
How does the author distinguish crowdsourcing from traditional outsourcing?
The author notes that while outsourcing assigns projects to specific, contracted companies, crowdsourcing opens tasks to an undefined, global network of individuals, externalizing risks.
What role does 'Crowd Wisdom' play in the business model?
Crowd Wisdom is identified as the driving force where collective contributions are synthesized to solve challenges, effectively serving as an enabler for innovation within the enterprise.
- Quote paper
- Dr. Raisi Dangi (Author), 2014, Crowdsourcing. An Innovative Business Approach, Munich, GRIN Verlag, https://www.grin.com/document/267272
