Crowdsourcing is a novel concept in problem solving. It is based on the idea that (paraphrasing Wikipedia) tasks can be outsourced to an undefined and generally large group of people or community in the form of an open call. It takes cognizance of the fact that many minds can accomplish more than a few and uses integrated media to tap into the intellects, creativity and preferences of the public.
The term is relatively new and was coined by Wired’s Jeff Howe in 2006. Jeff puts forth a second definition of crowdsourcing describing it as-
“The application of Open-Source principles outside the field of software”.
Crowdsourcing in action
Although the term may be new, the principle has been in use for some time. In-fact we have all seen crowdsourcing in action and may or may not have been aware of it. To cite a few examples, consider the process followed in 1994 in the implementation of the new South African flag in-which a call for designs invited the general public to participate in the design process thereby ensuring their buy in. That was an older form of crowdsourcing.
Popular reality television programs such as The Apprentice and Idols where viewers are invited to vote for their favorite candidate are some highly publicized recent examples of crowdsourcing. Although Wikipedia co-founder Jimmy Wales objects to the term, the collaborative free-content encyclopaedia is another example of a successfully crowdsourced initiative.
A particularly noteworthy recent application of crowdsourcing was the use of Internet driven participatory politics in American President Barack Obama’s presidential campaign. The Obama campaign made brilliant use of new media to not only communicate regularly with voters but also to gain insight into what people were thinking, what their concerns were and ultimately what it would take to win their votes.
It seems as though Obama’s term in office will maintain the high level of interaction the American public has come to expect with other politicians following suit. N.Y. Public Advocate Mark Green recently called on New Yorker’s to aid him in setting his agenda saying: “Contact me at MarkGreen.com with 20 ways to fix our City so I can learn as I campaign”.
These are just a few of the larger instances in-which crowdsourcing lends itself to massive self-promotion giving the organisation, candidate or initiative widespread exposure.
Crowdsourcing as a business model
Crowdsourcing as a business model is used across various industries and sectors. It is also applied as a public problem solving model and has been used effectively in the design and development of products as diverse as software, pharmaceuticals, clothing and online stock-photo and map repositories.
Some of the perceived benefits of crowdsourcing include low costs, short lead times and increased customer input as well as buy in.
Ultimately the success of the crowdsourcing model can be attributed to the combined application of a few basic business and marketing principles:
- It places great emphasis on research and development – a key facet of the competitive marketing strategy
- is an innovative research and development solution using new media to improve reach and shorten lengthy research times
- is highly responsive to customer needs
- is interactive and invites participation from the target market
- uses an integrated media approach blending online and offline media
- promotes brand building through increased exposure and the use of publicity.
The model is quite controversial and has many vocal critics however the customer centric nature of crowdsourcing affords consumer’s a new level of involvement in the product development process.
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