Crowdsourcing:

Ideagoras/Open Innovation
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 Crowdsourcing Origin

 The Crowdsourcing philosophy was first introduced at the

turn of the 21st century with James Surowiecki's book “The
Wisdom of Crowds”
 The term 'Crowdsourcing' was used for the first time in
2006 by Jeff Howe, a portmanteau of the words 'crowd' and
'sourcing (http://www.youtube.com/watch?v=F0-UtNg3ots)
 It is the practice of utilizing the wisdom of a group for a
common goal. It is best applied when attempting to solve
complex problems in an innovative way or streamline
intricate processes.

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 Premise behind Crowdsourcing

“No matter who you are, most of the smartest

people work for someone else” Bill Joy, Sun
Microsystems cofounder

this “law” emphasizes the essential knowledge problem that faces

many enterprises today, that is, that in any given sphere of activity most
of the pertinent knowledge will reside outside the boundaries of any
one organization, and the central challenge for those charged with the
innovation mission is to find ways to access that knowledge

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 Internet is the infrastructure of the crowd

 It connects lots of different types of people

 Physically the Net connect all nodes equally, but
socially it consists of billions of sub-network
 Net is cumulative (people create content, other create
links to curate the content)
 It scales indefinitely
 Captcha: http://www.youtube.com/watch?v=cQl6jUjFjp4

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 R&D vs. Outsourcing vs. Crowd sourcing
In House R&D Crowdsourcing
 closed
 (usually) open but company
 internal employees
keeps Intellectual Property
develop, select and
commercialize the  no employees
technologies  no notion of a “team”
 high costs  management is crucial
Outsourcing  negligible costs
• (usually) closed
• external employees
• teams can change
• on demand
• more flexible management
• less higher costs
http://www.youtube.com/watch?v=IQe8dWTbE2U&feature=related
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 The earliest crowd sourcing project

In 1714, British Parliament established a prize of £20,000 (US$12M

today) to anyone who could invent a way determine the longitude
on a sailing vessel

Longitude : the true story of a lone genius

who solved the greatest scientific problem
of his time / Dava Sobel
QB225 .S64 1995

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 Harrison’s timepieces

H1

H3 H4
National Maritime Museum Romney Road,
Greenwich
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H2
A typology of problem solving on the Internet

Single solution Open-ended

Naver.com (South Korea)
Individual Case Lego
NYT Diagnosis
TED’s translation
Collective Open Source
project

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 Diagnosis: Unsolved Cases (NYT)

https://www.nytimes.com/series/diagnosis-unsolved-cases 9
 The Lego Prosumer Community

 Lego itself has become a flagship for how to get customers deeply
involved in co-creating and co-innovating products.
 With Lego Mindstorms, for example, users build real robots out of
programmable bricks that can be turned into two-legged walking
machines, or into just about anything a teenage mind can envision.
 Today Lego uses mindstorms.lego.com to encourage tinkering with its
software. The company benefits hugely from the work of this volunteer
business web. Each time a customer posts a new application for
Mindstorms, the toy becomes more valuable.
 The Mindstorms experience has proven to be so successful that Lego has
transferred its customer-centric development practices to its more
conventional Lego brick toys with a service that lets customers design
their own custom Lego sets.

http://www.youtube.com/watch?v=gXiql8Fm64A
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 The results of LEGO crowdsourcing*

*ITSM Sourcing specialization 2011-2012

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Crowdsource: Corona Tracker

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Crowdsource: TED Translation Project

 https://www.ted.com/participate/translate

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 Why do people do it?

 Earn Money (real or virtual)

 Have fun (or pass the time)
 Socialize with others
 Obtain recognition or prestige (leaderboards, badges)
 Do Good (altruism)
 Learn something new

*Note: Multiple incentives can often operate in parallel 14

 Crowdsourcing Landscape*

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*from crowdsourcingresults.com
Questions:

 answers.yahoo.com
 Quora.com
 Naver.com (South Korea)

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Innovation Prize: Goldcorp*

 $575,000 prize money

 Within 1 month:
 More than 1000 virtual prospectors from 50 countries
 Result: 110 new targets, 50% previously unidentified
 80% yielded gold
 Company’s value goes from $100 million to $9 billion

 #disruptmining 2018 (https://disruptmining.com/)

Video: The Goldcorp Challenge - Rob McEwen (2017)
https://www.youtube.com/watch?v=BbifoFEswQ0

*https://www.keithrozario.com/2012/07/opensource-gold-the-greatest-crowdsourcing-story-ever-told.html17
 Innovation Prize: Netflix’s Million Dollar
Challenge

NYT: A $1 Million Research Bargain for Netflix, and Maybe a Model for Others

Video- From the Labs: Winning the Netflix Prize

https://www.youtube.com/watch?v=ImpV70uLxyw
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 Crowdsourced Aggregator: Citizen
Journalism
 The collection, dissemination, and analysis of news and
information by the general public, especially by means of the
Internet (Wikipedia)
 Malaysia (http://cj.my/)
 Hong Kong (https://www.hongkongfp.com/2018/01/04/hong-kongs-
inmedia-train-citizen-journalists-launch-community-level-news-
publications/)

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 Competition Platforms: Threadless

http://www.threadless.com/product/383/The_Communist_Party#zoom

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Web 2.0 Characteristics: Community

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 Web 2.0 Characteristics: Co-creator

*NPD: New Product Development

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 Web 2.0 Characteristic: Viral Marketing

https://www.racked.com/2017/11/6/16551468/threadless-t-shirts-ecommerce 23
Other Crowdsource Competition
Platforms

 American Idol & all its imitators

 Brandbowl (by Twitter)

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 Distributed Innovation: InnoCentive

• Type of business: E-Business

Online community of 160,000+ global researchers in more than 175
 Zacary Brown won US$20,000
countries
for design of a solar-powered
• Founded in: 2001 / Owned by: Alpheus Bingham wireless router
• Concept:
• Innocentive offers expertise knowledge and creativity from talented  Ed Melcarke won US$25,000
outsources candidates to companies that need to solve Research &
Development problems in Engineering, Math, Physical Science, figuring a novel way of getting
Computer Science, Business, Chemistry and Life Sciences
fluoride into toothpaste tubes
• Product:
Online posting problems offers that need research, development, and
innovation assistance

• Target:
Seekers (companies who post challenges): Corporate and nonprofit
clients
Solvers (people who solve challenges): Researchers, scientists, 25
engineers, and mathematicians from around the world
Innocentive: The Long Tail of
Innovation

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 Distributed Innovation: P&G’s Pringles
Print

 Technology brief that defined

the problems needed to solve,
circulated it throughout global
networks of individuals and
institutions to discover if
anyone in the world had a
ready made solution.
 A small bakery in Bologna, Italy,
run by a university professor
who also manufactured baking
equipment.
 He had invented an ink-jet
method for printing edible
images on cakes and cookies
that we rapidly adapted to
solve the problem. Huston, “Connect and Develop”, Harvard Business
Review, March 2006
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 More Innovation Platforms

 DeWalt: DeWalt’s Insight Community provides a way for the

company’s fans and customers to contribute to the product
(power tools) development cycle.
 Unilever: Launched in 2010, Unilever’s Open Innovation
platform poses technical problems to the public, seeking input
on things like smart packaging and cooling systems
 DHL: DHL’s Innovation Centers offer a way for the courier
company’s customers to contribute ideas for improved systems
and technology, such as drone delivery technology and remote
navigation tools.

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Distributed Innovation: IP examples

 yet2.com
 Founded in 1991
 Biggest online marketplace for IP* exchange
 brokers technology transfer both into and out of
companies, universities, and government labs
 Asia IP Exchange
(https://www.asiaipex.com/Home/Index_EN)

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 Tongal

 Marketplace for works such as TV commercials,

original content, digital advertising, and
instructional videos
 Platform for content creation, used by studios,
brands and talent worldwide
 Connects businesses in need of creative work
with an online community of writers, directors,
and production companies

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 Content Rating

 Create new content by making users organize

existing content
 inbound links + peer voting = organization of
information
 Digg, Reddit

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 Content Rating - Waze

 Users enter information about traffic jams, road

hazards, and even police radar hotspots and then
makes this information visible to users.
 The crowd engagement makes the GPDS more
valuable
 It also provide a sense of community

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 Service Marketplaces: Elance,
TaskRabbit, clickworker
 It is a web-based platform for online,
contingent work
 It allows businesses to post jobs, search for
freelance professionals, and solicit proposals

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 Content Market

 Generate new content by soliciting the masses

 Language translation
(http://www.ted.com/index.php/talks/hans_rosling_shows_the_best_stats_you_ve_ever_se
en.html)

 iStockphoto (stock content for publishing or photography)

 Doritos Crash the Super Bowl contest
 Story (http://variety.com/2015/tv/news/doritos-super-bowl-zack-snyder-
1201588852/)
 Video (https://www.youtube.com/watch?v=-kbPu-x8Y7M)
 Live music by Mass Animation
 https://www.facebook.com/massanimation/videos/10151452821655023
 https://www.facebook.com/massanimation/

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 Crowdfunding

 Asking crowd to donate a defined amount of

money for a specific cause, project or other
uses within a predetermined time frame. If
your goal is not met, all donation are
refunded
 Kickstarter & Kiva (Microloan)

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 Successful Kickstarter Campaigns

https://www.statista.com/chart/1929/the-most-successful-kickstarter-campaigns/
 Collective Intelligence

 The parameters of Kickstarter-ness are

constantly rejiggered by how creators use the
site and what backers respond to
 As a result, Kickstarter is not as champion of
artistic underdogs but as “a lab for daring
prototypes and ingenious products.”

* From “The Trivialities and Transcendence of Kickstarter” Aug 5 2011 NYT Magazine

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 ArtistShare
• ArtistShare is a platform that
connects creative artists with
http://www.artistshare.com/v4/
fans in order to share the
creative process and fund the
creation of new artistic works.
• ArtistShare created the
Internet's first fan
funding platform (referred to
today as "crowdfunding")
launching its initial project in
October, 2003.
• The business model benefits
both the artist and the fans by
financing new and original
artistic projects while building a
strong and loyal fan base
Source: http://en.wikipedia.org/wiki/ArtistShare
https://musicbee.cc/
More Examples of Crowdsource

 Customer Co-Creation Examples: 10

Companies Doing it Right (March 20, 2019)
 https://www.braineet.com/blog/co-
creation-examples/

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