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Introduction
CrowdSourcing is a process that involves outsourcing tasks to a broad undefined group of people who then offer their solutions. CrowdSourcing, often referred to as the wisdom of the crowd has been growing from strength to strength for some time CrowdSourcing is used when companies or entrepreneurs need ideas and proposals from many different sources generally when companies need creativity, innovation or specialized professional skills. By using CrowdSourcing you can gather ideas and suggestions from people around the world and at the same time it is a great brainstorming opportunity for generating new ideas. Technically, CrowdSourcing implies the use of an unknown and impersonal mass of people in order to complete the job at hand. Payment for the work varies depending on the project and the company seeking the solution. While some employers may pay only the best answer, others will compensate all people within the crowd that put effort into the solution. This compensation can be in the form of money, special recognition, non-cash prizes, entry tickets to cash prizes or simply the gratification of completing a complex task. In the end, one of the top benefits of utilizing CrowdSourcing is the efficient use of funds. Those who use CrowdSourcing services, also known as crowdsourcers, are motivated by the benefits of CrowdSourcing, which are that they can gather large numbers of solutions or information and that it is relatively inexpensive to obtain this work. Users are motivated to contribute to crowdsourced tasks by both intrinsic motivations, such as social contact and passing the time, and by extrinsic motivations, such as financial gain. Estells and Gonzlez (2012), after studying more than 40 definitions of CrowdSourcing, propose a new integrating definition:
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"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".
Evolution of CrowdSourcing
The practice of tapping a crowd has long been used by business. For example, in 1916, Planters Peanuts held an open contest to develop its logo. Whats new about CrowdSourcing today is how it uses web 2.0 technologies to rapidly and affordably reach a global crowd, engage their interest, manage and filter their ideas and feedback, and help choose the optimal scenarios to act upon. CrowdSourcing is not new - The History of CrowdSourcing (1714 to 2010)
CrowdSourcing is a buzz word that was coined in Wired Magazine by author Jeff Howe in 2006,
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but the process of CrowdSourcing was invented as early as 1714. Since then, CrowdSourcing has helped create some of the world's greatest inventions and biggest brands. This blog outlines the history of CrowdSourcing and highlights some 6 examples (historical and recent) that occurred before the term 'CrowdSourcing' existed.
Wikipedia,
During these period innovative dot coms - now bookmarked household staples - began to launch and take-off. Not always used as CrowdSourcing examples, but in reality: YouTube = crowdsourced entertainment / TV Wikipedia = crowdsourced knowledge
2006: CrowdSourcing
Jeff Howe coins the term CrowdSourcing in Wired Magazine article in June 2006.
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Types of CrowdSourcing
In explaining the term of "CrowdSourcing", Jeff Howe has also indicated some common categories of CrowdSourcing that can be used effectively in the commercial world. Some of these are crowdvoting, wisdom of the crowd, crowdfunding, inducement prize contests and CrowdSourcing customer service.
Crowdvoting
Crowdvoting occurs when a website gathers a large group's opinions and judgment on a certain topic. Threadless.com selects the t-shirts it sells by having users provide designs and vote on the ones they like, which are then printed and available for purchase. Some of the other best examples have been through social media channels where big brands like Domino's Pizza, Coca Cola, Heineken and Sam Adams have crowdsourced a new pizza, song, bottle design and beer respectively. iStockPhoto provides a platform for people to upload photos and purchase them for low prices. Clients can purchase photos through credits, giving photographers a small profit. Again, the photo collection is determined by the crowd's voice for very low prices.
Crowdfunding
Crowdfunding is the process of funding your projects by a multitude of people contributing a small amount in order to attain a certain monetary goal.
Crowdpurchasing
Crowdpurchasing means to leverage collective purchasing power to win the best possible deals.
Motivations
Kaufmann and Schulze suggest that there are both intrinsic and extrinsic motivations that cause people to contribute to crowdsourced tasks, and that these factors influence different types of contributors. Intrinsic motivations are broken down into two enjoyment-based and community-based motivations.
Krishna Kant Vyas | CrowdSourcing
categories,
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Enjoyment-based motivations refer to motivations related to the fun and enjoyment that the contributor experiences through their participation. Community-based motivations refer to motivations related to community participation, and include community identification and social contact. Extrinsic motivations are broken down into three categories, immediate payoffs, delayed payoffs, and social motivations. Immediate payoffs, through monetary payment, are the immediately received compensations given to those who complete tasks. Delayed payoffs are benefits that can be used to generate future advantages, such as training skills and being noticed by potential employers. Social motivations are the rewards of behaving pro-socially. Another form of social motivation is prestige or status. The International Children's Digital Library recruits volunteers to translate and review books.
Efficiency Large pool of professionals as part of your project team Large quantity of ideas for your project High quantity and diversity of talented professionals Online collaboration without travel cost and time required.
Today, with all the online communication tools such as blogs, professional forums, online communities, Facebook, Twitter, LinkedIn every small business or entrepreneur can take advantage of the CrowdSourcing opportunities and benefit from CrowdSourcing.
The major CrowdSourcing cons, risks and disadvantages come from the fact that the crowd which is part of your project is not part of your business they are not your employees and you are not able to fully control the project as you are able to do with traditional jobs and projects. Another con of CrowdSourcing is the trust and confidentiality issues when you work with a large team of people you dont even now this is a big risk and challenge for some projects.
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