Tag Archives: crowdsourcing

Top Social Media Sites to experiment your Crowdsourcing efforts

Crowdsourcing – Spots Business Opportunities

What is Crowdsourcing

The term crowdsourcing was first coined by Jeff Howe in a June 2006. Crowdsourcing is a very real and important business idea in problem solving. The basic idea is to tap into the collective intelligence of the public at large to complete business-related tasks that a company would normally either perform itself or outsource to a third-party provider. 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.

Crowdsourcing  is organized into four, i.e.,

  1. Intermediary Platforms and Services
  2. Corporate Initiatives
  3. Peer Production
  4. Public Sector

Common Usage

Using crowd sourcing techniques for translation is becoming more commonplace, with global organizations such as Facebook and Plaxo relying on members to translate their social networks into multiple languages. Whilst this may produce relevant and accurate content, it doesn’t necessarily take into account the factors required to achieve success in the search engines.

This approach has been used by many, including Google, but is particularly popular with social networks, for the obvious reason that they have a database of engaged potential volunteers.

Benefits of Crowdsourcing

Some of the perceived benefits of crowdsourcing include low costs, short lead times and increased customer input as well as buy in. Crowdsourcing is a promising business practice with limitless possibilities that offers rewards for businesses and consumers alike.

Benefits for Organizations

For businesses, crowdsourcing presents an opportunity to lower expenses while maintaining their creative and operational footing in the marketplace. Rather than hiring expensive engineers, designers and other specialists, companies can tap the creative and inspired talents of the masses for the accomplishment of these same tasks, often at little or no cost.

Moreover, crowdsourcing can facilitate the incorporation of consumers’ tastes and preferences into the development of brands. Rather than trying to understand what consumers want through surveys and focus groups, for example, a company could have its most valued customers actually participate in the development process through the submission of ideas. This makes for more relevant products and services and could lead to an increase in sales.

Benefits for Consumers

For consumers, crowdsourcing presents an opportunity for personal fulfillment. Moreover, crowdsourcing opens the door for virtual unknowns in their fields to gain large-scale recognition for their talents.

Success of Crowdsourcing

Ultimately the success of the crowdsourcing model can be attributed to the combined application of a few basic business and marketing principles:

  1. It places great emphasis on research and development – a key facet of the competitive marketing strategy
  2. is an innovative research and development solution using new media to improve reach and shorten lengthy research times
  3. is highly responsive to customer needs
  4. is interactive and invites participation from the target market
  5. uses an integrated media approach blending online and offline media
  6. 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 consumers a new level of involvement in the product development process.

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