This essay Crowd sourcing definition has a total of 1620 words and 12 pages.
Crowd sourcing 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".
Generation of new ideas, Content, Media
Film-making, software Generation, Virtual Choir, Flitto
Decision and Choice Making
Threadless , FashionStake , "who wants to be a millionare ? ", Netflix
Accessing Knowledge and experience
Goldcorp, "Who wants to be a millionare ? ", Amazon Books, Incentive
Competing for the best Solution
NASA Tournament Lab
Multi-Tasking on a project
Wikipedia, Linux, Virtual Company Design
Crowdsourcing Application Idea Generation --* IDEATION - the creation and augmentation of an original idea * Beware intellectual property risks
May not be suitable at the early stage of a company UNLESS you just want to exploit an idea without building an organization
Examples- Innocentive , Nine sigma, Qmarkets , Mindhive , Board of innovation, AHHHA
Accessing Experts for Knowledge, Solving Problems, Answering Questions
Looking for more permanent employees and consultants
Accessing first customers / early adopters without large market development
Smoke-screen web-sites, social media, kickstarter
Different levels of rewards are promised to project funders, no dilution of equity, "all-or-nothing" and "keep-it-all" structures.
Kickstarter , indiegogo
More like a charitable contribution to support a person or cause.
Gofundme , Pave.com
Funders lend small amounts of money to companies , the loans may be collaterized .
Lendingclub , zopa.com, Kiva
Funders own a small number of shares. Regulatory issues abound. Owners suffer dilution, and may hinder later funding options.
Crowdcube , seedrs , startupvalley
Usually a combination of rewards and equity to match different stages of growth
Loss of reputation if targets are not met
Promotion to a large audience/customers
Loss of IP protection of ideas
Receiving market feedback/beta testing
Fear of abuse under regulatory uncertainty
Accessing the wisdom of the crowd
Inability to raise further funds from existing donors/investors or institutional investors
Access to funds at the early stage of a company
Low valuation when selling shares
Retention of operating control
Heavy commitment to communication to a large crowd
Platform use provides guidance and reduces legal costs
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P( X) = F + V(X)
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