5 important ways in which crowdsourcing creates business value


The intelligent use of crowdsourcing can have many benefits for companies – as well as government and non-profit organizations – in achieving their objectives.

Here is a brief excerpt from Chapter 3 on Crowds and Business Value of Getting Results From Crowds

The business value of using crowds
Through history, companies have been limited in what they can achieve through the scope of their internal resources and how well they can draw on external resources. Crowdsourcing has the potential to create enormous value for businesses by giving easy access to an essentially unlimited pool of talent and capabilities. Those organizations that have the skills and competences to draw on external crowds, as well as in tapping the best ideas from their ‘internal crowds’, have an immense advantage over those companies that rely solely on their internal resources and traditional service firms.

While there are many potential benefits of using crowds, there are five primary outcomes that create the most value for organizations.

1. Increase flexibility
A major benefit of using crowd work is that it is available on demand, and so is fully scalable from nothing to extremely high levels as required. Particularly for smaller organizations, this means they do not need to hire people into specific roles when they do not need a full-time person in that function, or can’t anticipate their future need for that role.

This is particularly important for startups or when companies are trying new ventures that may or may not succeed. They can draw on resources as needed to establish the project. If it doesn’t work, they can easily close it down, whereas if it does work, they can very quickly scale up the operations.

2. Access talent and ideas
Even the largest organizations in the world recognize they do not have all the talent they require internally. Drawing on crowds gives access to a vast global pool of talent, some of which will be perfectly suited to your requirements. That talent may not always be as inexpensive as some newcomers to crowdsourcing expect, but it is available to companies as never before.

One of the principles of crowdsourcing is that market mechanisms can help match needs and solutions. In distributed innovation, where companies are looking for highly specific insights and solutions, a large proportion of the winning ideas come from people who already had a good idea of the answer. The ideas you need probably already exist; now you have the mechanisms to access them.

3. Reduce costs
There are a variety of ways in which using crowds can reduce costs, including substituting expensive professional service firms with lower cost service providers, ensuring simple, low-level tasks are not being done by high-cost internal staff, and lowering the costs involved in innovation and product development.

In some cases these cost savings can be substantial. As noted below it is important to note that there can also be costs associated with tapping crowds. And as emphasized throughout this book, focusing solely on cost reduction is unlikely to lead to the best outcomes.

4. Increase capabilities
In many cases companies can build capabilities and undertake initiatives that simply would not have been possible without access to external crowds. For example, services that require a pool of specialists or need to be rapidly scaled can only be delivered by large companies, or those with flexible access to crowds. Microtasks enable tasks and service that simply would not have been possible previously.

In addition, crowdfunding can support a wide range of ventures that would not have been feasible through traditional fundraising mechanisms.

5. Reduce time to market
As the pressure increases on companies to bring new products and services to market faster, crowdsourcing provides valuable support in bringing to bear whatever resources are required. These can be applied to both product development work and project management functions, as well as the myriad administrative and marketing tasks that are required.

While the transaction costs of dealing with crowds limit how quickly resources can be brought in to projects, those companies with experience using crowds and established relationships can often support substantially faster project delivery.

  • We’re a crowd-sourced marketplace – and we definitely achieve all of those benefits for our partners and customers. It’s an excellent model that takes advantage of the social web and collaborative consumption. 

  • At the Creative Services Exchange we’ve shown how using the creative diversity of professional crowds can help businesses change their whole approach to marketing procurement. It is complementary to current routes when a different approach, a more cost-effective alternative, a faster turnaround is required. 

  • Anonymous


    In this modern and fashionable society,
    people are pursuing for coach factory store
    cool, unique, stylish and innovative. Whether it is Louis vuitton
    or fashion accessories all means a lot for modern society of
    today. Same is the case with trendy looking replica louis
    . When these are coach outlet canada,
    the excitement just gets doubled. Most chic looking coach handbags sale
    are in fashion now. These are one of the favorite fashion accessories for men
    and women long time ago. If you have not yet tried louis vuitton online,
    it’s time to own one and feel the difference it can make to your personality.
    These are just brilliant and fabulous louis
    vuitton handbags online
    . They are most iconic and can provide you
    with a new feeling and enhance confidence.

  • panerai replica watches

    swiss replica watches is incredibly
    popular, and the collectable nature of these beautiful pieces of means that many
    people are searching for them online.As with any designer label, there will
    always be companies selling christian louboutin
    sale, however when you are buying online how can you be sure
    that what you are purchasing is the genuine .Thankfully, replica cartier watches are
    forward thinking, and give the stores which they supply to online a “Certified
    Online Retailer” badge which they can display on their websites.If you are
    buying directly from the official replica rolex watches,
    then you are of course going to be getting the real deal.If they appear in replica rolex listings
    then they are sure to be an authentic reseller.If you are a Breitling replica collector
    and you are concerned about being given imitation as gifts, then why not set up
    a Club account, and create a wish list? Breitling replica can be found
    for less when you shop on the Internet.ysl shoes uk are likely to be made
    of cheaper materials, and are therefore more prone to chipping and
    damage.However there are many resellers, and smaller christian louboutin shoes stores which may
    have special offers or stock a particular item which you cannot find
    elsewhere.If you are still unsure about whether or not the site is genuine, you
    could always visit the genuine louboutin shoes website
    and do a store search for the online retailer.If you are looking to buy some
    more charms to add to your christian louboutin
    discount, but are considering buying charms which are not
    official then there are a few things to consider.jimmy choo shoes are now available
    online for discounted prices.Firstly, the rolex watches replica may not fit well,
    either with hole being too small for the, or too big – so that the bead may move
    around more, causing more wear to the beads on either side.Genuine breitling replica watches is
    crafted to a high standard, making this premium jewellery both desirable and
    practical.With such a huge range of jimmy choo uk available,makes
    the perfect gift for ladies of any age.Also, are all made with silver or gold
    centres, which minimises the amount of wear on yves saint laurent shoes worn side by
    side.With the Murano rolex replica, the genuine article has
    been heat treated to be extremely tough and durable.