Industry customers crowdsource labor when it is too costly to employ full-time or part-time workers to complete the projects, once the benefits of crowdsourcing are made apparent, and industry practices for crowdsourcing management are formalized, it is expected that crowdsourcing with its ability to deliver robust results faster and cheaper than alternative innovation methods will spread rapidly throughout the industry.
For companies that are consider using crowdsourcing, there needs to be clarity in the questions you are asking; there have to be appropriate ways to interact with the community and there is a proper balancing of risk and reward, while most organizations use of crowdsourcing is fragmented and standardized methods are generally lacking, there are signs that other organizations are beginning to unify management methods and practices, in addition to, soon, there are experts in every industry all over the world, and with a business method like crowdsourcing, companies have the ability to tap into this global pool of resources in order to aggregate information, find solutions to problems, enhance audience participation, increase brand awareness, and so on.
Various crowdsourcing initiatives and platforms seem to provide new channels and ways to enable this in practice, crowdsourcing enables organizations to tactically draw upon the diverse experiences and knowledge of a large, heterogeneous audience, while extracting innovative solutions. Successful companies have experienced surprising solutions to internal problems, so whether it is a business idea, a project begins or perhaps a marketing campaign, open innovation can help all aspects of the business from designers, investors, marketers and brand managers to collaborate on a single idea.
Initially open innovation and crowdsourcing was the realm of enterprising new start-up companies, eager to move quickly and innovate through the power of many minds, subsequently, brands big and small are homing in on the tactic of crowdsourcing, defined as the act of outsourcing tasks traditionally performed by an employee or contractor to an undefined, large group of people or community (a crowd), through an open call.
Companies rely on independent analysis of market segments and potential vendors to make decisions that impact business and the bottom line, numerous studies have emerged to demonstrate crowdsourcing as a method to engage the public in businesses, social movements and public policy, however there is a gap in research on how crowdsourcing can be used to foster new forms of digital labor unionization, namely, it provides both a broadcast mechanism for organizations to set or announce challenges and a network for connecting people and diverse ideas, skill sets and knowledge.
Because crowdsourcing is conducted in an open and public forum, competing businesses can easily swoop in and steal your work, so then, the success of crowdsourcing depends at least in part on using technology to standardize delivery processes as much as possible.
Working in tandem with a medium that reaches an immense number of people quickly and easily, (thank you, internet) crowdsourcing has grown from a novel and effective way to conduct business, into a force big enough to revolutionize the way all business is conducted.