On the one hand, this situation is due to unknowledge. The term crowdsourcing is a young term that is maturing fast, but that has not yet definitively laid its foundations. Despite this , it is becoming known, here in Spain especially through crowdfunding platforms as lanzanos o goteo.
On the other hand, there are a number of myths surrounding crowdsourcing that can intimidate those who venture to practice it: the people involved are insufficiently prepared (which, as seen in the previous post about amateurs, is not true ), a new type of exploitation (just look at the article published in the spanish newspaper elmundo.es when the term crowdsourcing was born), etc.
- The use of CS provides access to an enormous amount of labor force from outside the company, to a crowd.
- Inside this crowd, the company may have access to different types of experts. A crowd properly formed can provide access to specialists working to solve more complex tasks.
- The contact with different specialist may lead to the creation of communities of specialists.
- Allows not only to obtain the solution of a problem, but also gather ideas from the broad and diverse collection of individuals with different experience and different points of view than those that exist within the company.
- Allows the outsourcing, and therefore the reduction, of the risk of failure. This reduction is due to the absence of a dependence on a single company. This fact reduces the possibility of not getting a correct answer or the task done.
- The enterprise only has to pay for products or services that are consistent with its expectations.
- Increases creative originality.
- Increase the quality understood as the number and complementarity of the tasks that are achieved and as the characteristics of the solution to a problem (because there are many participants, there are many possible solutions).
- Allows to obtain results more quickly.
To complement this, each type of crowdsourcing initiative will have its own advantages. For example, in initiatives that involve the creation of a product, crowdsourcing contributes to its innovation. Normally, in this type of initiative, the consumer becomes a co-designer, situation that implies a reduction in the cost of innovation and a clear improvement of the product as it allows its configuration. It also implies an increase in productivity by the more efficient use of resources and increases the turn-over.
Regarding the relationship with the market, crowdsourcing provides three distinct advantages:
- Time to market: the time it takes to develop new products is reduced.
- Cost to market: the costs of innovation are reduced
- Fit to market: the market acceptance of new products and consumers’ willingness to buy them is increased
- New to market: consumers’ subjective perception of the actual newness of a new product is increased
Can you think of any other benefit or advantage of using crowdsourcing by companies?
- Estellés Arolas, E., González, F. (2011) Crowdsourcing desde el punto de vista de la empresa: ventajas y desventajas de su aplicación en la resolución de problemas, III Congreso Iberoamericano SOCOTE y VIII Congreso SOCOTE “Tu + TIC = Innovación + Competitividad + Sostenibilidad” Universidad Politécnica de Valencia, 11-12 Noviembre de 2011
- Kleeman, F., Voss, G. G. and Rieder, K. (2008) Un(der)paid Innovators: The Commercial Utilization of Consumer Work through Crowdsourcing. Science, Technology & Innovation Studies, 4, 1 2008), 5-26