Innovation in content creation through intelligent crowdsourcing
In a knowledge-based economy, business models are increasingly adapting to the proliferation of services and competition online. Businesses are outsourcing non-core business practices, and focusing only on those elements of the value chain where they retain a significant competitive
advantage. Previously 'heavy weight' business models were the norm, however, now businesses are turning to 'light weight' models. Apple, which used to manufacture most of its products, but now focuses on the two things it does better than any company - designing great products, and interacting with consumers - while leaving other firms to do the rest, is the prototypical example.
We are witnessing the biggest change in business innovation since the Industrial Revolution. More and more business processes are becoming automated - especially online - and the way organisations are
structured is becoming more flexible. At the same time, companies are moving more of their research and development (R&D) practices to open innovation rather than internal methods. Open innovation
is a model that incorporates external resources and ideas along with internal expertise. This method is often implemented by corporations who ask their customers or other stakeholders for solutions as a
R&D strategy.
Capital efficiencies
Cloud technologies have led to the decrease in many of the overhead costs of businesses. This shift improves the efficiency of business models, allowing companies to leverage their resources more effectively with fewer personnel and infrastructure. Companies that are not experts in logistics or distribution might sell their warehouses, just as Apple sold its factories. As companies limit their investments into those areas where they have an advantage, they improve their overall capital
efficiency.
The counterpoint to physical capital efficiency is human capital efficiency. A design business might enjoy the use of warehouses and factories without owning them (letting a specialist do that); businesses are increasingly utilising open innovation and crowdsourcing to enjoy the services of human capital without adding to their headcount. Consultants and service-providers, brought in for limited engagements, achieve this aspect of human capital efficiency, but only on a discrete basis. Open innovation employs these efficiencies as an explicit feature of the business model.
Intelligent crowdsourcing
As more and more business functions become commoditized services - especially through online technologies and the cloud, there is an increasing onus on businesses to consistently innovate their product line and their business model. Crowdsourcing has emerged as a sought-after method to source ideation, and businesses are adapting more and more to cloud-based technologies as a more
efficient way to manage research and development activities.
"Crowdsourcing" is an often misunderstood term applied to many different methods. Originally coined by Jeff Howe in Wired, it refers to this method as an "open call": a way to put a problem out to a group of people.
There are several ways that this can be done. Within an organisation, top leadership can source ideas from their employees. Portals allowing customers to give feedback and suggest product offerings or business changes have provided many organisations with information to apply to their forward strategies. Some have gone to intermediaries to source their ideation from crowds of individuals who may be experienced professionals in the field. Crowdsourcing can also refer to contests, which provide a way for mass participation for the best idea.
Many businesses have seen crowdsourcing as a way to open up their businesses to an external workforce. Even titles are changing to reflect the importance that businesses place on ideation to stay ahead of competition. Titles such has "Research, Innovation and Development Manager" or "Ideation Manager" are becoming permanent fixtures within organisation charts.
Crowdsourcing for ideation is an effective tool, and it has been well-discussed; its methods and strategies have been shown to give businesses a strategic advantage. However, one of the trends emerging is the application of crowdsourcing to content creation.
Human capital management across the value chain
Intelligent crowdsourcing is a model that combines ideation, technology and human capital to
produce content or to develop projects. This process leads to effective human capital management across the value chain. Crowdsourcing technologies allow for businesses to source any type of project from individuals best suited to the task.
Who is in the crowd
Who are the intelligent crowds? A crowd is a scalable network of participants - typically online. An intelligent crowd is a group of people who are specialists in a certain area, and are capable of producing work on-demand. As opposed to a 'wisdom of the crowds' method (which does not discriminate based on experience or specialty), intelligent crowds are composed of mico-specialists, and can complete specific aspects of a project at a higher quality.
Intelligent crowdsourcing allows for projects to completed in a more efficient progression; many
projects can be underway, by many different people. This can also allow for more effective management of human capital resources; when less work is underway, the engagement with the crowd can be scaled back, without any overhang.
Curated crowdsourcing
Of course, there is still work to be done in managing the relationship with the crowd, and managing the development of tasks and projects being done "in the crowd"; recently, businesses such as blur Group
and have specialised in this area. As Mark Zuckerberg famously said, you can't force communities, you can look at existing ones and create a place for them to connect. This model has to be applied for cultivating crowds as well.
Businesses that are looking to get ahead of competition, but without overburdening their resources and human capital, should look to external micro-specialists to complete projects. The application of intelligent crowdsourcing for content creation is a trend we will be seeing more and more as
organisations are looking for ways to extend their global reach to get the most out of their available human capital - both internally and externally.
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