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CROWDSOURING AS A STRATEGY FOR ECONOMIC AND SOCIAL IMPACT IN THE DIGITAL WORLD
28 Jan 2013 Presentation for the Multilateral Investment Fund/Inter-America Development Bank
Industry think tank, massolution specializes in research, design and implementation of crowdsourcing and crowdfunding solutions for private, public, and social enterprises. massolution also operates The Industry Website Crowdsourcing.org.
For crowdsourcing, massolution provides research and analysis covering Crowdsourcing Service Providers (CSPs), use cases and the adoption of crowdsourcing by nations, governments, enterprises, and institutions.
For crowdfunding, massolution provides research and analysis covering Crowdfunding models, platforms (CFPs), implementation strategies, entrepreneurs, investors and campaign data and analysis.
massolutions unique data assets, fact-based research and proprietary intellectual property, drive forward-looking and actionable insights that inform the strategies and operations of business leaders and market stakeholders.
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CROWDSOURCING CATEGORIES
CROWDSOURCING IS AN ONLINE DISTRIBUTED MODEL FOR PRODUCTION, PROBLEM SOLVING AND CAPITAL FORMATION.
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Micro-Tasks are short-duration tasks completed by online workers. Micro-Tasks require no specialized knowledge or expertise other than a basic level of comprehension and cognitive judgment.
Expertise-based tasks are completed by online workers who are widely recognized as a reliable source of a technique or skill, or are accorded authority and status by their peers, or possess theoretical or practical knowledge of a subject based on a familiarity with someone or something and/or skills acquired through experience or education.
Ideation-based tasks are completed by online workers engaged in the creative process of generating, developing, and communicating new ideas, where an idea is understood as a basic element of thought that can be visual, concrete, or abstract. Ideation is all stages of a thought cycle, from innovation, to development, to actualization.
Crowdfunding is a type of capital formation where both fundingneeds and funding-purposes are communicated broadly via an open call in a forum where the call can be evaluated by a large group of individuals, the crowdfunders.
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Broadcast Search
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Reliable and fast technology (broadband and mobile) connecting a potential workforce of 3 billion people who will be online by 2016 Changes in workforce structure that both enable and demand flexible working patterns driving a shift from captive labor to crowd-based labor models New payment systems and regulatory oversight making the transfer of small payments affordable Cloud-based technologies (SaaS, BPaaS, etc.) driving the standardization and externalization of key business activities and processes Specialized providers organizing, harnessing and enabling on-demand access to labor and expertise
November 2012
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CROWDSOURCING
November 2012
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Defense Advanced Research Projects Agency (DARPA) - Updating machine translation technology by informal language used on social media DARPA was able to translate 1.5MM words in two months, for a cost of around $0.03 per word, one-tenth the cost of using professional translators.
Pennsylvania Department of Revenue - Eliminating the cost and burden of staffing and supervising seasonal workers and improving the accuracy of highly sensitive data and information. Technology to breakdown and distribute sensitive data such as social security numbers and credit card numbers to distribute as unidentifiable packages of work to a crowd which are processed and then re-compiled.
Expertise-based Tasks
Microsoft Reducing Contingent labor Spend via Enterprise Crowdsourcing - Microsoft was able to achieve a spend reduction across data entry, transcription of audio and video content, translation, data verification and de-duplication, classification and keyword tagging of up to 30% and improved cycle time by up to 200% Target Building an on-line product catalogue of 40,000 products - Via traditional methods it would require six years of effort for a single FTE or nine-months dedicated work from the internal content team. Using crowdsourcing to build a team of researchers, editors and content writers, Target was able to complete the task in two months. Mobiliar Testing of a Window-based application for pensions and insurance - Crowdtesting was not only more cost effective but does things that companies cannot reproduce in a lab environment,. There were multiple software versions, processors (32 and 64 bit) and 9 languages, including Arabic, Chinese, English, and Russian, resulting in more than 60 different configurations and over 1,000 permutations in just the desktop environment alone.
Ideation-based Tasks
IBM - This multinational computer, technology and IT consulting corporation implemented an ideation platform to power the IBM Data Governance Council online community, providing Council members a means to collaborate and identify solutions on information governance best practices. Fiat Mio - Brazils most popularautomotive brand called upon the powers of crowd-sourcing to build a new car. Working with Sao Paulo-based digital agency Agencia Click Isobar, Fiat built a web platform and assembled a group of contributors that outstripped theirexpectations. Fiats website received over 10,000 suggestions from over 160 countries, which were then vetted by the team and presented to Fiat. Suggestions included what people want most from their cars like size, environmental specifications and entertainment options. 2013 Crowdsourcing, LLC | research@crowdsourcing.org PAGE 8
Small enterprise ($10M - $100M in Revenues) Medium enterprise ($100M - $1B in Revenues) Large enterprise (>$1B in Revenues) 23% 21% 31% 35% 30% 25% 40% 10% 40% 2% 15% 81% 3% 30%
5% 13%
24%
20%
MICROTASKS
EXPERTISEBASED
IDEATION
Source: massolution Crowdsourcing Industry Report Enterprise Crowdsourcing: Market, Provider and Worker Trends. http://crowdsourcing.org/l/8346
November 2012
Source: Massolution
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NUMBER OF CROWDSOURCING WORKERS GROWS FAST, PRIMARILY IN SOFTWARE SERVICES AND MICRO-TASKS
Total number of crowdsourcing workers continues growing explosively, in most cases due to new companies entering the market. After posting an impressive 131% increase in 2010 over 2009, the industry continued signing up new workers at a pace of 103% growth in 2011 over 2010. The fastest growing areas of the crowdsourcing workforce are Software services and Micro-tasks, which posted 151% and 133% growth respectively in 2011 over 2010 numbers.
Total number of crowdsourcing workers 2009-2011 Number of workers, based on a sample of 26 CSPs
103%
6.29
1.34
2009
165%
3.10
2010
2011
Growth in the total number of crowdsourcing workers in 2010-2011 by crowdsourcing category Number of workers, based on 26 providers sample 151.3% 133.1% 90.6% 88.5% 67.0%
SOFTWARE SERVICES
MICRO-TASKS
EXPERTISEBASED
IDEATION
FREELANCE
WESTERN EUROPE
U.S.
EASTERN EUROPE 2
CHINA
INDIA
Average worker salary per location for Micro-Task category only $US per hour 10.2 10.6 8.6 5.2 4.1
Notes: 1 Data excludes Ideation category where salary of workers varies dramatically, based on the specific nature of work. 2 The Eastern European salaries are higher on average as a result of the faster adoption of crowdsourcing in the higher income Central European countries (e.g., Poland, Czech Republic), rather than in their lower income Eastern European counterparts (e.g., Ukraine)
November 2012
WESTERN EUROPE
U.S.
EASTERN EUROPE
CHINA
2
INDIA
4105
500 MINIMUM
Micro-tasks
AVERAGE
MAXIMUM
MARKET EVOLUTION
GLOBALIZATION
Remote Infrastructure/ Applications Support BPO Specialties (e.g., CRM / F&A) Improved with shifting end-to-end accountability Separation of systems from people (e.g., RIM / ERP Integration) FTE/Staff Augmentation evolving to deliverable based (sometimes with performance incentives) Accountability at lower cost Flexibility still a Myth
CLOUD
SaaS BPaaS Platform BPO Standardized and externalized Highly scalable cloudbased technologies
CROWD
> 68 Use Cases and growing
IT Infrastructure Applications Horizontal BPO Vertical BPO Defined and selectively retained and sourced Sophistication systems monitoring, reporting and governance tools Input Based evolving to output based
Further optimized
Workflow, adjudication and worker management Can reach full variability and up to 100% performance based Changes the paradigm for existing and new scope
~30%50%
~30%-90%
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ABOUT MASSOLUTION
Industry think tank, massolution specializes in research, design and implementation of crowdsourcing and crowdfunding solutions for private, public, and social enterprises. massolution also operates The Industry Website Crowdsourcing.org.
For crowdsourcing, massolution provides research and analysis covering Crowdsourcing Service Providers (CSPs), use cases and the adoption of crowdsourcing by enterprises. For crowdfunding, massolution provides research and analysis covering Crowdfunding Platforms (CFPs), enterprise implementations, entrepreneur, investor and campaign data and analysis.
massolutions unique data assets, fact-based research and proprietary intellectual property, drive forward-looking and actionable insights that inform the strategies and operations of business leaders and market stakeholders.
Crowdsourcing Inc. Carl Esposti, Founder and CEO Email: carl@crowdsourcing.org Twitter: @Crowdsourcing_ +1 310.948.1258 www.massolution.com www.crowdsourcing.org