Crowdsourcing Business Models

Understanding how organizations work with crowds to create value.

Shaun Abrahamson @shaunabe shaun@mutopo.com

+ a few ideas from day 1 + what defines crowd_______ business models + a few cases + startup cases (crowd at the core) + large enterprise cases (crowds where it counts) + how can you re-imagine your business model?

From Social Media to Social Production

Re-Imagination of Nearly Everything Powered by New Devices, Connectivity + UI + Beauty Magnitude of upcoming change will be stunning Mary Meeker, partner KPCB
Source: Mary Meeker presentation at All things D.

About 50% of this Re-Imagination enabled by crowds

2001

2005
2000

2003

2006
1991 2000 1996 2001 2004 1999

Crowdsourcing classics

2001

2005
2000

2003

2006
1991 2000 1996 2001 1999 2004

More recent examples show the accelerating trend

What defines Crowd______ business models?

Influence

Capital

Labor

Assets

People as brokers of critical resources at internet scale

Data

Open Innovation, Co-Creation, Micro Tasks

Sharing, Commenting, Reviewing

Crowd Funding, Crowd Lending Collaborative Consumption

Influence

Big Data

Capital

Labor

Assets

New ways to access critical resources more efficiently

Data

Influence

Capital

Labor

Assets

1. What resources are being exchanged?

Data

Ronald Coase Given that production could be

carried on without any organization that is, firms at all, why and under what conditions should we expect firms to emerge?
About 75 years ago Shaun Abrahamson and millions of others like this Why do we organize firms a certain way?

Value Created
R+D Production Operations Marketing

Sales

Income/Expenses
2. Who is doing the work?

R+D

Production

Operations

Marketing

Sales

Impact across business functions

3. Is there a fair value exchange?

A few new elements to expect

You need to organize differently

Influence (Klout)

My Giving (Crowdtwist)

Creative Impact (Jovoto)

You need new ways to understand performance

You need to manage and communicate differently

+ AirBnB + TaskRabbit + Mealku + Cuusoo (LEGO) + BetaCup (Starbucks) + Threadless + GAP + GiffGaff (O2)

A place to stay from the crowd

Value Created
R+D Production Operations Marketing

Sales

Income/Expenses
Who is doing what at AirBnB?

Customer to supplier cycle

Very very high cost of trolls

Managing behavior through metrics + reputation

Accessing capital + networks

Value Created
R+D Production Operations Marketing

Sales

Income/Expenses
Who is doing what on Kickstarter?

50% of 50,000 projects are completely funded

66,694 people vs 1 Bank (or VC)

50% of 50,000 projects are completely funded

Incentives + Media + Reputation

Value Created
R+D Production Operations Marketing

Sales

Income/Expenses
Who is doing what on TaskRabbit?

Simple, fast way to reach lots of qualified workers

Reputation again

Dont forget the value of the data

Value Created
R+D Production Operations Marketing

Sales

Income/Expenses
Who is doing what on Mealku?

The value exchange

Reputation again

Another way of dealing with reputation and trust

Crowdsourcing for product development + communication objectives.

Value Created
R+D Production Operations Marketing

Sales

Income/Expenses
Who is doing what during BetaCup?

What tasks can be performed?

R&D

Inspiration Recruiting

(Re)Submission Feedback

Selection

Pilots

R&D

Inspiration Recruiting

(Re)Submission Feedback

Selection

Pilots

Concept -> feedback -> store trials

430 ideas 1,500 idea updates

5,000 comments

13,000 ratings

Betacup ecosystem

+ 10,000,000 media impressions

Communication as a by-product

Social production for a complex service

Homepage hints at how this works

Value Created
R+D Production Operations Marketing

Sales

Income/Expenses
Who is doing what on GiffGaff

What tasks can be performed?

Payouts = cash, minutes or donations to charity

How is this growing? Also NPS = 73 (Apple = 79)

Customer led set development and marketing

R+D

Production

Operations

Marketing

Sales

Different organizations for different collaborations

Value Created
R+D Production Operations Marketing

Sales

Income/Expenses
Who is doing what on LEGO Cuusoo?

Hijacking or very different path to business development?

WARNING: some new management requirements

Crowd creativity + curation + traditional retail distribution

Value Created
R+D Production Operations Marketing

Sales

Income/Expenses
Who is doing what with Threadless + GAP?

Ensuring that stakeholders are happy

How will the crowd do vs traditional GAP sourcing?

How can you use these ideas for your business?

Influence

Capital

Labor

Assets

1. What resources are being exchanged?

Data

R+D

Production

Operations

Marketing

Sales

2. Who is doing what?

3. Is this a fair value exchange?

You need to organize differently

Influence (Klout)

My Giving (Crowdtwist)

Creative Impact (Jovoto)

You need new ways to understand performance

You need to manage and communicate differently

Crowdsourcing Business Models

Understanding how organizations work with crowds to create value.

Shaun Abrahamson @shaunabe shaun@mutopo.com