A problem shared is a problem halved, goes the old saying. But what happens if you share a problem with millions of people? Are you left with a millionth of a problem? Or just lots of rubbish suggestions? Both the British government and BP have recently called on the public to help them sort out a mess. Chancellor George Osborne asked for tips on programmes to be cut to trim the huge budget deficit, while deputy prime minister Nick Clegg wants us to suggest "silly" laws that can be repealed. And the ongoing Deepwater Horizon oil spill in the Gulf of Mexico prompted BP to call on Joe Public for ideas to stem the flow of oil after its in-house solutions failed. So far BP's corporate May Day has elicited more than 20,000 suggestions. This is the most ambitious online crowd sourcing exercise ever attempted by any British government. It is an entirely new way for government to engage with people.Clegg calls for law repeal ideas Public 'want quangos and aid cut' In trendy parlance, such appeals for outside help are known as crowdsourcing, a term that Mr Clegg made sure to name check in his appeal. So what is crowdsourcing? Anthony Williams, co-author of Wikinomics: How Mass Collaboration Changed Everything, says examples are everywhere. Open source computer operating systems, such as Linux and Google's Android, the big rival to Apple's iPhone, are written and refined by members of the public. Another good example of such collaboration is Wikipedia, which allows users to write and edit entries for its online encyclopaedia: "For the first time millions of people can aggregate their talent and expertise," says Williams. "Previously the assumption had been you had to create a company. Here is something completely different." There are numerous modern examples of how collaboration has transformed businesses, Williams says. One good recent example is that of the Canadian mining company Goldcorp, which was struggling financially and unable to find gold on its land in northern Ontario. When a new chief executive arrived he put all its geological data online, asked for help on where the gold was located and put up $500,000 in prize money for accurate suggestions. "They got submissions from people all over the world, including people using 3D computer modelling techniques. They found $3bn worth of gold on the property and Goldcorp became one of Canada's biggest mining companies." Is crowdsourcing just the old employees' suggestions box reinvented? One famous legendary business story - which may be urban myth - relates how an employee suggested to the matchmaker Swan Vestas that they could have one instead of two sandpaper strips on the matchbox
The company listened to the lateral thinking and reaped the benefits in lower costs
It's just one of a number of examples of how opening a problem out to the public and away from a small pool of workers can lead to huge gains, Williams says.
"These things happen a lot. You're making a problem accessible to a large range of people with a diverse range of skills. And it turns out it's not just for companies it applies to government as well."
The idea is gaining traction in the normally more conservative corridors of the public sector, says Natalie Evans, deputy director of think tank Policy Exchange.
"We now have the technology to reach a huge pool of talent and ideas from the general public in way that simply wasn't possible before. Done properly, this means we can leverage mass collaboration in a way that fosters a sense of 'public buy-in'.
"This can be particularly important where - say in the case of deciding where the axe must fall in terms of cutting public spending - there are difficult decisions to be made."
Seeking ideas is one thing? But how willing are those in power to act on the public's suggestions?
The point is neatly made in the findings of a survey published on Monday about where spending cuts should be. Some 2,000 members of the public were asked for their suggestions and one of the most popular targets was Britain's overseas aid budget. Yet this, along with healthcare, is an area the government has pledged not to touch.
Perry Walker, head of participation at the New Economics Foundation, believes crowdsourcing works well for ideas, less well for how you develop them.
"Brain storming works best when people don't talk to each other because people inhibit each other. But then what happens when you've got the ideas? You could have 30,000 ideas on what laws to repeal."
At this point smaller groups of committed citizens must be given a chance to filter and discuss the ideas, he says. Transparency and feedback are also crucial if the public is not to become cynical, he warns.
Geoff Mulgan, commentator and director of think tank the Young Foundation
'Crowdsourcing is already being used extensively - the World Bank used it in Haiti, the firm Innocentive now has hundreds of thousands of scientists on tap to solve problems for a fee, and New Zealand briefly tried it for police legislation. So far reality hasn't caught up with the promise - and good strategic policy making involves deliberation, which the existing crowd-sourcing models aren't suitable for. But for more discrete and practical problem-solving it undoubtedly has a lot to offer.'
In fact, there is a question about whether what Mr Clegg and BP have done is genuine crowdsourcing at all.
Crowdsourcing, says Stephen Overell, associate director of the Work Foundation, is really about using looser, freelance forms of commissioning tasks, allowing an organisation to tap into a much wider pool of knowledge or specialist skills.
BP's effort is more about public relations - appearing to be responsive, says Overell.
"BP has handled the oil leak atrociously. So its priority is public relations first and the need for high quality information second, in that order. 20,000 ideas is unmanageable, you'll need all sorts of procedures for sorting through them. Solving this sort of issue is a profoundly technical issue that the vast majority of people are ill equipped for."
And asking for ideas in this way is not new - the employee suggestion box has been around for years and is actually far more useful than what either the government or BP is up to, he argues.
"The best ideas of how to solve a problem usually come from employees, although it's probably best done through technology now rather than a box."
But it only works if there is a genuine interest from management - "too often over time it becomes a silly gimmick that you feel you have to do."
Another sceptic is Peter Kellner, who as president of polling company YouGov, is well used to listening to the views of ordinary members of the public.
He doubts Nick Clegg's call to arms will elicit anything civil servants couldn't have come up with. And what's worse, the government will end up with egg on its face.
Populist open-ended gestures like this normally end in embarrassment, says Kellner.
"The last government allowed people to put up petitions on the Number 10 website and it quickly got out of hand with Jeremy Clarkson for prime minister. It's an invitation to idiocy and madness and an opportunity for lobby groups."
Surprisingly, Anthony Williams, whose follow up to Wikinomics is published later this year, agrees.
"The White House tried crowdsourcing when Obama first came in. They asked the public what its main priorities should be. Legalising marijuana came up number one."
For that reason, the term crowdsourcing has become unpopular with some of those like Wikipaedia founder Jimmy Wales who one would expect to support it.
"The problem with the term is the notion of a crowd - this amorphous crowd has no individual perspective. There's value in mass participation but where possible the people need some expertise. We just call it collaboration frankly."
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Showing posts with label bbc. Show all posts
Showing posts with label bbc. Show all posts
Monday, July 5, 2010
Thursday, May 13, 2010
Cash-strapped entrepreneurs get creative
Got a great business idea but no money to finance it? It's the age old problem faced by would-be entrepreneurs. But a new generation of online funding platforms is taking the pain out of raising capital to get new ventures off the ground.
The platforms cater for everyone from starving artists to tech start-ups. They allow anyone with a business proposition to post an online pitch which goes straight into the offices and homes of potential investors and donors across the world.
When Los Angeles-based design students Jesse Genet, 22, and Stephan Angoulvant, 24, needed to raise $12,000 (£8,000) to launch Lumi Co, a printing and design company, they decided to bypass traditional avenues and cut out the middle men.
They registered with Kickstarter.com, a site aimed at anyone in the creative industries.
"Kickstarter seemed like a really good match for our product. It allows anyone with a creative dream to make it a reality," says Angoulvant.
Rewards system
The creators of every project must set a cash goal and a time limit, though there is no limit on how much people can raise. If they reach the goal within the time limit they get to keep the pledges. If they don't, all pledges are returned.
Kickstarter takes 5% commission on all projects which are successfully funded.
Continue reading the main story Perry Chen
It's not about philanthropy or charity. It's about patronage and commerce
Perry Chen Kickstarter co-founder
Crucially, the owners of all businesses and projects funded through the site keep 100% ownership of their ventures.
The incentive for backers is both altruistic and actual. "Everyone must offer a system of rewards," says Kickstarter co-founder Perry Chen. "It's not about philanthropy or charity. It's about patronage and commerce."
Genet and Angoulvant surpassed their fundraising goal, securing $13,598 from people who pledged anything from $1 to over $1,000. As an incentive they offered backers gifts from their range including wallets and bags.
The feedback the young entrepreneurs received from would-be investors enabled them to refine their products and gave them lots of ideas for their business going forward. It also provided them with a ready made group of potential customers.
The 650 projects which have so far succeeded in meeting their funding goals through Kickstarter include a woman who is circumnavigating the globe solo by boat, a band recording their first CD and a cartoonist travelling to Afghanistan to do political sketches.
Since Kickstarter was launched by five friends in April 2009, pledges have come in from 70,000 people around the world.
Connecting people
Feedthemuse.net is the brainchild of a group of Philadelphia-based music industry professionals. It is popular among musicians and other creatives who accept pledges from as little as $1. The majority of pledges to fund new CDs and tours have come from friends, families and fans.
Continue reading the main story
Grow VC appealed to us because it is very international and it is for small companies
Eric Cheng Chief executive, Emagist
Taking a more traditional investor/entrepreneur approach is Grow VC. Founded in February by Jouko Ahvenainen and Valto Loikkanen, Grow VC bills itself as the first global crowdfunding tool for web and mobile start-ups. Through the site, start-ups can secure initial funding ranging from $10,000 to $1m.
The site has 2,500 registered users in 108 countries worldwide. Some 25% of Grow VC users are in the US, 11% in the UK and 7% in India.
"From the start we knew we wanted to make it very international so that investors and start-ups around the world could connect with each other," says Ahvenainen.
The total capital raised through the site so far is $12.8m.
Entrepreneurs using Grow VC include Eric Cheng, the chief executive of Hong Kong gaming company Emagist.
"Venture capitalists here are looking for big companies," says Cheng. "Grow VC appealed to us because it is very international and it is for small companies."
Petra Soderling Petra Soderling invests $20 a month through Grow VC
Within a few months, Emagist outgrew the site. But through Grow VC it made contact with venture capitalists in Europe, the US and mainland China.
Growth potential
Along with professional investors, a growing number of ordinary people with an interest in investing have been logging on to Grow VC.
Petra Soderling heard about Grow VC on Twitter and is making the minimum Grow VC investment of $20 a month. "For me it's about investing and hoping to see a profit but also about using a small amount of money to help small companies," she says.
Not everyone is successful.
Among those who failed are New York-based Englishman Toby Daniels. His business idea, Betacup, seeks to reduce the amount of landfill in the US resulting from disposable coffee cups. Although he did not reach his funding goal, Starbucks heard about what he was trying to do on Kickstarter and offered to donate the $20,000 needed to get his plans off the ground.
"This would never have happened if we hadn't made contact with a small but engaged group on the site who got our story out there," says Daniels.
Kickstarter co-founder Perry Chen believes these new funding tools have a lot of potential for growth. "You are reaching out to your audience in a very new way which is very involving and makes them feel a strong connection," he says. "We might not be ready for Avatar 2 but the scope is huge."
To Learn More Click Here
The platforms cater for everyone from starving artists to tech start-ups. They allow anyone with a business proposition to post an online pitch which goes straight into the offices and homes of potential investors and donors across the world.
When Los Angeles-based design students Jesse Genet, 22, and Stephan Angoulvant, 24, needed to raise $12,000 (£8,000) to launch Lumi Co, a printing and design company, they decided to bypass traditional avenues and cut out the middle men.
They registered with Kickstarter.com, a site aimed at anyone in the creative industries.
"Kickstarter seemed like a really good match for our product. It allows anyone with a creative dream to make it a reality," says Angoulvant.
Rewards system
The creators of every project must set a cash goal and a time limit, though there is no limit on how much people can raise. If they reach the goal within the time limit they get to keep the pledges. If they don't, all pledges are returned.
Kickstarter takes 5% commission on all projects which are successfully funded.
Continue reading the main story Perry Chen
It's not about philanthropy or charity. It's about patronage and commerce
Perry Chen Kickstarter co-founder
Crucially, the owners of all businesses and projects funded through the site keep 100% ownership of their ventures.
The incentive for backers is both altruistic and actual. "Everyone must offer a system of rewards," says Kickstarter co-founder Perry Chen. "It's not about philanthropy or charity. It's about patronage and commerce."
Genet and Angoulvant surpassed their fundraising goal, securing $13,598 from people who pledged anything from $1 to over $1,000. As an incentive they offered backers gifts from their range including wallets and bags.
The feedback the young entrepreneurs received from would-be investors enabled them to refine their products and gave them lots of ideas for their business going forward. It also provided them with a ready made group of potential customers.
The 650 projects which have so far succeeded in meeting their funding goals through Kickstarter include a woman who is circumnavigating the globe solo by boat, a band recording their first CD and a cartoonist travelling to Afghanistan to do political sketches.
Since Kickstarter was launched by five friends in April 2009, pledges have come in from 70,000 people around the world.
Connecting people
Feedthemuse.net is the brainchild of a group of Philadelphia-based music industry professionals. It is popular among musicians and other creatives who accept pledges from as little as $1. The majority of pledges to fund new CDs and tours have come from friends, families and fans.
Continue reading the main story
Grow VC appealed to us because it is very international and it is for small companies
Eric Cheng Chief executive, Emagist
Taking a more traditional investor/entrepreneur approach is Grow VC. Founded in February by Jouko Ahvenainen and Valto Loikkanen, Grow VC bills itself as the first global crowdfunding tool for web and mobile start-ups. Through the site, start-ups can secure initial funding ranging from $10,000 to $1m.
The site has 2,500 registered users in 108 countries worldwide. Some 25% of Grow VC users are in the US, 11% in the UK and 7% in India.
"From the start we knew we wanted to make it very international so that investors and start-ups around the world could connect with each other," says Ahvenainen.
The total capital raised through the site so far is $12.8m.
Entrepreneurs using Grow VC include Eric Cheng, the chief executive of Hong Kong gaming company Emagist.
"Venture capitalists here are looking for big companies," says Cheng. "Grow VC appealed to us because it is very international and it is for small companies."
Petra Soderling Petra Soderling invests $20 a month through Grow VC
Within a few months, Emagist outgrew the site. But through Grow VC it made contact with venture capitalists in Europe, the US and mainland China.
Growth potential
Along with professional investors, a growing number of ordinary people with an interest in investing have been logging on to Grow VC.
Petra Soderling heard about Grow VC on Twitter and is making the minimum Grow VC investment of $20 a month. "For me it's about investing and hoping to see a profit but also about using a small amount of money to help small companies," she says.
Not everyone is successful.
Among those who failed are New York-based Englishman Toby Daniels. His business idea, Betacup, seeks to reduce the amount of landfill in the US resulting from disposable coffee cups. Although he did not reach his funding goal, Starbucks heard about what he was trying to do on Kickstarter and offered to donate the $20,000 needed to get his plans off the ground.
"This would never have happened if we hadn't made contact with a small but engaged group on the site who got our story out there," says Daniels.
Kickstarter co-founder Perry Chen believes these new funding tools have a lot of potential for growth. "You are reaching out to your audience in a very new way which is very involving and makes them feel a strong connection," he says. "We might not be ready for Avatar 2 but the scope is huge."
To Learn More Click Here
Category
bbc,
crowdsourcing,
kickstarter
Tuesday, October 13, 2009
Neil Gaiman Crowdsourcing a Short Story Via Twitter
His means for penning his upcoming project are as creative as the gems in his copious portfolio, only he can't claim all the credit for this one. Starting today at noon EDT, the writer began encouraging people to tweet in their 140-character contributions for his next short story, which BBC Audiobooks America will later garner into an audio book. Gaiman (@neilhimself), who is already well established in the Twitter realm, will tweet the opening line and fans will be able to continue the story as they wish. BBC will log about 1,000 contributions into a script that will be edited and prepared to be read by a professional narrator. Currently there is no talk of releasing the story in print form, but the audio edition will be available for free download at the BBC site, iTunes and other audiobook distributors before the end of the year. BBC marketing director Michael Lee Cobb said the idea was inspired by Twitterdammerung: The Twitter Opera, a successfully fan-twittered composition that was performed at London's Royal Opera House last month.
To Learn More Click Here
mousecircus.com/videotour
To Learn More Click Here
mousecircus.com/videotour
Category
bbc,
crowdsourcing,
neil gaman,
twitter
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