Showing posts with label innocentive. Show all posts
Showing posts with label innocentive. Show all posts

Friday, June 18, 2010

SCORE column: Source the crowd for business strategies

When a SCORE client needed a business name, students of Paul Lotto, a SCORE volunteer and marketing/business teacher at Ashwaubenon High School, put together a list of creative possibilities. We didn't realize it at the time, but this was a prime example of crowdsourcing, one of the newest and cheapest business strategies.

Crowdsourcing allows an entrepreneur to complete projects or jobs inexpensively by leveraging groups of people to come up with solutions.

Using LinkedIn, a member of the Marketing and PR Innovators Group started an online discussion.

"Please help me come up with a tagline for my music company," Jeff Gold requested. "The name of my company is Jeff Gold Music, and I compose and produce music that is great for relaxation. I'm not quite as good with words and I have struggled with a good tagline."

In response, ideas have been coming in for months. In fact, more than 350 people have responded with their recommendations. There are so many good taglines that it will be difficult for Gold to select the best. What he has done is obtain exceptional assistance at no cost. The savings are huge.

This is just one of the strategies that can be employed. There are some sites that help entrepreneurs get their businesses going without the cost of employees. Some to consider include:

99 Designs: This site offers graphic design work to a broad network of artists and designer who compete to submit the best idea. The entrepreneur offers a payment price for the best logo and picks a favorite from the submissions.

Kickstarter: This is a funding platform for artists, designers, filmmakers, musicians, journalists, and more. You name the amount of money you need to do something; people in turn pledge amounts in support of this project or business. If you receive enough pledges, your donors' payments are processed and you receive the full amount.

TopCoder: Runs competitions with prizes that enable participants to compete for the best software, development and employment services solutions.

Trada: A search engine marketing and optimization company that lets the crowd pick the best keywords for your company or campaign.

Jigsaw: Provides leads in the industries you are targeting by allowing you to upload contact information in exchange for the ability to download other people's contact information.

LiveOps: If you aren't ready to hire sales people, this company specializes in call center outsourcing.

InnoCentive: As your business grows, this company allows you to outsource research and development to discover the latest new product or service.

Samasource: A socially responsible site, this will enable your business to send microtasks to youth, refugees, and women in developing countries.
To Learn More Click Here
Bookmark and Share

Wednesday, May 12, 2010

Crowdsourcing and the challenge of payment

An unusual Distributed Work Meetup was held last night in four different cities simultaneously, arranged through many hours of hard work by Lukas Biewald and his colleagues at distributed work provider CrowdFlower.

With all the sharing of experiences and the on-the-spot analyses taking place, I didn't find an occasion to ask my most pressing question, so I'll put it here and ask my readers for comments:

How can you set up crowdsourcing where most people work for free but some are paid, and present it to participants in a way that makes it seem fair?

This situation arises all the time, with paid participants such as application developers and community managers, but there's a lot of scary literature about "crowding out" and other dangers. One basic challenge is choosing what work to reward monetarily. I can think of several dividing lines, each with potential problems:

* Pay for professional skills and ask for amateur contributions on a volunteer basis.

The problem with that approach is that so-called amateurs are invading the turf of professionals all the time, and their deft ability to do so has been proven over and over at crowdsourcing sites such as InnoCentive for inventors and SpringLeap or 99 Designs for designers. Still, most people can understand the need to pay credentialed professionals such as lawyers and accountants.
*

Pay for extraordinary skill and accept more modest contributions on a volunteer basis.

This principle usually reduces to the previous one, because there's no bright line dividing the extraordinary from the ordinary. Companies adopting this strategy could be embarrassed when a volunteer turns in work whose quality matches the professional hires, and MySQL AB in particular was known for hiring such volunteers. But if it turns out that a large number of volunteers have professional skills, the whole principle comes into doubt.
*

Pay for tasks that aren't fun.

The problem is that it's amazing what some people consider fun. On the other hand, at any particular moment when you need some input, you might be unable to find people who find it fun enough to do it for you. This principle still holds some water; for instance, I heard Linus Torvalds say that proprietary software was a reasonable solution for programming tasks that nobody would want to do for personal satisfaction.
*

Pay for critical tasks that need attention on an ongoing basis.

This can justify paying people to monitor sites for spam and obscenity, keep computer servers from going down, etc. The problem with this is that no human being can be on call constantly. If you're going to divide a task among multiple people, you'll find that a healthy community tends to be more vigilant and responsive than designated individuals.

I think there are guidelines for mixing pay with volunteer work, and I'd like to hear (without payment) ideas from the crowd.

Now I'll talk a bit about the meetup.
Venue and setup

I just have to start with the Boston-area venue. I had come to many events at the MIT Media Lab and had always entered Building E14 on the southwest side. The Lab struck me as a musty, slightly undermaintained littered with odd jetsam and parts of unfinished projects; a place you could hardly find your way around but that almost dragged creativity from you into the open. The Lab took up a new building in 2009 but to my memory the impact is still similar--it's inherent to the mission and style of the researchers.

For the first time last night, I came to the building's northeast entrance, maintained by the MIT School of Architecture. It is Ariel to the Media Lab's Caliban: an airy set of spacious white-walled forums sparsely occupied by chairs and occasional art displays. In a very different way, this space also promotes open thoughts and broad initiatives.

The ambitious agenda called for the four host cities (Boston, New York, San Francisco, and Seattle) to share speakers over videoconferencing equipment. Despite extensive preparation, we all had audio, video, and connectivity problems at the last minute (in fact, the Boston organizers crowdsourced the appeal for a laptop and I surrendered mine for the video feed). Finally in Boston we disconnected and had an old-fashioned presentation/discusser with an expert speaker.

In regard to the MIT Media Lab and Architecture School, I think it's amusing to report that Foursquare didn't recognize either one when I asked for my current location. Instead, Foursquare offered a variety of sites across the river, plus the nearby subway, the bike path, and a few other oddities.

We were lucky to have Jeff Howe, the WIRED contributor who invented the term Crowdsourcing and wrote a popular book on it. He is currently a Nieman Fellow at Harvard. His talk was wildly informal (he took an urgent call from a baby sitter in the middle) but full of interesting observations and audience interactions.

He asked us to promote his current big project with WIRED, One Book, One Twitter. His goal is to reproduce globally the literacy projects carried out in many cities (one happens every year in my town, Arlington, Mass.) where a push to get everyone to read a book is accompanied by community activities and meetups. Through a popular vote on WIRED, the book American Gods by Neil Gaiman was chosen, and people are tweeting away at #1b1t and related tags.
Discussion

With the sponsorship by CrowdFlower, our evening focused on crowdsourcing for money. We had a few interesting observations about the differences between free Wikipedia-style participation and work-for-pay, but what was most interesting is that basic human processes like community-building go in both places.

Among Howe's personal revelations was his encounter with the fear of crowdsourcing. Everyone panics when they first see what crowdsourcing is doing to his or her personal profession. For instance, when Howe talked about the graphic design sites mentioned earlier, professional designers descended on him in a frenzy. He played the sage, lecturing them that the current system for outsourcing design excludes lots of creative young talent, etc.

But even Howe, when approached by an outfit that is trying to outsource professional writing, felt the sting of competition and refused to help them. But he offered respect for Helium, which encourages self-chosen authors to sign up and compete for freelance assignments.

Howe is covering citizen journalism, though, a subject that Dan Gillmor wrote about in a book that O'Reilly published We the Media, and that he continues to pursue at his Mediactive site and a new book.

Job protection can also play a role in opposition to crowdsourcing, because it makes it easier for people around the world to work on local projects. (Over half the workers on Mechanical Turk now live in India. Biewald said one can't trust what workers say on their profiles; IP addresses reveal the truth.) But this doesn't seem to have attracted the attention of the xenophobes who oppose any support for job creation in other countries, perhaps because it's hard to get riled up about "jobs" that have the granularity of a couple seconds.

Crowdsourcing is known to occur, as Howe put it, in "situations of high social capital," simply meaning that people care about each other and want to earn each other's favor. It's often reinforced by explicit rating systems, but even more powerful is the sense of sharing and knowing that someone else is working alongside you. In a blog I wrote a couple years ago, I noted that competition site TopCoder maintained a thriving community among programmers who ultimately were competing with each other.

Similarly, the successful call center LiveOps provides forums for operators to talk about their experiences and share tips. This has become not just a source of crowdsourced help, and not even a way to boost morale by building community, but an impetus for quality. Operators actually discipline each other and urge each other to greater heights of productivity. LiveOps pays its workers more per hour than outsourcing calls to India normally costs to clients, yet LiveOps is successful because of its reputation for high quality.

We asked why communities of paid workers tended to reinforce quality rather than go in the other direction and band together to cheat the system. I think the answer is obvious: workers know that if they are successful at cheating, clients will stop using the system and it will go away, along with their source of income.

Biewald also explained that CrowdFlower has found it fairly easy to catch and chase away cheaters. It seeds its jobs with simple questions to which it knows the right answers, and warns the worker right away if the questions are answered incorrectly. After a couple alerts, the bad worker usually drops out.

We had a brief discussion afterward about the potential dark side of crowdsourcing, which law professor Jonathan Zittrain covered in a talk called Minds for Sale. One of Zittrain's complaints is that malicious actors can disguise their evil goals behind seemingly innocuous tasks farmed out to hundreds of unknowing volunteers. But someone who used to work for Amazon.com's Mechanical Turk said people are both smarter and more ethical than they get credit for, and that participants on that service quickly noted any task that looked unsavory and warned each other away.

As the name Mechanical Turk (which of course had a completely unrelated historical origin) suggests, many tasks parceled out by crowdsourcing firms are fairly mechanical ones that we just haven't figured out how to fully mechanize yet: transcribing spoken words, recognizing photos, etc. Biewald said that his firm still has a big job persuading potential clients that they can trust key parts of the company supply chain to anonymous, self-chosen workers. I think it may be easier when the company realizes that a task is truly mechanical and that they keep full control over the design of the project. But crowdsourcing is moving up in the world fast; not only production but control and choice are moving into the crowd.

Howe highlighted Fox News, which runs a UReport site for volunteers. The stories on Fox News' web site, according to Howe, are not only written by volunteers but chosen through volunteer ratings, somewhat in Slashdot style.

Musing on the sociological and economic implications of crowdsourcing, as we did last night, can be exciting. Even though Mechanical Turk doesn't seem to be profitable, its clients capture many cost savings, and other crowdsourcing firms have made headway in particular fields. Howe hails crowdsourcing as the first form of production that really reflects the strengths of the Internet, instead of trying to "force old industrial-age crap" into an online format. But beyond the philosophical rhetoric, crowdsourcing is an area where a lot of companies are making money.
To Learn More Click Here
Bookmark and Share

Wednesday, March 3, 2010

InnoCentive Awards Prizes for Third Annual Crowdsourcing Video Challenge

Winning Videos Convey Power of Open Innovation Problem Solving -- Unlimited Possibilities

today announced the winners of its third annual marketing video Challenge. Andrew Patterson of Edmond, Oklahoma, David J. Michael of Rockford, Illinois and Jason Harper of Rocklin, California won $7,500 USD, $1,500 USD and $1,000 USD respectively for placing first, second and third in the competition. This year's Challenge focused on the theme, "Unlimited Possibilities: InnoCentive Solvers Changing the World." The winning InnoCentive Solvers' videos best communicated to the public how just one person can make a difference by participating in open innovation. Click here to see all winning videos.

"Drawing from their creativity, these Solvers captured in their videos the essence of the power of a single person to change the world through open innovation," said Dwayne Spradlin, CEO of InnoCentive. "It's our role to connect these millions of inventive and 'uniquely prepared' minds with the needs of organizations all over the world to make an impact."

Winning videos will be used in future InnoCentive marketing campaigns where appropriate. Previous videos have appeared in broadcast stories about InnoCentive on networks including The Discovery Channel, FOX and CNBC, in sales presentations, and at trade shows and industry events.

When asked about their vision for the videos the winning Solvers shared the following:

"InnoCentive is an international effort, but after watching past competition videos, I realized that I wanted my video to be less universal in scale than the others," said Jason Harper. "InnoCentive has a fantastically global consciousness, but on the ground level, it's often a few stellar individuals in lonely rooms at midnight who make the difference and solve problems. Showing that sort of person's experience was the key to my video."

"I wanted to concretize the concept 'innovation' by pointing to some of the world's great innovators and problem solvers," said David J. Michael. "InnoCentive embodies the tenacity and ingenuity of those people. When you present a problem to the Solvers at InnoCentive, it's almost like being able to phone one of history's greatest innovators."
To Learn More Click Here
Bookmark and Share

Saturday, October 24, 2009

Crowdsourcing: Why it’s Not a Waste of Time

Crowdsourcing. You’ve probably heard the term over and over, and when I began to hear it from Dwayne Spradlin of Innocentive as he presented at the inaugural Social Media for Sustainability conference in San Francisco on Monday, I began to tune out. A buzzword with not a lot of tangible results. A recipe for messy, small-results projects. But what he did earlier got my attention. He said that if we in the audience as a group of 100s could synchronize our claps in under 45 seconds, he’d donate to a charitable cause of note. We did it in about 10 seconds. Trivial as this may sound, it served as a micro example of how, given the right incentives, people can coordinate and focus activity towards a goal, getting results faster than otherwise thought possible. In his presentation, “Creating Value Together – Online Collaboration and Competition Networks,” Spradlin gave several real-world examples of opening, widely, to help get supposedly intractable problems solved quickly.
To Learn More Click Here
Bookmark and Share

Friday, September 25, 2009

Crowdsourcing: 5 Reasons It's Not Just For Startups Any More

Next-generation enterprises looking to drive efficiency and innovation have recently been able to tap into online communities to offload work. For the first time since outsourcing became prevalent in the 90s -- making it easier to move tasks out to partners that could do something better or more cheaply than you could -- businesses now have a new, potent, and often far cheaper option thanks to the Web. Frequently referred to as crowdsourcing, and a darling of the Web 2.0 industry, it has recently come of age as the tools and marketplaces for on-demand work capacity on the network have expanded far beyond the early volunteer communities that originally proved out the concepts. These pioneers, which include the world of open source software and online services such as YouTube and Threadless, get most of their value from a large group of people or community through the simple use of an open invitation.
How Crowdsourcing Works...

To Learn More Click Here
Bookmark and Share

Tuesday, August 18, 2009

Innocentive crowdsources its way into europe with $7,300,000 from Spencer Trask

InnoCentive Inc., a Waltham company focused on crowd-sourced innovation, said it has closed a Series B-2 funding round for $7.3 million. The round was led by Spencer Trask Ventures Inc., a New York-based venture firm, InnoCentive said in a press release. The plan is for some of the new funding to be used to open an office in Europe, InnoCentive said.
To Learn More Click Here
Bookmark and Share

Tuesday, August 11, 2009

Crowdsourcing for Small Businesses

InnoCentive is an Andover, Mass.-based company best known for crafting challenges that let companies, known as seekers, pose a design or development problem to a community of 180,000 independent solvers, who vie for rewards of between $5,000 and $1 million if they crack the answer. The company once catered mainly to large corporations, but according to President and CEO Dwayne Spradlin, "we are beginning to work with smaller and earlier-stage companies." The company is also forming partnerships with venture capitalists who see these challenges as an inexpensive way for the companies in their portfolio to have more efficient R & D, according to Spradlin. This in turn means a lower risk for the VCs' investments. Over the next five months InnoCentive will be testing this expansion, dubbed InnoCentive for Start-ups, in Silicon Valley.
To Learn More Click Here
Bookmark and Share

Monday, August 10, 2009

Online marketers harness the power of crowds

Savvy online businesses are beginning to realize the power of crowdsourcing, in particular online marketers who are increasingly opening up the tasks of designing ads, writing copy and even marketing research to large groups of people across the globe.
To Learn More Click Here
Bookmark and Share

Wednesday, August 5, 2009

Crowdsourcing Helps Chicago Chamber of Commerce Find More Bus Riders

During preparation for the 2009 Innovation Summit, the chamber was approached by InnoCentive, a company that specializes in using crowdsourcing to help clients solve problems, said Chicagoland Chamber Foundation President Lance Pressl. For a fee, InnoCentive helps its clients design a challenge...
To Learn More Click Here
Bookmark and Share