Powerpoint TemplatesPage 2Overview:1.) What is crowdsourcing?2.) How big is the phenomenon todayand how big is it projected to be?3.) Which types of tasks are mostfrequently crowdsourced?4.) Who are some of the major clients?5.) Who are the major suppliers thathelp facilitate crowdsourcing?6.) What is required for crowdsourcingto be effective?
Powerpoint TemplatesPage 3What Is Crowdsourcing?“Crowdsourcing represents the act of a company or institutiontaking a function once performed by employees and outsourcing itto an undefined (and generally large) network of people in the formof an open call.” – Jeff Howehttp://crowdsourcing.typepad.com/cs/2006/06/crowdsourcing_a.htmlThe term “crowdsourcing” wascoined by journalist Jeff Howe in a2006 Wired magazine article.
Powerpoint TemplatesPage 4Which Tasks Are Most FrequentlyCrowdsourced?http://glennas.wordpress.com/tag/tim-oreilly/
Powerpoint TemplatesPage 5What Are The Benefits OfCrowdsourcing?• Information can be collected quickly and efficiently• Crowdsourcing benefits firms by potentially contributingsignificantly to innovation with careful analysis• Easy access to a global workforce with a wide range ofknowledgeGreengard, Samuel. "Following the Crowd." Association for Computing Machinery.Communications of the ACM 54.2 (2011):20. ABI/INFORM Complete. Web. 2 Oct. 2011http://stanford.academia.edu/tanjaaitamurto/Papers/1002829/The_Promise_of_Idea_Crowdsourcing_Benefits_Contexts_Limitations
Powerpoint TemplatesPage 6What Are The Pitfalls OfCrowdsourcing?• Research shows that crowdsourcing can favor popular opinion whichin turn favors homogeneity• Crowdsourcing can be expensive• Crowdsourcing can be unreliable• Crowdsourcing requires no or little expertise from participants• No supervision of participantsRoman, David. "Crowdsourcing and the Question of Expertise." Association for Computing Machinery.Communications of the ACM52.12 (2009): 12,n/a. ABI/INFORM Complete. Web. 2 Oct. 2011.
Powerpoint TemplatesPage 7History Of CrowdsourcingCrowdsourcing Was Made Possible Because Of FourDevelopments:1.) The rise of the amateur class because, “The energy and devotion of theamateur compromises the fuel for the crowdsourcing engine.”2.) The rise of a mode of production, open source software, providedinspiration and practical direction3.) The proliferation of the internet and cheap tools because consumers nowhad a power that was once restricted to companies endowed with vastcapital resources4.) The evolution of online communities because they were able to organizepeople into economically productive unitsHowe, J. (2008), Crowdsourcing: Why the Power of the Crowd is Driving the Future ofBusiness, Crown Business.
Powerpoint TemplatesPage 8History Of CrowdsourcingExamples :1. The Longitude Prize:In 1714 the British government offered a cash prize to anyone whocould give a precise method for measuring a ships longitude2. Oxford English Dictionary:Before the Oxford English Dictionary English dictionaries wereincomplete and missing information, the Oxford English Dictionarychanged that because volunteers helped to copy passages fromvarious books and illustrate word usage.3. Zagat Survey:In 1979 Tim and Nina Zagat began surveying their friends to collectand correlate the rating of restaurants by diners. Now Zagat surveysinclude over 70 cities with input from over 250,000 users ratingeverything from restaurants to zoos.Howe, J. (2008), Crowdsourcing: Why the Power of the Crowd is Driving the Future of Business, Crown Business.
Powerpoint TemplatesPage 9What Is Required ForCrowdsourcing To Be Effective?1.) The problem ( and its boundary conditions) must be well defined2.) The population of potential solvers with relevant expertise mustbe large3.) Feedback must be provided to the crowd (not just to individualcontributors) so that ideas can evolve4.) Mechanisms for managing intellectual property must be in place5.) Someone needs to filter the ideas and develop themEuchner, James A. "The Limits of Crowds." Research Technology Management 53.5 (2010):7,7-8. ABI/INFORM Complete. Web. 2 Oct. 2011.
Powerpoint TemplatesPage 10How Big Is Crowdsourcing?• In February 2010 The Economist reported, data management andanalytics are worth $100 billion and are growing at roughly 10% ayear, roughly twice as fast as the software business as a whole.Orange, Erica. "Augmented, Anonymous, Accountable: The Emerging DigitalLifestyle." The Futurist 45.4 (2011): 37,37-41. ABI/INFORM Complete. Web. 2 Oct.2011.
Powerpoint TemplatesPage 11Luis von AhnESP Game• Luis von Ahn, assoc. professor at Carnegie Mellon University, isconsidered by many to be one of the pioneers of the idea ofcrowdsourcing.• His research includes CAPTCHAs and human computation.• Von Ahn created the ESP game to address the problem of creatingdifficult metadata.• The idea behind the game is to use the computational power ofhumans to perform a task that computers cannot yet do, such asimage recognition, by packaging the task as a game to encouragewilling participation.• The significance of matching images with words, is that it allowsfor improved searching capabilities as well as aids the visuallyimpaired.• The ESP game is a great example of using the masses toaccomplish a particular goalhttp://en.wikipedia.org/wiki/Esp_game
Powerpoint TemplatesPage 12Luis von AhnESP Game• Rules of the game– Once logged on, user is automatically matched with a partner– Players cannot communicate, and will be shown the same image for which theywill simultaneously enter possible words that describe the image.– Players have two and a half minutes to match as many images with the partneras possible, and have the ability to pass on images they cannot successfullymatch.– Taboo Words: these are words the players cannot use to describe the image, andare generated by the program after the response was matched a number oftimes in prior play. This allows for the image to receive multiple descriptivetags.• Lets Play!http://www.gwap.com/gwap/gamesPreview/espgame/http://en.wikipedia.org/wiki/Esp_game
Powerpoint TemplatesPage 13Who Are The Major Suppliers ThatHelp To Facilitate Crowdsourcing?THE CROWD!• Depending on the needs of the organization participants may be anyindividuals with internet access• Certain jobs may require individuals to have specific knowledge on a certainsubject
Powerpoint TemplatesPage 14Who Are Some Of The MajorClients In This Space?• Wikipedia• Yahoo! Answers• Mechanical Turk-based systems• CAPTCHA• reCAPTCHADoan, Anhai, Raghu Ramakrishnan, and Alon Y. Halevy. "Crowdsourcing Systems on the World-Wide Web." Association forComputing Machinery.Communications of the ACM 54.4 (2011): 86. ABI/INFORM Complete. Web. 2 Oct. 2011.
Powerpoint TemplatesPage 15CAPTCHAComplete Automated Public Turing Test to TellComputers and Humans Apart• Invented by Luis von Ahn• Is a program that can recognize whether its user is human or acomputer• It is a program that creates and grades a test that most humanscan pass but most computer programs cannot pass• Users must type characters into a text box, to get access to somekind of website• The bad part about CAPTCHA is that nothing is done with the textinputhttp://www.iro.umontreal.ca/~aimeur/cours/ift6261/CH2-Captcha-IFT6261-H11.pdf
Powerpoint TemplatesPage 16reCAPTCHA• Makes use of all of the hours a day people spend solving CAPTCHAs• reCAPTCHA gives users scanned images from old books andnewspapers that are difficult for computers to decipher therebyparticipating in digitizing old books and newspapers•According to Luis von Ahn since 2007 around 400 milliion peoplehave partaken in digitizing over five billion wordsHoffmann, Leah. "Crowd Control." Association for ComputingMachinery.Communications of the ACM 52.3 (2009): 16. ABI/INFORMComplete. Web. 2 Oct. 2011.
Powerpoint TemplatesPage 17Wikipedia• What is Wikipedia• Size of sales and profits• Not for sale• Wikipedia is a non-commercial website run by the WikimediaFoundation, a non-profit organization based in San Francisco. Itsmission is to bring free knowledge to everyone.http://en.wikipedia.org/wiki/Wikipedia
Powerpoint TemplatesPage 18Continue Wikipedia• Number of employees• --- Volunteer (June 20, 2003)• --- five paid employees (October 4, 2006)• --- Carolyn Doran was named chief operating officer and beganworking as a part-time bookkeeper (Her departure from theorganization was cited as one of the reasons the foundation tookabout seven months to release its fiscal 2007 financial audit.)• --- the Wikimedia foundation had 65 employees (In May 2011)http://en.wikipedia.org/wiki/Wikipedia
Powerpoint TemplatesPage 19Continue Wikipedia• Major productshttp://en.wikipedia.org/wiki/Wikipedia
Powerpoint TemplatesPage 20Continue Wikipedia• Crowdsourcing story Editorial administration, oversight, and management Handling disputes and abuse Editorial quality reviewhttp://en.wikipedia.org/wiki/Wikipedia
Powerpoint TemplatesPage 21Mechanical Turk(MTurk)• One of the oldest commercial crowdsourcing applications• Created by Amazon• Web-based platform for creating and publicizing tasks anddistributing micropayments• Potential employers post tasks and workers select jobs they wouldlike to perform• Payment is established up front and payments are facilitatedthrough Amazon.com• “Turkers” (workers for Mechanical Turk) select “HumanIntelligence Tasks” (HITS) that match their interests and abilities• Some examples of tasks are classifying pictures, transcribinghandwriting, website review, and consumer researchHoffmann, Leah. "Crowd Control." Association for Computing Machinery.Communications of the ACM 52.3 (2009): 16. ABI/INFORM Complete. Web. 2Oct. 2011.Greengard, Samuel. "Following the Crowd." Association for Computing Machinery.Communications of the ACM 54.2 (2011): 20. ABI/INFORM Complete.Web. 2 Oct. 2011
Powerpoint TemplatesPage 22MasterCard Worldwide• MasterCard Technologies is located in O’Fallon Missouri• Technology development and operations center for globalpayment processing company• About 5000 employees worldwide, roughly 5,000 contingentresources• 2010 Net Income of $1.8 Billion• Averaging 140 milliseconds per transaction, MasterCard’s networkprocesses over 22 billion MasterCard branded transactions peryear• Traditionally a credit/debit payment processing technologycompany, MasterCard is now making significant investment inmobile and eCommerce .
Powerpoint TemplatesPage 23MasterCard.com-Bejoy Mathew• Bejoy Mathew is a Senior Project Management Consultant inMasterCard’s Emerging Products and Consumer SolutionsDevelopment group.• Bejoy led the MasterCard.com mobile application project in Spring2011• The MasterCard.com mobile application designed to provide acustomer facing mobile app that showcased some of MasterCard’scorporate and consumer products as well as provide a direct linkto the technical teams.• The project followed the traditional waterfall project methodology,but there were challenges with the testing phase of the project.
Powerpoint TemplatesPage 24Mobile Application TestingChallanges• The difficulty in testing web and mobile applications, is that theyneed to be able to perform on a wide variety of operating systemsand browser configurations.• Tradtional testing environments usually utilize a controlled“sandbox” environment, use one team of testers, and one set oftest cases. Variability in user device configuration is difficult topredict.• Testing is very expensive, testing on average makes up about10% of a project’s labor cost. There were significant budgetconstraints with the project.
Powerpoint TemplatesPage 25Solution from the Masses• Bejoy was aware of the crowdsourcing phenomenon, and gotapproval from management to leverage hundreds of employeesfrom dozens of countries to test the application.• The “testers” were employee volunteers that had a variety ofdevices, operating systems, and browser configurations.• While the goal of the crowdsourced pilot/trial was to “break” theapplication, some test proceedures were also issued.• Dozens of defects were identified in the first day, and thefeedback was overwhelming.• Estimates to source the testing of this application either in houseor in an SOW ranged anywhere from $30-$60k.• The result was a very low cost testing solution that found defectsthat the controlled test cases would have not been able toanticipate.
Powerpoint TemplatesPage 26Future of Crowdsourcing atMasterCard• While most of MasterCard proprietary information is subject tofinancial regulation and cannot be shared publicly, there issignificant opportunity to leverage the power of the crowd in thegrowing mobile and eCommerce from a testing and usabilitystandpoint.• “Testing the application with our employee volunteers was a hugesuccess” Bejoy says. “Upper management is excited, I’ve beencontinuously meeting with various levels of the organization,Enterprise Architecture, and legal to see how much further we canexpand this practice for our mobile application testing.” “Whoknows where this can go, but it’s definitely on our radar.”
Powerpoint TemplatesPage 27Case Study - Goldcorp• Goldcorp, run by CEO Rob McEwen, is a Toronto based goldmining company.• In the early 2000’s, the company was struggling with strikes,debt, and a 50 year old dying mine lacking any remainingsubstantial gold deposits.• Frustrated with the lack of production by in-house geologists,Goldcorp decided to post its wealth of geological data on its55,000 acre property in hopes that anybody, could providevaluable prospecting information on where the next big depositwould be located.• Goldcorp offered $575,000 to the participant who would providethe best methods and estimates.• Over 1,000 participants from 50 countries submitted entries.http://www.businessweek.com/innovate/content/feb2007/id20070201_774736.htm
Powerpoint TemplatesPage 28Unconventional Approach?• Mining, is one of the world’s oldest industries and usuallygoverned by conventional production methods.• The industry was stunned when Goldcorp revealed valuableproprietary information to the public.• While definitely not the first open source approach, this wasdefinitely one of the most unconventional for the mining industry.http://www.businessweek.com/innovate/content/feb2007/id20070201_774736.htm
Powerpoint TemplatesPage 29High Risk, High Reward• Weeks after Goldcorp’s announcement, submission from all partsof the world came in. There were entries from academics,management consultants, mathematicians, military, and a massof virtual geologists.• "We had applied math, advanced physics, intelligent systems,computer graphics, and organic solutions to inorganic problems.There were capabilities I had never seen before in the industry,"says McEwen. "When I saw the computer graphics, I almost fellout of my chair."• Contestants identified 110 targets, 80% of which yieldedsubstantial gold deposits.• For a $575k investment, 8 million ounces of gold were foundwhich equated to 3 billion dollars.http://www.businessweek.com/innovate/content/feb2007/id20070201_774736.htm
Powerpoint TemplatesPage 30The Revolution of an Industry• The radical prospecting idea produced more than just a wealth ofgold.• Goldcorp also gained:• State-of-the-art technologies and exploration methodologies• New drilling techniques• New data collection procedures• More advanced approaches to geological modeling.• Goldcorp’s willingness to share some intellectual property led totheir ability to harness the powerful new force of masscollaboration.http://www.businessweek.com/innovate/content/feb2007/id20070201_774736.htm
Powerpoint TemplatesPage 31Crowdsourcing Explodesin China• China military is the biggest employer in the world.• 2010 1st World Witkey Conference host in Guangzhuo China• Witmart is a Chinese crowdsourcing site that has four millionworkers. Another Chinese crowdsourcing site that boasts 2.8million workers is TaskCN.
Powerpoint TemplatesPage 32Facts of Crowdsourcing in Chinahttp://www.youtube.com/watch?v=Pan0mmgTulw
Powerpoint TemplatesPage 33Witmart• http://www.witmart.com/• About Witmart• Witmart.com, operated by ZBJ Network Inc., is an internetmarketplace and workplace for non-physical products includingservices, designs and digital goods.• Witmart.com is a global creative outsourcing service marketplaceand aims to provide employers and providers the most reliantmarketplace to post jobs and find projects.• Millions of freelancers are skilled experts on design, writing,programming, planning, marketing from USA, India, China andmore.http://www.witmart.com/
Powerpoint TemplatesPage 35Interview with former employee• Learn from Witmart• Never sell products, sell ways of thinking.• There is no selling, only self-selling• All answers to your marketing reside in your prospect’s mind.• Problems in Witmart• Many copy websites• Unfair working enviorment for freelancers• Crowdsourcing future in China
Powerpoint TemplatesPage 36Best Practices For GeneralManagers• Control – managers must have control over the project in order toprotect the company since outside users may not always have thecompany’s best interests at heart• Diversity versus Expertise – decide on a group of people based onability to understand and contribute to the organizations need• Engagement – offer participants cash prizes, rewards, orrecognition• Policing – have a code of conduct in place for participants• Intellectual Property – decide what and how much information togive to participantsBonabeau, Eric. "Decisions 2.0: The Power of Collective Intelligence." MIT Sloan ManagementReview 50.2 (2009): 45-52. ABI/INFORM Complete. Web. 9 Dec. 2011.
Powerpoint TemplatesPage 37Crowdsourcing Trends
Powerpoint TemplatesPage 38Overall Message• “ A large and diverse labor pool will consistently come up withbetter solutions than the most talented, specialized workforce.”-Jeff Howe
Powerpoint TemplatesPage 39Conclusion• Crowdsourcing isn’t for niches, its on everyone’s radar• The benefits are limitless• What’s next?
Powerpoint TemplatesPage 40Howe, J. (2008), Crowdsourcing: Why the Power of the Crowd is Driving the Future of Business, Crown Business.Kenny, Charles. "Good Ideas for Bad Times." Foreign Policy.183 (2010): 72,72-75. ABI/INFORM Complete. Web. 2 Oct. 2011.Orange, Erica. "Augmented, Anonymous, Accountable: The Emerging Digital Lifestyle." The Futurist 45.4 (2011): 37,37-41. ABI/INFORMComplete. Web. 2 Oct. 2011.Doan, Anhai, Raghu Ramakrishnan, and Alon Y. Halevy. "Crowdsourcing Systems on the World-Wide Web." Association for ComputingMachinery.Communications of the ACM 54.4 (2011): 86. ABI/INFORM Complete. Web. 2 Oct. 2011.Favaro, John, and Shari Lawrence Pfleeger. "Guest Editors Introduction: Software as a Business." IEEE Software 28.4 (2011): 22,22-25.ABI/INFORM Complete. Web. 2 Oct. 2011.Greengard, Samuel. "Following the Crowd." Association for Computing Machinery.Communications of the ACM 54.2 (2011): 20. ABI/INFORMComplete. Web. 2 Oct. 2011.Falcioni, John G. "Project Crowdsourcing." Mechanical Engineering 132.12 (2010): 6-. ABI/INFORM Complete. Web. 2 Oct. 2011."Crowdsourcing Challenge Flow Restrictor Design." American Water Works Association.Journal 102.11 (2010): 89-. ABI/INFORM Complete.Web. 2 Oct. 2011.Euchner, James A. "The Limits of Crowds." Research Technology Management 53.5 (2010): 7,7-8. ABI/INFORM Complete. Web. 2 Oct. 2011Sources
Powerpoint TemplatesPage 41Hoffmann, Leah. "Crowd Control." Association for Computing Machinery.Communications of the ACM 52.3 (2009): 16.ABI/INFORM Complete. Web. 2 Oct. 2011.Kazman, Rick, and Hong-Mei Chen. "The Metropolis Model: A New Logic for Development of Crowdsourced Systems."Association for Computing Machinery.Communications of the ACM 52.7 (2009): 76. ABI/INFORM Complete. Web. 2Oct. 2011.Roman, David. "Crowdsourcing and the Question of Expertise." Association for Computing Machinery.Communications of theACM 52.12 (2009): 12,n/a. ABI/INFORM Complete. Web. 2 Oct. 2011.Lindley, David. "Managing Data." Association for Computing Machinery.Communications of the ACM 52.10 (2009): 11.ABI/INFORM Complete. Web. 2 Oct. 2011.Bonabeau, Eric. "Decisions 2.0: The Power of Collective Intelligence." MIT Sloan Management Review 50.2 (2009): 45-52.ABI/INFORM Complete. Web. 9 Dec. 2011.Sources