Ideavibes Presentation to RSA London

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Presentation given to the team at RSA in London on crowdsourcing and crowdfunding. General overview with examples.

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  • Everyone has different rationales for speaking up – they have issues with a particular aspect of a product – they see
  • Ideavibes Presentation to RSA London

    1. 1. Crowdsourcing andCrowdfundingPaul Dombowsky – January 25, 2012
    2. 2. Workshop OverviewTime: 12:00 to 2:00Speaker: Paul Dombowsky Founder and ceo of Ideavibes / FundchangeAgenda: • Defining Crowdsourcing and Crowdfunding • How to tap into the conversations that are already going on to make better decisions? • Making crowdsourcing pay for itself - the business case. • What are the restrictions around crowdfunding things like bands, businesses, charities, etc.? • Best practices and how to implement in your organization. How to overcome some of the negatives? • How social media fits into the success of crowdsourcing and crowdfunding? • What part does social media play? 2
    3. 3. Opening “…the world is becoming too fast, too complex and too networked for any organization to have all the answers inside.” Yochai Benkler, Yale University from the Wealth of Networks “Peer production is about more than sitting down and having a nice conversation… Its about harnessing a new mode of production to take innovation and wealth creation to new levels.” Eric Schmidt, Google 3
    4. 4. CROWDSOURCING 4
    5. 5. CrowdsourcingDefinedAn engagement process whereby organizations seek input from either openor closed communities of people, either homogenous or not, to contributeideas, solutions, or support in an open process whereby the elements ofcreativity, competition and campaigning are reinforced through social mediato come up with more powerful ideas or solutions than could be obtainedthrough other means.Why Bother?Organizations have a difficult time engaging with their communities tostrengthen their relationship and be crowd focused. Internal or external, thecommunity has ideas that can be harnessed that come from diversebackgrounds, experiences and education. 5
    6. 6. When does Crowdsourcing Work?• When looking for expertise from a range of sources.• When funds and/or time are limited.• When your target audience is largely online. BMW’s Virtual Innovation Agency Received over 4000 ideas within 7 days for products and designs at minimal cost 6
    7. 7. Why Social Matters? According to Forrester Research (2010), 71% of people say they trust the opinions of family, friends and colleagues (their crowd or their tribe) as a source of information on products and services. 7
    8. 8. Where the conversations are happening? Official & Unofficial • Facebook • Twitter • Google Groups Why not tap into the • Forums conversations that are • Wiki’s already happening? • User Groups • Podcasts Get the crowd • Blogs working for you. • User Voice • Epinions • Cnet • Reviewsarena • Buzzillions • Tribe Smart 8
    9. 9. Where the crowd comes from Internal Does participation require R&D a reward? Other internal Customers team Do people contribute for members the good of the brands they like? Sources of Innovation How do you democratize Prospects Experts the input? Suppliers Partners 9
    10. 10. The Emerging Expert Internal Experts Emergent Experts (online community leaders, Engagement product advocates) Targets Everyone Else 10
    11. 11. Where Innovation / Crowdsourcing Fits Open Space How we gather Open Innovation Social Media Crowdsourcing Community How we talk Where ideas come from Leadership How we inspire & enable 11
    12. 12. Growing Online Participation Millennials (born ’91 and after) Gen Y (born ’81-’91) Gen X (born ’65-’80) Boomers (born ’46-’64) Civics (born ’45 or earlier) 12
    13. 13. Product or Policy Roadmap Discovery Exploration ScopingCrowdsourcing or Testing Development Build Biz CaseIdeation Launch Discovery… 13
    14. 14. The Appeal• Crowdsourcing surfaces new perspectives• Invites participation from nontraditional sources• Infuses real energy into the process of generating ideas• Empowers people when they feel their voice is being heard• Technology can enable participation by disenfranchised (ie. PCs in libraries can help those not connected at home)• Builds engagement and relationships with new audiences 14
    15. 15. Example 1: Salesforce What do your current customers want to see on your roadmap? What features are needed to turn prospects into customers? Democracy? 1 vote = 1 customer 15
    16. 16. Example 2: Dell IdeaStorm was created to give a direct voice to Dell’s customers and an avenue to have online “brainstorm” sessions to allow them to share ideas and collaborate with one another and Dell. Their goal through IdeaStorm is to hear what new products or services you’d like to see Dell develop. In almost three years, IdeaStorm has crossed the 10,000 idea mark and implemented nearly 400 ideas! 16
    17. 17. Example 3: Quirky Quirky is an all in one product development shop for inventors. 17
    18. 18. Example 4: Threadless Threadless’ business model is social product development and they run regular campaigns to select designs that are then produced and sold to a ready-made market that participated in the product selection. 18
    19. 19. Example 5: Product Selection by the Crowd Starbucks uses the same platform as Dell and Salesforce.com for their social product development. 19
    20. 20. Example 6: Open Innovation with Citizens City of Ottawa Have a Say Sustainability Campaign • No. of Engagements = 6700 • Goal: 1500 • Drivers: Twitter, Facebook, Media Event (related) • Number of ideas: 200 • English and French 20
    21. 21. Example 7: Citizen Engagement San Francisco Engage4change Citizen Engagement Program (2 weeks) • No. of Engagements = 2252 • Referrals = 64% from Twitter • Cost = 500 ice cream cones ($1,000) • Humphry Slocombe’s Crowd = 320,000 twitter followers and Facebook Friends 21
    22. 22. Questions? 22
    23. 23. CROWDFUNDING 23
    24. 24. CrowdfundingDefinedA type of crowdsourcing where the efforts of the crowd are focused on raisingfunds for worthy causes, start-ups, community projects, the arts, etc. Thecrowd also plays an integral role in spreading the word about the fundinginitiative. Crowdfunding is a peer to peer funding model that is not new buthas accelerated in importance with the growth of social media.Why Bother?The funding landscape is changing due to demographics, government debt,entitlements, shrinking family foundations, disappearing corporatefoundations. There is also a growth in those involved in the creation of artsand culture, enterprises, etc. 24
    25. 25. Crowdfunding - What do you need?• A crowd• Business challenge / problem / question you want answered – ideas• A process and tool for engagement• Trust and commitment in your crowd to take action• Key performance indicators – what does success look like?• Proof of action – your crowd wants to see what happened 25
    26. 26. Donor Generations Millennials (born ’91 and after) - ? Gen Y (born ’81-’91) – Average Donation $325 Gen X (born ’65-’80) – Average Donation $549 Boomers (born ’46-’64) – Average Donation $725 Civics (born ’45 or earlier) – Average Donation $833 26
    27. 27. Where Donors are Giving Social Network Site SMS Third Party Vendor Phone In Lieu of Gift Monthly Debit Mailed Gift Online via Website Charity Gift Shop Tribute Gift Fundraising Event Checkout Donation 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 27
    28. 28. Online Giving “Fundraising Trends and Challenges in the Canadian Direct Marketing Sector”- a research paper from 2009 by Cornerstone Group of Companies shows: • Donors who make their first gift to an organization online as opposed to via direct mail have a much higher average gift $73 vs. $30 • There are now more than 4 times the number of new donors, per organization, from online initiatives than 5 years ago (9M to 40M).” 28
    29. 29. Who is your crowd? The crowd you know The crowd you don’t know Donors Donors’ Network Prospects Prospects’ Network Event Attendees Event Attendees’ Network Mailing Lists Mailing List’s Network Social Media Makes the Connection 29
    30. 30. Projects or Doable Asks • Easier for most people to wrap their head around a smaller project as opposed to a ‘cure’ or a ‘hospital wing’ • Examples: • Piece of medical equipment • Stream revitalization • Education program • Conference attendance • Sports equipment for a couple kids 30
    31. 31. Financing Enterprise 31
    32. 32. Examples: SponsorMe (UK) No restrictions on who posts projects or the type of projects. Costs: 4% Fee on money raised Unmet goals = 9% Not ‘all or nothing’ 32
    33. 33. Examples: Please Fund Us (UK) No restrictions on who posts projects or the type of projects. Funding is All or nothing Costs: 3% Fee on money raised 33
    34. 34. Examples: Crowdrise (US only) Post Promote Fund Report 34
    35. 35. Examples: Fundchange (Canada only) Post Promote Share Search/Filter Fund Receipt Report Costs: $99 + hst to join includes 2 postings 3.9% processing fee 35
    36. 36. What We’ve Learned• 83% of new funders come from Twitter or Facebook• Average amount of funding is $190.00• 100% of projects have received funds from new funders• Unlike Real Estate – Location is becoming less important 36
    37. 37. Benefits & Challenges• It’s social – the crowd promotes projects it likes • It’s social – the crowd won’t promote projects that aren’t shareable• Success comes to those that actively build a crowd • A challenge for organizations new to social media• It’s the free market at work • It’s the free market at work• Build stickiness to the project • Need to pay attention to write-up to inspire funders 37
    38. 38. Integrating Crowdfunding into Your OrganizationThings to keep in mind:• Crowdfunding success comes quickest to organizations that are social – media-aware and engaged. If your organization is not yet social media- enabled, it will take time and human and financial resources to do so.• Because your efforts are only as good as the crowd you are able to mobilize to your cause, it makes sense that your organization strategically manages and promotes its brand online.• Make sure your target audience is online and will give online• If you opt to post your projects on established crowdfunding sites, do your homework – be careful of the company you keep. 38
    39. 39. Worth a Look See how Fiat used the crowd and the desire to be ‘involved’ to research and build the Mio… http://youtu.be/hg0b8Z51YC0 29
    40. 40. Who is Ideavibes?Ideavibes has developed a white label crowd engagement platform that allowsorganizations to easily launch branded crowdsourcing or crowdfundinginitiatives on their own websites. By engaging focused or broad crowdsthrough social media, our platform makes open innovation, crowdsourcingand citizen engagement easily accessible at less than $1000 per month.Ideavibes also runs one of Canada’s first crowdfunding websites for charitiescalled Fundchange (www.fundchange.com) where have raised over $50,000 infunds for various charity and not-for-profit projects. Ideavibes has partneredwith TELUS (www.telus.com) to bring about a new way to fund change in ourcommunity through social media and the power of the crowd. 39
    41. 41. Where does Ideavibes fit in the market? • Enterprise Collaboration or Idea Management – Large – multi-functioning platforms for Idea Management – Integrated into change management and process improvement lifecycles • Middle-tier Focused Crowdsourcing Apps – Purpose-built customizable platform focused on crowdsourcing – Departmental or Sub 1000 employee corporations – The only SAAS Crowdfunding App with customizable payment gateway • Ad-hoc website widgets – Developed by web teams with basic functionality – Functionality as opposed to business process driven 5
    42. 42. On Demand Crowdsourcing The Ideavibes web application is a hosted secure solution designed to fit into an existing internal-external website or be part of a customized destination website. The app can be deployed by a web team without requiring input by IT. 6
    43. 43. On Demand Crowdfunding Unique deployment with custom payment gateway attached at the back end. Can be configured with your own payment gateway solution such as Paypal, Beanstream, et c. 6
    44. 44. Resources• Donor stats, etc. came from “The Next Generation of Canadian Giving” – Nov. 2010 – by Vinay Bhagat, et al• “The Wisdom of Crowds” – book by James Surowiecki• “Crowdsourcing” – book by Jeff Howe• “Fundraising Trends and Challenges in the Canadian Direct Marketing Sector”, a research paper released in 2009 by Cornerstone Group of Companies 40
    45. 45. Thank you Paul Dombowsky | +1.613.878.1681 | paul@ideavibes.comwww.ideavibes.com | blog.ideavibes.com | blog.fundchange.com

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