Crowdsourcing:  Metrics for Success<br />This deck excerpts research conducted by ScaleVP and our EIRs in the crowdsourcin...
ScaleVP Crowdsourcing EIRs<br />Pam Smith<br />http://www.linkedin.com/pub/pam-kline-smith/0/7/a31<br />Daphne Carmeli<br ...
Project Goals<br />Identify the key categories of crowdsourcing for services and virtual goods, as well as key companies i...
200  companies identified</li></ul>Defined as:<br />Majority of work done by the crowd<br />Money is exchanged, directly o...
Executive Summary<br />Base value of crowdsourcing is connecting suppliers and work within 3 stages of engagement:<br />Fi...
Crowdsourcing Landscape Overview<br />
Crowdsourced Services | What’s Happening and Where?<br /><ul><li>Crowded  (200 companies); new entrants joining all the ti...
“Land grab”:  everyone vying for market share and major players all expanding into contiguous spaces
Crowdsourcing is a pre-chasm market with lots of experimentation</li></li></ul><li>The Stages of Crowdsourcing<br /><ul><l...
  Look for contiguous markets
Create leverage
  Rank suppliers and   differentiate quality</li></ul>Build for the future<br />Accelerate<br /><ul><li>Build the infrastr...
Find the buyers</li></ul>Lay the groundwork<br /><ul><li> Define the model
 Build the community</li></ul>Prime the pump<br />
Key Activities to Prime the Pump<br />Prime the pump<br /><ul><li>  Reducing risk for buyers and suppliers
 Legitimize work opportunity for suppliers
 Evidence success for the buyer
  Building community tools to keep suppliers engaged    when they are not working</li></li></ul><li>Crowdsourcing Metrics<...
Original Metrics Category Definition<br />Meeting Requirements for the Players<br />Buyers<br />Suppliers<br />Infrastruct...
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Scale vp crowdsourcing study 2008 final

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Scale vp crowdsourcing study 2008 final

  1. 1. Crowdsourcing: Metrics for Success<br />This deck excerpts research conducted by ScaleVP and our EIRs in the crowdsourcing sector in early 2008<br />
  2. 2. ScaleVP Crowdsourcing EIRs<br />Pam Smith<br />http://www.linkedin.com/pub/pam-kline-smith/0/7/a31<br />Daphne Carmeli<br />http://www.linkedin.com/in/daphnecarmeli<br />
  3. 3. Project Goals<br />Identify the key categories of crowdsourcing for services and virtual goods, as well as key companies in each:<br /><ul><li>35 sub categories defined, aligned with defined SIC codes
  4. 4. 200 companies identified</li></ul>Defined as:<br />Majority of work done by the crowd<br />Money is exchanged, directly or indirectly<br />Focused on private companies<br />Not multi-level marketing or job boards<br />Postulate metrics unique to crowdsourcing for success<br />Interview select services-oriented crowdsourcing companies<br />Determine key metrics for crowdsourcing success – that are unique to crowdsourcing and complement the general business metrics that apply in any market<br />
  5. 5. Executive Summary<br />Base value of crowdsourcing is connecting suppliers and work within 3 stages of engagement:<br />Finding suppliers/work, delivering work and administering all aspects of the process.<br />The greater the extent to which companies facilitate all stages, the greater the value created<br />Market sector choice is a key determinant for success; focus where outsourcing already exists. <br />Minimizes adoption barriers for this new model<br />Drives new efficiencies into familiar markets<br />Necessary, yet undifferentiated, requirements for all crowdsourced companies include:<br />Attracting and rating appropriate suppliers<br />Ensure supply/demand balance <br />Developing a platform to facilitate all three stages of workforce engagement<br />Metrics for differentiation come within the delivery stage of workforce engagement: <br />Driving/routing the right task to the right supplier, or ‘precise procurement’ <br />Marketplace is self-managed vs. company managed<br />Priming the pump necessary to gain initial traction:<br />Reducing risk for buyers and suppliers<br />Building community tools to keep suppliers engaged when they are not working<br />Crowdsourcing is a pre-chasm market with lots of experimentation<br />
  6. 6. Crowdsourcing Landscape Overview<br />
  7. 7. Crowdsourced Services | What’s Happening and Where?<br /><ul><li>Crowded (200 companies); new entrants joining all the time and established players adopting the model
  8. 8. “Land grab”: everyone vying for market share and major players all expanding into contiguous spaces
  9. 9. Crowdsourcing is a pre-chasm market with lots of experimentation</li></li></ul><li>The Stages of Crowdsourcing<br /><ul><li> Create halo effects
  10. 10. Look for contiguous markets
  11. 11. Create leverage
  12. 12. Rank suppliers and differentiate quality</li></ul>Build for the future<br />Accelerate<br /><ul><li>Build the infrastructure
  13. 13. Find the buyers</li></ul>Lay the groundwork<br /><ul><li> Define the model
  14. 14. Build the community</li></ul>Prime the pump<br />
  15. 15. Key Activities to Prime the Pump<br />Prime the pump<br /><ul><li> Reducing risk for buyers and suppliers
  16. 16. Legitimize work opportunity for suppliers
  17. 17. Evidence success for the buyer
  18. 18. Building community tools to keep suppliers engaged when they are not working</li></li></ul><li>Crowdsourcing Metrics<br />
  19. 19. Original Metrics Category Definition<br />Meeting Requirements for the Players<br />Buyers<br />Suppliers<br />Infrastructure<br />
  20. 20. Meeting the Requirements for the Stages of Engagement <br />Creating the right infrastructure to make it all work<br />Creating value for the suppliers so they want to participate<br />Creating differentiated value for the buyer<br />
  21. 21. Key differentiation and predictors of success are related to the Delivery Stage<br />Finding : Necessary, rarely a problem, not an area of differentiation<br />Quality needs to be ensured (up front certification and/or ongoing rating/monitoring)<br />Buyers find enough suppliers; suppliers find enough work<br />Benefits should span multiple categories<br />Delivering: Key area of differentiation and predictor of success<br /><ul><li>Less control over the work itself by company, more leverage, higher margins
  22. 22. More precise matching of buyers’ needs to best supplier, the greater the value</li></ul>Administering: Necessary, not an area of differentiation <br /><ul><li>Great routing is a key to success (typically considered ‘secret sauce’)
  23. 23. Community building tools are requirements to play
  24. 24. Payments/Billing (I.e., frequency, security) is a key to stickiness to the platform</li></li></ul><li>Required Metrics for all Companies:Finding, Delivering, Administering<br />Required Metrics<br /><ul><li> Abundance of available, skilled labor
  25. 25. Multiple motivations for suppliers
  26. 26. Ability to differentiate quality & rate suppliers
  27. 27. Ensure supply and demand balancing
  28. 28. Multiple advantages from crowdsourcing for the buyer
  29. 29. Managed payments/administration</li></li></ul><li>Positive DifferentiatorsCritical metrics and predictors of success<br />Positive Differentiators<br /><ul><li> Precise Procurement (driving work to the best supplier)
  30. 30. High degree of self-management of the work</li></ul>Required Metrics<br /><ul><li> Abundance of available, skilled labor
  31. 31. Multiple motivations for workers
  32. 32. Ability to differentiate quality & rate workers
  33. 33. Supply and demand balancing
  34. 34. Multiple advantages from crowdsourcing for the buyer
  35. 35. Managed payments/admin</li></li></ul><li>Importance of the Differentiated Success Metrics<br />
  36. 36. Comparing Business Models of Successful CompaniesOnForce & LiveOps<br />
  37. 37. Potential Evolution of Crowdsourcing<br />
  38. 38. Potential Future Metrics: Creating “Halo” Effects<br />Leveraging the community to provide services to the crowdsourced company<br />I.e., using the community to do the coding (oDesk) or to audit the calls (LiveOps)<br />Turning suppliers into buyers and vice versa<br />Creating sub-communities that have been vetted and can be “sold” by the owner to create a new revenue stream <br />i.e., OnForce creates sub-networks of suppliers that meet a customer's specifications<br />That customer (I.e., Siemens) could “rent” the list to others needing those same skills, making money off of their ability to rate and rank the suppliers<br />
  39. 39. Guesses About Future Evolution<br />Many companies are already seeing their participants using the platform for areas not within their original intent<br />Most of the leading companies have designs on sectors and areas of focus outside their current focus<br />It is likely that the market for work will consolidate into one or a limited number of marketplaces where all sorts of work are bought and sold freely (as has happened in the market for goods with eBay)<br />The race is on for a winner, and to date none of the giants from other fields have entered the contest<br />

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