Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Crowdsourcing and Risk Management


Published on

By Dr Michael Gebert, Crowd Mentor Network. Presented at Crowdsourcing Week Europe 2014. Learn more & join us at the next event:

Published in: Business
  • Be the first to comment

  • Be the first to like this

Crowdsourcing and Risk Management

  1. 1. CrowdSourcing Innovation Models & involved Risk Crowds Renewing Value Creation
  2. 2. CrowdSourcing „People tend not to really look at the risks when making the decision to crowdsource or not. Not really know (the risks). They just go for it, with the benefits in mind.“
  3. 3. Main Risk Categories Complexity of relationship The increased number of participants and diversity within the crowd can increase the probability of risk in managing relationships within the crowd.
  4. 4. Main Risk Categories Crowd-Control +Effectiveness Control is less attractive in crowds. Referring to the effectiveness of the control measures, whether centrally located or distributed through an intermediary platform.
  5. 5. Main Risk Categories Coopetition Refers to the effects or impact of co-innovating with competitors within a joined crowdsourcing project and a larger mix and diversity of participants.
  6. 6. Main Risk Categories Actor/Worker interdependence Crowdsourcing requires proxy, but not internal control. Risk arises due to the uncertainties that can occur while coordinating with contributing actors. In crowdsourcing, the company relies on the crowd as a supplier of ideas and solutions. The crowd has less at stake relative to the company.
  7. 7. Main Risk Categories Replication of business model Crowds may gain access to business model data or related insights, due to a larger number and diversity of participants.
  8. 8. Main Risk Categories Loss of know-how When the crowd is integrated in the innovation process, crowd actors may acquire some key know-how and use it for their own purpose or even sell it to the competition.
  9. 9. Main Risk Categories IP risks Companies may encounter serious IP risks by assigning tasks to an anonymous crowd.
  10. 10. Main Risk Categories Loss of certainty in results The crowd actor has less at stake for not contributing to the innovation process and does not feel the responsibility and accountability for solving tasks.
  11. 11. Five categories of risk associated with radical innovation Financial risk Market risk Organizational- and societal risk Technological risk Turbulence risk
  12. 12. Conceptual Risk Framework
  13. 13. Risk & User Engagement Intrinsic motives Ideology Enjoyment, fun, recreation Intellectual challenges, stimulation, interesting objectives Learning, improving skills and knowledge exchange
  14. 14. Risk & User Engagement Extrinsic motives Company recognition Reputation, enhancement of professional status Sense of efficacy User need, influencing the development process Rewards
  15. 15. Risk & User Engagement Social motives Altruism, reciprocity, care for community Friendships, “hanging out together” Peer recognition
  16. 16. Adaption and Use of CrowdSourcing Study 2012-2013 University of Glamorgan
  17. 17. Descriptive statistics on risk levels of Crowdsourcing
  18. 18. Risk Management Measures Financial Defining quality levels and fixed compensation for these levels Entry evaluation of participants Task replication Ensuring greater participation Behavioral screening Tracking performance Have people to facilitate process
  19. 19. Risk Management Measures Organizational/ Societal Copyright and service agreements Building an “innovation mindset” within the organization Voluntarily + mild force following the rules and regulations
  20. 20. Risk Management Measures Market and Consumer Community Building (intrinsic) Integration of gamification concepts strong tears + leveled communication
  21. 21. Risk Management Measures Technological Clearly define task Use collaborative rather than competitive model Automated quality control Build community of subject area experts
  22. 22. Risk Management Measures Turbulence Crowd moderation Avoid crowdsourcing for sensitive areas such as HR policy Restricting access by type of log-in Anonymizing the data Drive change for corporate culture and mindset to an “innovation mindset” within the organization !
  23. 23. Risk Management Measures Creative Behavioral screening Define quality levels and fixed compensation Copyright and service agreements Break down a big project into very small bits
  24. 24. CrowdSourcing Innovation Models & involved Risk Crowds Renewing Value Creation Dr. Michael Gebert Crowd Mentor Network ! #crowdsourcerisk