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How Crowdsourcing &
Social Production Enable
Fundamental, Large Scale,
Re-Imaging of Business.
2001                              2003
                     2005

         2000

                         1995
 1991       2000
                                      2004

                      1996
 2001                               1999

We have seen Crowdsourcing in action already
[Labor, Influence]




    Source: Mary Meeker presentation at All things D.

The end of all other encyclopedia business models
[Assets, Influence]
                                              Simultaneous Skype Users
                                  [a way of looking at the capacity of the network]
                            35,000,000

                            30,000,000
          Number of Users

                            25,000,000

                            20,000,000

                            15,000,000

                            10,000,000

                             5,000,000

                                    0




                  Date Source: Skype Journal.

Less than a decade to transform the economics of audio/video
[Labor, Assets, Influence]

           1999                                2012




Innovation: “Not invented here” vs “Proudly found elsewhere”
Influence


                       Capital


                                 Assets
   Labor




                                          Data
1. How do we access key resources?
Open Innovation, Co-Creation, Micro Tasks

                           Sharing, Commenting, Reviewing
                                         Crowd Funding, Crowd Lending

                                             Collaborative Consumption

                                                          “Big Data”
               Influence


                               Capital


                                               Assets
   Labor




                                                        Data
People as brokers of key resources at Internet scale
Ronald Coase
                  “Given that production could be
                  carried on without any
                  organization that is, firms at
                  all, why and under what
                  conditions should we expect firms
                  to emerge?”
                  About 75 years ago
                       Shaun Abrahamson and millions
                  of others like this

Why do we organize firms a certain way?
Value Created
   R+D         Production   Operations   Marketing   Sales




                Income/Expenses
2. Who is doing the work?
Value Created
   R+D         Production   Operations   Marketing   Sales




                Income/Expenses
2. Who is doing the work?
“Re-Imagination of Nearly
Everything – Powered by New
Devices, Connectivity + UI +
Beauty”

“Magnitude of upcoming
change will be stunning”

– Mary Meeker, partner KPCB

      Source: Mary Meeker presentation at All things D.


About 50% of this Re-Imagination enabled by crowds
2001                                 2003
                        2005

           2000


                                1995
 1991         2000
                                        2004

                             1996
  2001                                 1999

And this is just the start
Travel: This apartment versus a Hotel room? [Assets,Influence]
Funding: 66,694 people vs Venture Capital [Capital, Influence]
Identifyingan important part of campaign finance
Now also local infrastructure needs
And popular in Brasil, too
Identifying local infrastructure needs
Distributed research and analysis
Identifying local infrastructure needs
Healthcare: Positive Reviews vs Total Stranger [Influence]
New Products: New designs and validation vs internal design teams
Biz Dev: Large open calls vs behind the scenes [Labor, Influence]
Design: Multiple designers versus 1 agency [Labor, Influence]
Large open calls for public challenges, too
And leading the way in construction from Brasil
Sharing resources versus owning resources [Assets, Data]
Education: anything anyone, anywhere vs a campus [Labor, Influence]
Apparel: best of the crowd + best of traditional models [Labor, Influence]
Emergency Response: faster better data for first responders
[Labor, Data, Influence]
From Kenya to Japan [Labor, Influence]
Traffic: our big data vs very expensive data [Data]
Mobile Service: Better support, R&D and sales versus [Labor, Influence]
If you work with crowds to change access to critical
 resources (Labor, Influence, Capital, Assets +
 Data), you get massive impacts

 + across business functions (we just saw
 R&D, Operations, Marketing, Sales, Customer
 Support)

 + across almost all industries (we just saw
 Finance, Consumer Staples, Consumer
 Discretionary, Information
 Technology, Healthcare, Telecommunications, Indust
 rials)
Fundamental restructuring enabled by crowds
Open Innovation, Co-Creation, Micro Tasks

                           Sharing, Commenting, Reviewing
                                         Crowd Funding, Crowd Lending

                                             Collaborative Consumption

                                                          “Big Data”
               Influence


                               Capital


                                               Assets
   Labor




                                                        Data
New ways to access critical resources more efficiently
Ronald Coase
                  “Given that production could be
                  carried on without any
                  organization that is, firms at
                  all, why and under what
                  conditions should we expect firms
                  to emerge?”
                  About 75 years ago
                       Shaun Abrahamson and millions
                  of others like this

Why do we organize firms a certain way?
Value Created
   R+D         Production   Operations   Marketing   Sales




                Income/Expenses
2. Who is doing the work?
Crowdsourcing
fundamental, large scale rethinking of business.
July 4 2012



Shaun Abrahamson
@shaunabe
shaun@mutopo.com

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Crowdsourcing - Beyond Experimentation

  • 1. How Crowdsourcing & Social Production Enable Fundamental, Large Scale, Re-Imaging of Business.
  • 2. 2001 2003 2005 2000 1995 1991 2000 2004 1996 2001 1999 We have seen Crowdsourcing in action already
  • 3. [Labor, Influence] Source: Mary Meeker presentation at All things D. The end of all other encyclopedia business models
  • 4. [Assets, Influence] Simultaneous Skype Users [a way of looking at the capacity of the network] 35,000,000 30,000,000 Number of Users 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 Date Source: Skype Journal. Less than a decade to transform the economics of audio/video
  • 5. [Labor, Assets, Influence] 1999 2012 Innovation: “Not invented here” vs “Proudly found elsewhere”
  • 6. Influence Capital Assets Labor Data 1. How do we access key resources?
  • 7. Open Innovation, Co-Creation, Micro Tasks Sharing, Commenting, Reviewing Crowd Funding, Crowd Lending Collaborative Consumption “Big Data” Influence Capital Assets Labor Data People as brokers of key resources at Internet scale
  • 8. Ronald Coase “Given that production could be carried on without any organization that is, firms at all, why and under what conditions should we expect firms to emerge?” About 75 years ago Shaun Abrahamson and millions of others like this Why do we organize firms a certain way?
  • 9. Value Created R+D Production Operations Marketing Sales Income/Expenses 2. Who is doing the work?
  • 10. Value Created R+D Production Operations Marketing Sales Income/Expenses 2. Who is doing the work?
  • 11. “Re-Imagination of Nearly Everything – Powered by New Devices, Connectivity + UI + Beauty” “Magnitude of upcoming change will be stunning” – Mary Meeker, partner KPCB Source: Mary Meeker presentation at All things D. About 50% of this Re-Imagination enabled by crowds
  • 12. 2001 2003 2005 2000 1995 1991 2000 2004 1996 2001 1999 And this is just the start
  • 13. Travel: This apartment versus a Hotel room? [Assets,Influence]
  • 14. Funding: 66,694 people vs Venture Capital [Capital, Influence]
  • 15. Identifyingan important part of campaign finance Now also local infrastructure needs
  • 16. And popular in Brasil, too Identifying local infrastructure needs
  • 17. Distributed research and analysis Identifying local infrastructure needs
  • 18. Healthcare: Positive Reviews vs Total Stranger [Influence]
  • 19. New Products: New designs and validation vs internal design teams
  • 20. Biz Dev: Large open calls vs behind the scenes [Labor, Influence]
  • 21. Design: Multiple designers versus 1 agency [Labor, Influence]
  • 22. Large open calls for public challenges, too
  • 23. And leading the way in construction from Brasil
  • 24. Sharing resources versus owning resources [Assets, Data]
  • 25. Education: anything anyone, anywhere vs a campus [Labor, Influence]
  • 26. Apparel: best of the crowd + best of traditional models [Labor, Influence]
  • 27. Emergency Response: faster better data for first responders [Labor, Data, Influence]
  • 28. From Kenya to Japan [Labor, Influence]
  • 29. Traffic: our big data vs very expensive data [Data]
  • 30. Mobile Service: Better support, R&D and sales versus [Labor, Influence]
  • 31. If you work with crowds to change access to critical resources (Labor, Influence, Capital, Assets + Data), you get massive impacts + across business functions (we just saw R&D, Operations, Marketing, Sales, Customer Support) + across almost all industries (we just saw Finance, Consumer Staples, Consumer Discretionary, Information Technology, Healthcare, Telecommunications, Indust rials) Fundamental restructuring enabled by crowds
  • 32. Open Innovation, Co-Creation, Micro Tasks Sharing, Commenting, Reviewing Crowd Funding, Crowd Lending Collaborative Consumption “Big Data” Influence Capital Assets Labor Data New ways to access critical resources more efficiently
  • 33. Ronald Coase “Given that production could be carried on without any organization that is, firms at all, why and under what conditions should we expect firms to emerge?” About 75 years ago Shaun Abrahamson and millions of others like this Why do we organize firms a certain way?
  • 34. Value Created R+D Production Operations Marketing Sales Income/Expenses 2. Who is doing the work?
  • 35. Crowdsourcing fundamental, large scale rethinking of business. July 4 2012 Shaun Abrahamson @shaunabe shaun@mutopo.com

Editor's Notes

  1. Add colaboratorie to logo – priority 2
  2. + the examples that showed how we might reorganize
  3. + how profound is the impact?+ newspaper impact…craigslist set things in motion by removing classifieds revenues for many newspapers+
  4. + we don’t really think about skype anymore+
  5. 50% of innovation now comes from outside P&GAvailable in English, Chinese, Spanish, Japanese and Portugeuse
  6. + what exactly are we talking about?+ most organizations depend on some combination of these resources+ the most interesting thing is that e are changing how we get access to these resource+ lower cost devices + broadband + marketplaces + analytics + reputation --- dramatically lowering cost of getting access
  7. now we have an explosion of buzzwords and this is how I think they fit together
  8. Add colaboratorie to logo – priority 2
  9. Add colaboratorie to logo – priority 2
  10. Investment and partnerships with 12 companies
  11. Investment and partnerships with 12 companies
  12. Investment and partnerships with 12 companies
  13. Investment and partnerships with 12 companies
  14. Investment and partnerships with 12 companies
  15. Add colaboratorie to logo – priority 2
  16. now we have an explosion of buzzwords and this is how I think they fit together
  17. Add colaboratorie to logo – priority 2
  18. Add colaboratorie to logo – priority 2