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  1. 1. Crowdsourcing andCrowdfundingPaul  Dombowsky  
  2. 2. Will  Rogers  famously  said  that  “Everybody  is  ignorant,  just  on  different  subjects.”    One  of  the  lessons  of  modern  social  media  is  that  the  reverse  is  also  true:  everyone  is  knowledgeable,  just  on  different  subjects.  Social  media  and  crowdsourcing  provide  unique  ways  to  tap  into  that  knowledge.      BiIle,  Haller  and  Kadlec  –  Promising  PracMces  in  Online  Engagement,  Australia   2  
  3. 3. Citizen Engagement Spectrum The  shiP  to  the  right  makes  for  happier  ciMzens  –  what  about  staff?   6  
  4. 4. CrowdsourcingDefined  An  engagement  process  whereby  organizaMons  seek  input  from  either  open  or  closed  communiMes  of  people,  either  homogenous  or  not,  to  contribute  ideas,  soluMons,  or  support  in  an  open  process  whereby  the  elements  of  creaMvity,  compeMMon  and  campaigning  are  reinforced  through  social  media  to  come  up  with  more  powerful  ideas  or  soluMons  than  could  be  obtained  through  other  means.    Why  Bother?  OrganizaMons  have  a  difficult  Mme  engaging  with  their  communiMes  to  strengthen  their  relaMonship  and  be  ciMzen/crowd  focused.  Internal  or  external,  the  community  has  ideas  that  can  be  harnessed  that  come  from  diverse  backgrounds,  experiences  and  educaMon.     7  
  5. 5. Citizen Engagement for Your City •  There  are  many  one  way  conversaMons  happening:   •  Blogs   •  Newmarket  Town  Hall  Watch   •  GreenAssassinBrigade   Driven  by  Social   •  NewmarketHappenings   Media  Pla_orms     •  Podcasts     •  Make  no  mistake  –  your  ciMzens  want  to  be  involved  in  transforming  the  City   of  today  to  City  2.0.   •  Where  is  the  engagement?  Where  is  the  innovaMon  happening?   8  
  6. 6. ONLINE ENGAGEMENT Use  Cases   Levels  of  Engagement  Lifecycle   IdenMfying  problems,   opportuniMes  or  future  issues   Collaborate   &  Empower   Consult  &   (CollaboraMon)   Policy  ConsultaMon   Involve   Listen  &   Inform   (ConsultaMon)   (InformaMon)   IdenMfy   Customer  Service  and   (Audience   Service  Delivery   Analysis)   CommunicaMon  and   PromoMon   Land  Use   and  Development   Programs  and  IniMaMves   9  
  7. 7. Who is your crowd? CITY     Explicit   Experts   Emergent  Experts   (community  leaders,  front   Engagement   line  stakeholders)   Targets   General  Audience   10  
  8. 8. Where Innovation / Crowdsourcing Fits Open  Space   How  we  gather   Open   InnovaMon   Social  Media   Crowdsourcing   Community   How  we  talk   Where  ideas  come  from   Leadership   How  we  inspire  &   enable   11  
  9. 9. Innovation: Crowdsourcing vs The Survey Crowdsourcing   Surveys   •  Lends  itself  to  diversity  of  parMcipaMon   •  Great  for  solidifying  preconceived   •  Fewer  barriers  to  parMcipaMon   ideas  or  direcMons   •  Drives  innovaMon  –  new  ideas  from  leP   •  Hidden   field  that  have  merit   •  Requires  interpretaMon  which  is  open   •  Easy  to  interpret  –  the  crowd  generally   to  biases  by  reviewers   makes  things  clear   •  Doesn’t  encourage  creaMvity   •  Comments  are  focused   12  
  10. 10. The Appeal•  Crowdsourcing  surfaces  new  perspecMves  •  Invites  parMcipaMon  from  nontradiMonal     sources    •  Infuses  real  energy  into  the  process  of  generaMng  ideas     and  content  •  Empowers  people  when  they  feel  their  voice  is  being  heard  •  Technology  can  enable  parMcipaMon  by  disenfranchised     (ie.  PCs  in  libraries/shelters  with  ciMzen  engagement   campaigns)  •  Builds  engagement  and  relaMonships  with  new  audiences   13  
  11. 11. Things to Watch For•  Excessive  lobbying  and  promoMon  •  Narrow  crowds  product  narrow  results  •  No  follow-­‐through  causes  creditability  hit  •  If  you  say  you  are  generaMng  soluMons  for  X,  communicate   what  happened  and  why  •  Broad  ideaMon  campaign  descripMons  will  result  in  less  focused   results  BUT  too  narrow  will  restrict  creaMvity  •  Dismissing  ideas  that  seem  far  fetched  •  IdeaMon  oPen  requires  refinement  –  understanding  what  your   crowd  is  saying  by  ‘x’   14  
  12. 12. Example 1: Citizen Engagement NYC  CiMzen  Engagement   Program   15  
  13. 13. Example 2: Citizen Engagement in SF San  Francisco  Engage4change   CiMzen  Engagement  Program   (2  weeks)     •  No.  of  Engagements  =  2252   •  Referrals  =  64%  from  TwiIer   •  Cost  =  500  ice  cream  cones  ($1,000)   •  Humphry  Slocombe’s  Crowd   =  320,000  twiIer  followers  and   Facebook  Friends   16  
  14. 14. Example 3: Myscouts Innovation Launched  in  May  of  2012     Designed  to  move  ideas  for  improving   Scouts  and  the  web  experience  from   email  to  an  open  innovaMon  pla_orm.   17  
  15. 15. Example 4: Open Innovation with CitizensCase Study City  of  OIawa  CITY OF OTTAWA: Choosing our Future CampaignThe City of Ottawa selected the Ideavibes Crowd Have  a  Say  Sustainability  Campaign  Engagement Platform™ as a pilot project to test Key Successescrowdsourcing and the Ideavibes tool to generate 1. Engagement and participation from new voicesinterest, awareness, engagement, innovation and 2. Demonstrated the public is ready to make sustainable choicesmomentum leading up to the release of 3 draft plans 3. Sparked innovation in the community around an importantfocused on sustainability. issue for the futureCritical Success Factors Goals ResultsThe critical success factor for the ‘Have a The City of Ottawa had a number of goals The City of Ottawa exceeded their goalsSay’ campaign was to provide an acces- they needed to fulfill with this process: through this engagement process using thesible process that would open a channel Ideavibes Crowd Engagement Platform.for innovation for those who: • Generate ideas and gauge support During the campaign, over 6000 were • Increase social media presence engaged with:• are high-interest but have limited capacity for engagement • Continue building relationships with new • 213 Ideas generated audiences• do not or are unable to attend public • 150 Comments made events • Demonstrate that the public is ready to make sustainable choices • 6122 Votes cast• are not comfortable being vocal but • Tripling of website visits and average whose voice deserves to be heard • Engage at least 1000 participants time on the site• want online alternatives for engagement • Over 50% of referrals to the campaign - choice and variety came directly from the crowd How Citizens Participated The campaign’s central question was:Purpose of this Engagement What is your idea for how the Cities of Ideavibes Ottawa and Gatineau and the NationalThe purpose of this campaign, and the Capital Commission (NCC) can make our Ideavibes has developed the firstuse of the Ideavibes Crowd Engagement Capital Region more sustainable? What Crowd Engagement Platform to enablePlatform, was to generate conversation choices will you personally make to create a organizations to create crowdsourcingand innovation around sustainability in our more sustainable future? Then citizens were and/or crowdfunding campaigns that usecommunity, inspire personal actions, hear able to participate in one or more of four the power of social media and tappingfrom a new audience and embrace ideas ways in either English or French: into the wisdom of crowd to strengthenfrom those not normally heard from, be relationships through engagement andable to spread the word about the initia- • Vote on ideas they supported participation. It’s about starting innovativetive by tapping into social media, engage projects, building better products, setting • Submit a new idealarge numbers of citizens in a cost effective, new directions, driving innovation, beingtransparent, innovative and sustainable • Comment on existing ideas more community-focused, funding worthyway, and generate momentum and energy • Share ideas (Twitter, Facebook, Email) initiatives and sparking social change.leading to the release of the plans. | @ideavibes | | | +1.613.878.1681 18  
  16. 16. Example 5: State of Washington Budget Ideas  for  cutng  the  state  budget  were  generated   with  this  online  campaign:   -­‐  2,000  ideas  posted   -­‐  130,000  votes  cast   Problems:   Ideas  not  implemented  –  reasoning?   -­‐  State  said  some  ideas  did  not  take  into  account   the  complex  relaMonship  between  Federal  and   State  Government   -­‐  Most  popular  idea  –  end  the  ability  of  reMred   employees  to  double  dip  –  collect  pension  and   work  as  a  contractor.  Not  implemented  due  to   poliMcal  nature  of  issue.   -­‐  CiMzens  leP  wondering  –  is  crowdsourcing  a   legiMmate  exercise,  or  only  for  public  relaMons?   19  
  17. 17. Example 6: Development Site in NY hIps://     20  
  18. 18. More Crowdsourcing for Your City Possibili;es  include:   •  Property  development  –  front  end  –  what  do  you  want  to  see  here?   •  RecreaMon  programs   •  Policy  development   •  BudgeMng  –  what  would  you  be  willing  to  sacrifice  to  do  X   •  How  should  we  celebrate  X?  How  should  we  honour  Mr/Mrs.  X?   •  We  have  a  problem  with  X  (ie.  Vandalism)  –  what  should  we  do  to  solve  it?   (could  be  broad  or  hyper  local)   •  Process  changes   •  The  how  to  implement  for  new  programs  and  policies   21  
  19. 19. It all starts with a Question or Problem •  Needs  to  be:   –  Clear  and  compelling   –  Not  leading   –  Allow  for  open  innovaMon   –  Encourage  parMcipaMon   –  Allow  for  outliers  to  feel  comfortable   22  
  20. 20. What is Crowdfunding?So  many  definiMons  …  According  to  Wikipedia  –  crowdfunding  describes  the  collecMve  cooperaMon,  aIenMon  and  trust  by  people  who  network  and  pool  their  money  and  other  resources  together,  usually  via  the  Internet,  to  support  efforts  iniMated  by  other  people  or  organizaMons.  Crowdfunding  occurs  for  any  variety  of  purposes,[1]  from  disaster  relief  to  ciMzen  journalism  to  arMsts  seeking  support  from  fans,  to  poliMcal  campaigns,  to  funding  a  startup  company,  movie  [2]  or  small  business[3]  or  creaMng  free  soPware.    Crowdfunding  is  a  type  of  crowdsourcing.   5  
  21. 21. Types of Crowdfunding Equity   DonaMon   Based   Based   Revenue    &   profit  sharing   Lending   Based   Reward/ 11%   P2P  lending,  P2B   Preorder   lending  &   Based   DonaMon  Based   social  lending   22%   49%   Equity  Based   Lending  Based   18%   Reward  Based   8  
  22. 22. Crowdfunding WorldwideUS$1.5BN  2011  –raised  through  crowdfunding  globally   452   04/2012  –  Number  of   Crowdfunding  Pla_orms   9  
  23. 23. Why?•  There  was  a  gap  for  funding  ‘stuff’  and  the   market  filled  the  need  with  a  new  channel  •  The  gap  was  for  a  new  way  to  fund  change   •  InnovaMon   •  CreaMve  endeavors   •  Startups   •  ChariMes  –  new  channels  •  ReflecMon  of  the  dissaMsfacMon  with  current   channels  for  funding  •  Control  maintained  by  the  creators/founders  •  Funders  aren’t  looking  for  control  –  they  just   want  to  parMcipate  /  belong  /  connect   10  
  24. 24. Mind the Gap – Small Business Funding •  Over  the  past  17  years,  65%  of  net  new  jobs  came  from   small  business   •  Small  business  /  start-­‐ups  used  to  find  funding  by   tapping  into  savings,  home  equity  and  friends/family   •  Savings  rates  have  declined  and  home  equity  has  been   disappearing   •  $51b  invested  in  US  start-­‐ups  in  2010  –  accredited   investors  made  up  only  19%  -­‐  majority  came  from   friends  and  family  ($41.6  billion)   11  
  25. 25. Government as a Platform•  Ideas  and  informaMon  produced  by  and  on  behalf  of  the   ciMzen  or  the  crowd  •  Crowd  is  empowered  to  spark  the  innovaMon  that  will  result  in   an  improved  approach  to  governance  •  Move  away  from  ‘Vending  Machine  Government’       Expect   Pay  Taxes   Repeat     Services    •  Responsibility  is  shared  between  ciMzens  and  staff   25  
  26. 26. Vision for Engagement for Cities•  Central  portal  where  both  ciMzens  (have  one  view),  and  City   staff  (have  a  different  view),  can  see  all  engagement   happening  at  any  given  Mme  –  list  and  mapped.  •  City  staff  –  create  campaigns  based  on  requirements  –  help  in   choosing  the  right  methodology  and  tool  set  (town  hall   meeMng,  survey,  crowdsourcing,  etc.)  •  CiMzens  –  quickly  be  able  to  check  consultaMons  relevant  to   them  –  see  results.    •  Single  pain  of  glass  or  panel  approach  to  engagement  •  It  could  look  like  this:…   26  
  27. 27. Possible Option forCitizen Engagement Portal 27  
  28. 28. Ideavibes Citizen Engagement Platform•  Easy  to  set-­‐up  and  deploy  •  Able  to  run  mulMple  campaigns  at  once  •  Can  run  Crowdsourcing  and  Crowdfunding  Campaigns  •  Build  sMckiness  and  community  around  those  that  engage  (sign-­‐in  and  see   past  votes,  comments,  ideas)  •  Hosted  soluMon  (in  Canada)  •  Able  to  be  implemented  on  exisMng  website  or  set-­‐up  in  new,  desMnaMon   site  •  Social  Media  connected  •  Pay  per  campaign  model  –  mulMple  campaigns   can  be  run  at  once   28  
  29. 29. Thank you – Questions?Paul  Dombowsky  |  613.878.1681  |  |