- the ultimate library
  Crowdsourcing as a Business Model
         in the web 2.0 Era
“Technological advances in everything from product design software to digital video
cameras are breaking down the cost barriers that once separated amateurs from
professionals. (…) It’s not outsourcing; it’s crowdsourcing.”

                                      Jeff Howe - The rise of Crowdsourcing



                                   + Outsourcing =
                                                The Wisdom of the Crowd
Web 2.0
                                                        The Social Web
                                                      The Prosumers’ Web




From Wikipedia: “The term "Web 2.0" (2004–present) is commonly
associated with web applications that facilitate interactive information sharing,
interoperability, user-centered design, and collaboration on the World Wide
                                design
Web.
Examples of Web 2.0 include web-based communities, hosted services, web
applications, social-networking sites, video-sharing sites, wikis, blogs, mashups,
and folksonomies. A Web 2.0 site allows its users to interact with other users or
to change website content, in contrast to non-interactive websites where users
are limited to the passive viewing of information that is provided to them.”
Anobium Punctatum (lat.)=Book Worm



                           The IDEA:

 create an online platform for avid readers to share reviews,
recommendations, and most important of all, find like-minded
                         booklovers;

Anobii.com is a different form of social experience as it aims to
                 build an online reading group.
aNobii.com
                                      facts


 Founder: Greg Sung
 Privately launched in August 2005
 FREE access and participation
 400,000 members according to wikipedia
 web site available in 16 languages
  Almost 17 mln books catalogued through
ISBN;
KEY ACTIVITIES
                                     Social Networking
                                       Similar shelves
                                       Discussion
                                       Groups
                                       Neighbours

                                     User’s Review


                                     Library 2.0
                                       Wish list
                                       Due date alert
                                       Margin notes
                                       Shelf stats

SIDE ACTIVITY Trade through Ibs and Amazon, Swap, Lend and Borrow
---------- Forwarded message ----------
                                                                           GOVERNANCE
From: Greg Sung <greg.sung@gmail.com>
Date: 2010/2/8
Subject: Re: student's question to Greg Sung
To: Dasha Averyanova <d.averyanova@gmail.com>
Cc: contact@anobii.com

Dear Daria,
> - What is the governance model of aNobii?
At the core, we are a small tight-knitted team of developers and
designers. But the interesting thing is you could say that aNobii to a                 Volunteers all
large degree is not run by us only but also by the users themselves.
We build the platform so users can help themselves - from adding new
                                                                                       over the world
books to our database to translating our interface into different
languages.
> - Do you break even?
At this moment not yet but we are getting there. Our goal is to
achieve that in the first half of this year. This is an important
milestone because we need to make sure the platform is financially
sustainable. We owe it our users to stay in business and grow!                                        HK
> - How many employees do you currently have?                                                         Team
We have 8 full-time
> - What are your costs?
90% is salary + server expenses
> - Do you receive commissions from Amazon and Ibs?
Yes we do. They are important revenue sources
> Looking forward for your reply you and we promise to send you our paper, when it will be finished,
COMPETITORS
RESULTS
                                 “Market” leader in Italy
                                  315th more viewed italian website…
                                  virtuous circle! (Goodreads is only
                                  the 860th most viewed in the US)




All these figures are sourced from aNobii.com & alexa.com information
RESULTS




                           Traffic rank grew from 9,494 to
                               6,435 in just 3 months




All these figures are sourced from aNobii.com & alexa.com information
aNobii VS Threadless
        aNobii is an example of WEB2.0 Collective Intelligence…
                  …but is aNobii a case of CROWDSOURCING?


        Similarities                     Differences

•Innovation coming directly      •money motivation: any reward
from users’ mind                 to prosumer selected
•Outsourcing to users of         •Participation of users is not in
decisions                        creation of the final product, but
•Rating, voting, averaging       in the creation of its reputation
•Volunteers, self-selection      (reviews)
•Task granularity (Lakhani,      •Feedback circulation do not
Panetta, 2007)                   change products
•Motivations of love and Glory   •No hierarchy
BUSINESS MODEL
                                                            The Economy of Reputation

                   “The website works because control is bottom-up.
                   Everything emerges from users and they are the reason of the success.
                   On the other side, we are able to listen to them and satisfy their needs”.
                   Greg Sung, April 2009


economy of reputation : Generation of value through rating and review, two
mechanisms. Ratings increase reputation and allow the user to share its feelings.


word of mouth : recommendations propagating directly from one user to another,
advertising that you can trust more than the one diffused by mass media (Dye,
2000).

all about community users : readers, writers (storytelling) and volunteers, called
"Librarians”. Social influence (Watts, 2007). WOM is more crucial than in other
business
GENOME
                                                                                      Thomas W. Malone,
Comparison                what            who        why           how                 Robert Laubacher
                                                                                  Chrysanthos Dellarocas

  aNobii     Create   Book rewiews        Crowd      Love        Collection
                                                     Glory
             Create    Translations     Volunteers   Love        Collection
             Decide       Which           Crowd      Love         Voting
                      translation to
                         publish
             Decide   Which reviews     Volunteers   Love     Group decision
                         are fake                              (consensus)
             Decide       Charts          Crowd      Love          Group
                                                             (averaging)/Indivi
                                                                dual decision
Theadless    Create   T-shirt designs     Crowd       Love        Contest
                                                     Money
                                                     Glory
             Decide   Which designs       Crowd      Love        Averaging
                        are best

             Decide   Which designs       Mgmt       Money       Hierarchy
                         to use
BUSINESS MODEL
                                                            a case of Social Commerce
KEY DECISION:
Contract with online book stores such as Ibs and Amazon

April, 2009: complementary partnership (Kale&Singh, 2009) with IBS in Italy
         Complementary partnership is an alliance between partners with complementary
         skills/activities that fills the mutual gap in the value chain, determinant of
         reciprocity (Oliver, 1990).

Motivations for selection:
 Ibs has been chosen in a crowdsourcing style: with a survey among Italian
  aNobiians!
 Ibs is the leader online bookstore in Italy (selling 30% total books sold online,
  according to School of Management-Politecnico in Milan)
 Amazon has no branch in Italy
MUTUAL BENEFITS
“The Internet, instead of killing literature, is the way in which it has been
   brought to a new life. Moreover, web 2.0 is providing audience to small and
   middle publishing houses opportunities for booksellers, no threat!”
                                 Mauro Zerbini, Ibs CEO - Milan on 1st April, 2009



    aNobii to access knowledge                   Ibs to buy
     Share of revenues from sales        More reviews and comments
                               Indipendence
             Ibs Catalogue             Direct link to prospective buyers
                              Cross-statistics

     Enhanced visibility in Italian      Enhanced 2.0 flexibility and
              Market                             visibility
DISTINCTIVE FEATURES
DISTINCTIVE FEATURES
DISTINCTIVE FEATURES
CRITICALITIES
                            “Social networks have a difficult business model and this
                            makes them vulnerable to be acquired by bigger
                            companies”.
                                        Greg Sung - aNobii Creator and Administrator

   SUSTAINABILITY is the main challenge: lack of business model to affirms need
to make profits. How to avoid it?

  The platform ETHIC:
     censorship free: negative reviews are left if they are not offensive (autonomy
    of social side from commercial)
     Free Subscription
     No advertising: (supported by Amazon/Ibs commissions)

   COMPETITORS: Many other consumer webs are dedicated to book lovers and
the web is a trend-sensitive environment
POSSIBLE SOLUTIONS
                           to sustainability

 Fundraising
Campaign (like
wikipedia does)
 Consultancy (i.e.
testing sample e-book
for prospective
publications)
 3.0 Web Blue Ocean
Competitive advantage
Questions?
        Analysis by:
  Averyanova Daria
     Caroti Cristina
 L’Hopital Guillaume
   Speri Alessandra
             Wu Xu

aNobii - the ultimate library

  • 1.
    - the ultimatelibrary Crowdsourcing as a Business Model in the web 2.0 Era
  • 2.
    “Technological advances ineverything from product design software to digital video cameras are breaking down the cost barriers that once separated amateurs from professionals. (…) It’s not outsourcing; it’s crowdsourcing.” Jeff Howe - The rise of Crowdsourcing + Outsourcing = The Wisdom of the Crowd
  • 3.
    Web 2.0 The Social Web The Prosumers’ Web From Wikipedia: “The term "Web 2.0" (2004–present) is commonly associated with web applications that facilitate interactive information sharing, interoperability, user-centered design, and collaboration on the World Wide design Web. Examples of Web 2.0 include web-based communities, hosted services, web applications, social-networking sites, video-sharing sites, wikis, blogs, mashups, and folksonomies. A Web 2.0 site allows its users to interact with other users or to change website content, in contrast to non-interactive websites where users are limited to the passive viewing of information that is provided to them.”
  • 4.
    Anobium Punctatum (lat.)=BookWorm The IDEA: create an online platform for avid readers to share reviews, recommendations, and most important of all, find like-minded booklovers; Anobii.com is a different form of social experience as it aims to build an online reading group.
  • 5.
    aNobii.com facts Founder: Greg Sung Privately launched in August 2005 FREE access and participation 400,000 members according to wikipedia web site available in 16 languages Almost 17 mln books catalogued through ISBN;
  • 6.
    KEY ACTIVITIES Social Networking Similar shelves Discussion Groups Neighbours User’s Review Library 2.0 Wish list Due date alert Margin notes Shelf stats SIDE ACTIVITY Trade through Ibs and Amazon, Swap, Lend and Borrow
  • 7.
    ---------- Forwarded message---------- GOVERNANCE From: Greg Sung <greg.sung@gmail.com> Date: 2010/2/8 Subject: Re: student's question to Greg Sung To: Dasha Averyanova <d.averyanova@gmail.com> Cc: contact@anobii.com Dear Daria, > - What is the governance model of aNobii? At the core, we are a small tight-knitted team of developers and designers. But the interesting thing is you could say that aNobii to a Volunteers all large degree is not run by us only but also by the users themselves. We build the platform so users can help themselves - from adding new over the world books to our database to translating our interface into different languages. > - Do you break even? At this moment not yet but we are getting there. Our goal is to achieve that in the first half of this year. This is an important milestone because we need to make sure the platform is financially sustainable. We owe it our users to stay in business and grow! HK > - How many employees do you currently have? Team We have 8 full-time > - What are your costs? 90% is salary + server expenses > - Do you receive commissions from Amazon and Ibs? Yes we do. They are important revenue sources > Looking forward for your reply you and we promise to send you our paper, when it will be finished,
  • 8.
  • 9.
    RESULTS “Market” leader in Italy 315th more viewed italian website… virtuous circle! (Goodreads is only the 860th most viewed in the US) All these figures are sourced from aNobii.com & alexa.com information
  • 10.
    RESULTS  Traffic rank grew from 9,494 to 6,435 in just 3 months All these figures are sourced from aNobii.com & alexa.com information
  • 11.
    aNobii VS Threadless aNobii is an example of WEB2.0 Collective Intelligence… …but is aNobii a case of CROWDSOURCING? Similarities Differences •Innovation coming directly •money motivation: any reward from users’ mind to prosumer selected •Outsourcing to users of •Participation of users is not in decisions creation of the final product, but •Rating, voting, averaging in the creation of its reputation •Volunteers, self-selection (reviews) •Task granularity (Lakhani, •Feedback circulation do not Panetta, 2007) change products •Motivations of love and Glory •No hierarchy
  • 12.
    BUSINESS MODEL The Economy of Reputation “The website works because control is bottom-up. Everything emerges from users and they are the reason of the success. On the other side, we are able to listen to them and satisfy their needs”. Greg Sung, April 2009 economy of reputation : Generation of value through rating and review, two mechanisms. Ratings increase reputation and allow the user to share its feelings. word of mouth : recommendations propagating directly from one user to another, advertising that you can trust more than the one diffused by mass media (Dye, 2000). all about community users : readers, writers (storytelling) and volunteers, called "Librarians”. Social influence (Watts, 2007). WOM is more crucial than in other business
  • 13.
    GENOME Thomas W. Malone, Comparison what who why how Robert Laubacher Chrysanthos Dellarocas aNobii Create Book rewiews Crowd Love Collection Glory Create Translations Volunteers Love Collection Decide Which Crowd Love Voting translation to publish Decide Which reviews Volunteers Love Group decision are fake (consensus) Decide Charts Crowd Love Group (averaging)/Indivi dual decision Theadless Create T-shirt designs Crowd Love Contest Money Glory Decide Which designs Crowd Love Averaging are best Decide Which designs Mgmt Money Hierarchy to use
  • 14.
    BUSINESS MODEL a case of Social Commerce KEY DECISION: Contract with online book stores such as Ibs and Amazon April, 2009: complementary partnership (Kale&Singh, 2009) with IBS in Italy Complementary partnership is an alliance between partners with complementary skills/activities that fills the mutual gap in the value chain, determinant of reciprocity (Oliver, 1990). Motivations for selection:  Ibs has been chosen in a crowdsourcing style: with a survey among Italian aNobiians!  Ibs is the leader online bookstore in Italy (selling 30% total books sold online, according to School of Management-Politecnico in Milan)  Amazon has no branch in Italy
  • 15.
    MUTUAL BENEFITS “The Internet,instead of killing literature, is the way in which it has been brought to a new life. Moreover, web 2.0 is providing audience to small and middle publishing houses opportunities for booksellers, no threat!” Mauro Zerbini, Ibs CEO - Milan on 1st April, 2009 aNobii to access knowledge Ibs to buy Share of revenues from sales More reviews and comments Indipendence Ibs Catalogue Direct link to prospective buyers Cross-statistics Enhanced visibility in Italian Enhanced 2.0 flexibility and Market visibility
  • 16.
  • 17.
  • 18.
  • 19.
    CRITICALITIES “Social networks have a difficult business model and this makes them vulnerable to be acquired by bigger companies”. Greg Sung - aNobii Creator and Administrator SUSTAINABILITY is the main challenge: lack of business model to affirms need to make profits. How to avoid it? The platform ETHIC:  censorship free: negative reviews are left if they are not offensive (autonomy of social side from commercial)  Free Subscription  No advertising: (supported by Amazon/Ibs commissions) COMPETITORS: Many other consumer webs are dedicated to book lovers and the web is a trend-sensitive environment
  • 20.
    POSSIBLE SOLUTIONS to sustainability  Fundraising Campaign (like wikipedia does)  Consultancy (i.e. testing sample e-book for prospective publications)  3.0 Web Blue Ocean Competitive advantage
  • 21.
    Questions? Analysis by: Averyanova Daria Caroti Cristina L’Hopital Guillaume Speri Alessandra Wu Xu