Crowdsourcing is a process that involves outsourcing tasks to a distributed group of people. This process can occur both online and offline, and the difference between crowdsourcing and ordinary outsourcing is that a task or problem is outsourced to an undefined public rather than a specific body, such as paid employees. Crowdsourcing is distributed problem solving. Your most complex business problems are broken down into microtasks and completed efficiently by an on-demand, scalable workforce. Coining the term of "crowdsourcing", Jeff Howe has also indicated some common categories of crowdsourcing that can be used effectively in the commercial world. Some of these web-based crowdsourcing efforts include crowdvoting, wisdom of the crowd, crowdfunding, microwork, and inducement prize contests. Crowd is an umbrella term for people who contribute to crowdsourcing efforts. Crowdsourcing can be looked at as an application of the wisdom of crowds concept, in which the knowledge and talents of a group of people is leveraged to create content and solve problems. Crowdsourcing markets are not a first-in-first-out queue. Tasks that are not completed quickly may be forgotten, buried by filters and search procedures so that workers do not see them Some popular uses of implicit crowdsourcing are Captcha codes and ESP Game. Crowdsourcing has the potential to be a problem-solving mechanism for government and nonprofit use.

1. Crowdsourcing-
The New Wave of Business
© 2012 Regalix Inc. Confidential, All Rights Reserved

2. About Pavan
Marketing and advertising professional with over 13 years of experience
Has Online Marketing Experience in Advertising, FMCG, Airline, Travel &
Education Industries
Manages both B2B and B2C clients in helping them leverage the Internet to
achieve their marketing goals and objectives.
Masters in Business Administration (Marketing) and a Graduation in Chemistry.
© 2012 Regalix Inc. Confidential, All Rights Reserved

3. What is crowdsourcing?
Crowd Outsourcing
Crowdsourcing is an invitation to all people in the
crowd to create, discuss, refine and rank meaningful
ideas or tasks or contributions via the web.
The crowd is essentially external to the organization.
© 2012 Regalix Inc. Confidential, All Rights Reserved

4. Crowdsourcing isn’t about gathering a flock…
© 2012 Regalix Inc. Confidential, All Rights Reserved

5. … it’s about leveraging a group of uniquely talented individuals
• In reality there is no crowd doing the work, rather a variety of individuals taking on the work at
will. Most of them are willing to risk their time and effort for little or no return
• The term “crowdsourcing” was coined by Jeff Howe of Wired magazine in 2006, has emerged and
evolved into the internet landscape
5
© 2012 Regalix Inc. Confidential, All Rights Reserved

6. Have you notice the power of crowd lately?
Managed an entire Customer An OS that is created and
support of a Mobile company constantly updated by the
Written entire books crowd
and suspense
thrillers
Play Chess against a
world Champion
Classified the entire Universe
© 2012 Regalix Inc. Confidential, All Rights Reserved

7. Have you noticed the power of crowd lately?
Run an entire Online Business Solve Puzzles of Science Help Discover and Understand
where buyers are also designers and help unfold mysteries Bio Mapping / Emotion
of product of Cellular biology Mapping of people
An entire Multilingual Internet
Encyclopedia
Contribute to running a
investment portfolio of a mutual
fund
And many more examples
around us
© 2012 Regalix Inc. Confidential, All Rights Reserved

8. Successful corporate crowdsourcing
initiatives
© 2012 Regalix Inc. Confidential, All Rights Reserved

9. Fiat Mio - create a car
Gather ideas from public for a new concept car.
© 2012 Regalix Inc. Confidential, All Rights Reserved

10. Open Innovation Sara Lee - open innovation portal
of Sara Lee
Creates open network that links broad bases of knowledge to better serve
consumer and customer needs.
© 2012 Regalix Inc. Confidential, All Rights Reserved

11. My Startbucks Idea - shaping the future of Starbucks
A Website to share, vote, discuss ideas and see them in action.
© 2012 Regalix Inc. Confidential, All Rights Reserved

12. Crowdsourcing 101
© 2012 Regalix Inc. Confidential, All Rights Reserved

13. Crowdsourcing is used when…
When you need work force to
When you need Knowledge & When you need Money/
complete tasks or organize
Information funding support
things
Collective Knowledge Crowd Funding Crowd labour
When you want to choose
When you need to generate
the best work (Creative's and When you need Opinions
innovative ideas
content)
Crowd creativity Crowd Reviews Open-innovation
When you want to create When you need support for
something together your cause
Co - Creation Civic Engagement
• The crowds either create or contribute or help decide /aid decision making
• “We” are better than “Me” and “We” are smarter than “Me”
© 2012 Regalix Inc. Confidential, All Rights Reserved

14. The Crowdsourcing Landscape
© 2012 Regalix Inc. Confidential, All Rights Reserved

15. Who can use crowdsourcing?
Established
Startups Groups
Corporates
Non Profit
Governments Individuals
organizations
And just about any organization
that needs resources
engagement and ideas…
© 2012 Regalix Inc. Confidential, All Rights Reserved

16. Why should an organization look at
crowdsourcing?
Business Marketing
Reduces cost Good word of mouth
Reduces go to market time Brand equity & reputation
Easy access to Resources Pipelines of prospects & referrals
Increased Efficiency More website traffic
De- centralization of tasks More audience engagement
Crowdsourcing
Innovation Human
Creating stakeholders
More Thinking heads – More ideas “You are Listening”
Fresher perspective “Responsive Organization”
Talent access Community & belongingness
Co creating value – open ideas
• The four sides of crowdsourcing benefits are intrinsic to the value driven by crowd
© 2012 Regalix Inc. Confidential, All Rights Reserved

17. The Building Blocks of
Crowdsourcing
Understanding the Crowd and what
brings them together
© 2012 Regalix Inc. Confidential, All Rights Reserved

18. The Building blocks of crowd
Who are these people?
How What
Is it being done? Is being accomplished?
Why
Do the crowd come together?
© 2012 Regalix Inc. Confidential, All Rights Reserved

19. Who are the people in the crowd?
• Common Belief: The crowd is dispersed, has a short attention span and is full of
specialists
• The connectors spread the word, The salesman pursue to participate and the Mavens
provide that “Special” value
• More often than not they are your existing , prospective customers or influencers
© 2012 Regalix Inc. Confidential, All Rights Reserved

20. Why do they come together?
Rewards Recognition Connections Money
Autonomy Collective
No Hierarchy Belongingness
Learning
• Money is not necessarily the motivation all the time, its usually the love ,
Glory and recognition most of the times
© 2012 Regalix Inc. Confidential, All Rights Reserved

21. How does crowdsourcing work?
Tasks/Contribution Independent Dependent
Collection Collaboration
Create
•Contest
Group Decisions
Individual Decisions • Voting
Decide •Markets • Consensus
•Social networks • Averaging
• Tasks and individual contribution are the key genomes
© 2012 Regalix Inc. Confidential, All Rights Reserved

22. The Linux Example
Linux
Tasks/Contribut
ion
What Who Why How
Money
New Software
Create modules
Crowd Recognition Collaboration
Belongingness
Which modules Linus
Recognition
Decide warrant inclusion in Travolds &
Belongingness
Hierarchy
next release associates
© 2012 Regalix Inc. Confidential, All Rights Reserved

23. The Wikipedia Example
Tasks/
Contribution
Linux
What Who Why How
New version of Recognition
Create article
Crowd
Belongingness
Collaboration
Edit Existing
Wikipedia Whether to keep
Articles Recognition
Decide current version Crowd
Belongingness
Consensus
Recognition
Create New article Crowd
Belongingness
Collection
Decide What Whether to delete Recognition
Decide (preliminary)
Crowd
Belongingness
Voting
Wikipedia
articles to
include Whether to delete Administra Recognition
Decide
• aaaa (final) tor Belongingness
Hierarchy
© 2012 Regalix Inc. Confidential, All Rights Reserved

24. How to use crowdsourcing?
Crowd sourcing process
Do & Don’t’s
© 2012 Regalix Inc. Confidential, All Rights Reserved

25. Steps involved in Crowdsourcing
Broadcast Reward the
The Crowd &
Identify the the problem/ The Crowd Winning Organization
Company
Problem/ needs online- Submits contributors / & Community
review the Solution profit
Need Right solutions
solutions providers
platform
• Six easy steps to initiate crowdsourcing
• However its not all that easy…
• Purpose & Intent – the key initiators of a process
© 2012 Regalix Inc. Confidential, All Rights Reserved

26. Identifying the need
Manufacturing Start ups IT
• Raise Funds • Testing of solutions
• Co create new products • Co Create new ideas
• Product Design
•Customer support •Manage existing projects
• New Product ideas
• Market research •Micro tasks
• Market Research
•General Tasks •Create Process documentation
•Product roll out decision
•Content (blogs, videos, photos) •Customer support
•Determine pricing
• Determine pricing • Generate leads
•Streamline processes
• Communication, •Market Products globally
Designs & Marketing
Non Profit R&D organization Services organization
• Raise funds • Particiation in R&D initiative • Crowdsource Content
•Data gathering • Crowdsource Tasks
• Generate volunteers
•Tasks & microtasks •Crowdsource tasks • Generate Content
• Customer support • Co create ideas •Digitize docs
• Collect news & information
•News & Information
• Determine pricing
© 2012 Regalix Inc. Confidential, All Rights Reserved

27. Critical Success factors
Platform
Mavens & Stickiness
Salesmen Factor
Motive Environment
Purpose Alignment context
Crowd Sourcing
Success
• The purpose: Should be global and more open – try not to establish brand or company purpose
• The Platform: Should be transparent and involving the audience in the entire process.
• The Mavens & Salesmen: Provide the thrust to achieve critical mass
• Stickiness factor: Makes the crowd come back again & again
• Environment: The general mood of the crowd – Stressed, available or transactional…
© 2012 Regalix Inc. Confidential, All Rights Reserved

28. Dos and Don'ts in Corporate and Organizational Foresight
Do’s Don’ts
Patience: Crowd sourcing is a long Free: Don’t Assume that
term initiatives – Patience & crowdsourcing is free
Perseverance pays Customer: Don’t assume that all
Community: Nurture and support the crowdsourcing audience is prospect /
communities created through customer
crowdsourcing Brand: Crowdsourcing as a brand
Identify: The Mavens, salesmen & initiative
connectors in the crowd to customize Customers: Don’t treat your
communication engagements customers as just customers
Transparency: Ensure complete Control: Don’t try to control the
transparency of the process outcomes of the process – especially
in crowd decision making
Larger Purpose: The purpose should Implementation: Don’t assume that
be larger than marketing & sales all crowdsourcing ideas are good and
Long term strategy: Use implementable
crowdsourcing as a strategic platform
© 2012 Regalix Inc. Confidential, All Rights Reserved

29. Lets start crowdsourcing
Flickr: LucLeqay 29
© 2012 Regalix Inc. Confidential, All Rights Reserved

30. Thank you
© 2012 Regalix Inc. Confidential, All Rights Reserved

31. QUESTIONS
© 2012 Regalix Inc. Confidential, All Rights Reserved

32. Get in Touch
Forefront of Innovation visit: www.regalix.com
Digital Marketing Services
TechnologyEnabled Services If you have any questions about this webinar please
Regalix Labs feel free to get in touch with the speaker Pavan Kumar,
pavan@ regalix-inc.com
Multi-disciplinaryLeadership Team & Strong Advisory
Board, 175+ Team For a free evaluation of your website / ecommerce
portal, please get in touch with Ritu Josan,
rjosan@ regalix-inc.com
Fortune 500 and Venture Backed Customers (B2B and
B2C)
Global Operations: HQ in Silicon Valley 4 Offices
,
Industry Recognition
32
© 2012 Regalix Inc. Confidential, All Rights Reserved