The Main Idea of Employing Crowdsourcing - Essay Example

? Assess Crowdsourcing in a Globalizing Market place Introduction Crowdsourcing has attracted ideal interestsamong people, the media, corporations, as well as the general public. The concept raises many issues in terms of the way the digital economy or society is changing or evolving. The concept has also brought about important issues in the way innovations and work could take place at any given time. This paper looks into crowdsourcing as a concept and the way the concept applies in the globalizing market place. The paper shows the way crowdsourcing addresses aspects like quality intellectual property rights, as well as the completion time of work activities that have been crowdsourced. Various models are considered in addressing the concept and its implication to the intended purposes. The major models considered for this paper are PeoplePerHour and crowdflower (Knowles, 2012). In this case, PeoplePerHour is an instance of a facilitator while crowdflower is an instance of an aggregator. The type of labor used in the two cases is also considered with respect to Castell’s typology of generic labor and self programmable labor. In the paper, crowdsourcing is found to be important and very useful in developing low income countries (Knowles, 2012). Crowdsourcing can be defined as the practice, in which aspects like needed services, contents, or ideas are obtained through solicitation of various contributions, usually from large groups of people. This practice is especially done from the online community instead of traditional suppliers or employees. The process is applied in subdividing tedious work or in fund-raising startup charities and companies (Munro, 2012). Mostly, the process is an online task, but it can take place offline depending of the prevailing conditions of business. Crowdsourcing combines the efforts of many volunteers who are self-identified. Each own initiative contributor adds at least a predetermined portion to the final result, making its greater than it could have been. Unlike outsourcing, crowdsourcing has its work coming from a public, which is undefined instead of being commissioned from within a specific and a named group (Munro, 2012). How Crowdsourcing Works Crowdsourcing applies to many and different activities. It can involve the division of labor especially for those tasks that are tedious. These tasks are split to in way that they use outsourcing techniques that are crowd-based. The concept can as well apply to certain requests, which in this case have to be specific. Some of the applicable requests include crowdvoting, solutions, crowdfunding, broad-based competition, as well as in the general search for certain answers or missing individuals. With crowdsourcing, obtaining needed services, ideas, or contents becomes easier than ever before (The WritePass Journal, 2012). The concept is critically important in representing a company’s or institution’s act in taking functions after they had been previously performed by employees (Doan, et al., 2011). The company or institution in this case initiates this practice by outsourcing the given tasks to certain networks of people, which are usually undefined. These networks are typically in the form of open calls, and they can assume the form of production especially when the job has been performed in a collaborative manner. The tasks can also be undertaken by individual persons. The main idea of employing crowdsourcing as a concept is to help in exposing problems to many unknown solvers. The many reason is there the creation of solutions to business related problems. With crowdsourcing, problems are usually broadcast to usually unknown groups of problem solvers. These problem solvers are usually open for any call for solutions to related problems. Users in this case are referred to as the crowd (Castells, 2000). These users submit solutions, which on the other hand are owned by the organization or entity that is responsible for broadcasting the problem. The entity, which broadcasts the problem, is referred to as the crowdsourcer. Sometimes the solution contributor is compensated in terms of monitory purposes. Solution makers could as well be compensated using with prizes or even recognition. Sometimes the solution groups are compensated with kudos or in terms of intellectual satisfaction. The latter brings in the idea of intellectual property rights (Schechter & Thomas, 2003). Intellectual property right involves a legal concept whereby the creation of a mind is done for the recognition of exclusive rights. In this case, the groups or individuals solving the problems provided by the crowdsourcer are granted specific exclusive rights (Mazzone, 2006). There services are usually categorized in other intangible assets like musical assets, work of literature, as well as artistic works. There services are considered exclusive since they involve much innovativeness. Crowdsourcing could sometimes produce solutions from amateurs or even volunteers. Mostly, these people work during their spare time, from experts, or even from small businesses in which case the crowdsourcer does not know the existence of such businesses or their actual locations. The communications and transactions are completely done online. The crowdsourcer are mainly motivated by the various benefits associated with the concept of crowdsourcing (Estelles-Arolas & Gonzalez-Ladron-de-Guevara, 2012). One of the benefits is the ability of gathering large numbers of solutions as well as information specifically at a cost that is relatively inexpensive. On the side of the problem solvers, users are motivated in contributing to crowdsourced activities by intrinsic motivations and extrinsic motivations. Intrinsic motivations include factors like social contract, passing time, and intellectual stimulations. Conversely, the extrinsic motivations include solely the associated financial gains. A user would engage in solving problems provided by the crowdsourcer in order to gain from one or all the stated benefits (Estelles-Arolas & Gonzalez-Ladron-de-Guevara, 2012). Many collaborative activities could be considered to be a form of crowdsourcing irrespective of the fact that some of them may hard be crowdsourced. This happens because of the blurred limits in crowdsourcing. Crowdsourcing could however be faced with problems like proliferation of some definitions within the scientific literature (Safire, 2013). This comes in especially when different authors are forced to give different definitions with respect to their specialties. The different definitions have largely resulted to the cases whereby people term some tasks as crowdsourcing while in the real sense they are not. Concepts and Benefits of Crowdsourcing Crowdsourcing is mainly a neologism meant for business models. In this case, companies or institutions take the jobs, which are traditionally performed by designated agents such as employees. The companies or businesses outsource these tasks to a large group of individuals (Howe, 2008). The tasks are generally outsourced through an open call and usually over the internet. These tasks here are initiated with little or no compensation. Sometimes the labor provided is well compensated, which turns out to be a benefit to the groups handling the tasks. Crowdsourcing generally relies of amateurs or volunteers, which also turns out to be a benefit to the company or organization initiating the task (Howe, 2008). These volunteers spare their time to so that they could do various tasks like creating contents, solving problems, or sometimes doing corporate tasks. Application of crowdsourcing models are today being initiated within various industries. Most of the common industries applying the various models of crowdsourcing include entertainment, journalism, law enforcement, scientific research, foreign intelligence, and photography. The concept applied in crowdsourcing could seemingly appear like open source projects, which have been in existence for years. There are many cases of people who hardly know each other’s work online but they create complex software programs (P2P Foundation, 2011). The case of the OS model ensures that every contributor receives benefits based on their global contributions. Internet technology has been evolving in a way that creates an allowance for even the non-technical individuals to participate in various projects online. One importance of this practice is that crowdsourcing presumes that many enthusiasts can actually outperform some of the experienced professional. Innovative ideas associated with crowdsourcing also form part of the associated benefits. Innovative ideas in this case are explored at a relatively low cost. An instance could be seen when customers reject a give design, in which case the design can be scrapped easily (Ipeirotis, 2010). Crowdsourcing is highly related with concepts such as Collective Customer Commitment abbreviated as well as Mass Customization. Collective Customer Commitment involves the integration of customers into various innovation processes. This model assists companies and organizations in exploiting a huge number of talents as well as ideas (Munro, 2012). The concept also helps the organizations and firms to avoid product flops. Conversely, mass communication seems to be similar to Collective Customer Commitment, but it assists companies or farms evade from making risks in decision-making processes. The risky decisions in this case are in terms of the component requiring fabrication. The concept in this case makes these firms avoid spending for certain products, which could hardly be marketed later. In crowdsourcing, Long Trail is very crucial. Every crowd member contributes insignificantly to the huge total outcome. Users in this case seem to be very insignificant but the grand total of their contributions results to a great difference (Kaufmann, et al., 2011). The concept has been found to be very useful in products as well as ideas, which a person can contribute. The costs associated with the large amount of data required to initiate meaningful improvements representing the collective desire needed. People who are sophisticated and educated may be needed to crowdsource for the highly technical services or products. This aspect conversely puts great limitation to the usage as well as the applicability of crowdsourcing. Classification of Crowdsourcing Crowdsourcing can be classified based on two major approaches. Classification of crowdsourcing could be based on the type of tasks being outsourced or it could be on the basis of the initiator of the task or typically the crowdsourcer. Classification of crowdsourcing based on the task can further be categorized into crowdsourcing ideal game, crowdsourcing problem solving, and prediction markets. In the case of crowdsourcing idea game, an instance could be an idea market that is broadly published (P2P Foundation, 2011). According the P2P Foundation (2011), in 2006, IBM Company had initiated a global idea, which is related to the best way of using and commercializing existing technologies and technological developments within the company (Brabham, 2013). The idea of Innovation Jam, a global concept, was developed such that it would only take place within a two to three-day phase in that year. The idea involved at least 150,000 employees from the company, business partners, family members, clients from at least sixty-seven companies, and several university researchers (P2P Foundation, 2011). This case provides a typical example of crowdsourcing under the crowdsourcing classification based on tasks. After IBM came up with the idea, participants from as many as 104 nations jammed the conversation. The conversation then went on for 24 hours a day. IBM described that the innovation Jam was the largest of all possible online brainstorming sessions (Castells, 2000). In this case, discussion and the sourcing for ideas is pre-structured within major categories of emerging technologies in which the crowd was supposed to brainstorm based on the potential and new ways on the way technology that developed at the company could be applied in enhancing the existing products or new products (Baretto, et al., 2003). Various ideas were posted, which could really provide a feasible ideology, which could contribute a meaningful solution to the problem. Another category of crowdsourcing is the crowdsourced problem solving. In this case, the person having the problem broadcasts to undefined but large network with potential problem solvers. An example could be a case of Fashion Company, which may crowdsource for new designs. In the same classification of crowdsourcing, companies may decide to source for various solutions to scientific problems (Baretto, et al., 2003). This type of crowdsourcing could as well be referred to as selective, integrative, or even consolidating crowdsourcing. The main aim of integrative crowdsourcing is based on creating a complete solution through the integration of complementary crowd contributions. In integrative crowdsourcing, there is a clear definition of vary clear interfaces among complementary contributions that are single. A prediction market is yet another classification of crowdsourcing, which is also referred to as information market. In this form of crowdsourcing, investors from within the crowd, purchase and sell futures (Lietsala & Joutsen, 2007). These futures are related to certain expected outcomes like a presidential election. This category applies for the questions related future scenario assessments. The other broad classification of crowdsourcing is the crowdsourcing typology by initiators. This classification is based on different but potential. Five different approaches are associated with these criteria. One of the approaches includes the crowdsourcing that is initiated and fully supported typically intermediary platforms. The platform concentrates mainly on platforms for idea generation, research and development, marketing and design, and for freelancers. The user initiated crowdsourcing platform on the other hand involves user websites as well as open-source software communities. Another platform is the company initiated platform, which include platforms generated and maintained various companies. These platforms are integrated within online activities belonging to the companies. They include problem solutions and product ideas, besides designing and branding. Idea market places are platforms that may allow users to initiate own deigns and procedures, which are liked most by customers. The fifth platform in this category is the public crowdsourcing initiatives. These initiatives involve idea generation campaigns from the crowd (Bruno, 2013). Crowdsourcing has been very useful to companies and individuals in general. While companies benefit from information source, tasks carried out by users among other benefits, users also benefit from aspects like gaining more experience, benefiting financially, and gaining new information besides taking the moment as fan. Considering two models which include PeoplePerHour and crowdflower, the type of labor used in each case can be established. In the case of PeoplePerHour, freelance labor is largely used. PeoplePerHour is basically a company based in the United Kingdom and which provides a website for advertising freelance work. The company was founded in 2007 and has over 250, 000 active user. Most of the workers in this case are freelance workers and amount to about 180,000 of the workers with about 70,000 of them being clients. Most of the clients are small companies that use the services. These companies hardly want to employ full-time professionals and thereby choose to benefit from the concept of crowdsourcing (Brabham, 2013). The market place in this case uses the concept of crowdsourcing and applies a virtual network in outsourcing activities. Conversely, CrowdFlower is basically a crowdsourcing service that was founded in 2007. The service completed more than a billion tasks in terms of small work units since its establishment. The company provides crowd sourcing services. The form of labor used by the company is mainly contractual activities by users willing to solve various problems from clients. It uses crowdsourcing techniques in order to provide many different enterprise solutions. The tasks in this case are performed by individuals or small teams usually in the form of virtual workers (Castells, 2000). The company has its expertise in harnessing virtual workforces. The workforce tackles complicated projects by probably breaking them down probably into simple tasks or small projects. The simple tasks are then completed by contributors as individuals. Crowdsourcing and Developing Countries Crowdsourcing has today become a global concept in which users from all corners of the world engage in various activities related crowdsourcing through internet connectivity. Remote workers, mainly from developing countries have been fully connected to the global market place. Crowdsourcing seems to be beneficial to the developing countries in the sense that it has a great potential in the improvement of people’s earnings as well as their livelihoods (Doan, et al., 2011). This potential is however not fully realized since the concept mainly benefits individuals and organizations within the developed world. Most of the workers in the crowdsourcing platforms are mainly from well-off backgrounds, thereby generation a relatively lower impact on the low-income individuals from the less developed countries (Chen & Ravallion, 2008). Typically, crowdsourcing platforms are said to be in a great position of offering new and better employment opportunities to individuals in developing countries. This is seemingly possible given the impact of internet and networking technology in the world today. Poverty in the low-income countries however cripples all attempts to bring such benefits to individuals in the developing countries (P2P Foundation, 2011). Due to the high level of poverty in the developing countries, many people lack adequate access to computers and other necessary resources that could give them a good chance of becoming active user/ contributors in crowdsourcing. Paid crowdsourcing platforms provide potential means of improving the lives of low income employees in low income nations. Crowdsourcing eliminates any possible requirements especially in formal contracts as well as in co-locations between employers and employees (Howe, 2008). In this case, paid crowdsourcing is able to lower any barriers of entry into the global market place. Crowdsourcing provides even higher pay rates than the locally available wages in the developing countries. Again, tasks that are crowdsourced could be completed of flexible schedules. This further benefits workers by offering them with opportunities to earn some supplemental revenues during their off-time periods. The major problem with the concept and its applicability in the developing world is the poverty situation among people in communities making up these developing nations. The few workers able to achieve success by having the necessary resources thus have advantages in many ways. They are more exposed to the international world than their fellow nationalists who lack great access to internet or networking, and they earn higher wages than the average wages in their countries (Doan, et al., 2011). In general, developing economies have developed in a way from the concept of crowdsourcing through gains associated with job creation and some increase in national income. Conclusion Crowdsourcing is a growing concept that is increasingly being adopted by individuals, organizations, and government sectors around the world. The various benefits associated with crowdsourcing are immense and have significantly facilitated its application within the globalizing marketplace. Aspects related to technology and globalizations are the key initiators of crowdsourcing (Brabham, 2013). With the increased use of internet services, firms and individuals are able to outsource complex tasks to individuals from a wide range of proficiency as long as they are willing to trade their time in exchange for their perceived or expected benefits. Outsourcing provides a chance where even inexperienced individuals can earn some money by providing their contributions based on the little knowledge that they have (Baretto, et al., 2003). Crowdsourcing is the only way that people can engage into informal contracts, which require little or no serious conditions to provide services in exchange for money or other gains. It can thus be concluded that crowdsourcing provides benefits to a wide range of individuals, groups, and firms while at the same time providing significant contributions to both developed and developing economies. Bibliography Banerjee, A. & Duflo, E., 2007. The economic lives of the poor. Journal of Economic Perspectives, 21(2), pp. 141–167. 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