From Crowd sourcing to Crowd storming

The “crowd” has come to embody the organizations enabled by our new online connections. Crowdfunding provides an alternative to traditional sources of capital by directly linking those who need funding with those who have it. Collaborative consumption enables us to access assets such as homes or cars via online crowds. And crowds are offering an alternative to traditional outsourcing institutions, connecting those who have large or small tasks with those who are willing to perform them.

Over the last decade, organizations like GE, P&G, DARPA and LEGO have pioneered a particular type of work with crowds. They work with crowds to brainstorm, or “crowdstorm.” And in recent years, startups like Quirky, Localmotors and Giffgaff have put crowdstorming at the core of their strategies to bring better products and services to market. Crowdstorming patterns are evolving quickly from simple searches for ideas to more complex interactions where crowds take on multiple specialized tasks.

Beyond Contests

Over the last few years, my co-authors and I studied hundreds of crowdstorming projects. We identified three broad categories: search, collaborative and integrated. The most common pattern is search. Contests fall into the search bucket because they are mainly focused on searching for the best ideas (or candidates, partners, etc.). The search pattern is often appropriate, because we can simply test the best ideas — think of X PRIZE or DARPA Grand Challenges.

But what happens when we cannot easily measure ideas? Most often, we place our trust in “HIPPOS” (highest paid person’s opinion). This trusted approach has been at the heart of everything from venture capital to advertising. So it stands to reason that P&G relies on such a model to source more than 50 percent of innovation from outside the firm. But this model misses an important opportunity. When we brainstorm, we dont just source ideas; we evaluate and build on ideas, too.

From Sourcing to Storming

LEGO Cuusoo is good example of a collaborative crowdstorm. It is not so much a contest as a collective filter. As in the search pattern, people or teams pitch ideas. The Cuusoo community needs to give the idea 10,000 votes before it will be reviewed by the LEGO team. And the community also offers feedback on possible refinements to help submitters increase their chances of success. A similar feedback process helped GE understand the value of Ecomagination Challenge proposals, from which it ultimately found new investments opportunities and partners for its sustainable energy businesses.

When the crowd can offer feedback, you drastically increase the number of participants and interactions. It is common to see the 1-9-90 interaction pattern. For each participant submitting an idea, nine participants might offer feedback in the form of votes, ratings or comments, with the remaining 90 simply observing the interactions. At a minimum, the move from search to collaboration results in an order of magnitude increase in the number of participants and an explosion in interactions.

Continuous Crowdstorms

These firms are pioneering some of the most complex crowd-enabled processes. Where our social feeds might be populated by breaking news and cat videos, community feeds are abuzz with new-ideas posts, updates, votes and progress reports. They might look familiar to those working in global firms who have deployed social tools, only few of these people are employees. They are part of the crowd.

And in the same way that we are attempting to identify influencers in social media, so firms like Quirky and Giffgaff are measuring participation and rewarding contributions. Cash compensation and public recognition are common. And in the process, the crowd is replacing some of the traditional research and development organization.

Self-Improvement

Firms like Quirky and Giffgaff are only a few years old, but they are offering us a glimpses of entirely new types of crowd-enabled organizations. Pass by any of the forums in either community and you find lively debates on everything from compensation to recruiting. Their crowds are not just helping to produce products and services; they are helping them to get better at working with crowds, too. So we should expect even better ideas from the crowd.

Source: HUFF POST – Shaun Abrahamson

HEADLINE NEWS

Baltimore SunHarford still opposes crowdfunding sites for school donationsBaltimore SunRaising money through online crowdfunding sites is an ideal way for teachers to find the funds to purchase classroom materials and should be restored, the head of the Harford County teachers' u [...]

U.S. News & World ReportNo Cash for Hate, Say Mainstream Crowdfunding FirmsU.S. News & World ReportThe block on mainstream crowdfunding is just the latest blow to far-right activists operating online. In the last 24 hours, neo-Nazi website the Daily Stormer had its domain regi [...]

LITTLE GUIDANCE FROM IRS ON TAXING CROWDFUNDING CONTRIBUTIONSBloomberg BNAWhether it's a musician raising money to produce an album, an inventor with a great idea, or a family in distress that needs help, crowdfunding through platforms such as Indiegogo and Kickstarter has become [...]

Crowdfunding: Funding ideas the right wayReuters (press release) (registration)The term “crowdfunding”, or “crowdsourcing”, refers to an open call made to the world via the Internet to solicit funds from interested parties to finance a business or social project. The funds received ma [...]

Crain's Cleveland Business'Smaller' gifts can go long way for Clinic's crowdfunding platformCrain's Cleveland BusinessFor an institution accustomed to securing multimillion-dollar donations, Cleveland Clinic's latest fundraising effort has some relatively [...]

What do you think of crowdfunding campaigns?Japan TodayI think that if there is a responsibility and guarantee of sorts that the crowdfunding site will actually act with the users to go after companies which waste money or run off with it, then it would be a great thing for the future [...]

ForbesWhat Works In Equity Crowdfunding -- Insights From ResearchForbesAs we have recently celebrated the fourth anniversary of the signing of the JOBS Act into law, it is a good time to take stock of the effect that the legislature had on equity crowdfunding in the United States. It [...]

VentureBeatAmid Silicon Valley crackdown on alt-right, Gab social network ...VentureBeatAs high-tech firms have begun taking steps to weed out some of the most offensive right-wing hate groups, alternative social network Gab has seen a surge in ...Gab is becoming a haven for hate spee [...]

FortuneIndiegogo's Difficult Path to Offering Equity CrowdfundingFortuneIndiegogo founder Slava Rubin discusses how Indiegogo's equity crowdfunding service has been performing since its launch in 2016. Photograph by Indiegogo. E-mail; Tweet; Facebook; Linkedin. Share icons. [...]

The HinduKoodiyattam centre goes for crowdfundingThe HinduThe goal is to raise the sum through the crowdfunding platform BitGiving (https://www.bitgiving.com /nepathya) to train a new generation of artistes in what constitutes the only surviving form of ancient Sanskrit theatre in the [...]

CFB Finance

Marketwired

  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |