Crowdsourcing

Crowdsourcing uses the collective intelligence of the broad market with tasks normally performed by the company itself, or outsourced to a third-party provider.

For example, James Murdoch, CEO B Sky B recently used it to ask a group of customers to give him a one minute pitch on how to improve his business.

By getting customers to help you solve business problems, businesses are by default reinforcing a democratic, user-generated, social-networked, marketplace. This is not a new concept. Think tanks and focus groups have been used for decades to provide feedback on designing ad campaigns, reviewing new product ideas and solving difficult R&D problems. The difference today, is that these same groups are also being used to expand the media lines around the globle.

Using todays technologies, companies are able to dramatically reduce barriers to communication. User-generated media such as blogs, Wikipedia, MySpace, and YouTube, are blurring the lines between producers and consumers. The recent surge in social networking has drawn the attention of marketers to how to tap into the "buzz" or "viral" marketing.

These 'volunteer' workers are helping to solve problems better, and at lower cost.

Crowdsourcing is not only being used to widen the talent pool, but also to allow marketers to gain a deeper insight into what customers really want. And most Managers will warn you to develop a thick skin, as participants will not always support your latest 'genius' idea.

To be successful in crowdsourcing initiatives, you must:

1. Clearly define a specific problem, goal, or task to address
2. Respect your customers - be genuinely interested in hearing what the group has to say
3. Open your business doors to the group - be willing to show the group how your business is run and to integrate them into the business structure.
4. Make customers feel valued - be willing to respond to their questions, concerns, and ideas and to follow through on any initiatives spurned from the discussons. Give recognition using exclusive perks, interaction with senior company managers, or free products.
   

Be warned, crowdsourcing initiatives take time, patience, transparency, and honesty. This may prove a large shift in culture for many traditional top-down organizations.

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