Group 9: Matilda Akkola, Reetta Arokoski, Lauri Kokkila, Miikka Laitila CROWDSOURCING: HOW TO BENEFIT FROM (TOO) MANY GREAT IDEAS? “The article gives recommendations on building absorptive capacity for crowdsourcing. Try to amend the list by presenting additional recommendations! You can also modify the recommendations presented in the article. Are there any recommendations you don’t agree with?”

1.Crowdsourcing in general 2.Challenges of absorbing crowdsourced data 3.Developing absorption capabilities for crowdsourced data 4.Article recommendations for crowdsourcing 5.Our recommendations 6.Summary AGENDA Crowdsourcing Challenges Absorption capabilities Article’s recommendations Our recommendations Summary

CROWDSOURCING IN GENERAL Definition of crowdsourcing: Crowdsourcer proposes to a group of contributors the voluntary undertaking of a task presented in an open call Digitization and internet allow easy gathering of creative potential, knowledge and broad experience Two types of crowdsourcing according to the article: Tournament: submit independent solutions Collaboration: create collectively a common solution Absorptive capacity: enable crowdsourcers to create knowledge and value from crowdsourced data Crowdsourcing Challenges Absorption capabilities Article’s recommendations Our recommendations Summary

CHALLENGES OF ABSORBING CROWDSOURCED DATA -Different challenges, which affect the creation of knowledge and value from the data -Challenges caused by different attributes: -Volume of data -Variety of data -Challenges caused by different phases: -Data evaluation -Data dissemination -Data assimilation Crowdsourcing Challenges Absorption capabilities Article’s recommendations Our recommendations Summary

DEVELOPING ABSORPTION CAPABILITIES FOR CROWDSOURCED DATA -Companies have to develop distinct capabilities to build absorptive capacity -Platform design: -Designing platform to maximise the quality and support collaboration -Filter design: -Filtering processes to eliminate weak contributions early and promote good ones -Organizational integration: -Integrate platform into organisation’s structures and working processes -Information exchange: -Increase information exchange and feedback between crowdsourcers and contributors -Community building: -Acquire new members and create a strong community Crowdsourcing Challenges Absorption capabilities Article’s recommendations Our recommendations Summary

RECOMMENDATIONS FOR BUILDING EFFECTIVE ABSORPTION CAPACITY FOR CROWDSOURCING Crowdsourcing Challenges Absorption capabilities Article’s recommendations Our recommendations Summary

RECOMMENDATIONS FROM ARTICLE Adopt a Broad Definition of Crowdsourcing Success Start Small and Ensure Responsiveness -The value of crowdsourcing should be seen as multidimensional: it can improve innovation, marketing, brand image, customer loyalty, after sales service, HR processes.. -In order to get full advantage of crowdsourcing, success metrics mirroring all possible dimensions should be developed -In the beginning, crowdsourcing platform should be built around a small group of employees convinced of the potential of crowdsourcing -The employees should be willing to work actively with the crowd and have access to sufficient resources to to implement early contributions -After more capacity is built, the platform can expand Crowdsourcing Challenges Absorption capabilities Article’s recommendations Our recommendations Summary

RECOMMENDATIONS FROM ARTICLE Make Crowdsourcing “Cool”Post Precise and Understandable Tasks -Employees are willing to participate in crowdsourcing, if it’s a way to achieve personal success and build reputation among colleagues -Especially in the starting phase, the crowsourcing platform should be positioned as a forerunner project for further developing the company’s way -The tasks should be easily understood and the goals specific -The task descriptions should be clear, pithy and self-explanatory Crowdsourcing Challenges Absorption capabilities Article’s recommendations Our recommendations Summary

RECOMMENDATIONS FROM ARTICLE Use Crowdsourcing for ExperimentationInvolve the Crowd in Improving Data Quality -The contributors should be able to receive rapid responses and feedback from crowdsourcers -> this enables the crowdsourcers to quickly perform multiple iterations at low cost -This allows to experiment with for example task descriptions, formats and any new ideas -Crowdsourcing constitutes a high variety of data, which needs to be structured and filtered -Employees can’t filter the data as efficiently as contributors-> crowdsourcers can create collaborative processes which allow the contributors to participate in the tasks such as data structuring, filtering, identifying spam etc. -Contributors should be provided with incentives for engaging Crowdsourcing Challenges Absorption capabilities Article’s recommendations Our recommendations Summary

OUR THOUGHTS OF THE ARTICLE RECOMMENDATIONS -Post precise and understandable tasks -Doesn’t suit for all the cases - If the aim is to develop a new concept or a new product design, it can be more effective to give broad and vague tasks -Innovation can be ruined by too precise and limited options -Adopt a broad definition of crowdsourcing success: -Although crowdsourcing should be multidimensional, the goals of crowdsourcing should be realistic -One competition cannot solve all problems -Make crowdsourcing “Cool”: -It isn’t enough that employees are willing to participate: they also need to be able to participate -Company needs to provide opportunities for participation Crowdsourcing Challenges Absorption capabilities Article’s recommendations Our recommendations Summary

OUR RECOMMENDATIONS FOR CROWDSOURCING -Three perspectives: 1.Company 2.User 3.Interaction Crowdsourcing Challenges Absorption capabilities Article’s recommendations Our recommendations Summary

COMPANY PERSPECTIVE -Match crowdsourcing -method -company -target audience to desired goal -What should we crowdsource and what should we do ourselves? -Realistic expectations -Understand the restrictions and effects -How other firms do the crowdsourcing? -No need to reinvent the wheel Crowdsourcing Challenges Absorption capabilities Article’s recommendations Our recommendations Summary

USER PERSPECTIVE -Explain and communicate the value, that people and the organization get from crowdsourcing -Make the participation and process as easy as possible -For contributors as well as crowdsourcers -Match your incentives with your target audience -Encourage especially early contributors Crowdsourcing Challenges Absorption capabilities Article’s recommendations Our recommendations Summary

INTERACTION PERSPECTIVE -Don’t use crowdsourcing just to enhance your brand or marketing -Make sure that the crowdsourcing platform is interactive -Create reciprocal process -Show people that you care and try to inspire them -Give credit -Gamify Crowdsourcing Challenges Absorption capabilities Article’s recommendations Our recommendations Summary

SUMMARY OF ALL RECOMMENDATIONS Article : 1.Adopt a broad definition of crowdsourcing success 2.Start small and ensure responsiveness 3.Make crowdsourcing “cool” 4.Post precise and understandable tasks 5.Use crowdsourcing for experimentation 6.Involve the crowd in improving data quality Our recommendations: Company: -Match crowdsourcing to desired goal -What should we crowdsource and what should we do ourselves? -How other firms do the crowdsourcing? User : -Explain and communicate the value that people and the organization get from crowdsourcing -Make the participation and process as easy as possible -Match your incentives with your target audience Interaction : -Don’t use crowdsourcing just to enhance your brand or marketing -Make sure that the crowdsourcing platform is interactive -Show people that you care and try to inspire Crowdsourcing Challenges Absorption capabilities Article’s recommendations Our recommendations Summary