The 411 on Crowdsourcing

Crowdsourcing is a big thing in business and technology right now. It takes the traditional practice of doing a customer survey to the next level by using the advantages of social media to reach a wider audience. People have been hearing about big companies using crowdsourcing to boost their sales and market relevance, but what exactly is crowdsourcing and what makes it a hit among “netizens”?

Crowdsourcing is a term first used by Jeff Howe, which means outsourcing tasks to an unidentified group of people. What used to be done by employees or subcontractors of a company, is now brought to the public in an open call, where their views and ideas are incorporated in a certain product or service. While some companies pay participants a small amount, most businesses rely on volunteers. Usually these are current customers companies ask how to make the product better or what new products they would like to see. This way when it hits the market, there is already a big demand for it.

A lot of gaming companies use crowdsourcing in developing role-playing games, basing their new releases on game ideas they get from their fans. Instead of hiring a team that comes with college credentials and a hefty compensation package, companies rely on the crowd for their ideas at no cost.

This has become a topic for debate for some people, nonetheless, crowdsourcing proves to be a powerful innovation and marketing tool. Recently food and beverage companies have also taken to crowdsourcing to expand their products. Leading companies have managed to make it entertaining enough to engage their fans, making people feel like they are really a part of something.

Ben & Jerry’s made some of its best-selling ice cream flavors based on customer’s suggestions. In 2010, they launched the “Do the World a Flavor” campaign, where they relied on social media and crowdsourcing to come up with great ice cream ideas. People were able to create their own flavors through their online “Creation Station” and the winning product was released as an official Ben & Jerry’s product and it’s “creator” got to go to the Dominican Republic for a sweet treat. Of course, it could seem like a trade off compared to product royalties or if he started his own ice cream business, but mostly people join crowdsourcing activities for the fun of it, not just the money.

Although a lot of people are opposed to companies using “free ideas” from amateurs and not compensating them properly, crowdsourcing is here to stay. In fact, it is growing even more momentum as the world becomes smaller through technology. Nowadays, a lot of companies like mobile, automotive and electronic manufacturers are taking their cue from the people and employ crowdsourcing tactics to create better products. Some companies actually put crowdsourcing to good use by setting up contests like LG and crowdSPRING mobile design competition. Programs such as these help young, unknown designers to realize their dreams in the technology arena.

Looking at that Ben and Jerry’s Chunky Monkey has made us hungry. Do you have crowdsourcing ideas, or maybe ideas for My Tech Team? Share it with us on the comments section below.

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