Crowdsourcing und Crowdwork: The Future ofDigital Work? · 11/3/2016  · Crowdsourcing und...

Crowdsourcing und Crowdwork: The Future of Digital Work?

David DurwardUniversity of St. GallenInstitute for Information Systems (IWI HSG)

David.durward@unisg.ch

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Agenda

ERBLICK CROWDSOURCING

1. WHO WE ARE

2. WHAT IS CROWDSOURCING AND CROWD WORK?

3. THE WAY INTO THE FUTURE ?! – OUTSTANDING ISSUES

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Topics of the Competence Center Crowdsourcing

INTERNET ECONOMY • GAMIFICATION • SERVICE ENGINEERING

CR

OW

DSO

UR

CIN

GCrowdsourcing in software developmentand testing

Agile innovations

Crowdfunding

New Forms ofwork organization D

ATA

SCIE

NC

EDevelopment of data-based innovations

Textmining

Automation &Crowdsourcing

Acceptance ofpredictive modells andautomated decisions

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Team Competence Center Crowdsourcing

Prof. Dr. Jan Marco Leimeister janmarco.leimeister@unisg.ch

Prof. Dr. Ivo BlohmAssistance Professor Data Science und ManagementLeiter CC Crowdsourcing+41 71 224 33 21ivo.blohm@unisg.ch

Research Associates:

Dipl.-Kfm. Philipp Ebelphilipp.ebel@unisg.ch

Philipp Haas, M.Sc.philipp.haas@unisg.ch

Niklas Leicht, M.Sc.niklas.leicht@unisg.ch

Moritz Schulz, M.Sc.moritz.schulz@unisg.ch

David Durward, M.Sc.david.durward@unisg.ch

Nicolas Knop, M.A.nicolas.knop@unisg.ch

Julia Troll, M.Sc.julia.troll@unisg.ch

Marcel Rhyn, M.A.marcel.rhyn@unisg.ch

Chair of Information Systems

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Our Partners

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Agenda

ERBLICK CROWDSOURCING

1. WHO WE ARE

2. WHAT IS CROWDSOURCING AND CROWD WORK?

3. THE WAY INTO THE FUTURE ?! – OUTSTANDING ISSUES

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Origin: Jeff Howe, Wired Magazine (2006)

CROWDSOURCING ≠ OUTSOURCING

Broadcasting tasks to an undefined mass of Internet users

Key components: OPEN CALL VOLUNTARY PARTICIPATION

What is Crowdsourcing?

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Crowdsourcing as «Workforce-as-a-Service»

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Crowdsourcing as «Wisdom of Crowds»

Organizations oftensearch in a particular

search areas forsolutions

The best solutions however are often

outside the search focus of organizations

POTENTIAL OF CROWDSOURCING

Performance

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Different Forms of Crowdsourcing

CrowdfundingCrowdvoting Crowdcreation

Crowd Workersdonate

Crowd Workersmake evaluations

Crowd Workers develop and

design problemsolutions

Effo

rtfo

rCro

wd

Wor

ker

Threadless

Testbirds

Kickstarter

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Employees as Crowd: IBM Innovation Jam

• Since 2001 IBM has organized Innovation Jams for developingfuture innovations

• Target group: 300,000 IBM employees

• Results: Creation of 10new business areas(100 Mio. USD investment)

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(Anonymous): Internet users as crowd: External programming contests

• Development costs «MegaBlast» referencealgorithm: > 1 Mio. $

• Crowdsourcing Contest• 30 solutions with at

least same performance(up to factor 1000)

• 2,864 h accumulateddevelopment time in 2 week contest

• Costs: 6,000 $

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Crowd X

InboundLogistics

Finance

After SalesProduction

PrimaryActivities

SupportingActivities

Research & Development

Marketing & Sales

CROWD INNOVATIONCROWD FUNDING

CROWD DELIVERYCROWD PROMOTION

CROWD SUPPORT

CROWD TESTING

Infrastructure

CROWD PRODUCTION

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Internal vs. External Crowdsourcing

OUTSOURCER OUTSOURCING PROVIDER

(I)Outsourcing

(IV)„External“

Crowdsourcingwith Intermediary

(III)„External“

Crowdsourcingw/o Mediation

CROWDSOURCER

INTERNAL CROWDSOURCING

PLATFORM

CROWD WORKER(II)

„Internal“ Crowdsourcing

CROWDSOURCER

INTERNAL CROWDSOURCING

PLATFORM

CROWD WORKER

CROWDSOURCER

CROWDSOURCINGINTERMEDIARY

CROWD WORKER

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FORMS OFCROWD WORK

TOURNAMENT

•Principle of competition•Crowd Worker work independently from each other

How does the Crowd work?

TIME-ORIENTED

OUTPUT-ORIENTED

•Only the best solution(s) is/are rewarded

•Reward is determined in advance

•e.g.: TopCoder, InnoCentive

•Time-oriented competition: „first-come-first-serve“

•Remuneration of all solutions that meet the (quality) requirements

•e.g.: Upwork, Testbirds

COLLABORATION•Crowd Worker team up

•Submitting a joint solution

•e.g.: Dell Idea Storm

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WORK „Effort for accomplishing a task“

What is Crowd Work?

UNPAID

CROWDSOURINGCROWD WORK“Digital gainfulemployment based onCrowdsourcing”

PAID

PAID WORK„Goal-directing effort for creatingincome“

DIGITAL WORK„Effort to create digitalgoods or that make substantialuse of digital tools“

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CROWD WORK … Is based on crowdsourcing as organization principle

• Open call• Voluntary participation• IT-enabled platforms

Is Paid Creates digital goods or uses digital tools

Crowd Work as new form of digital work

“Crowd Work is a digital form of paid work, in which a undefined mass of people create digital goods via an open call. Substantial parts

of the value creation takes place on IT-supported platforms.”

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Legal Framework

INTERNAL CROWD WORK

Employees remain employees Employees retain

All protective rights Work council Participation rights Collective agreements

EXTERNAL CROWD WORK

Legal relationship with third parties

Platform as intermediary between both (market) sides

External Crowd Worker Self-employed No employees

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Perception of Crowd Work - Study on German Crowd Workers

SURVEY OF 434 CROWD WORKERS

CROWD WORKER DEMOGRAPHICS 35 years on average 53% are single 56% are male 66% are employed or self-employed 70% have highest German School Graduation (“Abitur”)

CROWD WORKER WAGES 50% of the total income via Crowd Work 534 EUR/month on average via Crowd Work

CROWD WORK is perceived as being cognitive demanding

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Chances of Crowd Work

On-demand access Speed of task execution (More) effective problem

solutions Potential for cost reductions

Accessibility of Work New employment

opportunities Higher self-determination by

self-selection Higher flexibility «Cherry Picking» for

experienced Crowd Workers

CROWDSOURCER CROWD WORKER

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Challenges of Crowd Work

Hidden Costs (task definition, evaluation of solutions)

Losing control and know-how Incentivization Resistance by internal staff

Digital Reputation Low wages and monotonous

tasks Surveillance Lack of legal framework Risk of being self-employed

CROWDSOURCER CROWD WORKER

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Agenda

ERBLICK CROWDSOURCING

1. WHO WE ARE

2. WHAT IS CROWDSOURCING AND CROWD WORK?

3. THE WAY INTO THE FUTURE ?! – OUTSTANDING ISSUES

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Size of the Crowd Work Market

24,8

25

2013 2016 2020

PLATFORM REVENUE(in billion)

48

112

2013 2016

PLATFORM REVENUE(in million)

World Bank (2013)

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Digital Work 2020?

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The way into the future ?! – Outstanding Issues

CROWD WORK PLATFORMS as digital Labor Markets

FAIR CROWD WORKING CONDITIONS

CHANGES IN WORK ORGANIZATION of Organizations

MAKE-BUY-OR-CROWDSOURCE

EMBEDDING CROWD WORK in internal / existing processes

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In a nutshell

1) The Crowdsourcing phenomenon is already applied in many business areas

2) Crowd Work is a new form of digital work organizationthat is as heterogeneous as the crowd itself

3) There are chances and challenges that needsto be addressed in the future to provideappropriate working conditions

Crowdsourcing und Crowdwork: The Future of Digital Work?

David DurwardUniversity of St. GallenInstitute for Information Systems (IWI HSG)

David.durward@unisg.ch