Crowd sourcing

Crowdsourcing  A  Updated  Approach  to  Business  Success  

Barry  Libert  2012  

Insight.    Crowds  Are  Pervasive  

•  Insight:    Crowds  Are  Pervasive  •  Influence:    Crowdsourcing  Works  •  Impact:    Rules  For  Success  

DefiniJon  

1.3B   1.1B  

310M  330M  1.0B  

1.0B  

Crowds  Are  Social  

Crowds  Are  Connected  

Crowds  Have  Knowledge  

Crowds  Are  Gaining  TracJon  

Influence.    Crowdsourcing  Works  

•  Insight:    Crowds  Are  Pervasive  •  Influence:    Crowdsourcing  Works  •  Impact:    Rules  For  Success  

$36+  Trillion  Opportunity  

Financials.    Lending  Club  

Consumer  Staples.  My  Starbucks  Idea      

Technology.  MySQL        

Energy.    Open  Energy  

Consumer  DiscreJonary.    Threadless  

Healthcare.  PaJents  Like  Me      

Industrials.    Local  Motors  

Telecom.  Asterisk      

Government.    Iceland      

EducaJon.    Chegg  

Impact.    Rules  for  Success  

•  Insight:    Crowds  Are  Pervasive  •  Influence:    Crowdsourcing  Works  •  Impact:    Rules  For  Success  

7  Steps  to  Engage  Your  Crowd  

①   Pick  A  Process  ②   Select  A  Vendor  ③   Establish  ObjecJve    ④   Engage  Crowd  ⑤   Seed  The  IniJaJve  ⑥   Measure  Results    ⑦   Reward  ParJcipants      

Pick  A  Process.    HR  

Rule 1: Pick a Process

LinkedIn

Lesson  learned:    Crowds  will  provide  faster,  beder  access  to  new  employees  to  recruiters  

It worked: 150M  members  and  a  market  capitaliza:on  of  more  than  $10  Billion  –  larger  than  all  

the  execu:ve  search  firms  combined

Select  A  Vendor.    InnocenJve  

Rule 2: Select an experience

vendor

Innocentive ObjecJve:    Find  a  soluJons  provider  that  can  provide  

soeware,  services  and  experJse  

It worked: Eli  Lilly  started  the  company  to  help  develop  new  R&D  soluJons  and  today  they  

represent  major  brands

Establish  ObjecJve.  Goldcorp  

Rule 3: Establish clear

objectives

GoldCorp

ObjecJve:    Find  new  gold  deposits  to  drive  top  and  bodom  

line  growth  

It worked: 1,043,000%  ROI.    A  $575,000  crowdsourcing  

investment  yielded  $6  billion  in  gold.

Rule 4: Engage the crowd

Netflix

ObjecJve:    Use  crowd  to  create  best  collaboraJve  filtering  

algorithm  to  predict  user  raJng  for  films  based  on  previous  

raJngs  

Results:  10%  improvement  of  accuracy  of    Neklix’  own  

algorithm  

Establish  ObjecJve.    Neklix  

Rule  5:    Seed  the  Ini:a:ve  

 DARPA    

 Challenge:  Find  locaJons  of  10  moored,  8-­‐foot,  red,  

weather  balloons  in  the  US.    

Result:      

Engage  Crowd.    DARPA  

Rule  6:    Measure  Results  

 GE  Ecomagina:on  

ObjecJve:    Build  an  

Efficient  Pipeline  of  new  ideas  to  spur  growth  and  

innovaJon  

Results: Measured ROI of each idea and awarded

$200 million in prize money for best, most innovative

solutions

Measure  Results.    GE  EcomaginaJon  

Rule 7: Reward Participants

Apple

Objective: To win the mobile applications battle by attracting

large developer community

Results: Distributed billions of dollars to developers for the

hundreds of millions of apps that have made Apple #1

Reward  ParJcipants.    Apple  

Crowds  Work!    QuesJons  

Thank  You  Barry@openmader.com  

@barrylibert  

Crowdsourcing.