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Crowdsourcing und Crowdwork: The Future of Digital Work?
David DurwardUniversity of St. GallenInstitute for Information Systems (IWI HSG)
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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 [email protected]
Prof. Dr. Ivo BlohmAssistance Professor Data Science und ManagementLeiter CC Crowdsourcing+41 71 224 33 [email protected]
Research Associates:
Dipl.-Kfm. Philipp [email protected]
Philipp Haas, [email protected]
Niklas Leicht, [email protected]
Moritz Schulz, [email protected]
David Durward, [email protected]
Nicolas Knop, [email protected]
Julia Troll, [email protected]
Marcel Rhyn, [email protected]
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)
