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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
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
