Crowdsourcing Benefits Businesses

What is ‘Crowdsourcing’ and how does it affect you or your business?

Simply put Crowdsourcing is a bigger and better way to gather information and solve problems… To be honest it isn’t a new concept by any means; however, it has dramatically changed as technology constantly improves. Everyone has contributed or communicated in a Crowdsourcing environment – think Facebook, Twitter or YouTube where people vote, discuss or bring ideas or problems together.

Facebook is a great example of how successful Crowdsourcing can be, so let’s take a closer look.

We all want to know where our friends are, what they are doing and what are their plans. Traditionally, we would have to call or email each other to find out, but doing this for our complete social circle would be excessively time consuming, incomplete and ultimately out dated. Facebook uses the Crowdsourcing model to solve this problem, allowing each individual of a social circle to share their experiences, location and attending events, instantly. This allows each person within the social circle to obtain up-to-date and complete information with minimal time investment.

The principle of Crowdsourcing is to take a task, idea or problem and turn it to a community of people either online or otherwise and work together in collaboration until completed.

I know what you’re thinking, this all sounds great in theory but does it work in business? Yes, when executed correctly and in the right environment, Crowdsourcing is extremely effective.

Let’s take a real world example, think for a minute that you are an accessories specialist at a major car brand and your responsibility is to benchmark pricing against competitors. This would involve conducting market research for all your competitors to then only have the need to analyse and make sense of all the data. Sound familiar? You’re not alone! You’ll find your competitors have the same problem, so why not share the workload?

The benefits are clear:

Accurate data

Complete data

Time saving

Cost saving

Crowdsourcing doesn’t eradicate business it simply evolves it, allowing businesses to approach competitors and customers as potential partners to solve problems together. Technology has been a huge stepping stone in allowing this unity to easily be established; it makes the process a lot faster and allows more people to contribute in a user friendly manner.

Looking at implementing this model in your business? Drop us a line to learn how we make this work for our Clients. Tasks worth considering to crowdsource involve data gathering for market intelligence in closed or open domains.