Crowdsourcing basics

Crowdsourcing takes the phrase “two heads are better than one” to a whole new level. Online, this encompasses a range of things, but essentially asks users to share their knowledge, come up with new ideas or simply engage with one another.

Its originator, Jeff Howe http://crowdsourcing.typepad.com./about.html calls it "the act of a company or institution taking a function once performed by employees and outsourcing it to an undefined (and generally large) network of people in the form of an open call." Arguably the first example of crowdsourcing comes from Google itself. A site’s ranking on a Google search engine results page largely depends on how it links to other sites. In essence, this means that if many other sites link to yours, it is deemed more reliable and creeps up the rankings. So, from sourcing opinions from a crowd of other websites, Google is assisted in creating its rankings.

Here are some of the most interesting crowdsourcing sites:

Wikipedia – Perhaps the most well-known, Wikipedia is an online encyclopaedia entirely compiled by user-generated entries. Today it has been called an equal to established volumes like Encyclopaedia Britannica, proving that crowdsourcing is not only effective, but also valuable.

Idea Bounty – Big brands offer creative briefs, anyone can submit ideas and the best one gets paid. A great way to get fresh input.

Gogme.biz – This is more than just a business social networking site, Gogme.biz allows entrepreneurs to form partnerships and turn their ideas into realities. The site is a one –stop shop for everything entrepreneurs need, from advice to tools to business partners, showing how crowdsourcing can be used for the business-good.

iStockPhoto – This is credited as the Internet’s first photo sharing site and allows artists to upload their work and for anyone to purchase it. The basic premise is that anything bought off the site is royalty free, giving creatives a platform to exhibit and sell their work and brands or companies a cheaper, more creative place to find what they need.

According to an article in 1to1Executive Dialogue, Don Peppers and Martha Rogers, another example of crowd sourcing is in customer service where social media is used by customers to help other customers. Verizon has customers who spend up to 20 hrs per week online answering customer questions from other customers about technical issues. How it works: If you have a question about how to set up your new high-def television, you may not find the answer on the FAQs at Verizon’s website. But if you post your question on Verizon’s customer service website, odds are it will not be answered by a Verizon employee, but by another Verizon customer. And the advantage is obvious: Provide customers with rapid support while lowering the customer service cost.