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Wikinomics

Crowdsourcing

Innovation

2Agenda• What is Wikinomics and Crowdsourcing

• Central idea of Wikinomics

• Crowdsourcing & Prosumerism

• Benefits of Crowdsourcing

• Challenges of Crowdsourcing

• Successful examples of Crowdsourcing

What is Wikinomics and Crowdsourcing

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• A book that describes Croudsourcing as the effects of extensive collaboration (Like a giant Brain) and user-participation on the marketplace and corporate world.

• The word was coined from the combination of “Wiki” + “Economics”

• Don Tapscott and Anthony D. Williams popularized the term in their book, “Wikinomics: How Mass Collaboration Changes Everything”, 2006.

• A true Web 2.0 phenomenon. Extending web 2.0 participation to the organization level

Central idea of Wikinomics

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• Openness - Open to ideas, financial transparency, open standards

• Peering - Collaborative forum

• Sharing - Less proprietary approach to products, IP, bandwidth, scientific knowledge

• Acting globally - Ignoring all boundaries

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Crowdsourcing and Prosumerism

8 With web 2.0 in place, Consumers have become producers. Creating

communities in which content is provided and valued by users.

Earlier Companies had R&D Department to improve and innovate new product. But now prosumer have taken the responsibility to innovate. Its been seen that 65% of these people don’t do it for the feedback but because of they want to contribute and maintain a relationship with the company.

Companies are now using the concept of crowdsourcing and prosumerism, bring people together on a platform to work together for a better future. Some Example is idealstrom by dell

Benefits of Crowdsourcing

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Crowd-wisdom

• Diverse views

• Out of box thinking

Crowd-voting

• Consensus vote leads to built in market

• Can be applied to any industry

Crowd-sourced design

• Economic solutions

• Talent come to you

Crowd-funding

• Easy Access of capital

• Validates your company and product

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Challenges of Crowdsourcing

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Crowd-wisdom

• May lead to million other problems

• Inappropriate suggestions

Crowd-voting

• Customer lose interest

• Risk of multiple voting

Crowd-sourced design

• Increase in price pay may not increase quality

• Information leakage risk

Crowd-funding

• Its all or nothing

• May not be right for B2B products

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Successful examples of Crowdsourcing

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Crowd-wisdom

• Inno centive • Wikipedia

Crowd-voting

• Woot!• Group on• Taxi Square

Crowd-sourced design

• Thread less• Design

Crowd

Crowd-funding

• Kick starter

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Thank You