this presentation on crowd sourcing and their power when combined with social, mobile and cloud technologies, is part of my blog series on Crowds Redux. Enjoy

1. Crowdsourcing
A
Updated
Approach
to
Business
Success
Barry
Libert
2012

2. Insight.
Crowds
Are
Pervasive
• Insight:
Crowds
Are
Pervasive
• Influence:
Crowdsourcing
Works
• Impact:
Rules
For
Success

3. DefiniJon

4. Crowds
Are
Social
1.3B
1.1B
1.0B
330M
310M
1.0B

5. Crowds
Are
Connected

6. Crowds
Have
Knowledge

7. Crowds
Are
Gaining
TracJon

8. Influence.
Crowdsourcing
Works
• Insight:
Crowds
Are
Pervasive
• Influence:
Crowdsourcing
Works
• Impact:
Rules
For
Success

9. $36+
Trillion
Opportunity

10. Financials.
Lending
Club

11. Consumer
Staples.
My
Starbucks
Idea

12. Technology.
MySQL

13. Energy.
Open
Energy

14. Consumer
DiscreJonary.
Threadless

15. Healthcare.
PaJents
Like
Me

16. Industrials.
Local
Motors

17. Telecom.
Asterisk

18. Government.
Iceland

19. EducaJon.
Chegg

20. Impact.
Rules
for
Success
• Insight:
Crowds
Are
Pervasive
• Influence:
Crowdsourcing
Works
• Impact:
Rules
For
Success

21. 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

22. Pick
A
Process.
HR
Rule 1: Pick a
Process
LinkedIn
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

23. 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

24. 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.

25. Establish
ObjecJve.
Neklix
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

26. Engage
Crowd.
DARPA
Rule
5:
Seed
the
Ini:a:ve
DARPA
Challenge:
Find
locaJons
of
10
moored,
8-­‐foot,
red,
weather
balloons
in
the
US.
Result:

27. Measure
Results.
GE
EcomaginaJon
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

28. Reward
ParJcipants.
Apple
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

29. Crowds
Work!
QuesJons

30. Crowdsourcing.
Thank
You
Barry@openmader.com
@barrylibert