1. Crowdsourcing: Metrics for Success This deck excerpts research conducted by ScaleVP and our EIRs in the crowdsourcing sector in early 2008
2. ScaleVP Crowdsourcing EIRs Pam Smith http://www.linkedin.com/pub/pam-kline-smith/0/7/a31 Daphne Carmeli http://www.linkedin.com/in/daphnecarmeli
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4. 200 companies identifiedDefined as: Majority of work done by the crowd Money is exchanged, directly or indirectly Focused on private companies Not multi-level marketing or job boards Postulate metrics unique to crowdsourcing for success Interview select services-oriented crowdsourcing companies Determine key metrics for crowdsourcing success – that are unique to crowdsourcing and complement the general business metrics that apply in any market
5. Executive Summary Base value of crowdsourcing is connecting suppliers and work within 3 stages of engagement: Finding suppliers/work, delivering work and administering all aspects of the process. The greater the extent to which companies facilitate all stages, the greater the value created Market sector choice is a key determinant for success; focus where outsourcing already exists. Minimizes adoption barriers for this new model Drives new efficiencies into familiar markets Necessary, yet undifferentiated, requirements for all crowdsourced companies include: Attracting and rating appropriate suppliers Ensure supply/demand balance Developing a platform to facilitate all three stages of workforce engagement Metrics for differentiation come within the delivery stage of workforce engagement: Driving/routing the right task to the right supplier, or ‘precise procurement’ Marketplace is self-managed vs. company managed Priming the pump necessary to gain initial traction: Reducing risk for buyers and suppliers Building community tools to keep suppliers engaged when they are not working Crowdsourcing is a pre-chasm market with lots of experimentation
19. Original Metrics Category Definition Meeting Requirements for the Players Buyers Suppliers Infrastructure
20. Meeting the Requirements for the Stages of Engagement Creating the right infrastructure to make it all work Creating value for the suppliers so they want to participate Creating differentiated value for the buyer
38. Potential Future Metrics: Creating “Halo” Effects Leveraging the community to provide services to the crowdsourced company I.e., using the community to do the coding (oDesk) or to audit the calls (LiveOps) Turning suppliers into buyers and vice versa Creating sub-communities that have been vetted and can be “sold” by the owner to create a new revenue stream i.e., OnForce creates sub-networks of suppliers that meet a customer's specifications That customer (I.e., Siemens) could “rent” the list to others needing those same skills, making money off of their ability to rate and rank the suppliers
39. Guesses About Future Evolution Many companies are already seeing their participants using the platform for areas not within their original intent Most of the leading companies have designs on sectors and areas of focus outside their current focus It is likely that the market for work will consolidate into one or a limited number of marketplaces where all sorts of work are bought and sold freely (as has happened in the market for goods with eBay) The race is on for a winner, and to date none of the giants from other fields have entered the contest
