Crowdsourcing and open innovation are becoming increasingly important for product development and business innovation. There are many examples of companies successfully using crowdsourcing approaches at different stages of the product development process. Crowdfunding also takes various forms like donation, reward, lending, and equity models, allowing funders to be motivated by intrinsic, social, or financial factors. For crowdsourcing to be effective, projects should incorporate diversity, independence, decentralization, and aggregation as outlined in Surowiecki's theory of wise crowds.

1. Innopinion
Pia’s handbag / Peloton Club June 13 ’13
https://www.facebook.com/groups/20418350631384
7/?fref=ts (Peloton Camp’s FB)
GrexFactor

2. There are no pure users or pure developers
Consumers Enthusiasts Hobbyists Start ups Developers

3. Crowdsourcing – Crowdworking – Crowdfunding-
CrowdEVERYTHING!
Open Innovation
User Driven Innovation
Social Media Crowdworking
Mobile microwork
Paid crowdworking
(Idea) crowdsourcing for R&D, market
research, product development, risk
management, marketing content, concepting..
Cousins to crowdsourcing
Crowdfunding
Equity Crowdfunding
Pre-purchase
Donation
Micro loans

4. Types of Crowdfunding
Form of Contribution Form of Return Motivation of Funder
Donation Crowdfunding Donation Intangible benefits. Intrinsic and social
motivation.
Reward Crowdfunding Donation / Pre-purchase Rewards but also intangible
benefits.
Combination of intrinsic
and social motivation and
desire for reward.
Crowdfunded Lending Loan Repayment of loan with
interest. Some socially
motivated lending is
interest free.
Combination of intrinsic,
social and financial
motivation.
Equity Crowdfunding Investment Return on investment in
time if teh business does
well. Rewards also offered
sometimes another factor
for many investors.
Combination of intrinsic,
social and financial
motivation.
Source: The Venture Crowd, Nesta 2012

5. An example: Product development of a consumer electronic
product: crowdsourcing (open) and harvesting ideas & decisions
(closed) can be used for different stages of the product
development process – when appropriate. There is no need to be
“open” all the time.
An example: Product development of a consumer
electronics good
Dombowsky&Erkinheimo 2013: Open Innovation Yearbook 2013

6. Crowds Renewing Value Creation
A Start-up
Equity
funding
Branding,
visuals,
audio
Ideation
Concepting
Marketing,
marketing
content
creation
Reward
funding
– pre -
purchase
Participating
in
production
– co-
working
SERENDIPITY
Market
research
Testing, user
feedback,
customers
serving
eachother

7. www.join.jolla.com A text book example of brand-
based pre-purchase crowdfunding

8. www.zhubajie.com/ - world’s biggest place to work with 7,6M employees

9. www.10eqs.com - disrupting business consulting
earning logic

10. www.glgresearch.com/ - disrupting business
consulting earning logic

11. www.eyeka.com – a challenger to advertising and
social media marketing agencies - NON American

12. www.tongal.com – a challenger to advertising and
social media marketing agencies

13. www.topcoder.com – THE place to work if you are a
true programmer

14. http://community.psion.com/
(check also http://www.15inno.com/2013/01/27/oiplatformpsion/ )
“..an open innovation community site that enables Psion to work directly with customers and
partners to co-create new variants of the company’s mobile hardware, software and services.. “

15. www.grabcad.com
(check also www.cadfaster.com – a SW in the cloud for collaborative 3D modelling – hoewever no
community – yet )

16. www.giffgaff.com * users participate in company's operation,
e.g. sales, customer service and marketing.
*ScottishEnglishmeaningmutualgiving

17. Four attributes of a wise crowd
1. Diversity of opinion—each
contributor/source has private
information or interpretation of the topic.
2. Independence—contributors’ opinions are
not determined by those of others.
3. Decentralization—contributors can
specialize by drawing on local knowledge.
4. Aggregation—a mechanism is in place to
gather private judgements into a collective
decision
Surowiecki, J. 2004

18. Thank you and let’s keep in touch!
Pia Erkinheimo
head of crowds & communities
TIVIT Strategic Centre for technology, science and innovation in the field
of ICT
t: PiaErkinheimo
s: pia.erkinheimo
e: pia.erkinheimo@tivit.fi
p: +358 50 487 1417