Crowd-sourcing Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Crowd-sourcing Case Solution

Abstract

Crowd-sourcing is an innovative method of project development. It allows individuals to collaborate digitally on a project. This method of operation bypasses most of the overhead costs of the company, including: employee training and payroll. Although crowd-sourcing has numerous advantages and disadvantages but the company can flourish and gain higher profit if the strategy is executed properly. Different companies, such as: “MTurk” and Threadless, etc. use the crowd-sourcing method and gain remarkable profits. The key is to use and innovate the strategy properly.

Crowd-sourcing

Crowd-sourcing is an innovative method of project development. It allows individuals to collaborate digitally on a project. This method of operation bypasses most of a company’s overhead costs, including: employee training and payroll. The result is faster turnaround times, which can lead towards greater profits. However, not all projects are well-suited for crowd-sourcing. Its popularity stems from projects like Wikipedia, which uses volunteers to write code. For more complex projects, vendors offer platforms that allow people to submit their ideas. Nonprofit organizations can engage activists and employees, to come up with new ideas for a product or service. There are even organizations built on crowd-sourcing. (Brabham, 2013) (See Appendix 1)

History

The concept of crowd-sourcing began as early as 1884, when the British magazine:“The Times of London” announced that the Britannica Encyclopedia would cease to publish a print edition. The cited reason was competition from the open-source reference site Wikipedia. While the history of crowd-sourcing is fairly brief, the basic idea of the concept isn't new. In fact, the practice of crowdsourcing has been around for nearly two hundred years. (Ellis, 2014)

Crowd-sourcing has been around for a while, but it has only recently took off. It coincided with the emergence of "open innovation" in many industries.

Applications

There are several types of crowd-sourcing, ranging from large scale projects to small niche projects. In general, the most successful projects are those which are based on problems that bug people or on subjects that people feel a strong sense of connection with. For example, projects that help the environment are a great use for crowd-sourcing. The concept of crowd-sourcing has a wide variety of applications. It can help the businesses in completing tasks, such as: advertising or marketing campaigns. This method allows anyone to sign up and complete these tasks. One such important application of cloud sourcing is its innovation in E-commerce.

Crowd sourcing in E-Commerce

In the case of e-commerce, it is especially useful when the tasks are repetitive and can require large amounts of labor. It also allows companies to get more information on the products and services which the consumers prefer. This approach can be very effective for a company that needs an extra hand to get the job done. (Pan, 2015)

Advantages

The biggest benefit of crowd-sourcing is its ability to increase diversity and speed. It can also provide an additional marketing and media exposure, although not all projects are suited for it. It allows customers to be more involved with a company. It creates brand loyalty and engagement. By allowing people to participate in a contest; the companies can encourage consumers to interact with the brand. It also provides a personal incentive for repeat purchases. It helps in creating a sense of community, but there are also some challenges that you should consider before opting for crowd-sourcing. (Seghezzi, 2021)

Disadvantages

The main disadvantage of crowd-sourcing is that it is undemocratic. It does not allow for collaboration and democracy. Thus, it might be ineffective for urgent tasks that require a high level of creativity. But when done correctly; crowd-sourcing can offer a huge advantage. (José, 2016) (See Appendix 2)

Limitations

There are numerous limitations of crowd-sourcing on e-commerce. First is the need for adequate resources to manage and support the crowd. Many companies make the mistake of thinking that the crowd can contribute to every part of their business. For instance, Cambrian House experienced limited crowd engagement. Another limitation of crowd-sourcing for e-commerce is that the audience is mostly leisure participants who are more likely to engage in low-skill tasks. (Maiolini, 2011)

Crowd sourcing innovation

Many ecommerce companies are using crowd-sourcing to expand their offerings and to improve their performance. Some are using it as a competitive advantage, while others are simply supplementing their existing teams.

When crowd-sourcing is done properly, a business can leverage the power of the crowd to find the perfect product. A successful ecommerce company will use the crowd to create a unique product that will stand out from what its rivals are offering. Besides, ecommerce companies can also benefit from crowd-sourcing. These services are available for anyone to use. The crowd will help your business to grow by letting you tap into a pool of consumers who are interested in what you sell. (See appendix 3)..........................

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Crowd-sourcing Harvard Case Solution & Analysis