crowdsourcing and risk management
DESCRIPTION
Presentation from CrowdSourcing Week 16.Okt 2014 in Copenhagen Dr. Michael Gebert, CrowdMentor Network meet you at Crowd Dialog - www.crowddialog.comTRANSCRIPT
CrowdSourcing Innovation Models & involved Risk
Crowds Renewing Value Creation
CrowdSourcing „People tend not to really look at the risks when making the decision to
crowdsource or not. Not really know (the risks). They just go for it, with the benefits in mind.“
Main Risk Categories
Complexity of relationship
The increased number of participants and diversity within the crowd can increase the probability of risk in managing relationships within the crowd.
Main Risk Categories
Crowd-Control+Effectiveness
Control is less attractive in crowds. Referring to the effectiveness of the control measures, whether centrally located
or distributed through an intermediary platform.
Main Risk Categories
CoopetitionRefers to the effects or impact of co-innovating with competitors within a
joined crowdsourcing project and a larger mix and diversity of participants.
Main Risk Categories
Actor/Worker interdependence
Crowdsourcing requires proxy, but not internal control. Risk arises due to the uncertainties that can occur while coordinating with contributing actors. In crowdsourcing, the company relies on the
crowd as a supplier of ideas and solutions. The crowd has less at stake relative to the company.
Main Risk Categories
Replication of business model
Crowds may gain access to business model data or related insights, due to a larger number and diversity of participants.
Main Risk Categories
Loss of know-howWhen the crowd is integrated in the innovation process, crowd actors may
acquire some key know-how and use it for their own purpose or even sell it to the competition.
Main Risk Categories
IP risksCompanies may encounter serious IP risks by assigning
tasks to an anonymous crowd.
Main Risk Categories
Loss of certainty in results
The crowd actor has less at stake for not contributing to the innovation process and does not feel the responsibility and accountability for solving tasks.
Five categories of risk associated with radical innovation
Financial risk
Market risk
Organizational- and societal risk
Technological risk
Turbulence risk
Conceptual Risk Framework
Risk & User Engagement
Intrinsic motivesIdeology
Enjoyment, fun, recreation
Intellectual challenges, stimulation, interesting objectives
Learning, improving skills and knowledge exchange
Risk & User Engagement
Extrinsic motivesCompany recognition
Reputation, enhancement of professional status
Sense of efficacy
User need, influencing the development process
Rewards
Risk & User Engagement
Social motivesAltruism, reciprocity, care for community
Friendships, “hanging out together”
Peer recognition
Adaption and Use of CrowdSourcing
Study 2012-2013 University of Glamorgan
Descriptive statistics on risk levels of Crowdsourcing
Risk Management Measures
FinancialDefining quality levels and fixed compensation for these levels
Entry evaluation of participants
Task replication
Ensuring greater participation
Behavioral screening
Tracking performance
Have people to facilitate process
Risk Management Measures
Organizational/ SocietalCopyright and service agreements
Building an “innovation mindset” within the organization
Voluntarily + mild force following
the rules and regulations
Risk Management Measures
Market and ConsumerCommunity Building (intrinsic)
Integration of gamification concepts
strong tears + leveled communication
Risk Management Measures
TechnologicalClearly define task
Use collaborative rather than competitive model
Automated quality control
Build community of subject area experts
Risk Management Measures
TurbulenceCrowd moderation
Avoid crowdsourcing for sensitive areas such as HR policy
Restricting access by type of log-in
Anonymizing the data
Drive change for corporate culture and mindset
to an “innovation mindset” within the organization
!
Risk Management Measures
CreativeBehavioral screening
Define quality levels and fixed compensation
Copyright and service agreements
Break down a big project into very small bits
CrowdSourcing Innovation Models & involved Risk
Crowds Renewing Value Creation
Dr. Michael Gebert Crowd Mentor Network
!#crowdsourcerisk