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1.Crowdsourcing defined

2.Research on motivation – rewards –performance in crowdsourced activities

Agenda

Crowdsourcing defined

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The act of taking a task traditionally performed by an employee or

contractor, and outsourcing it to an undefined, generally large group of people, in the form of an open call

Jeff Howe, 2006

Definition

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Positioning of crowdsourcing

Crowdsourcing

Online communities

Open source

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Types of activities crowdsourced

Co-creation / user innovation

Viral marketing

Folksonomy

User generated content

Crowdfunding

Crowd intelligence

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•Extension of firm’s resources:

=Knowledge

=Creativity

=Hands (many ‘vain’ resources)

=Trust

=Money

• Time benefits (shorter time-to-market)

• Cost savings

Benefits of crowdsourcing

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Drawback of crowdsourcing Effectiveness & Efficiency

Crowdsourcingresearch

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Theoretical model

Rewards•Presence•Absence

Performance -Participation

•Decision to contribute•Quantity•Usefulness•Novelty

Motivation•Intrinsic: pleasure & challenge•Extrinsic: desire for compensation & recognition

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Hypotheses

Low High

Extrinsic motivation

Intr

insic

motivation

Low

Hig

h

Enthusiasts Professional volunteers

Reward seekersAmotived

Positive effects of intrinsic motivation (excluding usefulness)Effects of extrinsic motivation dependent on absence /presence of rewardsInteraction effects intrinsic – extrinsic motivation

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Cases researched

Reputation rewards,no financial rewards

Reputation rewards, small financial rewards

Reputation rewards, extreme money rewards

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•Websurvey for measuring individual’s motivation

Over 1900 respondents

•Participation and performance data from crowdsourcing firm

Responses to news items, number of page views, rating

Newsphoto’s, number of page views

Business plans, assessments

•Expert panel assessing performance

750 news photo’s

85 business plans

•Statistical analysis

Methodology

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Conclusions

Which individuals show optimal performance? Enthusiasts in absence of rewards

Does it make sense to offer rewards?Yes, since there are more professional volunteers than enthusiastsThrough reward criteria, a firm can better indicate which performance is preferred

Do I have to offer financial or reputation rewards?Reward criteria from financial rewards appear to be more effective

Does performance increase when I offer bigger money rewards?Extreme money rewards have negative side-effects: a substantial ‘idols’ effect

Logica is a leading IT and business services company, employing 39,000 people across 36 countries. It provides business consulting, systems integration, and IT and business process outsourcing services. Logica works closely with its customers to release their potential – enabling change that increases their efficiency, accelerates growth and manages risk. It applies its deep industry knowledge, technical excellence and global delivery expertise to help its customers build leadership positions in their markets. Logica is listed on both the London Stock Exchange and Euronext (Amsterdam) (LSE: LOG; Euronext: LOG). More information is available at www.logica.com

dr. Irma Borstirma.borst@logica.com