Academia.eduAcademia.edu

Outline

Title
Abstract
Introduction
Conclusion
References
All Topics
Business and Management
Management of Technology and Innovation

Crowdsourcing Innovation: a risk management approach

Profile image of lieda souzalieda souzaProfile image of Lieda AmaralLieda Amaral

Abstract

This paper presents a first version of a methodology for risk management of crowdsourcing intermediaries. The methodology comprises three phases. Each phase is interlinked and designed to build support and trust as the collaboration develops. Managing risks is central to the open innovation strategy. Open innovation comprises several models. Crowdsourcing innovation is one of them and the focus of this paper. There aren’t relevant scientific or empirical studies explaining how to manage the risks of intermediairies .. In crowdsourcing innovation strategy, a company posts a problem by an open call and a vast number of individuals offer solutions to the problem. The winning ideas are awarded some form of a bounty and the company mass produces the idea for its own gain. This strategy can be applied in two ways: (1) by internally identifying business problems and needs for innovation, which are identified by individuals, teams and organizational units (seekers). Innovation challenges are then made available to a community of internal and external specialists motivated to provide their knowledge and skills to address them. In this way, employees of the company can improve their internal visibility and be empowered in decision processes across the company; (2) by placing the company’s innovation challenges to an external brokering service that can find the right people to present the solutions (solvers). This work presents a first proposal of a methodology to managing risks associated with crowdsourcing innovation.

Related papers

Harnessing Innovation Potential of Crowdsourcing
Slavica Rocheska

The new innovation paradigm is based upon articulation of external and internal sources of innovation. Nowadays, crowdsourcing is coming up as significant external source in innovation processes of the companies. Crowdsourcing enables harnessing of initiatives, ideas, solutions and knowledge of the crowd so as to enhance innovation performance and induce a value creation. Given that existing innovation literature does not cover sufficiently the issues related to crowdsourcing this paper is to offer an additional views about innovation potentials of crowdsourcing thus contributing for future research on this relatively unexplored concept. Therefore, this paper aims at considering key insights about crowdsourcing contribution on developing companies' innovation capacity. More specifically it is focused on identification of benefits, weaknesses and risks arising from crowdsourcing to the innovation process comprising conceptual and empirical aspects.

View PDFchevron_right
Wisdom of the crowd and capabilities of a few: internal success factors of crowdsourcing for innovation
Patrick Pollok, Dirk Lüttgens

Journal of Business Economics, 2014

Crowdsourcing has been demonstrated to be an effective strategy to enhance the efficiency of a firm's innovation process. In this paper, we focus on tournament-based crowdsourcing (also referred to as "broadcast search"), a method to solve technical problems in form of an open call for solutions to a large network of experts. Based on a longitudinal study of six companies piloting this application of crowdsourcing, we identify barriers and sources of resistance that hinder its implementation in firms. Our paper contributes to the state of research by analyzing crowdsourcing on the level of pilot projects, hence providing a workflow perspective that considers the creation of dedicated processes and operations of crowdsourcing. This project level analysis enables the identification of specific challenges managers face when implementing crowdsourcing within an established R&D organization. Following a design science approach, we derive suggestions for organizational interventions to overcome these barriers. We find that dedicated promoter roles strongly contribute to a successful implementation of crowdsourcing, turning pilot projects into an organizational routine.

View PDFchevron_right
CROWDSOURCING INNOVATION: A PROPOSAL FOR A BROKERING ARCHITECTURE FOCUSED IN THE INNOVATION NEEDS OF SMES
Cândida Silva, Carl Adams, Luis Pestana Mourão, lieda souza, Lieda Amaral

Abstract: Crowdsourcing is evolving into powerful outsourcing options for organizations by providing access to the intellectual capital within a vast knowledge community. Innovation brokering services have emerged to facilitate crowdsourcing projects by connecting up companies with potential solution providers within the wider ‘crowd’. Most existing innovation brokering services are primarily aimed at larger organizations, however, Small and Medium Enterprises (SMEs) offer considerable potential for crowdsourcing activity since they are typically the innovation and employment engines in society; they are typically more nimble and responsive to the business environment than the larger companies. SMEs have very different challenges and needs to larger organizations since they have fewer resources, a more limited knowledge and skill base, and immature management practices. Consequently, innovation brokering for SMEs require considerably more support than for larger organizations. This paper identifies the crowdsourcing innovation brokerage facilities needed by SMEs, and presents an architecture that encourages knowledge sharing, development of community, support in mixing and matching capabilities, and management of stakeholders’ risks. Innovation brokering is emerging as a novel business model that is challenging concepts of the traditional value chain and organizational boundaries. Keywords: Crowdsourcing innovation. Broker architecture. Collective memory management. Risk management. Knowledge repository.

View PDFchevron_right
Crowdsourcing innovation: uma proposta de arquitetura de serviços de mediação focado na inovação necessidades das PME
Luis Pestana Mourão

2012

Crowdsourcing is evolving into powerful outsourcing options for organizations by providing access to the intellectual capital within a vast knowledge community. Innovation brokering services have emerged to facilitate crowdsourcing projects by connecting up companies with potential solution providers within the wider ‘crowd’. Most existing innovation brokering services are primarily aimed at larger organizations, however, Small and Medium Enterprises (SMEs) offer considerable potential for crowdsourcing activity since they are typically the innovation and employment engines in society; they are typically more nimble and responsive to the business environment than the larger companies. SMEs have very different challenges and needs to larger organizations since they have fewer resources, a more limited knowledge and skill base, and immature management practices. Consequently, innovation brokering for SMEs require considerably more support than for larger organizations. This paper iden...

View PDFchevron_right
Changing the Innovation Game - Crowdsourcing in Incumbent Firms
Carina Antonia Hallin
View PDFchevron_right
Crowdsourcing based business models: In search of evidence for innovation 2.0
Joanna Chataway, Sonja Marjanovic

2012

Open innovation has gained increased attention as a potential paradigm for improving innovation performance. This paper addresses crowdsourcing, an under-researched type of open innovation that is often enabled by the web. We focus on a type of crowdsourcing where financial rewards exist, where a crowd is tasked with solving problems which solution seekers anticipate to be empirically provable, but where the source of solutions is uncertain and addressing the challenge in-house perceived to be too high-risk. There is a growing recourse to crowdsourcing, but we really know little about its effectiveness, best practices, challenges and implications. We consider the shift to more open innovation trajectories over time, define crowdsourcing as an open innovation model, and clarify how crowdsourcing differs from other types of 'open' innovation (e.g. outsourcing and open-source). We explore who is crowdsourcing and how, looking at the potential diversity and core features and variables implicated in crowdsourcing models.

View PDFchevron_right
The crowdsourcing process: an intermediary mediated idea generation approach in the early phase of innovation
Roman Boutellier

International Journal of Entrepreneurship and Innovation Management, 2011

Intermediary mediated crowdsourcing (CS) has become a widely adopted open innovation approach for idea generation in various companies of different industries. Despite many success stories and a large body of literature in the fields of idea generation, online competition and open innovation, little is known about the intermediary mediated CS process in the early stage of the innovation process. An explorative, qualitative and quantitative multi-case study research design was applied to extract the longitudinal data that were analysed in this research. Based on 12 CS projects executed by nine Swiss companies from four industries on the Swiss intermediary CS platform atizo.com, five important phases of the intermediary mediated CS process were identified and described. Additionally, important tasks within each phase which ought to be considered by companies when engaging in an intermediary mediated CS project for idea generation were elaborated.

View PDFchevron_right
Crowdsourcing: An alternative idea generation approach in the early innovation process
Roman Boutellier

Intermediary mediated crowdsourcing (CS) has become a widely adopted open innovation approach for idea generation in various companies of different industries. Despite many success stories and a large body of literature in the fields of idea generation, online competition and open innovation, little is known about the intermediary mediated CS process in the early stage of the innovation process. An explorative, qualitative and quantitative multi-case study research design was applied to extract the longitudinal data that were analysed in this research. Based on 12 CS projects executed by nine Swiss companies from four industries on the Swiss intermediary CS platform atizo.com, five important phases of the intermediary mediated CS process were identified and described. Additionally, important tasks within each phase which ought to be considered by companies when engaging in an intermediary mediated CS project for idea generation were elaborated.

View PDFchevron_right
CROWDSOURCING INNOVATION: A PROPOSAL FOR A BROKERING ARCHITECTURE FOCUSED IN THE INNOVATION NEEDS OF SMES CROWDSOURCING INNOVATION: UMA PROPOSTA DE ARQUITETURA DE SERVIÇOS DE MEDIAÇÃO FOCADO NA INOVAÇÃO NECESSIDADES DAS PME
Luis Pestana Mourão, lieda souza, Lieda Amaral

Crowdsourcing is evolving into powerful outsourcing options for organizations by providing access to the intellectual capital within a vast knowledge community. Innovation brokering services have emerged to facilitate crowdsourcing projects by connecting up companies with potential solution providers within the wider 'crowd'. Most existing innovation brokering services are primarily aimed at larger organizations, however, Small and Medium Enterprises (SMEs) offer considerable potential for crowdsourcing activity since they are typically the innovation and employment engines in society; they are typically more nimble and responsive to the business environment than the larger companies. SMEs have very different challenges and needs to larger organizations since they have fewer resources, a more limited knowledge and skill base, and immature management practices. Consequently, innovation brokering for SMEs require considerably more support than for larger organizations. This paper identifies the crowdsourcing innovation brokerage facilities needed by SMEs, and presents an architecture that encourages knowledge sharing, development of community, support in mixing and matching capabilities, and management of stakeholders' risks. Innovation brokering is emerging as a novel business model that is challenging concepts of the traditional value chain and organizational boundaries. Resumo: O crowdsourcing está a evoluir para opções poderosas de outsourcing para as organi-zações, fornecendo acesso ao capital intelectual dentro de uma comunidade de vasto conhe

View PDFchevron_right
Sundic, M., Leitner, K-H. (2013): Crowdsourcing as an Innovation Strategy: A Study on Innovation Platforms in Austria and Switzerland, Digiworld Economic Journal, 89, 1, 55-72
Karl-Heinz Leitner

In this paper we present results from a study on three innovation platforms in Switzerland and Austria. We conducted studies of crowdsourcing platforms run by the Swiss 'Atizo.com', 3M Austria's 'Zukunft-Innovation' and A1 Telekom Austria's 'A1 Innovations' including interviews with the companies and community members. Motives and incentive-systems for crowdsourcing are analysed from the participant's as well as from the company's point of view. Further, the study discusses the risks of crowdsourcing and the importance of intellectual property in an age of rapid idea diffusion and imitation. The examined case studies show overall positive experiences with crowdsourcing and crowd-based idea-contests. However, at the same time the analysed open communities also show a tendency for a closure as we found evidence that over a longer period of time a small group of actors emerges, which provides similar problem solving strategies repeatedly.

View PDFchevron_right

References (44)

  1. REFERENCES
  2. Ahuja, G., & Lampert, C. M. (2001). Enterpreneurship in the large corporation: a longitudinal study of how established firms create breakthrough inventions. STRATEGIC MANAGEMENT JOURNAL , 22, pp. 521-543.
  3. Aiello, F., & Cardamone, P. (2003). R & D Spillovers and Productivity Growth: evidence from Italian Manufacturing Microdata. APPLIED ECONOMICS LETTERS , 12, pp. 625-631.
  4. Arakji, R. Y., & Lang, K. R. (2007, Nov). The virtual cathedral and the virtual bazaar. THE DATA BASE FOR ADVANCES IN INFORMATION SYSTEMS , 38, pp. 33-39.
  5. Arora, A., Fosfuri, A., & Gambardella, A. (2001). Markets for Technology. Cambridge,MA: MIT Press.
  6. Australian/New Zealand . (2004). AS/NZS Standards -4.360:1999(2004). Strathfield: Risk Managements Standards Association of Australia.
  7. Bardi, A., & Schwartz, S. H. (2003). Values and behavior: Strength and structure of relations. PERSONALITY AND SOCIAL PSYCHOLOGY BULLETIN , 29, pp. 1207-1220.
  8. Byrd, J., & Brown, L. (2003). The innovation equation: Building creativity and risk taking in your organization. San Francisco: Jossey-Bass/Pfeiffer.
  9. Chesbrough, H. (2004, JAN-FEB). Managing open innovation. RESEARCH-TECHNOLOGY MANAGEMENT , 47, pp. 23-26.
  10. Chesbrough, H. (2003). Open innovation: The new imperative for creating and profting from technology. p. 276.
  11. Chesbrough, H. W. (2003, SPR). The era of open innovation. MIT SLOAN MANAGEMENT REVIEW , 44, pp. 35-41.
  12. Chesbrough, H. W. (2003, SPR). The logic of open innovation: Managing intellectual property. CALIFORNIA MANAGEMENT REVIEW , 45, pp. 33-+.
  13. Chesbrough, H., & Crowther, A. K. (2006, JUN). Beyond high tech: early adopters of open innovation in other industries. R & D MANAGEMENT , pp. 229-336.
  14. Cobbenhagen, J. (2000). Successful Innovation: towards a new theory for management of small and medium-sized enterprises. Cheltenham: Edward Elgar Publishing.
  15. Darlington, A., Simon, G., & Withworth, J. (2001). How safe is enough? An introduction to risk management. UK: The Stample Inn Acturial Society.
  16. Enkel, E., Kausch, C., & Gassmann, O. (2005). Managin the risk of customer integration. EUROPEAN MANAGEMENT JOURNAL , 23, pp. 203-213.
  17. Gassman, O., & Enkel, E. (2004). Towards a theory of open innovation: three core process archetypes.
  18. Gerber, M., & von Solms, R. (2005). Management of risk in the information age. COMPUTERS & SECURITY , 24, pp. 16-30.
  19. Henkel, J. (2006, SEP). Selective revealing in oppen innovation processes: the case of embedded Linux. RESEARCH POLICY , 35, pp. 953-969.
  20. Howe, J. (2006, jun). The Rise of Crowdsourcing. Wired , 14.
  21. Kirschbaum, R. (2005, JUL-AGO). Open innovation in practice. RESEARCH-TECHNOLOGY MANAGEMENT , 48, pp. 24-28.
  22. Loewenstein, G. F., Weber, E. U., Hsee, C. K., & Welch, E. S. (2001). Risk as feelings. PSYCHOLOGICAL BULETTIN , 2, pp. 267-286.
  23. McDaniels, T. L. (1998). Ten propositions for untangling descriptive and prescriptive lessons in risk perception findings. RELIABILITY ENGINEERING AND SYSTEM SAFETY , 59, pp. 129-134.
  24. McDaniels, T. L., Axelrod, L. J., Cavanagh, N. S., & Slovic, P. (1997). Perception of ecological risk to water environments. RISK ANALYSIS , 17, pp. 341-352.
  25. Naumes, W., & Naumes, M. J. (1994). A comparison of values and attitudes. Toward risk of greek and american entrepreneurs. INTERNATIONAL JOURNAL OF VALUE BASED MANAGEMENT , pp. 3- 12.
  26. O´Connor, G. C., Leifer, R., Paulson, A. P., & Peters, L. P. (2008). Grabbing lighting: Building a capability for breakthrough innovation. San Francisco, USA: Jossey -Bass.
  27. Pfleeger, S. L. (2000). Risky Business: what we have yet to learn about software risk management. JOURNAL OF SYSTEMS & SOFTWARE , 53, pp. 265-273.
  28. Renn, O. (1998). The role of risk perception for risk management. RELIABILITY ENGINEERING AND SYSTEMS SAFETY , 59, pp. 49-62.
  29. Rokeach, M. (1973). The Nature of Human Values. New York: Free Press.
  30. Schwartz, M. S. (2005, Jun). Universal Moral Values for Corporate Codes of Ethics. JOURNAL OF BUSINESS ETHICS , 59, pp. 27-44.
  31. Schwartz, S. H. (1992). Universals in the Content and Structure of Values: Theoretical Advances and empirical tests in 20 countries. ADVANCES IN EXPERIMENTAL SOCIAL PSYCOLOGY , 25, pp. 1- 65.
  32. Schwartz, S. H., & Boehnke, K. (2004, JUN). Evaluating the Structure of Human Values with Confirmatory Factor Analysis. JOURNAL OF RESEARCH IN PERSONALITY , 38, pp. 230-255.
  33. Shwartz, S. H., & Sagiv, L. (1995). Identifying Culture-Specifics in the Content and Structure of Values. JOURNAL OF CROSS-CUTURAL PSYCHOLOGY , 26, pp. 92-116.
  34. Sjoberg, L. (2002). Attitudes toward technology and risk: Going beyond what is immediately giver. POLICY SCIENCES , 35, pp. 379-400.
  35. Sjoberg, L. (2000). Factors in risk perception. RISK ANALYSIS , 20, pp. 1-11.
  36. Sjoberg, L. (2008, May 11). Gene Technology in the Eyes of the Public. (B. Sellstedt, Ed.) RISK MANAGEMENT: THE INTERNATIONAL JOURNAL , pp. 168-193.
  37. Sjoberg, L. (1998, Spring). World Views, Political Attitudes and Risk Perception. RISK: HEALTH, SAFETY & ENVIRONMENT , pp. 137-152.
  38. Sjoberg, L., af Wahlberg, A., & Kvist, P. (1998). The rise of risk: Risk related bills submitted to the Swedish parliament in 1964-65 and 1993-95. JOURNAL OF RISK RESEARCH , 3, pp. 191-195.
  39. Sjoberg, L., Bjorg-Elin, M., & Torbjorn, R. (2004). Explain Risk Perception. an evaluation of th psychometric paradigm in risk perception research. Norwegian University of Science and Technology, Department of Psychology. Norway: Rotunde publikasjoner.
  40. Slovic, P., Finucane, M., Peters, E., & MacGregor, D. G. (2004). Risk as Analysis and Risk as Feelings: Some thoughts about Affect, Reason, Risk, and Rationality. RISK ANALYSIS , 24.
  41. Struch, N., Schwartz, S. H., & van der Willen, K. (2002). Meanings of Basic Values for Women and Men: a Cross-Cultural Analysus. PERSONALITY AND SOCIAL PSYCOLOGY BULLETIN , 28, pp. 16- 28.
  42. Thomke, S. (2001, Feb). Englihtened Experimentation: The New Imperative for Innovation. HARVARD BUSINESS REVIEW , 79 (1), pp. 66-75.
  43. Tidd, J., Bessant, J., & Pavitt, K. (2005). Managing Innovation. Integrating technological, market and organisational change. New York: Wiley and Sons.
  44. von Hippel, E., & Von Krogh, G. (2003). Open Source Software and the "Private-collective" Model: Issues for Organization Science. ORGANIZATIONAL SCIENCE , 2 (1).

Related papers

Managing risks of crowdsourcing innovation: an action research in progress
Sara Vanderton

2009

Over the last few years, a number of academics and practitioners have emphasized the value of innovation as a main driver for firms to enhance their business performance and sustain a high profitability. Recent studies of innovation have pointed to the growing relevance of external sources of innovation and the firm's necessity of involving a wide range of internal and external actors and sources to help achieving and sustaining its business strategy. The company can become more innovative by implementing a process of cocreation. It can do this in two ways (1) by internally identifying the business problems and needs for innovation felt by individuals, teams and organizational units (seekers) and furthering the emergence of a community of specialists (within or outside the organization), or employees motivated to provide their knowledge and skills to address innovation problems, increasing their internal visibility and ensuring their empowerment across the company (solvers); (2)...

View PDFchevron_right
Innovation Crowdsourcing Exploring the Use of an Innovation Intermediary
Надежда Камбур
View PDFchevron_right
Crowdsourcing as a way to access external knowledge for innovation
Valerie Chanal

2008

View PDFchevron_right
Crowdsourcing A pandemonium for disruptive innovation
Cris Ehmann

With each paradigm shift the world changes radically. People and organisations need to adapt to the new circumstances. The world as we know it is changing rapidly and is shifting from a consumer to a creator economy. In this third industrial revolution consumers do not only consume but also produce products and services tailored to their individual requirements. This is facilitated mainly through people’s access to open digital networks, in which everyone can express their wishes. Within this context organisations have difficulties finding, identifying and accepting new ideas. Crowdsourcing has proved to be a useful tool for this new era because it is goal oriented and compatible with prevailing top- down, traditional management structures. It allows companies to tap into the creative and collective mind of the masses whilst still allowing people to fulfil their participatory role. However, extensive research has uncovered that crowds and the sponsor of crowdsourcing initiatives are still not optimally aligned. The possible reasons for this are manifold. The main cause could lie in the sponsors. Crowdsourcing is mainly utilised to create promotional campaigns and new product or service development with incremental change yet disruptive outputs are rejected due to their misalignment with the prevailing order of things. Another possible reason is the programmatic way in which crowdsourcing initiatives form a small component of a linear, milestone-based change process. It is used as a tool only for sourcing ideas. No information has indicated that the crowdsourcing tool is being used for exploration of a problem, gaining insights into human behaviour, or experimentation with conceptual prototypes. Initiatives are usually one-off events. Sponsors don’t seem to engage more than once to launch reiterative challenges in order to allow for a concept to develop. Furthermore, research has shown that the tools need to be adjusted in order to render more aligned results. The necessary diversity of the crowd contributing ideas is rather low and the tools do not have mechanisms that ensure a higher degree of diversity. In addition the tools do not motivate the participants to initiate and maintain a fruitful creative interaction. This is made evident through the possibility of giving final judgments early in the interactive process and the lack of mechanisms that allow concurrent and private work streams. In order to profit from the potential that crowdsourcing has to offer, three things need to change: 1. Sponsoring organisations will need to change their attitude and become more experimental and ready to embrace risk and failure 2. The tools will need to reach a higher degree of sophistication 3. The crowdsourcing tool needs to be deployed as part of the design process. Last but not least the research has also uncovered that crowdsourcing in general is a disruptive tool in itself because it can, and does, actually replace many functions performed by established organisations. A combination of these could lead to a fully crowdsourced enterprise.

View PDFchevron_right
Crowdsourcing Innovation Intermediaries Functions
Cândida Silva

Open innovation is a hot topic in innovation management. Its basic premise is open up the innovation process. The innovation process, in general sense, may be seen as the process of designing, developing and commercializing a novel product or service to improve the value added of a company. The development of Web 2.0 tools facilitates this kind of contributions, opening space to the emergence of crowdsourcing innovation initiatives. Crowdsourcing is a form of outsourcing not directed to other companies but to the crowd by means of an open call mostly through an Internet platform. Innovation intermediaries, in general sense, are organizations that work to enable innovation, that just act as brokers or agents between two or more parties. Usually, they are also engaged in other activities like inter-organizational networking and technology development and related activities. A crowdsourcing innovation intermediary is an organization that mediates the communication and relationship between the seekers-companies that aspire to solve some problem or to take advantage of any business opportunity-with a crowd that is prone to give ideas based on their knowledge, experience and wisdom. This paper identifies and analyses the functions to be performed by an intermediary of crowdsourcing innovation through grounded theory analyses from literature. The resulting model is presented and explained. The resulting model summarizes eight main functions that can be performed by a crowdsourcing process, namely, diagnoses, mediation, linking knowledge, community, evaluation, project management, intellectual property governance and marketing and support. These functions are associated with a learning cycle process which covers all the crowdsourcing activities that can be realized by the broker.

View PDFchevron_right

Related topics

  • Open Innovation
    • 580 California St., Suite 400
    San Francisco, CA, 94104
    © 2025 Academia. All rights reserved