Crowdsourcing has been around for many years, and has also evolved along with technology. Businesses have built specific online platforms for the practice, and crowdsourcing has deeply impacted research and development. Richard Swart, Crowdfunding and Alternative Finance Researcher and Scholar-in-Residence in the Institute for Business and Social Impact at the University of California, Berkeley, reveals that, “the power of the crowd comes from communicating together and this practice is informing corporate culture. Smart companies know how to create innovation – by bringing the boardroom and the public together. The crowd has the power to push innovative ideas to the top.”
The term “crowdsourcing” was first coined by Wired magazine in 2004, although the practice was widely used in different forms long before that. Soliciting contributions from large crowds has been known to deliver better results than from experts alone, and many corporations have used it to transform their business. In groups of forty or more, the crowd is often better than 99% of the participants. Helen Huntley, a well-known Gartner analyst predicts, “By 2016, application services providers will have replaced 20 percent of their internal application management staff with crowdsourcing and community sourcing.”
One of the most powerful platforms for crowdsourcing is social media. Two-way, one-on-one conversations were part of the history of media, but so were mass distributed one-way messages (radio, TV, film, etc). In his book, Here Comes Everybody, Clay Shirky says crowds are a powerful, usable force due to media evolution. He wrote that social combines mass messaging and two-way communication, which were previously on separate tracks. For the first time in history, wide-reaching messages can be two-way. Modern-day crowdsourcing also saves time and money with research and development.
Read the ebook The Power of Crowds, and learn:
For teams using social media dashboards, like those in Tracx, making sure everyone who uses these tools understands these changes should be a top priority.
Brands that have not relied on organic reach in Facebook and Instagram will not likely see any changes this year. Those who do will need to take a serious look at other options.