Crowdsourcing Lessons for Organizations

This study explores the current use of the Web 2.0 phenomenon crowdsourcing as an avenue for idea generation and decision making, along with an analysis of the pros and cons of its use in decision making.

Abstract

In the Web 2.0 era, business models have changed. This study explores the current use of the Web 2.0 phenomenon crowdsourcing as an avenue for idea generation and decision making. Crowdsourcing is a way of outsourcing tasks to communities of Internet users, typically for little or no compensation. It has been used in Haiti and Kenya to minimize the impact of natural disasters and political turmoil, by scholars to translate ancient texts, by notfor- profits to increase donations and awareness of their causes, and by large corporations such as Proctor & Gamble, Boeing, Toyota, and BP to generate ideas for products, advertisements, and to help solve business problems (Mullins, 2010; Falcioni, 2010; Cohen, 2010; Strom, 2010; Whitla, 2009). This article will focus on current organizational uses of crowdsourcing, along with an analysis of the pros and cons of its use in decision making. Suggestions for companies considering its use will be given to help them avoid the mistakes that others have made in the past.