A New Business Model Of Crowdsourcing

1773 words - 8 pages

Executive Summary
With the rapid development of Internet, a new business model of crowdsourcing is emerging. It is a development demand research of organizations through Internet. Companies could seek for solutions through it with the help of numerous solvers. Crowdsourcing platform is an intermediary which provides a place for seekers to ask for solvers’ help. This report will mainly discuss the target market of crowdsourcing platforms and demonstrate value proposition provided to solvers and seekers. Then the report gives an illustration of Zhihui Island which is a design competition crowdsourcing platform and analyzes it using the business model canvas. In the end, opportunities and threats are stated.

Introduction
Crowdsourcing is a terminology which is put forward by Jeff Howe, journalist of Wired Magazine in 2006. It means organizations or institutions outsource their work tasks which are fulfilled by staff in the past to unspecified mass network (usually large scale) voluntarily (Howe, 2006). Through network, organizations investigate and survey development requirement of products starting with customers’ actual experience of using. Usually, crowdsourcing tasks are assumed by individual, however, when involving in tasks which need multiple people collaborate, crowdsourcing could also be realized by open source individual (Brabham, 2009). Crowdsourcing platform is a place where organizations or groups could use it to hold a test, search for a recent news focus and as on. It is used to describe a new business model that organizations use Internet to assign jobs, find creativity or solve technical questions. There are different kinds of outsourcing platform in the world. This report will give an analysis of various types of crowdsoucing platform, identify their target market, discuss value proposition provided to seeker or solvers and then illustrate a specific crowdsourcing platform “Zhihui Island” using business model canvas. In the end, the report will give a SWOT analysis of crowdsourcing platform to modern business.

Target market and value proposition
In the business model of crowdsourcing, there are mainly three constituent parts which are seekers, solvers and intermediaries (Brabham, 2008). Seekers are organizations or individuals who have problems needed to solve. Solvers are the numerous Internet users. Intermediaries are bridges connecting seekers and solvers. Crowdsourcing platforms play the role of bridge in this process. It could be operated by seekers themselves or external organizations. There are various types of crowdsourcing platforms such as Wikipedia which is a knowledge contribution platform, GitHub which is a kind of IT platform, Kaggle, a big data analytics, DesignCrowd, a designing crowdsourcing platform and so on. Different crowdsourcing platforms have different target markets.
For the crowdsourcing platforms which are created by seekers themselves, holding competition or other activities in the platform is mainly...

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