Eduprof Expertmeeting 14-15 April 2011 Groningen. Key note presentation on crowdsourcing by Mrs. I. Borst. Associate professor Erasmus University Rotterdam, The Netherlands

1. Understanding
Crowdcouring

2. Agenda
1.Crowdsourcing defined
2.Research on motivation – rewards –
performance in crowdsourced activities
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3. Crowdsourcing defined

4. Definition
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
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5. Positioning of crowdsourcing
Online
communities
Crowd Open
sourcing source
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6. Types of activities crowdsourced
Co-creation / Viral marketing
user innovation
Crowd intelligence
Folksonomy
Crowdfunding
User generated content
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7. Benefits of crowdsourcing
•Extension of firm’s resources:
=Knowledge
=Creativity
=Hands (many ‘vain’ resources)
=Trust
=Money
• Time benefits (shorter time-to-market)
• Cost savings
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8. Drawback of crowdsourcing
Effectiveness & Efficiency
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9. Crowdsourcing
research

10. Theoretical model
Motivation Performance -
•Intrinsic: pleasure & challenge
•Extrinsic: desire for
Participation
compensation & recognition •Decision to contribute
•Quantity
•Usefulness
•Novelty
Rewards
•Presence
•Absence
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11. Hypotheses
Intrinsic motivation
High
Enthusiasts Professional
volunteers
Amotived Reward seekers
Low
Low High
Extrinsic motivation
Positive effects of intrinsic motivation (excluding usefulness)
Effects of extrinsic motivation dependent on absence /presence of
rewards
Interaction effects intrinsic – extrinsic motivation
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12. Cases researched
Reputation rewards,
no financial rewards
Reputation rewards, small
financial rewards
Reputation rewards,
extreme money rewards
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13. Methodology
•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
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14. 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
enthusiasts
Through 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
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15. dr. Irma Borst
irma.borst@logica.com
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