Invited talk given at CrowdSourcing Week Europe 2014

1. Copenhagen, 16th October 2014
Crowdsourcing:
The Business Model for
Reinventing the Government
Dr. Michele Osella
Head of Business Model & Policy Innovation Unit
@MicheleOsella
#CSWEurope

2. The Harsh Reality
Joy's Law
“No matter who you are, most of the smartest people work for someone else”
Bill Joy – Co-founder of Sun Microsystems
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3. Networked Enterprises
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4. Crowdsourcing as Lever of Business Model Innovation
‘New guard’
Crowd
$ourcing
‘Old guard’
Incremental
Longevity
Dependence on the crowd
Radical
Innovativeness curve
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5. The Crowdsourcing Space
Fertile soil for private sector business models
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6. Business Model Archetypes
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7. Archetypal Business Model A – Brain Attraction
Facilitation in
finding solutions
to well-defined
problems
Seekers
(charged side of
the market)
Generally medium
or long term
Generally medium
or long term
Two-sided
crowdsourcing
platform
Seeker support,
challenge definition,
solution awarding,
platform
management
Solver
community,
brand
reputation
Giant companies
for ad-hoc
programs, donors
for non-profit
programs
HR, IT estate,
marketing mix
Solvers (funded
side of the
market)
Facilitation in
finding challenges
matching
professional
abilities
Fees to list challenges,
commissions on the
awarded amounts,
consulting fees
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8. Archetypal Business Model B – Innovation Consumption
Enterprise
offering
Company
customers
Short, medium or
long term
Need definition,
IP management,
platform
management,
product
development
Solver
community,
financial
resources, R&D
competences
HR, R&D costs,
production costs,
compensations for
external solutions
Company
channels
Product or service
revenues
Solvers
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9. Archetypal Business Model C – Social Product Development
Provision of
cutting-edge
products
Consumers, both
members and
non-members
(charged side of
the market)
Generally medium
or long term
Generally medium
or long term
Internal or
external shops
Community-like
platform
Product
evaluation,
product
engineering,
community
engagement
Innovator
community, brand,
skills in product
development
Suppliers,
external
wholesale
distributors,
external retailers
HR, IT estate,
influencer rewards,
inventor rewards,
development costs
Facilitation in
cooperative
product
development
Product sales
Members acting
as inventors or
influencers
(funded side of
the market)
Ex-ante
submission fees
(if any)
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10. Archetypal Business Model D – Labor as a Service
Access to a
global, on-demand,
scalable, 24 x 7
workforce
Requesters
(charged side of
the market)
Generally short or
medium term
Generally medium
or long term
Human
intelligence
marketplace
platform
Order
decomposition,
micro-task
supervision,
quality check,
order packaging
Worker
community,
brand
reputation
IT infrastructural
providers
IT estate,
compensations
for completed
micro-tasks
Individual
workers (funded
side of the
market)
Facilitation in
finding temporary
tasks matching
personal abilities
Payments for
completed orders,
fees for consulting
and added-value
services
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11. The Nagging Question
Could this new wave of business models
be tapped by the government?
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12. Changing the Government – The Golden Circle
Need to generate
higher societal
impact with less
resources
Providing fresh
inputs that usher-in
benefits in terms of
opportunity, time,
Crowdsourcing and costs
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13. Creative Disruption?
Government 1.0 Government 2.0
“Bureaucratic administration
means fundamentally domination
through knowledge”
Max Weber
“Government stripped down to its
core, rediscovered and
reimagined as if for the first time”
Tim O'Reilly
Bureaucracy as dominant governmental
platform of the 20th century
Governments still in search for a
governmental platform
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14. Next-Generation Government Equation
Next-generation government =
outcome-based government + extended government
Viable business model underlying
governmental operations
Collective intelligence as lifeblood
of problem solving mechanisms
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15. A Business Model for the Government?
The governmental
business model is not
about being profitable,
is about being
sustainable!
Not everything that is profitable is of social value and
not everything of social value is profitable.
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16. The Extended Government in a Nutshell
Extended government
ushers in new opportunities
for grassroots participation
Extended government leverages
network dynamics
Switchboard
connecting a
distributed and
networked
community
Extended government opens
the government not only for
the sake of transparency
Extended government turns
the government into a
platform
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17. Examples of Crowdsourcing at Work in Government
Brain attraction
Datapaloozas
(USA Government)
Innovation consumption
Challenge.Gov
(USA Government)
Social product development
G-Cloud
(UK Government)
Labor as a service
ReCaptcha usage
(many governments)
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18. The Maturity of Crowdsourcing in Government
To smoothly orchestrate the two souls of crowd engagement,
depending on needs and expected results…
Participation Problem solving
Objective Opinion gathering Solution collection
Expected result Legitimacy Tackling of grand
challenges
Crowdsourcing approach Wide Wise
Focus How What
Motivation to participate Intrinsic Intrinsic + Extrinsic
Users’ driving force Collaboration Collaboration +
Competition
Prominent metric Number of individuals
involved
Number of top-notch
solutions
Signal-to-noise ratio Low High
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19. Conclusions
“The government is us. We are the government.”
Theodore Roosevelt (1902)
“The crowd is us. We are the crowd.
We can change the government.”
CrowdSourcing Week (2014)
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20. Thanks for
your attention!
We believe in collaboration as a powerful source of innovation.
We consider interdisciplinarity as a genuine multiplier of opportunities.
We are optimistic.
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21. Contacts
Dr. Michele Osella
Head of Business Model & Policy Innovation Unit
Istituto Superiore Mario Boella
E-mail: osella@ismb.it
Twitter: @MicheleOsella
LinkedIn: linkd.in/MicheleOsella
Web: www.ismb.it/michele.osella
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