...Assignment 2 Crowdsourcing for Innovation For the course Innovation Management 2014 Handing in your assignment This assignment regarding the InnoCentive.com case should be delivered through the Assignment Section on Blackboard before Sunday, April 27, 2014, 23:59 hours. Be sure to use internet explorer when uploading your assignment! Delivery after this date and time will be rejected. If you have any problems or questions about this assignment or the delivery process, please send an email to: im-iba@rsm.nl Naming the file you hand in The name of the file to hand in through the Assignment Section should be in the following format: Student number- surname- first name-Assignment2-IM2014 Answering the Assignment Questions You are asked to answer the assignment questions in a copy of this document. Please use the answering boxes in the assignment. Please provide answers in the following format: Times New Roman, size 10, and single spaced. There is absolutely no necessity to use more space than given in the box (in fact correct answers can easily be given in about half the space in the box). In the assignment, yellow boxes are reserved for grading purposes. Please do NOT use these for the answers to the questions. In total you can earn 100 points for this assignment. 10 points are given for grammar and clarity of communication. 30 are given per sub-question. Notice that there are 4 pages in this document including 3 questions! Student number: ...
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...Business Model INNOCENTIVE is an “open source innovation” company founded in 2001 as a venture company within Eli Lilly & Co, a major pharmaceutical company. It is based on the idea that valuable ideas come inside or outside the company, and is distributed widely in markets and around the world. The business model of crowdsourcing pioneer INNOCENTIVE is quite similar to a question-answer web forum on the web. Main stakeholders in this model • The “Seeker”- The Company, organization or individual who is looking for an answer to a problem or a question. • The “Solver” – Individuals who are willing to answer to the questions or problems, usually giving a good solution based on experience or their idea • The “Observer” –Though this does not appear on their company page, INNOCENTIVE acts as a moderator to guide the two parties. The “Seeker” (it can be a corporation, governmental entity, nonprofit organization or partners) registers to INNOCENTIVE site and sets: 1. The question or problem to ask, 2. Set the amount of reward when the problem is answer to the “solver” 3. And, set the deadline, by when the problem would like to be solved. The “Seeker” will also pay a fee each time the problem is posted. The amount of the reward will be decided by the “Seeker” and INNOCENTIVE, based on such criteria as how effective the answer/idea was, or by how much profit it would bring to the “Seeker”. On the other hand, the uniqueness of this model is that the “Solver”...
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...external search. Problems no more remain dormant if not handled by local group as they are solved by outside diverse scientists. Firms increase their R&D capacity while reducing the risk and cost of research failure. Use of such services may lead to potential innovations. Firms get to choose from the pool of solutions as the challenge is broadcasted on IC’s website. And this pool of Solvers is from varied backgrounds, countries, personal and professional experiences. 40% are PhD’s. It is cost effective since seekers pay for solution and not for failure. They also decrease the uncertainty in the initial investments. 2) What is the motivation for Solvers to participate in Innocentive? A) Value to solvers is many fold. Monetary advantage. Cash prize for the solution if accepted by the seekers. Intrinsic motivation- Solvers are motivated by their curiosity, self pleasure, need to solve the problem to find the solution in novel way by applying their expertise knowledge. Not all solutions required validation some seekers except paper based proposals to the challenges. Solvers were more than willing to take the initiative as there was no risk in proposing solutions. Solvers had liberty to work independently which allowed them to think out of box. Solvers selected the challenges from the IC pool and were not enforced by any entity to find the solution for any particular problem. Ease of...
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...ABSTRACT No doubt, information has been made easier to access since the existence of internet back in late 90’s. Since then, internet play much bigger role in our daily life. Our dependencies on internet is no less than to other utilities such as electricity and water. We need it almost every minutes if not seconds in our life. It serves as a medium of communication among millions of human being to stay connected and share information regardless to gender, race, geographical location and political background. Activities among internet users may be worth as little as USD1 to billions of USD. With this demand and involvement, internet has evolved dynamically from just a method of communication to more important medium of exchanging information, dealing with multi billion dollars worth business value. Information as a key asset in the business world is highly valued by anyone who knows what that piece of information can benefit them thus, information generally is neither something cheap to obtain nor is made available freely out of the thin air. However, newly evolving method of seeking information called “crowdsourcing” has made information much cheaper to obtain if not free. But then, what is “crowdsourcing”? What is the relation to the internet and information technology? What are the advantages it brings to the society? Is there any challenges of “crowdsourcing”? This essay will discuss and elaborate in details on concept, characteristics, advantages, challenges and future trends...
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...Issue 14.06 - June 2006 Subscribe to WIRED magazine and receive a FREE gift! The Rise of Crowdsourcing Remember outsourcing? Sending jobs to India and China is so 2003. The new pool of cheap labor: everyday people using their spare cycles to create content, solve problems, even do corporate R & D. By Jeff Howe 1. The Professional Feature: The Rise of Crowdsourcing Claudia Menashe needed pictures of sick people. A project director at the National Plus: Health Museum in Washington, DC, Menashe 5 Rules of the New Labor Pool was putting together a series of interactive kiosks devoted to potential pandemics like the Look Who's Crowdsourcing avian flu. An exhibition designer had created a plan for the kiosk itself, but now Menashe was looking for images to accompany the text. Rather than hire a photographer to take shots of people suffering from the flu, Menashe decided to use preexisting images – stock photography, as it’s known in the publishing industry. In October 2004, she ran across a stock photo collection by Mark Harmel, a freelance photographer living in Manhattan Beach, California. Harmel, whose wife is a doctor, specializes in images related to the health care industry. “Claudia wanted people sneezing, getting immunized, that sort of thing,” recalls Harmel, a slight, soft-spoken 52-year-old. The National Health Museum has grand plans to occupy a spot on the National Mall in Washington by 2012, but for now it’s a fledgling institution with...
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...large company, it’s more feasible and affordable to use a crowd-sourcing marketplace. Crowd sourcing is often used for translation service. For instance, Face book has been using crowd sourcing to translate its website into different languages since 2008. Wikipedia can be categorized as crowd sourcing as well: an encyclopedia written by people from all over the world, professionals and amateurs alike. Crowd sourcing has been with us for a while and now, it just got a catchy name. Companies nowadays not only employ Research and Development (R&D) teams, but also list the problems they’re working on to the public as an attempt to get help from anyone. Certain companies even offer huge prizes for solving a problem on crowd sourcing site like InnoCentive, and the cost is fairly cheap compared to employing a huge R&D team. Crowd funding: Projects are funded by a large group of people, like most charity events. Kickstarter is a great example, which millions of dollars are funded into all kinds of projects from movies to gadgets with all the funds coming from people interested in supporting the project. Crowd sourced design: Projects are funded for a large group of people to...
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...business WEB Seeds of Growth Use the Web to focus on customer needs and grow your business. By Ralph A. Oliva “You can’t always get what you want, But if you try sometime, You just might find, You get what you need.” –The Rolling Stones I N T H E P A S T T W O Y E A R S businesses have done well in cutting costs and improving productivity. But more and more businesses are recognizing that they’d better think about putting growth back on the agenda. Waiting for help from the market, for a miracle to happen, or for some other impetus to drive growth is simply not a strategy today. Savvy managers are finding ways—including smart use of the business Web— to drive growth through demand innovation and the creation of fundamental new value. We still hear thoughts like: “Maybe in a few months we’ll get a little help from the economy.” “Maybe we’ll beat up our suppliers some more, and that’ll improve our bottom line.” “Let’s look for the next great new growth industry we can tie into, and that’ll drive growth.” Well maybe. But for most of us, that’s just not going to happen. There are growth opportunities out there now— even when markets aren’t growing. Savvy business managers are recognizing that ongoing cuts and waiting simply are not sustainable strategies. Understanding how a firm may capitalize on its hidden assets and work with customers to harvest new sorts of value can be key to growth for many firms. And smart use of the business Web and digital techniques for connecting...
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...Design Thinking for Social Innovation By Tim Brown & Jocelyn Wyatt Stanford Social Innovation Review Winter 2010 Copyright 2010 by Leland Stanford Jr. University All Rights Reserved Stanford Social Innovation Review 518 Memorial Way, Stanford, CA 94305-5015 Ph: 650-725-5399. Fax: 650-723-0516 Email: info@ssireview.com, www.ssireview.com In an area outside Hyderabad, India, between the suburbs and the countryside, a young woman—we’ll call her Shanti—fetches water daily from the always-open local borehole that is about 300 feet from her home. She uses a 3-gallon plastic container that she can easily carry on her head. Shanti and her husband rely on the free water for their drinking and washing, and though they’ve heard that it’s not as safe as water from the Naandi Foundation-run community treatment plant, they still use it. Shanti’s family has been drinking the local water for generations, and although it periodically makes her and her family sick, she has no plans to stop using it. Shanti has many reasons not to use the water from the Naandi treatment center, but they’re not the reasons one might think. The center is within easy walking distance of her home—roughly a third of a mile. It is also well known and affordable (roughly 10 rupees, or 20 cents, for 5 gallons). Being able to pay the small fee has even become a status symbol for some villagers. Habit isn’t a factor, either. Shanti is forgoing the safer water because of a series of flaws...
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...“Developing business and social innovation through creativity and foresight methods" – Crowdsourcing Abstract Crowdsourcing has been around for many years in different forms, but since 2006, it is being increasingly adopted as a creativity technique for development of ideas and problem solving. This essay looks at the history and extant of crowdsourcing and analyses its different types in terms of value creation, along with the typology of tasks to which crowdsourcing can be applied. This essay also explores some key insights and how crowdsourcing helped in HIV research through an online game called fold.it. What is Crowdsourcing? The magnitude of intelligence, knowledge and talent spread throughout the human race has always exceeded our capacity to harness them. As a creativity method, Crowdsourcing is one of the best tools to utilize the collective power of the many to undertake and accomplish tasks that are usually the responsibility of a specialized few. Howe (2006) used the term crowdsourcing for the very first time in a Wired magazine article titled ‘The Rise of Crowdsourcing’, and he later elaborated upon the concept in his book. Howe (2008) defines crowdsourcing as “the act of taking a job traditionally performed by a designated agent (usually an employee) and outsourcing it to an undefined, generally large group of people in the form of an open call.” He primarily describes crowdsourcing as a web-based business model although there are retrospective examples...
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...The Community Driven business model, or “Crowdsourcing,” is a relatively new, web-based model that harnesses the creative solutions of a distributed network of individuals. One of the benefits of web 2.0. This idea was first proposed by Jeff Howe and Mark Robinson in the June 2006 issue of Wired magazine: Simply defined, crowdsourcing represents the act of a company or institution taking a function once performed by employees and outsourcing it to an undefined (and generally large) network of people in the form of an open call. This can take the form of peer-production (when the job is performed collaboratively), but is also often undertaken by sole individuals. The crucial prerequisite is the use of the open call format and the large network of potential laborers. (2006a: 5) Not only does this method harness crowd intelligence to create innovation, but it also creates unprecedented levels of loyalty. The sense of pride and participation mobilizes the base of users to generate multi-pronged benefits including innovation and marketing advantages. It also provides the firm with an alternative to the market research problem at relatively low costs. This “wisdom of crowds” was coined by James Surowiecki (2004), in his book "The Wisdom of Crowds": “Under the right circumstances, groups are remarkably intelligent, and are often smarter than the smartest people in them’. This ‘wisdom of crowds’ is derived not from averaging solutions, but from aggregating them.” The advent of the...
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...competitive advantage. Always, the companies need to be innovative and to create innovative solutions for their products or for their processes. They have to stimulate the innovation inside the company using a policy that helps the team-members to collaborate and to analyze the market in the way to find different approaches to existing solutions. Maybe the best example of how the companies try to do their best to find innovative solutions is the pharmaceutical industry. The pharmaceutical companies always invest a lot of money in ReD trying to improve their drugs and some of them are really committed in the innovation. But the innovation in a company must not start obviously in the ReD department. 2 EliLilly (pharmaceutical industry) created Innocentive to connect experts to solve their problems, finding in this way new solutions using people that aren’t employee of it. Find new approaches means also that can be create different uses of existing products, create different markets for a product, modify products improving or reducing attributes as the market asks, reconsider product idea (ex: Starbucks is not only a simple place where you can buy coffee, or transform luxury products in mass products). The companies have particular departments that work to reach these goals and they usually have a policy that drives the employees to solve these problems promoting different tools like brainstorming, group discussions and benchmarking. Often the innovation comes from personal attitude and...
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...Crowd-Sourcing, Cloud Computing [Abdul Rehman] [Student Number] [Information Technology] Crowd-sourcing Crowd-sourcing is the procedure of getting work or financing, generally online, from a group of individuals. The statement is depicted as a mixture of two words i.e "crowd" and “outsourcing”. The impression is to take work and outsource it to a cloud of specialists. This model has emerged rapidly in recent years. Prominent examples of the model include iStockphoto, Threadless, the Goldcorp Challenge, Innocentive, and user-generated marketing competitions (Daily Crowdsource, n.d.).The principle behind crowd-sourcing is that a greater number of heads are superior to one. By soliciting an extensive group of individuals for opinions, aptitudes, or cooperation, the nature of stuff and idea generated will be unsurpassed (Brabham D. C., 2008). It permits you to select the best outcome from an ocean of 'best individuals,' instead of getting the best from a particular provider. Results might be conveyed much faster than customary techniques respectively. Clear guidelines are the key in crowd-sourcing. Quality could be hard to judge if appropriate requirements are not distinctly expressed. Cloud Computing Cloud computing is generally identified as the future of ‘information technology’. It can be defined as the designing and distribution of computing services over the Internet. Cloud services allow people and organizations to use software and hardware which are controlled...
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...'Sucessful Crowdfunding campaign’ Introduction: Crowdsourcing: Crowdsourcing emerges as a new paradigm of organization used by companies to reach out to distributed talent in the context of a globally interconnected society (Villarroel et al 2007, 2011a, 2011b). Although the term “crowdsourcing” is relatively new (Howe 2006), and it has only received theoretical attention by management academics in recent years (Geerts, 2009) (Malone, et al., 2010), crowdsourcing initiatives led by companies have over two decades of existence, finding roots in the software industry (von Hippel & von Krog, 2003). Crowdsourcing offers a new business model that allows companies to gather faster and at a lower cost, the knowledge distributed among the population, specific to each one of us, the knowledge of time and place. (Hayek, 1945) (Schenk & Guittard, 2011)(Villarroel 2008, 2011c; Villarroel & Taylor 2007). (Malone, et al., 2010) Even though crowdsourcing is emerging recently to the understanding of a wider audience, it has stuck the eye of a few lecturers as early as 1998, whilst Thomas Malone and Robert Laubacher, noticed the organizational changes in motion and expected long term consequences (Malone & Laubacher, 1998). The Linux case has highlighted these new flexible businesses which might be assembled at some point of the initiatives and then are dissolved once the venture is done so staff can then seek for long term projects to paintings on. (Malone & Laubacher, 1998) This new...
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...Rothaermel Exercise 1 Perry Blankenship Liberty University Chapter 1 1. How is strategy different from a business model? A) Rothaermel (2013) defines a strategy as: “The goal-directed actions a firm intends to take in its quest to gain and sustain a competitive advantage,” (p.6). Rothaermel also defined a business model as: “An organizational plan that details the firm’s competitive tactics and initiatives, or how the firm intends to make money,” (p.11). The strategy is the theory the organization plans to utilize in achieving their goals while the model is their actions of implementing their strategy. Casadesus-Masanell and Ricart (2010) explained in their research that the strategy of a business is implemented by the leaders in choosing the business model they will follow. When organizations are looking for what customers they will reach and what the customer values, they are utilizing a business model. When they want to achieve the goal of reaching these customers they must develop a strategy for achieving that goal. B) How is it similar? Both the strategy and the business model strive to achieve the organizational goals and give the organization a competitive advantage. “The business model is the reflections of the realized strategy,” (Casadesus-Masanell and Ricart, 2010, p.204). 2. Why do you think Dell is keen on offering this service? A) The new crowdsourcing allows the consumer to have more control of the design and development of their product...
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...* How the Internet works * Packet-switching technology Actual data transmission takes place sporadically, rather than continuously. Data to be transmitted is divided into small packets of information and labeled to identify the sender and recipient. These are sent over a network and then reassembled at their destination. If any packet did not arrive or was not intact, original sender requested to resend the packet. -> This enables millions to transmit data at the same time. * Understand the importance of standards (protocols) * What problems are and tasks are involved in networks and why are standards important for networks to run? Computers and applications of different kinds need to use the same network. Packets could get altered/lost/out of sequence. Many computers send packets simultaneously. There are lots of different destinations, routes, and sometimes some of them ‘close down’. * Bandwidth Bandwidth is transmission capacity of a computer or communications channel, measured in bits per second (bps). * TCP/IP protocol and layered standards of the Internet * Application layer, network layer (TCP/IP) Applications layer (e.g. HTTP, FTP) specifies how application programs communicate. Network layer (e.g. TCP/IP) consists of transport layer and internet layer. Transport layer (TCP) breaks, reassembles messages into packets. Internet layer (IP) specifies the address a packet is headed to. * Internet addressing and architecture:...
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