The objective of this term paper is to identify the challenges and opportunities of international crowdsourcing in the business industry. Furthermore, it shows the impact on the current business models and how crowdsourcing can be used for a company to create value.
The globalization of markets in the past year have led to an intensification of competition. Due to this circumstances companies are forced to review their business processes. In order to make business processes more efficient and subsequently achieve competitive advantages it is necessary to involve stakeholders such as customers, suppliers, employees and the crowd.
Table of Contents
1 Introduction
1.1 Objective
1.2 Structure
2 Definitions and conceptual delimitation
2.1 Crowdsourcing
2.2 Outsourcing
2.3 Business model
2.4 Value chain model
3 Impact of crowdsourcing on business models
3.1 Challenges
3.2 Opportunities
4 Conclusion and Outlook
Research Objectives and Key Topics
This paper aims to evaluate the role of international crowdsourcing as a modern business model, specifically focusing on the challenges and opportunities it presents to organizations and its integration into existing value chain frameworks.
- Theoretical definitions of crowdsourcing versus traditional outsourcing.
- Analysis of the business model concept and organizational value creation.
- Evaluation of risks regarding information security and cultural barriers.
- Identification of strategic advantages in innovation and cost-efficiency.
- Impact on Porter's value chain model and labor allocation.
Excerpt from the Book
3.1 Challenges
Primarily the challenge of crowdsourcing is the management of disclosured information to the crowd. Especially in the process of new product development, the information can be easily disclosured to the public. This leads to restriction in the quality and amount of information a company reveals. In turn, the crowd has not the appropriate and full information of what is the goal of a crowdsourcing project.
A crowdsourcing project presupposes a detailed project plan and project management to achieve the best results. There is the risk of not receiving the desired feedback or results from the crowd. Especially if a crowd from a foreign country is involved, there is the risk of language and cultural barriers. As in normal project a subsequent change result in high costs.
Crowdsourcees are often exploited, as in most crowdsourcing projects only one project winner can be chosen from the crowd. The rest of the crowd invests time, creativity and money in form of electricity costs or office materials for no reward. This leads to frustration of the crowdsourcing participant.
Both crowdsourcing and outsourcing leads to uncertainty in the internal staff regarding the security of their own jobs. More particularly, if the percentage of crowdsourcing rises from time to time.
Summary of Chapters
1 Introduction: Provides an overview of the rise of crowdsourcing due to globalization and technological advancement, establishing the context for the study.
2 Definitions and conceptual delimitation: Defines the core terms crowdsourcing, outsourcing, business models, and the value chain to provide a theoretical foundation.
3 Impact of crowdsourcing on business models: Discusses the practical implications, including the inherent risks and the competitive advantages of integrating the crowd into business processes.
4 Conclusion and Outlook: Summarizes the findings, emphasizing project management as a critical success factor and proposing potential future business models like specialized crowdsourcing agencies.
Keywords
Crowdsourcing, Business Model, Outsourcing, Value Chain, Porter, Innovation, Digital Economy, Workforce, Project Management, Competitive Advantage, Product Development, Globalization, Strategy, Internet, Collaboration
Frequently Asked Questions
What is the primary focus of this paper?
The paper examines international crowdsourcing as a business model, exploring how companies can utilize the crowd for value creation while managing the associated risks.
Which core concepts are defined in the work?
The work provides definitions and conceptual delimitations for crowdsourcing, outsourcing, business models, and the value chain model.
What is the main objective of the study?
The objective is to identify the challenges and opportunities of crowdsourcing in the business industry and analyze its impact on current business models.
What methodology is applied?
The author uses a literature-based analysis to define concepts and investigates the impact of crowdsourcing through the lens of established management frameworks like Porter’s Value Chain.
What is covered in the main section?
The main section covers the conceptual definitions, the specific challenges such as information disclosure and cultural barriers, and the strategic opportunities for productivity and innovation.
Which keywords best characterize the work?
Key terms include Crowdsourcing, Business Model, Value Chain, Innovation, Outsourcing, and Competitive Advantage.
What is the main challenge associated with crowdsourcing?
The main challenge is effective project management, particularly regarding the management of information disclosed to the public and the potential for cultural or language barriers.
How does crowdsourcing impact Porter’s Value Chain?
Crowdsourcing can be integrated into various steps of the value chain, such as customer service, marketing, and product development, to enhance innovation and reduce costs.
What future business model does the author suggest?
The author suggests the emergence of specialized crowdsourcing agencies that provide experienced project management to benefit both clients and crowd participants.
- Quote paper
- Malik Dakdaki (Author), 2016, International Crowdsourcing as a business model. Challenges and Opportunities, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/369320
