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Analysis Of Crowdsourcing Campaigns And Their Success

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Analysis of Crowdsourcing Campaigns and their Success
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Capitalizing on the impact of information technology-based tools, crowdsourcing
helps companies to innovate faster and arrive at business solutions cheaply and quickly than
ever before. Devece, Palacios & Ribeiro-Navarrete (2019) define crowdsourcing as the aspect
of outsourcing an organizational activity or function to a network of people, who are in most
cases customers or business experts in the related field, in form of an open call. In this aspect,
crowdsourcing is helpful since it helps companies to identify market trends, obtain market
feedback on their business idea, collect novel ideas, innovate their products and perform
tedious tasks. Largely, crowdsourcing helps to offer great creativity at moderately or lower
costs. Nevertheless, crowdsourcing strategies must be approached with general and effective
guidance and strategy to avoid it from suffering from poor deployment. Therefore, an
assessment of the impact of crowdsourcing strategies that companies and businesses have
used in the past five years helps to generalize and understand the efficiency of crowdsourcing
and whether it should be fully adopted.
Lego is one of the companies that have capitalized on the impact of crowdsourcing.
Lego, a toy company allows its users to design new products and then test the demand of
such products through voting for them on its platform. Any user is eligible to submit their
designs, which other users vote for. In this case, the business model that Lego uses is that;
any user is free and eligible to design and submit a product design, followed by a short
description of such product, and other users can vote for it. Idea submissions that rack up
10,000 votes are reviewed by the companys Lego Review Board and it moves to the
production phase. The creator of the successful submission receives a royalty of 1 percent of
the net revenue of such a product. The creator is also identified to the public as the creator of
the product. The strategy has been impactful to the company since it produces products that
are most enticing to the market since the ideas are from the market. Additionally, the
experience of the community engaged in the design and voting of the products makes them

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1 Analysis of Crowdsourcing Campaigns and their Success Name Professor Course Date 2 Capitalizing on the impact of information technology-based tools, crowdsourcing helps companies to innovate faster and arrive at business solutions cheaply and quickly than ever before. Devece, Palacios & Ribeiro-Navarrete (2019) define crowdsourcing as the aspect of outsourcing an organizational activity or function to a network of people, who are in most cases customers or business experts in the related field, in form of an open call. In this aspect, crowdsourcing is helpful since it helps companies to identify market trends, obtain market feedback on their business idea, collect novel ideas, innovate their products and perform tedious tasks. Largely, crowdsourcing helps to offer great creativity at moderately or lower costs. Nevertheless, crowdsourcing strategies must be approached with general and effective guidance and strategy to avoid it from suffering from poor deployment. Therefore, an assessment of the impact of crowdsourcing strategies that companies and businesses have used in the past five years helps to generalize and understand the efficiency of crowdsourcing and whether it should be fully adopted. Lego is one of the companies that have capitalized on the impact of crowdsourcing. Lego, a toy company allows its users to design new products and then test the demand of such products through voting for them on its platform. Any user is eligible to submit their designs, which ot ...
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