Week 2 -- Crowdsourcing

What did I watch/read:

I watched / read the text and clips on crowdsourcing as well as the podcast "info liquidity". I also checked out the post on how to build a startup w/o writing code. I still want to watch the Alma Whitten video clip on internet security.

What were the most important/interesting topics I came across the last week and what did I get out of it?

The main topic of the texts and video clips was certainly the concept of crowdsourcing and the opportunities it holds for businesses. Key to a crowdsourcing-powered project is to form an online community where “the crowd” can have a certain degree of ownership of the project or product. The ability to interact with other participants, learn from each other and have fun together in this online community are essential ingredients for a successful crowdsourced business or product developed through crowdsourcing. That business can be a new startup or a project from an established company like P&G. The tradeoff is the lack of control to some degree as well as the release of IP. When set up efficiently crowdsourcing can be very effective since in theory it can tap into an unlimited supply of human knowledge, skill and brainpower. The participants want to contribute to the development of a product and share product related information, which means that marketing efforts by the company can be limited, and the business carries itself. The crowdsourcing concept can be expanded to financing of a product development again by allowing the online community to own a share of a business or product they feel passionate about.

What I found interesting was the P&G example b/c previously I associated crowdsourcing and crowdfunding more with web-based startups with a novel idea, not established big companies. In my own organization the issue of IP would probably prevent opening up development initiatives to the crowd. When thinking about crowdsourcing I also had pure web based activities in mind not engineering and lab R&D, which requires equipment and facilities. 

What would I learn more about:

I’d surely like to learn more about the breadth and reach of crowdsourcing in areas I normally wouldn’t associate with that concept. Since I work in chemical R&D I want to check out InnoCentive or YourEncore. 

I liked the post on how to build a startup w/o writing code and want to dig deeper into the links provided in the post. I also initiated a FB discussion on that topic since some people in my network are very interested in it.

Week 1: Impressions of the “Business Model Generation.”

This blog focuses on the text "Business Model Generation". The text starts off describing the 9 different building blocks which a business model can be broken down into. Based on those building blocks the author introduces a "Business Model Canvas" as a "tool" that helps generate and analyze a business model.  In principal it helps structuring the business plan by identifying key requirements, which the text names "building blocks", and then looking at the various business activities in connection with the building blocks. The canvas shows all those "blocks" on one sheet, allowing the analyst to gain a good overview over the advantages and disadvantages of the business model.

I like the simplicity of the tool and to me the key requirements, or building blocks, of the business model make sense. They might not be exhaustive, but are certainly a good starting point. It doesn't claim to be the only tool needed and doesn't replace other marketing and business analysis tools but rather complements those. It's main advantage is the overview over the main business areas.

Week 1: New opportunities for marketing

"The age of engage" certainly provides an interesting overview over the opportunities the evolution of the web presents for the marketers, but also emphasizes the potential potholes in the road over which a marketer can stumble. The piece nicely lists the differences between the static web 1 and the interactive, inclusive nature of the web 2. It surely is a good time for the consumer to pick and choose information channels and gather info through social interaction on the "life-web". For the marketer it means to give up control over the brand to a certain degree, and it means more of a challenge to anticipate the effectiveness of a marketing campaign, given the uncertain reception it receives in the social web. The company and the marketing group is no longer separated from the society but lives in and is exposed to the community. In a way this is not really a new concept and has always been the case. 50 or 100 years ago townsfolk was talking about shops and businesses in their town, and product related info was spread through social channels rather than from business to customer. The difference now is that we use new social platforms to spread opinions and info in a larger market. This opinions and info provides the feedback necessary for businesses to improve their offerings as well as align their value proposition with the market demands.