Marketing bán hàng - Chapter 5: Using the crowd

Copyright 2014 Jack M. Kaplan, Marion K. Poetz and Anthony C. WarrenUsing the CrowdPatterns of Entrepreneurship Management5th Edition, Chapter 5CrowdsourcingChapter 5BackgroundCategoriesMotivationsApplicationsCrowd-FundingPresentation OutlineSome Definitions and ConceptsDifferent Types of CrowdsourcingWhy Do People Participate? Applications of CrowdsourcingCrowd-funding Models and UsesCopyright 2014 Jack M. Kaplan, Marion K. Poetz and Anthony C. WarrenChapter 5BackgroundCategoriesMotivationsApplicationsCrowd-FundingCopyright 2014 Jack M. Kaplan, Marion K. Poetz and Anthony C. WarrenCrowd Sourcing Definition"Crowdsourcing is a type of participative online activity in which an individual, an institution, a non-profit organization, or company proposes to a group of individuals of varying knowledge, heterogeneity, and number, via a flexible open call, the voluntary undertaking of a task. The undertaking of the task, of variable complexity and modularity, and in which the crowd should participate bringing their work, money, knowledge and/or experience, always entails mutual benefit. The user will receive the satisfaction of a given type of need, be it economic, social recognition, self-esteem, or the development of individual skills, while the crowdsourcer will obtain and utilize to their advantage that what the user has brought to the venture, whose form will depend on the type of activity undertaken".Enrique Estellés-Arolas and Fernando González Ladrón-de-Guevara, Jnl.Information Science April 2012 vol. 38 no. 2 189-200 Chapter 5BackgroundCategoriesMotivationsApplicationsCrowd-FundingCopyright 2014 Jack M. Kaplan, Marion K. Poetz and Anthony C. WarrenClosed vs. Open InnovationChapter 5BackgroundCategoriesMotivationsApplicationsCrowd-FundingCopyright 2014 Jack M. Kaplan, Marion K. Poetz and Anthony C. WarrenCrowd TasksChapter 5BackgroundCategoriesMotivationsApplicationsCrowd-FundingTYPESFUNCTIONSEXAMPLESCreationGeneration of New Ideas, Content, MediaFilm-making, Software Generation, Virtual ChoirVotingDecision and Choice MakingThreadless, FashionStake, “Who wants to be a millionaire?”, NetflixWisdomAccessing Knowledge and ExperienceGoldcorp, “Who wants to be a millionaire?”, Amazon Books, InnocentiveTournamentsCompeting for the Best SolutionThreadless, Logo DesignCollaborationMulti-Tasking on a ProjectWikipedia, Linux, Virtual Company Design Copyright 2014 Jack M. Kaplan, Marion K. Poetz and Anthony C. WarrenTournament Example Logo Design PlatformsChapter 5BackgroundCategoriesMotivationsApplicationsCrowd-Funding Source: 2014 Jack M. Kaplan, Marion K.Poetz and Anthony C. WarrenOpensource vs. CrowdsourcingChapter 5BackgroundCategoriesMotivationsApplicationsCrowd-Fundingconsortiainternal R&DSource: Chris Grams at 2014 Jack M. Kaplan, Marion K. Poetz and Anthony C. WarrenWhy Participate in a Crowd?Chapter 5BackgroundCategoriesMotivationsApplicationsCrowd-FundingTYPEPERSONAL BENEFITEXAMPLESPhilosophySpiritual Satisfaction to “Make the world a better place”.Anonymous Charity DonationAltruistic“I have done well, I am at the stage in life where I wish to give back”.Named ScholarshipBricolageSatisfaction of doing something that celebrates the excellence of my skills and experience. Attribution is not important.“My logo was chosen by “XY” corporation”. Peer RecognitionExperts in my field can appreciate and respect my contributions.Linux Coder, Research Breakthrough,FameI will be well-known for my contributions.Prize-winnerFinancialI want to make money from my contributionCrowd-funder.Copyright 2014 Jack M. Kaplan, Marion K. Poetz and Anthony C. WarrenCrowdsourcing Applications – Idea GenerationChapter 5BackgroundCategoriesMotivationsApplicationsCrowd-FundingIDEATION – the creation and augmentation of an original ideaPlatforms include - Innocentive, - NineSigma, - Brightidea, - ideascale - AhhhaBeware intellectual property risksMay not be suitable at the early stage of a company UNLESS you just want to exploit an idea without building an organizationCopyright 2014 Jack M. Kaplan, Marion K.Poetz and Anthony C. WarrenChapter 5BackgroundCategoriesMotivationsApplicationsCrowd-FundingBusiness Model DesignQuestionExamplesCan I engage my customers and their crowd contacts in my business in one or more of these roles?Designing productsProviding feedback on my products and servicesSuggesting improvements to my products and servicesBringing new customers to the companyProviding information on preferences or behaviors that can provide value to other customersProviding endorsements on social media platformsProving focused market research dataCreating customer groups to enhance value to services   ThreadlessFashionStake,bucketfeet Onebusaway MiniCooper S ad campaignNetflix, Amazon Facebook Groups VocalPointBenchprepCan I access experts in the crowd that can provide valuable knowledge and know-how in areas such as technology, markets, innovation etc.?ideascaleCan I use experts to undertake specific tasks on an as-need basis?Elance, oDesk livepersonCan I user social networks for market research and attracting early adopters?Facebook, Twitter, GoogleCan I use reward-based crowd funding to access early adopters?Kickstarter, indiegogoCan I design my product or service in such a way that I automatically acquire valuable data on usage, preferences, buying patterns, etc. that will help my company build it’s knowledge base and establish barriers to competitors?Netfllix, AmazonThreadless.com – customers design products for free, sales generated prior to manufacture.Social Networks in Business ModelsBusiness Model Example - ThreadlessCopyright 2014 Jack M. Kaplan, Marion Poetz and Anthony C. WarrenChapter 5BackgroundCategoriesMotivationsApplicationsCrowd-FundingP&G’s Social Network for Moms with Kids provides new ideas and viral marketing.Business Model Example - VocalpointCopyright 2014 Jack M. Kaplan, Marion Poetz and Anthony C. WarrenChapter 5BackgroundCategoriesMotivationsApplicationsCrowd-FundingOther ApplicationsCopyright 2014 Jack M. Kaplan, Marion K. Poetz and Anthony C. WarrenChapter 5BackgroundCategoriesMotivationsApplicationsCrowd-FundingFUNCTIONDESCRIPTIONPLATFORMSADVICEAccessing Experts for Knowledge, Solving Problems, Answering QuestionsoDesk, eLance, Findanexpert, Prestoexperts, Freelancer, Liveperson, LinkedIn, Specialist Sites, HIRING/SEARCHLooking for more permanent employees and consultantsLinkedIn, Monster.comMARKET ENTRYAccessing first customers / early adopters without large market development costsSmoke-screen web-sites, social media, kickstarterCopyright 2014 Jack M. Kaplan, Marion K. Poetz and Anthony C. WarrenChapter 5BackgroundCategoriesMotivationsApplicationsCrowd-FundingSummary of ApplicationsTaskPlatform ExamplesAsking a questionAsk.com, yahoo answersGetting adviceFindanexpert, prestoexpertAccessing expertsoDesk, eLance, FindanexpertContracting expertsoDesk, eLance, specialist networks, FreelancerHiringLinkedIn, MonsterMarket researchTwitter, Google, Facebook, aytm.comMarket entry supportLivepersonAccessing early adoptersTwitter, Google, kickstarter, indiegogoGrowth In Crowd-FundingCopyright 2014 Jack M. Kaplan, Marion K. Poetz and Anthony C. WarrenChapter 5BackgroundCategoriesMotivationsApplicationsCrowd-FundingSources: www.statista.com and www.massolution.com Copyright 2014 Jack M. Kaplan, Marion K. Poetz and Anthony C. WarrenChapter 5BackgroundCategoriesMotivationsApplicationsCrowd-FundingEntrepreneurAm’t Raised$’000’sNumber ofPledgesDateProjectAmanda Palmer1,20024,8836/2012New AlbumHans Fex1,2275,0303/2014“Mini-museum”Rob Thomas5,70091,5854/2013Feature FilmZach Braff3,10046,5205/2013Feature FilmSpike Lee1,4006,4218/2013Feature FilmFreddie Yong80810,6122/2013Video GameMarina Abramovic6614,7658/2013Arts TheaterKano Tech Inc.1,50013,8876/2014Learning SoftwareFlint & Tinder Inc.1,1009,2264/20131-Year HoodieExamples of Some Large Crowd-Funding ProjectsCopyright 2014 Jack M. Kaplan, Marion K. Poetz and Anthony C. WarrenTypes of Crowd-FundingChapter 5BackgroundCategoriesMotivationsApplicationsCrowd-FundingTYPEDESCRIPTIONPLATFORMSREWARDDifferent levels of rewards are promised to project funders, no dilution of equity, “all-or-nothing” and “keep-it-all” structures.Kickstarter, indiegogo,DONATIONMore like a charitable contribution to support a person or cause.Gofundme, Pave.comLENDINGFunders lend small amounts of money to companies, the loans may be collaterized.Lendingclub, zopa.com, KivaEQUITYFunders own a small number of shares. Regulatory issues abound. Owners suffer dilution, and may hinder later funding options.Crowdcube, seedrs, startupvalleyHYBRIDUsually a combination of rewards and equity to match different stages of growthFundable.comCopyright 2014 Jack M. Kaplan, Marion K. Poetz and Anthony C. WarrenGrowth of Portals by TypeChapter 5BackgroundCategoriesMotivationsApplicationsCrowd-FundingSource: Statista.comCopyright 2014 Jack M. Kaplan, Marion K. Poetz and Anthony C. WarrenPros and Cons of Crowd-FundingChapter 5BackgroundCategoriesMotivationsApplicationsCrowd-FundingRISKS/BURDENSBENEFITSLoss of reputation if targets are not metPromotion to a large audience/customersLoss of IP protection of ideasReceiving market feedback/beta testingFear of abuse under regulatory uncertaintyAccessing the wisdom of the crowdInability to raise further funds from existing donors/investors or institutional investorsAccess to funds at the early stage of a companyLow valuation when selling sharesRetention of operating controlHeavy commitment to communication to a large crowdPlatform use provides guidance and reduces legal costsCopyright 2014 Jack M. Kaplan, Marion K. Poetz and Anthony C. WarrenFactors to ConsiderChapter 5BackgroundCategoriesMotivationsApplicationsCrowd-FundingISSUECOMMENTSLow Growth Near Term TargetUse Reward or Donation, avoid EquityBuilding Value to SellUse Reward or Equity, Research RegulationsSeveral Rounds Needed?Stay with Reward as long as possibleWhich platform?Compare to other projects, check with successful challengers on the platformPriming the pumpHave 25% already in hand before startingWhat if it fails?Always have contingency plans in placeWhat is it is super successful?Have plans to use the extra funding.It sounds too easy!It is not, and you will need to provide a lot of time to the process.Preparation efforts?Check that you meet ALL the requirement of the portal BEFORE you start work.