managing the open: how organizations are opening up to a digital crowd
DESCRIPTION
This study explores how organizations can open their infrastructure in order to manage the collaboration with a digital crowd on the Internet. Therefore, the authors evaluate data from a survey of more than 200 organizations in Germany and expert interviews with managers about their experiences with such a digital collaboration. Building on previous research, the first part of this paper presents a theoretical framework by describing three models of open organizations and Crowdsourcing as a concept to open up to a digital crowd. The next part describes a data sample that is used for evaluating Crowdsourcing in the light of the three models of open organizations. This data sample consists on qualitative semi-structured expert interviews with Crowdsourcing practitioners and a large-scale survey on small- and medium-sized and also large enterprises in order to trace the cooperation between organizations and the crowd in the context of the full range of corporate functions. The penultimate part of this study provides an overview of the research outcome. Finally, the paper ends with a subsequent conclusion.TRANSCRIPT
MANAGING THE OPEN: HOW ORGANIZATIONS ARE OPENING UP TO A DIGITAL CROWD
Stefan Stumpp, PhD candidateProf. Dr. Daniel Michelis
Anhalt University of Applied SciencesBernburg, Germany
Alexander von Humboldt Institute for Internet and SocietyBerlin, Germany
8th-10th September 2014, LAMIPISA Conference 2014Cape Town, South Africa
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INTRODUCTION
The rise of digital networks is constantly and profoundly changing the environment, businesses and organizations they operate in.
This environment is characterized by rapid changes in the communication behaviour of employees and consumers which is
putting pressure on organizations to embrace more openness:
Users of digital networks become creative outside traditional hierarchies. They produce open source software, write journalistic articles, review products, collaborate on joint projects and sometimes rebel against regimes (McCloskey 2006).
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INTRODUCTION
Source:
peere
conom
y.org
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INTRODUCTIONOpenness can offer tremendous opportunities for an organization. The integration of a crowd into businesses enables new potentials for collaboration, e.g. joint developments and production of new products or services.
But while opening up, organizations are also facing conflicts; the clash of open network concepts with traditional hierarchies and its
division of labor and linear processes.
We decided to investigate what is happening in the German market
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STRUCTURE
1 Research Question2 Models of Open Organizations3 Crowdsourcing4 Data Sample: Crowd Study 2014 5 Research Results 6 Critical Points References
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1 RESEARCH QUESTION
Charlene Li (2010) developed three models of open organizations to describe how organizations can embrace more openness and engage with new creative users outside traditional hierarchies: Organic, Coordinated & Centralized Model.
We examined characteristics of the models through the example of Crowdsourcing. For this purpose qualitative and quantitative data
from interviews and a survey of the “Crowd Study 2014 – The Crowd as a Partner of the German Economy” is used.
RQ: “What are the specific characteristics of the Organic, the Coordinated and the Centralized Model in practical application of Crowdsourcing?”
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2 MODELS OF OPEN ORGANIZATIONS
Fig. 1: The Organic Model. Source: Michelis 2014, p. 5.
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2 MODELS OF OPEN ORGANIZATIONS
Fig. 2: The Coordinated Model. Source: Michelis 2014, p. 5
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2 MODELS OF OPEN ORGANIZATIONS
Fig. 3: The Centralized Model. Source: Michelis 2014, p. 5
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3 CROWDSOURCING
The term Crowdsourcing was coined with the intention of accessing the collective intelligence of an undefined network of people in the form of an open call (Howe 2008).
Organization
undefined network of people
Fig. 4: Crowdsourcing. Source: own representation, based on
Michelis 2013.
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FIATSource: http://www.fiatmio.cc
3 CROWDSOURCINGCROWDSOURCING EXAMPLES
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SAP Community Network Source: http://www.sap.com/communities/hub.html
3 CROWDSOURCINGCROWDSOURCING EXAMPLES
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clickworker Source: http//:www.clickworker.com
3 CROWDSOURCINGCROWDSOURCING EXAMPLES
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4 DATA SAMPLE: CROWD STUDY 2014
METHODOLOGY
3 steps:
1 Qualitative semi-structured expert interviews Crowdsourcing practitioners to aggregate collaboration experiences with the Crowd2 Online survey among 212 companies in Germany
3 Results analysis based on the theoretical framework
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4 DATA SAMPLE: CROWD STUDY 2014LARGE-SCALE SURVEY
0 to 10 11 to 250 251 to 500 more than 500 0
20
40
60
80
100
120
140
How many people does your organization employ?
Absolute frequency
Fig. 5: Number of employees in the organizations surveyed. Source: Own representation, based on Al-Ani et al. 2014, p. 13.
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4 DATA SAMPLE: CROWD STUDY 2014LARGE-SCALE SURVEY
Fig. 6: External stakeholders that are involved in the value creation of the organizations. Source: Own representation, based on Al-Ani et
al. 2014, p. 13.
Consumers
Supplie
rs
Consulting
Researc
h insti
tutions
Competitors
Crowd
Start-
Ups0
10
20
30
40
50
60
70
80
Which external stakeholders are involved in the value creation of the organization?
Percentage of positive answers
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5 RESEARCH RESULTS
KEY LEARNINGS FROM EXPERT INTERVIEWS
Collaboration with a Crowd often starts organically: (a) sceptics tend to prevent an opening while forcefully arguing with security arguments and the concern for know-how drain, (b) pioneer employees make use of special circumstances
Only a few Crowdsourcing activities advance from an organic origin up to a coordinated or centralized approach
Even if Crowdsourcing projects are successful, it is not guaranteed, that Crowdsourcing becomes a component of the business policy
Many experiences with Crowdsourcing remain on an individual level
1
4
2
3
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5 RESEARCH RESULTS
KEY LEARNINGS FROM SURVEY
Relatively little attention to Crowdsourcing: (a) limited knowledge of the concept within the organizations, (b) different working styles of the Crowd
Crowdsourcing seems to be more difficult in the strategic areas like research & development, human resources and production
Those organizations that are already collaborating, use existing digital networks as interfaces (e.g. social media): Crowdsourcing in the focus of customer service, market research and marketing
1
4
2
3
Crowdsourcing is often used to support particular business functions, which leads to the assumption that a coordinated model is an appropriate approach
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5 RESEARCH RESULTS
KEY LEARNINGS WITHIN THEORETICAL FRAMEWORK
Depends on individual Crowdsourcing activities introduced by pioneer employees without the instruction of the management board
Organic Crowdsourcing
Leads to blind spots within the organization and experiences often remain on an individual level
1
2
3Most common model of Crowdsourcing!
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5 RESEARCH RESULTS
KEY LEARNINGS WITHIN THEORETICAL FRAMEWORK
Advanced approach as a result of the development of an organic model or a follower strategy where experiences are gained from external sources
Coordinated Crowdsourcing
The management coordinates Crowdsourcing activities centrally but provides employees and departments with a maximum degree of freedom
1
2
3Not widespread!
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5 RESEARCH RESULTS
KEY LEARNINGS WITHIN THEORETICAL FRAMEWORK
Depends on central decision by the management for Crowdsourcing
Centralized Crowdsourcing
Does not find many practical applications because Crowdsourcing is often used for specific problems of business processes like customer service or marketing
1
2
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In the process we identified two critical points: (a) the survey is focusing on the German market and should be expanded
(b) The category of the “Data Mine Crowd” couldn’t be measured directly
6 CRITICAL POINTS
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References
Al-Ani, A., Stumpp, S., Schildhauer, T. (2014). Crowd Study 2014 – The Crowd as a Partner of theGerman Economy. HIIG Discussion Paper Series No. 2014-02. Online availablehttp://papers.ssrn.com/sol3/papers.cfm?abstract_id=2437007 (last accessed on 01/07/2014).
Howe, J. (2008). Crowdsourcing. Why the Power of the Crowd is Driving the Future of Business. NewYork. Crown Business Publishing.
Li, C.: Open Leadership (2010). How Social Technology Can Transform the Way You Lead. NewYork: John Wiley & Sons.
McCloskey, D. (2006). The Bourgeois Virtues. Ethics for an Age of Commerce. Chicago.
Michelis, D. (2013). Vertikale und laterale Wirkungsdimensionen. Digitale Unternehmung. Online available: http://www.digitale-unternehmung.de/2013/03/vertikale-und-laterale-wirkungsdimensionen/ (last accessed on 03/09/2014).
Michelis, D. (2014). Managing the Open: How Organisations Can Use Social Media to Open Up.Deutsche Gesellschaft für internationale Zusammenarbeit (GIZ) GmbH. Online availablehttp://10innovations.alumniportal.com/fileadmin/10innovations/dokumente/GIZ_10innovations_Open-Organisation_Brochure.pdf (last accessed on 30/06/2014). Bonn.
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CORRESPONDING AUTHOR
Anhalt University of Applied SciencesAlexander von Humboldt Institute for Internet and
Society
Stefan [email protected]
anhalt.de