Crowd sourcing in today era is commonly used by the business firms. Cost cutting and getting highly skilled labors are two factors that are motivating firms to resort to crowd sourcing sources (Brabham, 2017). In the present research study crowd sourcing types are explained in detail. Crowd wisdom, crowd funding, crowd creation and crowd voting are types of crowd sourcing. Crowd wisdom is used when firm intend to develop unique thing or intend to solve specific problem. Crowd funding is used when firm intend to raise equity without losing its stake or losing only small percentage of stake relative to VC. Crowd creation is used when firm have specific problem intend to obtain useful suggestions from individuals. On other hand, crowd voting is used when any company intend to know public opinion so as to prepare products according to people needs and wants. At end of the report, Oscar plastic crowd funding case is analyzed and merits as well as demerits of crowd funding are discussed in detail.
What is crowd sourcing?
It is the arrangement under which firm or company gets done work through others through online platforms. Work may be any; it may be related to productive activity or may simply be just a data collection task. Practice under which to get task done company do not keep in-house team and hire individuals online is known as crowd sourcing.Search for skilled HR is the one of the main objectives behind crowd sourcing practices of the firms (Borchert, and et.al., 2017). When company intends to develop complex algorithms, it basically resorts to the crowd sourcing in order to get word done in an accurate way on time from a skilled person. Cost cutting is another factor that motivates firms for following crowd sourcing practice in the business. To in-house team a firm needs to pay fixed salary considering cost of living in the city. On the other hand, under crowd sourcing firms can obtain HR at very low cost relative to the cost they have to bear if they keep in-house team. Hence, at low cost, highly skilled individual can be hired by the firm from anywhere in the world. Crowd sourcing assist firms in cost cutting and getting work done through skilled professionals in proper manner and on time (Cumming, and et.al., 2020).
On analysis of all types of crowd sourcing it is identified that these help firms to cut their HR cost and get work done through talented individuals on time. Thus, work is received on time and of best quality. This is the reason due to which crowd sourcing become very popular among firms.
Books and Journals
Borchert, K., and et.al., 2017. Impact of task recommendation systems in crowdsourcing platforms.
Brabham, D.C., 2017. Crowdsourcing. The international encyclopedia of organizational communication. pp.1-6.
Cumming, D.J., and et.al., 2020. Disentangling crowdfunding from fraudfunding. Max Planck Institute for Innovation & competition research paper. (16-09).
Hornuf, L. and Neuenkirch, M., 2017. Pricing shares in equity crowdfunding. Small Business Economics. 48(4). pp.795-811.
Huang, Y. and Chen, M., 2019. Key Technology Difficulties of Crowdsourcing in Petrochemical Industry. Chemistry and Technology of Fuels and Oils. 55(5). pp.635-642.
Poesio, M., Chamberlain, J. and Kruschwitz, U., 2017. Crowdsourcing. In Handbook of Linguistic Annotation (pp. 277-295). Springer, Dordrecht.
Vianna, F., Peinado, J. and Graeml, A.R., 2019. Crowdsourcing Platforms: Objective, Activities and Motivation.
Zogaj, S., 2016. Governance of Crowdsourcing: Managing Crowdsourcing Projects from a Crowdsourcing System Perspective (Vol. 13). kassel university press GmbH.
Vismara, S., 2016. Equity retention and social network theory in equity crowdfunding. Small Business Economics. 46(4). pp.579-590.
Equity crowd funding- a case study., 2019. [Online] Accessed through: