Crowdsourcing: The Business Model for Reinventing the Government

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Crowdsourcing: The Business Model for Reinventing the Government Dr. Michele Osella Head of Business Model & Policy Innovation Unit Copenhagen, 16th October 2014 @MicheleOsella #CSWEurope

description

Invited talk given at CrowdSourcing Week Europe 2014

Transcript of Crowdsourcing: The Business Model for Reinventing the Government

Page 1: Crowdsourcing: The Business Model for Reinventing the Government

Crowdsourcing: The Business Model for

Reinventing the Government

Dr. Michele Osella Head of Business Model & Policy Innovation

Unit

Copenhagen, 16th October 2014

@MicheleOsella

#CSWEurope

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Joy's Law“No matter who you are, most of the smartest people work for

someone else”

Bill Joy – Co-founder of Sun Microsystems

The Harsh Reality

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Networked Enterprises

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Crowdsourcing as Lever of Business Model Innovation

Crowd$ourci

ng

Longevity

Dependence on the crowd

Innovativeness curve

Radical

Incremental

‘Old guard’

‘New guard’

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The Crowdsourcing Space

Fertile soil for private sector business models

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Business Model Archetypes

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Archetypal Business Model A – Brain Attraction

Facilitation in finding solutions to well-defined problems

Seekers (charged side of the market)

Two-sided crowdsourcing platform

Generally medium or long term

Generally medium or long term

Seeker support, challenge definition, solution awarding, platform management

HR, IT estate, marketing mix

Solvers (funded side of the market)

Facilitation in finding challenges matching professional abilities

Solver community, brand reputation

Fees to list challenges, commissions on the awarded amounts, consulting fees

Giant companies for ad-hoc programs, donors for non-profit programs

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Archetypal Business Model B – Innovation Consumption

Enterprise offering

Company customers

Short, medium or long term

Need definition, IP management, platform management, product development

HR, R&D costs, production costs,compensations for external solutions

Product or service revenues

Solvers

Solver community, financial resources, R&D competences

Company channels

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Archetypal Business Model C – Social Product Development

Provision of cutting-edge products

Consumers, both members and non-members (charged side of the market)

Internal or external shopsCommunity-like platform

Generally medium or long term

Generally medium or long term

Product evaluation, product engineering, community engagement

HR, IT estate, influencer rewards, inventor rewards, development costs

Facilitation in cooperative product development

Innovator community, brand, skills in product development

Product sales

Suppliers, external wholesale distributors, external retailers

Members acting as inventors or influencers (funded side of the market)

Ex-ante submission fees (if any)

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Archetypal Business Model D – Labor as a Service

Access to a global, on-demand, scalable, 24 x 7 workforce

Requesters (charged side of the market)

Human intelligence marketplace platform

Generally short or medium term

Generally medium or long term

Order decomposition, micro-task supervision, quality check, order packaging

IT estate, compensations for completed micro-tasks

Individual workers (funded side of the market)

Facilitation in finding temporary tasks matching personal abilities

Worker community, brand reputation

Payments for completed orders, fees for consulting and added-value services

IT infrastructural providers

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The Nagging Question

Could this new wave of business models

be tapped by the government?

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Changing the Government – The Golden Circle

Need to generate

higher societal

impact with less resources

Providing fresh inputs that usher-in benefits in terms of

opportunity, time, and

costs

Crowdsourcing

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Creative Disruption?

Government 1.0

Government 2.0

“Bureaucratic administration means

fundamentally domination through knowledge”

Max Weber

“Government stripped down to its core, rediscovered and reimagined as if for the first

time” Tim O'Reilly

Bureaucracy as dominant governmental platform of the

20th century

Governments still in search for a governmental platform

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Next-generation government =outcome-based government + extended

government

Next-Generation Government Equation

Viable business model underlying governmental

operations

Collective intelligence as lifeblood of problem solving

mechanisms

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A Business Model for the Government?

Not everything that is profitable is of social value and not everything of

social value is profitable.

The governmental

business model is not about being

profitable, is about being sustainable!

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The Extended Government in a Nutshell

Extended government ushers in new

opportunities for grassroots

participation

Extended government opens the government not only for the sake of transparency

Extended government leverages network dynamics

Extended government turns the government into a platform

Switchboard connecting a

distributed and networked

community

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Examples of Crowdsourcing at Work in Government

Datapaloozas(USA

Government)

Challenge.Gov(USA

Government)

G-Cloud(UK Government)

ReCaptcha usage (many

governments)

Brain attraction

Innovation consumption

Social product development

Labor as a service

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To smoothly orchestrate the two souls of crowd engagement, depending on needs and expected results…

The Maturity of Crowdsourcing in Government

Participation Problem solving

Objective Opinion gathering Solution collection

Expected result Legitimacy Tackling of grand challenges

Crowdsourcing approach

Wide Wise

Focus How What

Motivation to participate

Intrinsic Intrinsic + Extrinsic

Users’ driving force Collaboration Collaboration + Competition

Prominent metric Number of individuals involved

Number of top-notch solutions

Signal-to-noise ratio Low High

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“The government is us. We are the government.”Theodore Roosevelt (1902)

“The crowd is us. We are the crowd. We can change the government.”

CrowdSourcing Week (2014)

Conclusions

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Thanks for your attention!

We believe in collaboration as a powerful source of innovation.We consider interdisciplinarity as a genuine multiplier of opportunities.We are optimistic.

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Contacts

Dr. Michele OsellaHead of Business Model & Policy Innovation UnitIstituto Superiore Mario BoellaE-mail: [email protected] Twitter: @MicheleOsellaLinkedIn: linkd.in/MicheleOsella Web: www.ismb.it/michele.osella