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by Kevin Dodds

Crowdsourcing can be a difficult concept to understand. The rise of “private” crowds would seem to muddy the waters even further, but this emerging phenomenon is worth a closer look.

Workers participating in labor marketplaces like the Amazon Mechanical Turk or eLance are members of “public” crowds that almost anyone can join. These workers are independent and do any task that suits their abilities from wherever they happen to be. A first attempt at posting a crowdsourcing project to a public crowd can be like bungee-jumping into the unknown—you never know what you’ll run into or what the final result will be. With time to train and analyze a public crowd it can, however, be winnowed down to a team of reliable workers producing consistent output.

With private crowds, on the other hand, assignments are not publicly available and only go to workers who have specific expertise so there is less risk involved. For example, a private crowd of topographic specialists would be able to handle a mapping project quickly and accurately, outperforming the general public.

A particularly interesting type of private crowd is a company’s own employees. Firms that do a mixture of regular, ongoing work and highly seasonal activities (quarterly or annual financial filing dates, tax form preparation seasons, peak travel or shopping seasons) are particularly well-suited to crowdsourcing their tasks. Many companies struggle to handle seasonal work with their regular full-time staff, but are equally averse to deploying external resources because they are hard to optimize due to the cycles of hiring, training, firing, rehiring, and retraining they require. A blend of internal staff and public crowds, however, can solve this problem, stabilizing the company’s resource allocations across busy and slow seasons.

Once a public crowd of screened and trained outside workers becomes part of the workflow, it’s possible to address high seasonal peaks by directing work to the crowd and eliminating bottlenecks. Furthermore, during slow periods tasks that were outsourced during the peak season come back in-house to the private crowd, making the in-house workforce far more productive and cost-effective. In both cases a steady flow of low-priority interdepartmental data tasks are particularly well-suited to filling in the slow periods. Increasingly companies are awash with all kinds of data projects so these no longer have to languish on the back burner in a classic win-win scenario.

Expect to hear a lot more about private crowds in the near future or, better yet, plan for your own!

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posted by Shyamali Ghosh on August 21, 2014

by Matt Manning

People often ask me about the Austin ‘recipe’ that has created such a remarkable environment for innovation here in Central Texas. The recent “Chasing Greatness” thought leadership speaker series held by Spredfast and Google last week offered some clues to this with their excellent panel of Austin innovators. Here are some highlights of what is happening from the inside of a couple of Austin’s smartest and fastest growing firms:

Cotter Cunningham is Founder, President and CEO of RetailMeNot, Inc. (RMN), formerly Whale Shark Media. For all his success, Cunningham is no stranger to failure. He went from being the COO of a successful public company (Bankrate) to the CEO of a failed start-up that lost $2.5MM. He was then chosen by Austin Ventures to lead RMN.

When RMN went public in 2013, they insisted that the NASDAQ bell ring in Austin rather than New York so the whole team could be a part of the event. The company now has 550 employees worldwide, 370 of which are in Austin. Keeping key staff happy is key for RMN—one of their most popular perks is offering free lunches for everybody. Transparency is also key. Cunningham gives weekly talks on recent events, so when the stock price dips or there are other areas of employee concern, the plan for fixing the problem is shared quickly and forthrightly. RMN is currently focused on mobile.

Cunningham discussed disruptive business models, telling the audience, “Businesses that rely on their scale to keep competition at bay no longer have that advantage.” On the subject of new product innovation, he said “Consensus is death.” Getting buy-in from diverse stakeholders is great, he explained, but innovation cannot be a democracy where everyone has an equal vote.

Natanya Anderson, Director of Social Media and Digital Marketing at Whole Foods, had a different perspective on disruptive business models. As a large firm with 400+ stores, WFM tries to keep a close eye on nimble potential competitors. They analyze which technologies could be the most disruptive and choose their battles to address the threat or opportunities they represent.

On failure, Anderson has a forward-looking approach. She said she has learned to admit when something is not working, go back to her managers to confirm that the investment is lost, and suggest another approach. No cover-ups or excuses, just “what’s next?” She reduces the risks of failure by getting more buy-in from all stakeholders: rather than forcing people to do something a certain way, I suggest, adjust, refine, and then deploy. Keys to success are the quality of the product and the attitude of the staff. She emphasized that success cannot be a chance to rest on your laurels, but rather it’s the time to plan again for the next initiative.

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posted by Shyamali Ghosh on August 20, 2014