Community service

1 December 2006

Everyone knows that the 'democratic web' is all about building communities - but what if you could get those communities to work for your business? That's the theory behind crowdsourcing.

It's tempting to scoff at attempts to 'monetise' web businesses, particularly if they're not actually selling product. But the commodity many web operations are promoting is their community, and if you've got a powerful brand presence, it's easy to see the attraction. The high-value sales of Friends Reunited to ITV, MySpace to News Corp and YouTube to Google demonstrate that.

Crowdsourcing, a term coined by Jeff Howe in Wired magazine, effectively moves traditional concepts of community to another level. It's taking the open source theory of software development - where everyone pitches in for the greater good - and applying it in a different way. And there seem to be plenty of people out there ready to play. Reevoo, which provides a platform for consumers to submit online product reviews, is just one example. It makes its money from partnership deals with companies like Comet and Dixons that want to find out what their customers really think ( see 'The wisdom of crowds').

The interesting question is - is this a new concept, or simply an old concept repackaged? For years, the business world has talked about collaboration - the idea that suppliers, partners, contractors and customers should be able to work together in a mutually beneficial set of relationships, setting aside hierarchical buyer-seller business models in favour of partnerships among near-equals. Crowdsourcing may ultimately prove to be an extension of that idea. In Reevoo's case, its business partners get first hand information about what their customers really think about their products, which helps them shape future offerings. Members of the community get independent analysis to help them make their own purchasing decisions. Reviewers get a chance to vent. And Reevoo earns fees.

Scary as it may seem, are we actually moving a step closer to 'true' collaboration.?

By David Longworth, Webster Buchanan Research