Crowdsourcing requiring many individual tasks and breaking it

Crowdsourcing and crowdfunding are
important concepts when it comes to new product development. Crowdsourcing is
concerned with the acquisition of information, opinions or work from a large
group of internet users who submit their data in various internet platforms
including social media and mobile apps. Crowdsourcing is mostly done by paid
freelancers though in some instances people voluntarily undertake some small
tasks. Crowdsourcing existed prior to the digital age, and it has been
extremely advantageous in terms of improvements in costs, quality, speed,
diversity, scalability, and flexibility (Smith, 2012). There are various forms
of crowdsourcing such as innovation contests and idea competitions which give
organizations the relevant ideas that are beyond those provided by the
employees. Crowdsourcing allows business organizations to tap into a wide array
of skills and expertise from anywhere around the country or the globe without
incurring higher overhead costs brought about by in-house employees. It usually
encompasses taking a large job requiring many individual tasks and breaking it
down into smaller segments that can be worked on separately by a crowd of
people. Most companies requiring the design of new products usually turn to the
crowd for various opinions and ideas (Gatautis & Vitkauskaite, 2014).
Instead of relying on small focus groups, businesses are able to reach millions
of consumers online, thereby obtaining opinions from diverse cultural and
socioeconomic backgrounds. Sometimes businesses use crowdsourcing to assess the
manner in which the same job is undertaken by multiple people, therefore making
it easier to pick the best.

Crowdsourcing should
be differentiated from crowdfunding which is focussed on seeking money for
supporting individuals, start-ups and charities. Crowdfunding can therefore, be
defined as the pulling together of small amounts of capital from various
individuals in order to finance a business venture (Mollick, 2014). It relies
on theĀ