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Crowdsourcing and Crowdfunding Paul Dombowsky
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Crowdsourcing and Crowdfunding Paul  Dombowsky  

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Will  Rogers  famously  said  that  “Everybody  is  ignorant,  just  on  different  subjects.”    One  of  the  lessons  of  modern  social  media  is  that  the  reverse  is  also  true:  everyone  is  knowledgeable,  just  on  different  subjects.  Social  media  and  crowdsourcing  provide  unique  ways  to  tap  into  that  knowledge.      BiIle,  Haller  and  Kadlec  –  Promising  PracMces  in  Online  Engagement,  Australia  

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Citizen Engagement Spectrum The  shiP  to  the  right  makes  for  happier  ciMzens  –  what  about  staff?  

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Defined  An  engagement  process  whereby  organizaMons  seek  input  from  either  open  or  closed  communiMes  of  people,  either  homogenous  or  not,  to  contribute  ideas,  soluMons,  or  support  in  an  open  process  whereby  the  elements  of  creaMvity,  compeMMon  and  campaigning  are  reinforced  through  social  media  to  come  up  with  more  powerful  ideas  or  soluMons  than  could  be  obtained  through  other  means.    

Why  Bother?  OrganizaMons  have  a  difficult  Mme  engaging  with  their  communiMes  to  strengthen  their  relaMonship  and  be  ciMzen/crowd  focused.  Internal  or  external,  the  community  has  ideas  that  can  be  harnessed  that  come  from  diverse  backgrounds,  experiences  and  educaMon.    

Crowdsourcing

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Citizen Engagement for Your City

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•  There  are  many  one  way  conversaMons  happening:  •  Blogs  

•  Newmarket  Town  Hall  Watch  •  GreenAssassinBrigade  •  NewmarketHappenings    

•  Podcasts    

•  Make  no  mistake  –  your  ciMzens  want  to  be  involved  in  transforming  the  City  of  today  to  City  2.0.  

•  Where  is  the  engagement?  Where  is  the  innovaMon  happening?  

Driven  by  Social  Media  Pla_orms  

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ONLINE ENGAGEMENT

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IdenMfying  problems,  opportuniMes  or  future  issues  

Policy  ConsultaMon  

Customer  Service  and  Service  Delivery  

CommunicaMon  and  PromoMon  

Use  Cases  

Land  Use  and  Development  

Programs  and  IniMaMves  

Listen  &  IdenMfy  (Audience  Analysis)  

Inform  (InformaMon)  

Consult  &  Involve  

(ConsultaMon)  

Collaborate  &  Empower  (CollaboraMon)  

Levels  of  Engagement  Lifecycle  

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 Explicit  Experts  

Emergent  Experts  (community  leaders,  front  

line  stakeholders)  

General  Audience  

Who is your crowd?

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CITY  

Engagement  Targets  

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Where Innovation / Crowdsourcing Fits

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Community  

Open  Space  How  we  gather  

Social  Media  How  we  talk  

Leadership  How  we  inspire  &  

enable  

Open  InnovaMon  

Crowdsourcing  Where  ideas  come  from  

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Innovation: Crowdsourcing vs The Survey

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Crowdsourcing   Surveys  

•  Lends  itself  to  diversity  of  parMcipaMon  •  Fewer  barriers  to  parMcipaMon  •  Drives  innovaMon  –  new  ideas  from  leP  

field  that  have  merit  •  Easy  to  interpret  –  the  crowd  generally  

makes  things  clear  •  Comments  are  focused  

•  Great  for  solidifying  preconceived  ideas  or  direcMons  

•  Hidden  •  Requires  interpretaMon  which  is  open  

to  biases  by  reviewers  •  Doesn’t  encourage  creaMvity  

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The Appeal

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•  Crowdsourcing  surfaces  new  perspecMves  •  Invites  parMcipaMon  from  nontradiMonal    

sources    •  Infuses  real  energy  into  the  process  of  generaMng  ideas    

and  content  •  Empowers  people  when  they  feel  their  voice  is  being  heard  •  Technology  can  enable  parMcipaMon  by  disenfranchised    

(ie.  PCs  in  libraries/shelters  with  ciMzen  engagement  campaigns)  

•  Builds  engagement  and  relaMonships  with  new  audiences  

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Things to Watch For

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•  Excessive  lobbying  and  promoMon  •  Narrow  crowds  product  narrow  results  •  No  follow-­‐through  causes  creditability  hit  •  If  you  say  you  are  generaMng  soluMons  for  X,  communicate  

what  happened  and  why  •  Broad  ideaMon  campaign  descripMons  will  result  in  less  focused  

results  BUT  too  narrow  will  restrict  creaMvity  •  Dismissing  ideas  that  seem  far  fetched  •  IdeaMon  oPen  requires  refinement  –  understanding  what  your  

crowd  is  saying  by  ‘x’  

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NYC  CiMzen  Engagement  Program  

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Example 1: Citizen Engagement

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San  Francisco  Engage4change  CiMzen  Engagement  Program  (2  weeks)    •  No.  of  Engagements  =  2252  •  Referrals  =  64%  from  TwiIer  •  Cost  =  500  ice  cream  cones  ($1,000)  •  Humphry  Slocombe’s  Crowd  

=  320,000  twiIer  followers  and  Facebook  Friends  

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Example 2: Citizen Engagement in SF

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Launched  in  May  of  2012    Designed  to  move  ideas  for  improving  Scouts  and  the  web  experience  from  email  to  an  open  innovaMon  pla_orm.  

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Example 3: Myscouts Innovation

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Example 4: Open Innovation with Citizens City  of  OIawa  Have  a  Say  Sustainability  Campaign  

Case Study

CITY OF OTTAWA: Choosing our Future Campaign The City of Ottawa selected the Ideavibes Crowd Engagement Platform™ as a pilot project to test crowdsourcing and the Ideavibes tool to generate interest, awareness, engagement, innovation and momentum leading up to the release of 3 draft plans focused on sustainability.

Key Successes1. Engagement and participation from new voices

2. Demonstrated the public is ready to make sustainable choices

3. Sparked innovation in the community around an important issue for the future

Critical Success Factors

The critical success factor for the ‘Have a Say’ campaign was to provide an acces-sible process that would open a channel for innovation for those who:

• are high-interest but have limited capacity for engagement

• do not or are unable to attend public events

• are not comfortable being vocal but whose voice deserves to be heard

• want online alternatives for engagement - choice and variety

Purpose of this Engagement

The purpose of this campaign, and the use of the Ideavibes Crowd Engagement Platform, was to generate conversation and innovation around sustainability in our community, inspire personal actions, hear from a new audience and embrace ideas from those not normally heard from, be able to spread the word about the initia-tive by tapping into social media, engage large numbers of citizens in a cost effective, transparent, innovative and sustainable way, and generate momentum and energy leading to the release of the plans.

Goals

The City of Ottawa had a number of goals they needed to fulfill with this process:

• Generate ideas and gauge support

• Increase social media presence

• Continue building relationships with new audiences

• Demonstrate that the public is ready to make sustainable choices

• Engage at least 1000 participants

How Citizens Participated

The campaign’s central question was: What is your idea for how the Cities of Ottawa and Gatineau and the National Capital Commission (NCC) can make our Capital Region more sustainable? What choices will you personally make to create a more sustainable future? Then citizens were able to participate in one or more of four ways in either English or French:

• Vote on ideas they supported

• Submit a new idea

• Comment on existing ideas

• Share ideas (Twitter, Facebook, Email)

Results

The City of Ottawa exceeded their goals through this engagement process using the Ideavibes Crowd Engagement Platform. During the campaign, over 6000 were engaged with:

• 213 Ideas generated

• 150 Comments made

• 6122 Votes cast

• Tripling of website visits and average time on the site

• Over 50% of referrals to the campaign came directly from the crowd

Ideavibes

Ideavibes has developed the first Crowd Engagement Platform to enable organizations to create crowdsourcing and/or crowdfunding campaigns that use the power of social media and tapping into the wisdom of crowd to strengthen relationships through engagement and participation. It’s about starting innovative projects, building better products, setting new directions, driving innovation, being more community-focused, funding worthy initiatives and sparking social change.

www.ideavibes.com | @ideavibes | blog.ideavibes.com | [email protected] | +1.613.878.1681

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Example 5: State of Washington Budget Ideas  for  cutng  the  state  budget  were  generated  with  this  online  campaign:  -­‐  2,000  ideas  posted  -­‐  130,000  votes  cast  

Problems:  Ideas  not  implemented  –  reasoning?  -­‐  State  said  some  ideas  did  not  take  into  account  

the  complex  relaMonship  between  Federal  and  State  Government  

-­‐  Most  popular  idea  –  end  the  ability  of  reMred  employees  to  double  dip  –  collect  pension  and  work  as  a  contractor.  Not  implemented  due  to  poliMcal  nature  of  issue.  

-­‐  CiMzens  leP  wondering  –  is  crowdsourcing  a  legiMmate  exercise,  or  only  for  public  relaMons?  

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Example 6: Development Site in NY

hIps://popularise.com/ciMes/1/neighborhoods/1/projects/1    

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Possibili;es  include:  •  Property  development  –  front  end  –  what  do  you  want  to  see  here?  •  RecreaMon  programs  •  Policy  development  •  BudgeMng  –  what  would  you  be  willing  to  sacrifice  to  do  X  •  How  should  we  celebrate  X?  How  should  we  honour  Mr/Mrs.  X?  •  We  have  a  problem  with  X  (ie.  Vandalism)  –  what  should  we  do  to  solve  it?  

(could  be  broad  or  hyper  local)  •  Process  changes  •  The  how  to  implement  for  new  programs  and  policies  

More Crowdsourcing for Your City

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It all starts with a Question or Problem

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•  Needs  to  be:  – Clear  and  compelling  – Not  leading  – Allow  for  open  innovaMon  – Encourage  parMcipaMon  – Allow  for  outliers  to  feel  comfortable  

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So  many  definiMons  …  

According  to  Wikipedia  –  crowdfunding  describes  the  collecMve  cooperaMon,  aIenMon  and  trust  by  people  who  network  and  pool  their  money  and  other  resources  together,  usually  via  the  Internet,  to  support  efforts  iniMated  by  other  people  or  organizaMons.  Crowdfunding  occurs  for  any  variety  of  purposes,[1]  from  disaster  relief  to  ciMzen  journalism  to  arMsts  seeking  support  from  fans,  to  poliMcal  campaigns,  to  funding  a  startup  company,  movie  [2]  or  small  business[3]  or  creaMng  free  soPware.    Crowdfunding  is  a  type  of  crowdsourcing.  

What is Crowdfunding?

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Types of Crowdfunding

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49%  

18%  

22%  

11%  DonaMon  Based  

Equity  Based  

Lending  Based  

Reward  Based  

DonaMon  Based  

Equity  Based  Revenue    &  profit  sharing  

Lending  Based  

P2P  lending,  P2B  lending  &  

social  lending  

Reward/Preorder  Based  

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Crowdfunding Worldwide

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US$1.5BN  2011  –raised  through  crowdfunding  globally  

452  04/2012  –  Number  of  Crowdfunding  Pla_orms  

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Why? •  There  was  a  gap  for  funding  ‘stuff’  and  the  

market  filled  the  need  with  a  new  channel  •  The  gap  was  for  a  new  way  to  fund  change  

•  InnovaMon  •  CreaMve  endeavors  •  Startups  •  ChariMes  –  new  channels  

•  ReflecMon  of  the  dissaMsfacMon  with  current  channels  for  funding  

•  Control  maintained  by  the  creators/founders  •  Funders  aren’t  looking  for  control  –  they  just  

want  to  parMcipate  /  belong  /  connect  

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Mind the Gap – Small Business Funding •  Over  the  past  17  years,  65%  of  net  new  jobs  came  from  

small  business  •  Small  business  /  start-­‐ups  used  to  find  funding  by  

tapping  into  savings,  home  equity  and  friends/family  •  Savings  rates  have  declined  and  home  equity  has  been  

disappearing  •  $51b  invested  in  US  start-­‐ups  in  2010  –  accredited  

investors  made  up  only  19%  -­‐  majority  came  from  friends  and  family  ($41.6  billion)  

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•  Ideas  and  informaMon  produced  by  and  on  behalf  of  the  ciMzen  or  the  crowd  

•  Crowd  is  empowered  to  spark  the  innovaMon  that  will  result  in  an  improved  approach  to  governance  

•  Move  away  from  ‘Vending  Machine  Government’          •  Responsibility  is  shared  between  ciMzens  and  staff  

Government as a Platform

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Pay  Taxes   Expect  Services   Repeat  

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•  Central  portal  where  both  ciMzens  (have  one  view),  and  City  staff  (have  a  different  view),  can  see  all  engagement  happening  at  any  given  Mme  –  list  and  mapped.  

•  City  staff  –  create  campaigns  based  on  requirements  –  help  in  choosing  the  right  methodology  and  tool  set  (town  hall  meeMng,  survey,  crowdsourcing,  etc.)  

•  CiMzens  –  quickly  be  able  to  check  consultaMons  relevant  to  them  –  see  results.    

•  Single  pain  of  glass  or  panel  approach  to  engagement  •  It  could  look  like  this:…  

Vision for Engagement for Cities

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Possible Option for Citizen Engagement Portal

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•  Easy  to  set-­‐up  and  deploy  •  Able  to  run  mulMple  campaigns  at  once  •  Can  run  Crowdsourcing  and  Crowdfunding  Campaigns  •  Build  sMckiness  and  community  around  those  that  engage  (sign-­‐in  and  see  

past  votes,  comments,  ideas)  •  Hosted  soluMon  (in  Canada)  •  Able  to  be  implemented  on  exisMng  website  or  set-­‐up  in  new,  desMnaMon  

site  •  Social  Media  connected  •  Pay  per  campaign  model  –  mulMple  campaigns  

can  be  run  at  once  

Ideavibes Citizen Engagement Platform

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Thank you – Questions? Paul  Dombowsky  |  613.878.1681  |  [email protected]  |  www.ideavibes.com