DK\’s Blog

June 9, 2006

Crowdsourcing – the Strategy Consultant’s Next Big Thing?

Filed under: Business,Uncategorized — darrenkelly @ 11:20 pm

In olden days, strategy consultants from Bain, McKinsey & BCG would show up at the door of a Fortune 500 company with a small army of Harvard, Yale & Princeton undergrads & MBAs who would sift through mountains of internal data to answer lofty strategic questions such as "Will we make better margins with product A or product B?" and "Should we expand into Uruguay or Ecuador?".    After 4 months and thousands of brilliant man-hours (woman-hours?, person-hours? FTE-hours? what is the politically correct term these days), a hypothesis would emerge, powerpoint slides would be prepared, a senior partner from the partnership would come down from the mountain and present "the answer" to a delighted CEO.

Now, in newer times, perhaps Bain & McKinsey should save their money and forget about hiring all those smart Harvard grads and "Crowdsource" the answer.   Instead of paying a team of big brains with a total of 100 years of business experience, McKinsey can simply post the question to the universe of New Media readers – bloggers, chat-room pundits, web-surfers, etc. – and get their collective opinion.     In this way, McKinsey accesses thousands of years of experience.   An interesting effect we see in natural statistics is that even the dumb-ass opinions collected along the way tend to cancel each other out, leaving a collective 'average' answer which tends to be correct, because it reflects the real information provided by each opinion.   It gets better – if you can weight the opinions (such as people putting $$ bets behind their answers), you start getting a VERY accurate answer – just like the stock market.  

You heard it here first – crowdsouring will be the next big business tool preached by business guru's.  Move over 2×2 SWOT analysis, here comes the crowd.

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2 Comments »

  1. Hopefully you have looked at my favorite website http://www.digg.com

    It is a very good example of using collective intellect to answer the question of which news is relavant and interesting.

    If you would like to see what I have “dugg” go to http://www.digg.com/users/kylerk

    Make yourself an account it is way to much fun. Including sifting through thousands of news titles in a couple of minutes, which can be done with a “cloud” view of the stories at http://digg.com/diggall/cloud .

    Comment by Kyler — June 12, 2006 @ 10:58 am

  2. Hello,

    in the same concept, look at this website that I’ve just noticed http://cecrowdsourcing.blogspot.com/ This is a further step on the crowdsourcing as it aims to design and sale electronic products for the first time (it’s hardware development and not software for this time). The company’s name is Logoden. It looks promising but it’s just started. I’d recommand you to join this community, who knows it can work and you can potentially earn money.

    Comment by Ventus — August 24, 2006 @ 3:13 am


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