The Crowdstorm Effect

Peter Ryder and Shaun Abrahamson in Innovation Excellence: “When we open up the innovation process to talent outside our organization we are trying to channel the abilities of a lot of people we don’t know, in the hope that a few of them have ideas we need. Crowdsourcing is the term most closely associated with the process. But over the last decade, many organizations have been not only sourcing ideas from crowds but also getting feedback on ideas….
We call the intersection of lower transaction costs and brainstorming at scale enabled by online connections crowdstorming.
Getting ideas, getting feedback, identifying talent to work with, filtering ideas, earning media, enabling stakeholders to select ideas to change the organization/stakeholder relationship — the crowd’s role and the crowdstorming process has become more complex as it has expanded to involve external talent in new ways. …
 
Seventy-five years ago, the British economist, Ronald Coase, suggested that high transaction costs – the overhead to find, recruit, negotiate and contract with talent—required organizations to bring the best talent in house. While Coase’s equation still holds true, the Internet has allowed organizations to revisit under what conditions they want and need full time employees. When we have the ability to efficiently tap resources anywhere, anytime at low cost, new opportunities emerge.”