Year of Graduation
Using crowdsourcing to generate innovative business-ideas (the current Russian experience overview)
Faculty of Management
In today’s uncertain economic scenario and increasing competition at the local and global level, companies are under pressure to search for new ways of gaining competitive advantage. One way of achieving it is by pursuing innovation. According to Joseph Schumpeter, a godfather and pioneer of the innovation theory, a company can pursue innovation in five avenues: new product, new method of production, new market, new input to production, and new industry structure. When the pay-off from existing combinations of goods, markets, and processes declines, companies look for innovation opportunities. However, they often face a constraint of internal resources for pursuing innovation and generating innovative ideas. In such a scenario, companies can take advantage of external resources through crowdsourcing.This paper presents the results of indepth interviews with CEOs and project managers of Russian crowdsourcing intermediaries. Based on the collected data, we make an overview of the crowdsourcing market in Russia. Besides profit maximization, crowdsourcing intermediaries fulfil educational functions as well, thus promoting the crowdsourcing technique as a whole. Companies usually use crowdsourcing as an idea-generation tool for submitting creative tasks, optimizing business processes, and developing new products. However, there are certain limitations of crowdsourcing, such as costs to recruit participants, company’s ability to evaluate, assess and process the generated ideas, and the number of company’s activities affected by the implementation of ideas.Despite respondents’ enthusiasm about the future of crowdsourcing in the country, Russian crowdsourcing intermediaries still lay behind their counterparts in developed economies both in size, capabilities and persuasiveness towards the promising clients.