Crowdsourcing: Great Expectations or Great Exploitations?

In the true spirit of crowdsourcing, I debated long and hard about posting this assignment to Mechanical Turk to see how little I could pay to skip out on it. But alas, my integrity insists and you are stuck with little ol’ me instead of a brilliant Indian computer programmer or a dashing Turkish dancer, both of whom I’m sure would not only be much more eloquent writers, but also more knowledgeable on the subject of crowdsourcing. After all, every major corporation’s doing it. Heck, isn’t that what most blogs are today too—someone jamming a bunch of virtual heads together by sprinkling some opinion between a crowd of links? Well, maybe not quite, but I’m graduating with an MBA in just a few months and the economy is lower than my old plumber’s pants, so this "source it to the crowd" buzz has made me a bit uneasy—should I have majored in Crowd Sorcerer or maybe Lead Crowdsourcing Consultant? As if the reality of unemployment isn’t bad enough, now we’ve got compete virtually for 10 cents a HIT (on a good day)? Is this really where jobs are headed with the advent of the internet?

I mean, I get it; I have always been a fan of the “two heads are better than one” idea. Look at the success of Wikipedia, who doesn’t find it useful at one time or another? But I have to question whether crowdsourcing will actually prove to be more helpful in cutting US corporate research costs or harmful in eliminating US jobs via the web. After all, crowds are highly susceptible to “mania” and if a fire breaks out…stampeding. What happens then and who is responsible?

So yes, the idea that gathering input from a wide array of sources will result in a better end product is a good one, but until virtual task requesters opt to file taxes and enforce a set of guidelines to protect against the exploitation of workers, I’m afraid many crowdsourcing applications will become “virtual sweatshops.”

How formal should informal networks be?

In an economy like the present, it is quickly becoming essential to stretch the dollar by leveraging information and relationship assets. Informal networks are rich sources of collaboration across entrenched silos that spring up via self-interest and personal desire. So, wouldn’t it be a great business value proposition if a firm could harness the power of the informal network by formalizing it? Sure, it could increase efficiency, lower costs and all that bottom line impact stuff, but inherent in these networks is the freeform flow of information and organic growth through interest. (Hence, informal network.) So, where to do we budding business people draw the line? How much formal can informal take before it begins to lose value?

In my experience, informal networks derive their greatest value due to the sheer nature of being informal. In a properly functioning organization I find informal networks are often filling gaps the organization has overlooked or enriching workforce engagement through personal relationships. Yes, these informal networks provide management with information and insight into the culture, but this concept of monitoring is not to be confused with formalized processing.

It seems logical that infusing informal networks with strategic relationships and key employees could drive additional value for management, but it comes with the risk that such formalization efforts could infect the entire network, leading to a slow painful death. While it is probable that there are specific cases where formalization could drive network results, a key point to keep in mind is that informal networks are generally created by motivated people seeking out information. Thus, it is implied that formalization should also come from within, not above. Unless formalization efforts can truly enhance the way in which informal network participants interact and gain value from their involvement in the network, the cost of the formalization will likely outweigh the benefits derived from such change.

The push and pull between formal and informal and management and the workforce is an ongoing challenge. Informal networks’ role in the organization will continue to evolve and dynamics may change, but for the most part, informal networks should be left alone.

Blog mainia begins!

Hi and welcome to Tech Lily! I am a second year MBA student studying Technology Management and Consulting at AU. The next 8 weeks will provide you with multiple entertaining social networking blog posts and comments based on my academic training and professional experience.

I am currently working as a technology consultant and information architect for various consulting companies in the greater DC area.

FYI: On my honor, all posts on this blog are my own.