Crowdsourcing New Product Ideas over Time: An Analysis of the Dell IdeaStorm Community

Abstract

Several organizations have developed ongoing crowdsourcing communities that repeatedly collect ideas for new products and services from a large, dispersed “crowd” of nonexperts (consumers) over time. Despite its promises, little is known about the nature of an individual's ideation efforts in such an online community. Studying Dell's IdeaStorm community, serial ideators are found to be more likely than consumers with only one idea to generate an idea the organization finds valuable enough to implement, but they are unlikely to repeat their early success once their ideas are implemented. As ideators with past success attempt to again come up with ideas that will excite the organization, they instead end up proposing ideas similar to their ideas that were already implemented (i.e., they generate less diverse ideas). The negative effects of past success are somewhat mitigated for ideators with diverse commenting activity on others' ideas. These findings highlight some of the challenges in maintaining an ongoing supply of quality ideas from the crowd over time. This paper was accepted by Kamalini Ramdas, entrepreneurship and innovation.

Crowdsourcing Design: A Synthesis of Literatures

“…Bayus (2013) shows that posting comments to others who have different ideas is positively associated with the ideas that are selected and implemented in Dell's IdeaStorm. Therefore, it is important for the designer of the crowdsourcing project to incentivize social exchange activities.…”

Combining Ideas in Crowdsourced Idea Generation

“…Collecting ideas through crowdsourcing has become a common practice in open innovation (Bayus, 2013;Howe, 2006;Poetz and Schreier, 2012). Crowdsourcing can be defined as outsourcing tasks to an undefined, large group of people through an open call (Howe, 2006).…”

“…Crowdsourcing can be defined as outsourcing tasks to an undefined, large group of people through an open call (Howe, 2006). For example, some companies collect product or service ideas from consumers through online platforms (Bayus, 2013;Terwiesch and Ulrich, 2009;Toubia, 2006). Crowdsourcing enables many people to search for creative ideas in parallel (Afuah and Tucci, 2012;Michelucci and Dickinson, 2016;Ren, et al, 2014).…”

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“…However, a shortage and fragmentariness in the scope of the methodology of measuring the effectiveness of crowdsourcing may be observed. In addition, organizations often make use of crowdsourcing without fully understating its effectiveness (Bayus, 2013). A lack of measurement may make achieving the goal of crowdsourcing impossible.…”