Open innovation and crowdsourcing are approaches we’re big fans of here at thinkGROWTH. Done correctly, they have the power to exponentially improve rapid insight and idea generation, not to mention build valuable communities of interest in the process. Take mystarbucksidea or Ideastorm, as well known examples. (Or even popcorn flavoured chips if you’re that way inclined!)
Done less effectively, and the results may be somewhat, ahem, less spectacular…
But where the notion of crowdsourcing, or harnessing the power of the crowd, gets particularly interesting, is when it is applied towards more than just generating ideas.
And while I could write about professional services, technology and R&D sourcing, or graphic design, I thought the topic of fundraising would make for an interesting example.
Setting aside perhaps the most well-established (yet arguably overlooked!), examples of sharemarkets and charity events, we’re seeing some interesting models start to surface.
Just last year, for example, Ebbsfleet United Football Club was purchased by over 50,000 of its fans via MyFootballClub’s online platform. The result? thousands of committed owners, the opportunity to democratically participate in player transfer, and a format now being replicated in a number of countries around the globe.
Another interesting new example is Kisskissbankbank (hat tip: Springwise) – which lets music fans invest in their favourite bands and share in their success. Fans are able to select their artists via an online browser, and make subsequent micro-investments (e.g. ten euros). This not only provides participating bands with access to capital (and Kisskissbankbank with a handy transactional clip), but provides fans with the opportunity to make money as their band succeeds.
A personal favourite, however is Kiva, and its innovative, socially entrepreneurial approach, to micro-lending and economic development. In short, by harnessing the power of both technology and the crowd, Kiva is able to connect entrepreneurs in the developing world to lenders such as you or I – and vice versa.
How does it work? Feel free to watch the video below, or chart here. But in short, Kiva’s online platform links individual recipients (via a network of vetted microfinance ‘field partners’) with lenders willing to provide the small (think $25) start-up capital they need. For advocates of economic independence, this is a pretty neat idea indeed.
No doubt we’ll see more such models emerge, as online and payment technologies continue to develop, and success stories continue to build.
So next time you’re thinking business model innovation – think crowdfunding. It may not be the solution to your problem, but at the least it’ll energise you about a world of possibility, not to mention some exciting positive change!
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