THE TALENT WAR SURVIVAL GUIDE:MASTERING APPLICATION DEVELOPMENT

CREATED BY APPIRIO.COM

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OUR ENVIRONMENT IS CHANGINGCloud Technology has created a Developer-Centric landscape

Advances like cloud technology and application programming interfaces (APIs) have empowered developers and those in need of development work with the ability to contribute to projects from anywhere in the world, at any time.

While developers are becoming the most valuable resource in business, businesses need to change the way they think of the new developer-centric landscape. Thanks to advancements in technology and social collaboration, today’s globally distributed workforce is also highly accessible and collaborative.

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6 . A L O G R I T H M I S T 7 . M O B I L E E X P E R T 8 . S O F T W A R E E N G I N E E R

Managing your ResourcesScarce Technical Talent Can Limit Growth and Innovation

Cloud technology has made it easy to scale apps and infrastructure, but scaling technical talent isstill a bottleneck to growth and innovation. Or to put it another way, If Google is struggling to find technical resources, what hope is there for the rest of us?

Addressing the mismatch between - (1) the current ease of scaling apps and infrastructure and (2) difficulty scaling dev teams- will be the difference between firms that use technology and those that differentiate themselves through it.

In one definition, the public cloud can be described as a globally-accessible distributed network that relies on the real-time availability of the internet. It’s a technology model that people use to maximize computing power. Concurrently the ubiquity of the internet and cloud computing platforms amongst the world’s top technical resources means that there exists a “distributedsystem” of cloud experts all connected by the web.

“ You could call it

people oriented

architecture:

democratization of IT

that puts computing

power in the hands of

users and lets them

get a job done without

having to adapt their

processes to

the way the

technology works.”

- Phil Wainewright

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Redefine Your ApproachFreelancing and MicroTasking Have Benefits & Limitations

Crowdsourcing, according to Gartner’s hype cycle, is really in its infancy as it begins to approach the peak of the curve. The “crowdsourcing” term itself is less than ten years old, and the most of the key players in the industry are younger than that. There are countless articles that help define the handful of categories that most companies fit into, but there are really three key model differentiators in today’s market.

There are multiple ways to define crowdsourcing, making the term more confusing and less descriptive as the market grows. Ignoring categories for a moment, let’s take a look at the higher level crowdsourcing business models.

These differentiations are important to consider as the crowdsourcing umbrella casts a wider and wider net. It takes a special recipe to efficiently drive the right variable skills and scale to technical development projects, but it’s just as important to pick the right crowdsourcing platform for your specific need.

One-to-one is a new update on the classic contractor/freelancer concept. The crowdsourcing angle here is simply the addition of the internet to the model. Increasing the talent pool through the depth of the web, and removing a fair amount of middleman overhead has helped this model get its start. However once the work and workers are connected, the “crowdsourcing” aspect of this model ends and work progresses as usual.

This model is really how the majority of people view crowdsourcing today. It’s the method and structure behind companies like Kickstarter, Trendwatching, and Amazon’s Mechanical Turk. Unlike the One-to-One, these models truly tap into the power of a community by really hitting upon scale. The only limitation is that the model tends to primarily focus on small projects or microtasks for the members, trusting that the end result of the combined microtasks of hundreds or thousands of contributors creates value. For certain projects, tapping into scalable crowds of microworkers is absolutely invaluable.

One-to-oneTask complexity: Simple or complexCapacity: Variable skills, but limited scaleSelection: Business selects the workerCost structure: Pay-for-hours/effort

One-to-ManyTask complexity: Simple onlyCapacity: No variability, but immensely scalableSelection: Member self-selects the workCost structure: Pay-for-performance

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MobileDeveloper

WebDeveloper

APPIRIOCOMMUNITYdeveloper

Innovate Your Approach Competition Drives Efficient, Scalable Innovation

If you’re looking for a “Cloud” of technical talent, you’ll need to replicate a subscription and pay-for-performance pricing model, along with the ability to perform a variety of complex tasks in a scalable manner. Competition-based crowdsourcing is the only model that provides these attributes.

If companies leverage crowdsourcing effectively, they can expect to scale development teams without needing to recruit and train new talent, or pay for idle talent. A small team of generalists trained to effectively crowdsource an army of specialists, allows for teams to make the switch from being a group of people managers, to a group focused on solving the business problems at hand.

Companies that leverage a crowdsourcing model effectively have the ability to elastically harness top talent at any time, ultimately, delivering business value faster and more efficiently.

Organizations like Fold.it, 99designs, and Tongal all run off a crowdsourced competition model. If done correctly for both the members competing and businesses consuming the service this model changes the entire game. One way to look at the transition is to look at the change from an organizationusing “the internet” to engage the world, versus using “the cloud” to transform a business. What competition allows is an efficient way to bring the complexity and elasticity of a One-to-One model to the scalability and pay-for-performance of the One-to-Many model.

One-to-Competition Task complexity: Simple or complexCapacity: Variable skills and scalableSelection: Member self-selects the workCost structure: Pay-for-performance

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Charted for Success

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Figure 1. Crowdsourcing Industry Revenue GrowthMillions of $US, based on a sample of 15 leading crowdsourcing service providers (CSPs)

Figure 2. Worker Trends And CompositionPercentage, 100%=6.3M working

Figure 3. Worker Trends And CompositionPercentage, 100%=6.3M working

Growth in the global enterprise crowdsourcing

market is already accelerating. In 2011 the

growth rate was 75%, exceeding 2010’s

market growth of 53%. In 2012 we anticipate

a doubling of the market by year-end. The

number of people engaging in crowd-labor

increased by 100% in 2011 and will increase

again by a similar margin in 2012.

Source: Crowdsourcing.org 2011

2009

Workers breakdown by education level

5%ElementaryEducation

3%Doctorate

6%South America

41%North America

18%Europe

35%AsiaPacific

48%CertificateDiploma,AssociateDegree orBachelor’sDegree

21%Secondary Education

23%Master’sDegree

Workers breakdown by geography

140.80

214.9052.5%

74.7%375.70

2010 2011

Total number of crowdsourcing workersNumber of workers, based on a sample of 26 CSPs

Growth in the number of crowdsourcing workers by crowdsourcing categoryNumber of workers, based on a sample of 15 CSPs

2009 Software Services

Micro-Tasks

Expertise-Based

Ideation Freelance

1.34

151.3%133.1%

90.6%88.5%

67.0%3.10165%

103% 6.29

2010 2011

Field StudyIn the world of diabetes research, JDRF leads the industry in fundraising and innovation. Formerly known as the Juvenile Diabetes Research Foundation, JDRF manages over 5 million donor records and has raised more than $1.6 billion for type 1 diabetes research.

JDRF recently partnered with Appirio to migrate its donor database to the cloud. They needed to fully integrate their system into several cloud services, including Salesforce, so they could distance themselves from manually soliciting and filing donations.

Appirio introduced JDRF to Cloudspokes and helped them construct a series of challenges to help develop their new cloud-based support application. The resulting system significantly changed the way the foundation handles fund-raising. The organization can now engage donor prospects with email and process donations electronically.

JDRF COO, James Szmak explains “We needed to have a single place to collect data on all of the people that support us. We need to make sure all of our donor records are centralized into a single repository in our Salesforce app.” The integration of cloud-based fundraising tools with Salesforce also allows JDRF to virtually eliminate donor record duplication. Szmak continues, “We’re finally at a point with the cloud technologies ... where we can have fully integrated systems and still have a single record per customer. Nothing upsets people who support nonprofits more than seeing us waste money on sending them multiple mailings or emails.”

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CORPORATE HEADQUARTERS

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ABOUT APPIRIO

Appirio is a global services provider who uses crowdsourcing and cloud, social and mobile technology to help enterprises reimagine their business and become more agile. Appirio brings together technology expertise with a deep understanding of the way people work, and the development, design and analytics skills of a 600,000 person global crowdsourcing community. Appirio has worked with more than 700 enterprises, including organizations like Facebook, Intuit, Japan Post Network, L’Oreal, McGraw-Hill, NetApp, The Four Seasons, and Virgin America. The company is backed by Sequoia Capital, GGV Capital and General Atlantic.

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