Why This Company Is Crowdsourcing, Gamifying The World's Most Difficult Problems


FastCompany: “The biggest consultancy firms–the McKinseys and Janeses of the world–make many millions of dollars predicting the future and writing what-if reports for clients. This model is built on the idea that those companies know best–and that information and ideas should be handed down from on high.
But one consulting house, Wikistrat, is upending the model: Instead of using a stable of in-house analysts, the company crowdsources content and pays the crowd for its time. Wikistrat’s hundreds of analysts–primarily consultants, academics, journalists, and retired military personnel–are compensated for participating in what they call “crowdsourced simulations.” In other words, make money for brainstorming.

According to Joel Zamel, Wikistrat’s founder, approximately 850 experts in various fields rotate in and out of different simulations and project exercises for the company. While participating in a crowdsourced simulation, consultants are are paid a flat fee plus performance bonuses based on a gamification engine where experts compete to win extra cash. The company declined revealing what the fee scale is, but as of 2011 bonus money appears to be in the $10,000 range.
Zamel characterizes the company’s clients as a mix of government agencies worldwide and multinational corporations. The simulations are semi-anonymous for players; consultants don’t know who their paper is being written for or who the end consumer is, but clients know which of Wikistrat’s contestants are participating in the brainstorm exercise. Once an exercise is over, the discussions from the exercise are taken by full-time employees at Wikistrat and converted into proper reports for clients.
“We’ve developed a quite significant crowd network and a lot of functionality into the platform,” Zamel tells Fast Company. “It uses a gamification engine we created that incentivizes analysts by ranking them at different levels for the work they do on the platform. They are immediately rewarded through the engine, and we also track granular changes made in real time. This allows us to track analyst activity and encourages them to put time and energy into Wiki analysis.” Zamel says projects typically run between three and four weeks, with between 50 and 100 analysts working on a project for generally between five and 12 hours per week. Most of the analysts, he says, view this as a side income on top of their regular work at day jobs but some do much more: Zamel cited one PhD candidate in Australia working 70 hours a week on one project instead of 10 to 15 hours.
Much of Wikistrat’s output is related to current events. Although Zamel says the bulk of their reports are written for clients and not available for public consumption, Wikistrat does run frequent public simulations as a way of attracting publicity and recruiting talent for the organization. Their most recent crowdsourced project is called Myanmar Moving Forward and runs from November 25 to December 9. According to Wikistrat, they are asking their “Strategic community to map out Myanmar’s current political risk factor and possible futures (positive, negative, or mixed) for the new democracy in 2015. The simulation is designed to explore the current social, political, economic, and geopolitical threats to stability–i.e. its political risk–and to determine where the country is heading in terms of its social, political, economic, and geopolitical future.”…

Infographic: Preparing for Constituent 2020


Pat Fiorenza in the GovLoop: “The way we engage with government is quickly changing. We use modern and emerging technology in nearly every aspect of our lives, and we expect these services to be available from our government. Our latest infographic helps you define your agency’s IT roadmap to help you prepare for constituent 2020.

Having an effective IT plan is your first step to meet the complex demands of your agency. Our latest infographic shares with you a checklist to get you started in creating your agency’s IT roadmap, preparing you for the 2020 constituent. The infographic includes ten questions challenging you to think about your IT strategy, some of these questions include:

  1. What is the problem we are trying to solve? What is our IT roadmap for future adoption?

  2. Have we gained support by core stakeholders and users?

  3. How have we engaged with each business unit? Are we aware of the needs of each unit?

  4. Is this system operable with existing technology? What kind of existing technology may I be able to leverage with the investment?

  5. Have we identified the key metrics we must track?

 
DOWNLOAD PDF”

Government's Crowdsourcing Revolution


John M. Kamensky  in Governing: “In a recent report for the IBM Center for the Business of Government, Brabham says that an important distinction between crowdsourcing and other forms of online participation is that crowdsourcing “entails a mix of top-down, traditional, hierarchical process and a bottom-up, open process involving an online community.”
Crowdsourcing in the public sector can be done within government, among employees as a way to surface ideas — such as the New York City government’s “Simplicity” initiative — or it can be done by nonprofit groups in ways that influence government operations. For example, a transportation advocacy group in New York City has created a site where citizens can report “near miss” accidents, which are then mapped to determine patterns. The idea is that, while the city government already maps accidents that have happened, hazardous traffic zones can be detected and resolved faster by mapping near-misses without waiting for a large number of actual accidents.
Brabham offers a strategic view of crowdsourcing and when it is useful to address public problems. His report also identifies four specific approaches, describing which is most useful for a given category of problem:
Knowledge discovery and management. This approach is best for information-gathering and cataloguing problems through an online community, such as the reporting of earth tremors or potholes to a central source. This approach could also be used to report conditions of parks or hiking trails or for cataloging public art projects as have been done in several cities across the country.
Distributed human-intelligence tasking: This approach is most useful when human intelligence is more effective than computer analysis. It involves distributing “micro-tasks” that require human intelligence to solve, such as transcribing handwritten historical documents into electronic files. For example, when the handwritten 1940 census records were publicly released in 2012, the National Archives catalyzed the electronic tagging of more than 130 million records so they could be searchable online. More than 150,000 people volunteered.
Broadcast search: This approach is most useful when an agency is attempting to find creative solutions to problems. It involves broadcasting a problem-solving challenge widely on the Internet and offering an award for the best solution. NASA, for example, offered a prize for an algorithm to predict solar flares. The federal government sponsors a contest and awards Web platform, Challenge.gov, that various federal agencies can use to post their challenges. To date, hundreds of diverse challenges have been posted, with thousands of people proposing solutions.
Peer-vetted creative production: This approach is most useful when an agency is looking for innovative ideas that must meet a test of taste or market support. It involves an online community that both proposes possible solutions and is empowered to collectively choose among them. For example, the Utah Transit Authority sponsored the Next Stop Design project, allowing citizens to design and vote on an ideal bus-stop shelter. Nearly 3,200 people participated, submitting 260 high-quality architectural renderings, and there were more than 10,000 votes leading to a final selection….”

Why government health departments are spending millions on mobile gaming


James Trew in Engadget : “Today sees the release of The Walk, an iOS and Android game backed by the UK’s Department of Health. It’s the second release in a collection of apps funded as part of the UK’s Small Business Research Initiative (SBRI). The first — StepJockey, an app that lets you map, locate, rate and log the calorific expenditure of staircases around your city — came out on Monday. All five apps in the program encourage you to move more, or change negative habits. Can an app improve your life? At the very least, we’re guessing the Department of Health — having just spent £2 million on this round of investment — thinks so. This is part of a growing trend, that could see government agencies in the UK taking a leaf out of Silicon Valley’s book when it comes to solving (health) problems. Read past the break to find out why it’s putting so much money on third-party digital initiatives.
Your mission is simple, ensure safe transit of a package from Inverness, to Edinburgh — and in the process save the world. Only one problem: a terrorist attack has rendered all motorised transport unusable — you’ll have to go on foot. That’s the premise behind The Walk. The concept isn’t complicated — encourage players to preambulate in the real world as part of an apocalyptic game narrative. Your phone’s accelerometer tracks your movements, unlocking levels and hours of story-telling audio which drive the plot along. Simple, fun, effective. The game’s predecessor (Zombies, Run!) uses similar mechanics, and currently encourages over 750,000 would-be Shauns (or Eds) to escape pursuing Zombies whenever they go for a jog. By lowering the requirement to walking, it’s hoped almost everyone can benefit this time. The focus is on increasing general daily movement, rather than dedicated, prescribed and sometimes prohibitive training routines.
There’s no question the theory is simple: apps that encourage activity, or responsible drinking, could cut down on healthcare requirements through prevention, negating the need for cure. In turn, it could also take a bite out of the estimated £8 billion that obesity and alcohol related diseases cost the UK’s health service each year. More interesting, is that the Department of Health is funding external mobile start-ups and indie developers at all. We asked it why, and were told it’s just as much about nurturing innovative ideas (where they can compete with more conventional fitness apps such as Nike+, MapMyFitness and Adidas miCoach) as it is about encouraging lifestyle change.

The motivation might initially be the potential (and hard to quantify) savings through a healthier public. But using apps to achieve this is an idea the US government is curious about also. ..”

Data isn't a four-letter word


Speech by Neelie Kroes, Vice-President of the European Commission responsible for the Digital Agenda: “I want to talk about data too: the opportunity as well as the threat.
Making data the engine of the European economy: safeguarding fundamental rights capturing the data boost, and strengthening our defences.
Data is at a cross-roads. We have opportunities; open data, big data, datamining, cloud computing. Tim Berners Lee, creator of the world wide web, saw the massive potential of open data. As he put it, if you put that data online, it will be used by other people to do wonderful things, in ways that you could never imagine.
On the other hand, we have threats: to our privacy and our values, and to the openness that makes it possible to innovate, trade and exchange.
Get it right and we can safeguard a better economic future. Get it wrong, and we cut competitiveness without protecting privacy. So we remain dependent on the digital developments of others: and just as vulnerable to them.
How do we find that balance? Not with hysteria; nor by paralysis. Not by stopping the wonderful things, simply to prevent the not-so-wonderful. Not by seeing data as a dirty word.
We are seeing a whole economy develop around data and cloud computing. Businesses using them, whole industries depending on them, data volumes are increasing exponentially. Data is not just an economic sideshow, it is a whole new asset class; requiring new skills and creating new jobs.
And with a huge range of applications. From decoding human genes to predicting the traffic, and even the economy. Whatever you’re doing these days, chances are you’re using big data (like translation, search, apps, etc).
There is increasing recognition of the data boost on offer. For example, open data can make public administrations more transparent and stimulate a rich innovative market. That is what the G8 Leaders recognised in June, with their Open Data Charter. For scientists too, open data and open access offer new ways to research and progress.
That is a philosophy the Commission has shared for some time. And that is what our ‘Open Data’ package of December 2011 is all about. With new EU laws to open up public administrations, and a new EU Open Data Portal. And all EU-funded scientific publications available under open access.
Now not just the G8 and the Commission are seeing this data opportunity: but the European Council too. Last October, they recognised the potential of big data innovation, the need for a single market in cloud computing; and the urgency of Europe capitalising on both.
We will be acting on that. Next spring, I plan a strategic agenda for research on data. Working with private partners and national research funders to shape that agenda, and get the most bang for our research euro.
And, beyond research, there is much we can do to align our work and support secure big data. From training skilled workers, to modernising copyright for data and text mining, to different actors in the value chain working together: for example through a public-private partnership.
…Empowering people is not always easy in this complex online world. I want to see technical solutions emerge that can do that, give users control over their desired level of privacy, how their data will be used, and making it easier to verify online rights are respected.
How can we do that? How can we ensure systems that are empowering, transparent, and secure? There are a number of subtleties in play. Here’s my take.
First, companies engaged in big data will need to start thinking about privacy protection at every stage: and from system development, to procedures and practices.
This is the principle of “privacy by design”, set out clearly in the proposed Data Protection Regulation. In other words, from now on new business ideas have two purposes: delivering a service and protecting privacy at the right level.
Second, also under the regulation, big data applications that might put fundamental rights at risk would require the company to carry out a “Privacy Impact Assessment”. This is another good way to combine innovation and privacy: ensuring you think about any risks from the start.
Third, sometimes, particularly for personal data, a company might realise they need user consent. Consent is a cornerstone of data protection rules, and should stay that way.
But we need to get smart, and apply common sense to consent. Users can’t be expected to know everything. Nor asked to consent to what they cannot realistically understand. Nor presented with false dilemmas, a black-and-white choice between consenting or getting shut out of services.
Fourth, we can also get smart when it comes to anonymisation. Sometimes, full anonymisation means losing important information, so you can no longer make the links between data. That could make the difference between progress or paralysis. But using pseudonyms can let you to analyse large amounts of data: to spot, for example, that people with genetic pattern X also respond well to therapy Y.
So it is understandable why the European Parliament has proposed a more flexible data protection regime for this type of data. Companies would be able to process the data on grounds of legitimate interest, rather than consent. That could make all the positive difference to big data: without endangering privacy.
Of course, in those cases, companies still to minimise privacy risks. Their internal processes and risk assessments must show how they comply with the guiding principles of data protection law. And – if something does go wrong – the company remains accountable.
Indeed company accountability is another key element of our proposal. And here again we welcome the European Parliament’s efforts to reinforce that. Clearly, you might assure accountability in different ways for different companies. But standards for compliance and processes could make a real difference.
A single data protection law for Europe would be a big step forward. National fortresses and single market barriers just make it harder for Europe to lead in digital, harder for Europe to become the natural home of secure online services. Data protection cannot mean data protectionism. Rather, it means safeguarding privacy does not come at the expense of innovation: with laws both flexible and future proof, pragmatic and proportionate, for a changing world….
But data protection rules are really just the start. They are only part of our response to the Snowden revelations….”

Book Review: Three Harbingers of Change


Howard Rheingold reviews the following books in Strategy and Business:
Viktor Mayer-Schönberger and Kenneth Cukier
Big Data: A Revolution That Will Transform How We Live, Work, and Think
(Houghton Mifflin Harcourt, 2013)
Marina Gorbis
The Nature of the Future: Dispatches from the Socialstructed World
(Free Press, 2013)
Henry Jenkins, Sam Ford, and Joshua Green
Spreadable Media: Creating Value and Meaning in a Networked Culture
(New York University Press, 2013)
“Whether you invest, build, teach, research, regulate, investigate, heal, entertain, or sell, major changes in how you do what you do are looming. “Big data,” much in the media spotlight recently—particularly for the revelations of the National Security Agency’s (NSA’s) surveillance of “metadata”—is probably already changing how you do your work. But socialstructing and spreadable media, two new terms that signal similarly momentous shifts, may still be unfamiliar. This year’s best business books on digitization can equip you to better understand all three phenomena and the changes that they will enable and engender….”

Britain’s Ministry of Nudges


in the New York Times: “A 24-year-old psychologist working for the British government, Mr. Gyani was supposed to come up with new ways to help people find work. He was intrigued by an obscure 1994 study that tracked a group of unemployed engineers in Texas. One group of engineers, who wrote about how it felt to lose their jobs, were twice as likely to find work as the ones who didn’t. Mr. Gyani took the study to a job center in Essex, northeast of London, where he was assigned for several months. Sure, it seemed crazy, but would it hurt to give it a shot? Hayley Carney, one of the center’s managers, was willing to try.

Ms. Carney walked up to a man slumped in a plastic chair in the waiting area as Mr. Gyani watched from across the room. The man — 28, recently separated and unemployed for most of his adult life — was “our most difficult case,” Ms. Carney said later.

“How would you like to write about your feelings” about being out of a job? she asked the man. Write for 20 minutes. Once a week. Whatever pops into your head.

An awkward silence followed. Maybe this was a bad idea, Mr. Gyani remembers thinking.

But then the man shrugged. Why not? And so, every week, after seeing a job adviser, he would stay and write. He wrote about applying for dozens of jobs and rarely hearing back, about not having anything to get up for in the morning, about his wife who had left him. He would reread what he had written the week before, and then write again.

Over several weeks, his words became less jumbled. He started to gain confidence, and his job adviser noticed the change. Before the month was out, he got a full-time job in construction — his first.

An Idea Born in America

Did the writing exercise help the man find a job? Even now it’s hard for Mr. Gyani to say for sure. But it was the start of a successful research trial at the Essex job center — one that is part of a much larger social experiment underway in Britain. A small band of psychologists and economists is quietly working to transform the nation’s policy making. Inspired by behavioral science, the group fans out across the country to job centers, schools and local government offices and tweaks bureaucratic processes to better suit human nature. The goal is to see if small interventions that don’t cost much can change behavior in large ways that serve both individuals and society.

It is an American idea, refined in American universities and popularized in 2008 with the best seller “Nudge,” by Richard H. Thaler and Cass R. Sunstein. Professor Thaler, a contributor to the Economic View column in Sunday Business, is an economist at the University of Chicago, and Mr. Sunstein was a senior regulatory official in the Obama administration, where he applied behavioral findings to a range of regulatory policies, but didn’t have the mandate or resources to run experiments.

But it is in Britain that such experiments have taken root.  Prime Minister David Cameron has embraced the idea of testing the power of behavioral change to devise effective policies, seeing it not just as a way to help people make better decisions, but also to help government do more for less.

In 2010, Mr. Cameron set up the Behavioral Insights Team or nudge unit, as it’s often called. Three years later, the team has doubled in size and is about to announce a joint venture with an external partner to expand the program.

The unit has been nudging people to pay taxes on time, insulate their attics, sign up for organ donation, stop smoking during pregnancy and give to charity — and has saved taxpayers tens of millions of pounds in the process, said David Halpern, its director. Every civil servant in Britain is now being trained in behavioral science. The nudge unit has a waiting list of government departments eager to work with it, and other countries, from Denmark to Australia, have expressed interest.

In fact, five years after it arrived in Washington, nudging appears to be entering the next stage, with a new team in the White House planning to run policy trials inspired in part by Britain’s program. “First the idea traveled to Britain and now the lessons are traveling back,” said Professor Thaler, who is an official but unpaid adviser to the nudge unit. “Britain is the first country that has mainstreamed this on a national level.”

See also: A Few Findings of Britain’s Nudge

Net Effects: The Past, Present & Future Impact of Our Networks – History, Challenges and Opportunities


Ebook by FCC Chairman Tom Wheeler: “Almost a month into my new job, the fact that I’ve always been a “network guy” and an intrepid history buff should come as no surprise. Reading history has reinforced the central importance networks play and revealed the common themes in successive periods of network-driven change. Now, at the FCC, I find myself joining my colleagues in a position of both responsibility and authority over how the public is affected by and interfaces with the networks that connect us.

Prior to my appointment by President Obama, I was doing research for a book about the history of networks. The new job stopped that project. However, I believe strongly that our future is informed by our past. While awaiting Senate confirmation, I tried to distill the project on which I had been working to connect what I had learned in my research to the challenges in my new job.
The result is a short, free eBook, “Net Effects: The Past, Present & Future Impact of Our Networks – History, Challenges and Opportunities”. It’s a look at the history of three network revolutions – the printing press, the railroad, and the telegraph and telephony – and how the fourth network revolution – digital communications – will be informed by those experiences.
It was this process that led me to what I’ve been describing as the “prisms” for looking at policy, or the “pillars” of communication policy: ensuring that our new networks promote economic growth, preserving the fundamental values that have traditionally been the foundation of our communications networks, and enabling public purpose benefits of our networks.
We have the privilege of being present at a hinge moment in history to wrestle with the future of our networks and their effect on our commerce and our culture. If such a topic is of interest to you, I hope you’ll download this short eBook. Hopefully, it’s the beginning of a dialogue.
Download the book on the following platforms for free:

Government Digital Service: the best startup in Europe we can't invest in


Saul Klein in the Guardian: “Everyone is rightly excited about the wall of amazing tech-enabled startups being born in Europe and Israel, disrupting massive industries including media, marketing, fashion, retail, travel, finance and transportation. However, there’s one incredibly disruptive startup based in London that is going after one of the biggest markets of all, and is so opaque it is largely unknown in the world of business – and, much to my chagrin, it’s also impossible to invest in.
It’s not a private company, it wasn’t started by “conventional” tech entrepreneurs and the market (though huge) is decidedly unsexy.
Its name is the Government Digital Service (GDS) and it is disrupting the British public sector in an energetic, creative and effective way. In less than two years GDS has hired over 200 staff (including some of the UK’s top digital talent), shipped an award-winning service, and begun the long and arduous journey of completely revolutionising the way that 62 million citizens interact with more than 700 services from 24 government departments and their 331 agencies.
It’s a strange world we live in when the government is pioneering the way that large complex corporations reinvent themselves to not just massively reduce cost and complexity, but to deliver better and more responsive services to their customers and suppliers.
So what is it that GDS knows that every chairman and chief executive of a FTSE100 should know? Open innovation.
1. Open data
• Leads to radical and remarkable transparency like the amazing Transactions Explorer designed by Richard Sargeant and his team. I challenge any FTSE100 to deliver the same by December 2014, or even start to show basic public performance data – if not to the internet, at least to their shareholders and analysts.
• Leads to incredible and unpredictable innovation where public data is shared and brought together in new ways. In fact, the Data.gov.uk project is one of the world’s largest data sources of public data with over 9,000 data sets for anyone to use.
2. Open standards
• Deliver interoperability across devices and suppliers
• Provide freedom from lock-in to any one vendor
• Enable innovation from a level playing field of many companies, including cutting-edge startups
• The Standards Hub from the Cabinet Office is an example of how the government aims to achieve open standards
3. Cloud and open source software and services
• Use of open source, cloud and software-as-a-service solutions radically reduces cost, improves delivery and enables innovation
4. Open procurement
• In March 2011, the UK government set a target to award 25% of spend with third-party suppliers to SMEs by March 2015.”