In which of the following cases is crowdsourcing used for new product development?
A) A company creates a forum where anyone can contribute new product ideas.
B) A company hires a marketing agency to generate new product ideas.
C) A company reviews the sales, costs, and profit projections of an existing product.
D) A company depends on its R&D department to come up with new ideas.
E) A company partners with a design agency to create a few prototypes.
The correct answer and explanation is :
The correct answer is:
A) A company creates a forum where anyone can contribute new product ideas.
Explanation:
Crowdsourcing is the process of obtaining ideas, content, or services by soliciting contributions from a large group of people, particularly from an online community. In the context of new product development, crowdsourcing involves leveraging the collective intelligence and creativity of a diverse group of individuals to generate innovative ideas, solve problems, or refine concepts.
Option A describes crowdsourcing because it involves a forum where anyone can contribute new product ideas. This means that the company is relying on external sources, such as customers, enthusiasts, and industry experts, to provide input. Companies like LEGO Ideas, Dell’s IdeaStorm, and Starbucks’ My Starbucks Idea have successfully used crowdsourcing platforms to gather innovative product suggestions from the public.
Why Other Options Are Incorrect:
- B) A company hires a marketing agency to generate new product ideas.
- This is not crowdsourcing since it involves outsourcing innovation to a specialized firm rather than leveraging a large group of individuals.
- C) A company reviews the sales, costs, and profit projections of an existing product.
- This refers to financial analysis and product evaluation rather than generating new ideas through public contribution.
- D) A company depends on its R&D department to come up with new ideas.
- While R&D is essential for innovation, it is an internal process, not crowdsourcing, which relies on external input.
- E) A company partners with a design agency to create a few prototypes.
- This is a collaborative partnership, not crowdsourcing, as it does not involve a broad, public contribution of ideas.
By using crowdsourcing, companies can tap into a wider pool of creativity, engage their customers, and reduce the cost of idea generation, leading to more innovative and consumer-driven products.