Management Blog

The pros and cons of crowdsourcing

The process of gathering new business ideas from consumers - a.k.a. crowdsourcing - is getting a lot of attention at the moment, according to the Sydney Morning Herald's Innovator Blog.

However, effective crowdsourcing isn't as easy as calling for ideas and watching innovation unfold before your eyes. Before embarking on the process it's suggested the following imperatives are considered:

• Extra manpower - don't allow staff to drown in a sea of customer submitted ideas; ensure you have the manpower to make the process run smoothly   
• Plan ahead - ensure there is a defined pathway for the review and evaluation of ideas; and show your goodwill by getting back to contributors with proof their ideas have been considered
• It's not for every business - before you start to crowdsource carefully consider whether the strategy has the potential to deliver innovative results for your business

For examples of crowdsourced innovation in action check out Dell's IdeaStorm or mystarbucksidea.com.

IKEA goes green with bike lending service

IKEA Denmark is taking its customers for a ride in the nicest (and greenest) way possible with the introduction of a bike-trailer lending service, Springwise reports.

After providing a refundable deposit and paying US$7 for insurance, customers are given free overnight access to a bike and trailer to take their purchases home.

According to the post, IKEA launched the innovative service after their market researchers recognised that many customers were eco-savvy cycling enthusiasts.

Springwise claims the service is further evidence of the growing trend of bicycle use for goods transportation in urban areas.

iPhone content predicted to boom

The much-hyped iPhone has finally reached Australian shores and it appears marketers, banks and brokers are keen to tap into its money making potential, The Australian reports.

In the wake of the iPhone's introduction, analysts Frost and Sullivan are predicting mobile phone revenue will grow by 300 per cent this year to be worth more than $10 million.

CommSec is one of the first brokers to jump on the iPhone bandwagon with media titans News Ltd and Fairfax also tweaking online content to accommodate the device's capabilities.

SMEs look to outsourced IT

An increasing number of small business owners are opting to outsource their information technology systems, The Australian reports.

According to the article, IT outsourcing can be beneficial for small businesses as they can purchase external services 'on demand' as opposed to managing hardware and software themselves.

In addition, outsourced IT enables SMEs to focus on business operations rather than having to deal with the complexity of rapidly changing technologies.

However, there are risks inherent in the process of entrusting confidential data to an external organisation; these include possible security breaches or the possibility of an IT supplier unexpectedly going out of business.

Is Australia recession proof?

Australia will be recession-proof for at least the next five years due to our booming mining industry, a new economic forecast from BIS Shrapnel predicts.

The industry forecasting firm claims high commodities prices are resulting in massive income flows, which in turn are prompting further investment in productive capacity.

The 15-year forecast claims Australian mines will make up for shortfalls in other areas of the economy thereby underscoring economic growth of between 2.5 and 4.5 until 2013.

The 'long tail' questioned

The widely accepted 'long tail' theory of internet commerce has come under fire from US academics, Smart Company reports.

The theory, which suggests that appealing to very narrow niche markets can deliver big profits to online businesses, is said to be limited as it assumes consumers are predominantly niche-focused when purchasing online.

But according to academic Anita Elberse online consumers love nothing more than jumping on the bandwagon and buying or using what other consumers are into as opposed to only making niche purchases.

Elberse's research found online video rentals and song purchases were similar to those sought by offline consumers, a finding that suggests the aggregating influence of the web may be less than is often suggested.

Fasting keeps jetlag at bay: study

Avoiding meals or snacks during long haul flights may help travellers avoid the painful side effects of jetlag, according to a new study.

Harvard University researchers say not eating until arrival at a destination is the key to allowing the body to adjust to a new time zone, BBC reports.

It's claimed that when the body isn't given food its natural 'feeding clock' overrides the light-based 'time clock', as a result the body is tricked into avoiding jetlag altogether.

No holidays for Aussies

A new survey by online travel company Expedia has found Australian workers are the least likely in the world to use all their annual leave entitlements, Smart Company reports.

Expedia claims 32 per cent of Australians are refusing to use their leave due to the credit crunch while 34 per cent said they couldn't afford to take time off work.

Psychologists say the survey results are a worrying trend as continually delaying a holiday can negatively impact on an individual's health.

Directors are still keen on marketing

Australian company directors are planning to increase marketing budgets in the near future despite sluggish economic conditions, Marketing Magazine reports.

Of the company directors surveyed, 94 per cent said they had no intention of slashing their marketing budgets, while 49 per cent said they planned to increase spending in the area.

Nearly 30 per cent of respondents said that increasing their marketing spend was necessary to maintain an awareness of their company's brand.

In addition, 14 per cent said a budget increase was a tactic that would keep them ahead of any competitors who had decided to reduce their marketing output in response to the slowing economy.

The long and short of healthy sleep

Sleep is an area of growing interest for scientists. And for good reason. Time reports that either too much or too little doesn't just affect personal productivity; it can also be a matter of life and death.

Recent studies indicate people who sleep between 6.5 hours and 7.5 hour live the longest; while those who sleep 8 hours or more, or less than 6.5 hours may have a reduced lifespan.

The article also claims very short or very long amounts of sleep are associated with a number of illnesses including depression, obesity and diabetes.

Scientists say it is important to publicise the revised healthy sleeping range as it may help people realise they are not insomniacs if they don't sleep for 8 hours – the traditional measure of a good night's sleep.