Crowdsourcing can be looked at as an application of the wisdom of crowds concept, in which the knowledge and talents of a group of people is leveraged to create content and solve problems. The official definition from the term’s originator, Jeff Howe, is “the act of a company or institution taking a function once performed by employees and outsourcing it to an undefined (and generally large) network of people in the form of an open call.”
Crowdsourcing can be broken down in to three categories:
1. creation (like Wikipedia);
2. prediction (like Yahoo! Buzz); and
3. organization (like Google).