Crowdsourcing: Lessons from Henry Ford

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Crowdsourcing Lessons from Henry Ford Lessons from Henry Ford Panos Ipeirotis Associate Professor, Information Systems Stern School of Business New York University Stern School of Business, New York University Blog: A Computer Scientist in a Business SchoolBlog: A Computer Scientist in a Business School http://behindtheenemylines.blogspot.com/ Twitter: @ipeirotis

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Slides from WWW2011 panel: "The Computer is the new Sewing Machine: Benefits and Perils of Crowdsourcing"

Transcript of Crowdsourcing: Lessons from Henry Ford

Page 1: Crowdsourcing: Lessons from Henry Ford

Crowdsourcing

Lessons from Henry FordLessons from Henry Ford

Panos IpeirotisAssociate Professor, Information Systems

Stern School of Business New York UniversityStern School of Business, New York University

Blog: “A Computer Scientist in a Business School”Blog:  A Computer Scientist in a Business Schoolhttp://behind‐the‐enemy‐lines.blogspot.com/

Twitter: @ipeirotis

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Crowdsourcing: First Steps• Maskelyne, 1760:

– Used large number of human computers.g p– Created almanac with moon positions, 

used for ship navigation– Quality assurance by doing calculations 

d d b h d ftwice and compared by third verifier.

• De Prony, 1794: y,– Hires hairdressers (unemployed after 

French revolution) who knew only addition and subtraction)  – Galton, biology, 1893

– Create logarithmic and trigonometric tables.

– He managed the process by splitting the work into very detailed workflows

– Pearson, biology, 1899– …– Cowles, stock market, 1929work into very detailed workflows.

– Hairdressers better than mathematicians in arithmetic! – Math Tables Project, unskilled labor, 1938

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Crowdsourcing: First Steps• Maskelyne, 1760:

– Used large number of human computers.(Little has changed since then )g p– Created almanac with moon positions, 

used for ship navigation– Quality assurance by doing calculations 

d d b h d f

(Little has changed since then…)

twice and compared by third verifier.

• De Prony, 1794: Patterns

Division of labory,– Hires hairdressers (unemployed after 

French revolution) who knew only addition and subtraction)  – Galton, biology, 1893

Division of labor Mass production

– Create logarithmic and trigonometric tables.

– He managed the process by splitting the work into very detailed workflows

– Pearson, biology, 1899– …– Cowles, stock market, 1929Remind you of something?work into very detailed workflows.

– Hairdressers better than mathematicians in arithmetic! – Math Tables Project, unskilled labor, 1938

Remind you of something?

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Meanwhile…The Industrial RevolutionThe Industrial Revolution

l f• Textile manufacture• Mining• Steam power• ChemicalsChemicals• …

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The Industrial Revolution: 19th Century

Productivity rises!Productivity rises!

B t h i th b fi i ?But who is the beneficiary?

(hint: child labor, tenements, cholera, chest diseases, hunger, malnutrition…)

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"The Communist Manifesto", by Marx and Engels 1848by Marx and Engels, 1848

A class of laborers, who live only so long as they find work, and who find work only so long as their labor increases capital.

…Th l b h t ll th l i l ditThese laborers, who must sell themselves piecemeal, are a commodity, like every other article of commerce, and are consequently exposed to all the vicissitudes of competition, to all the fluctuations of the market.

….Owing to the extensive use of machinery, and to the division of labor, the work of the proletarians has lost all individual character, and, consequently, all charm for the workman.

…He becomes an appendage of the machine, and it is only the most simple, most monotonous, and most easily acquired knack, that is required of himhim.

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"The Communist Manifesto", by Marx and Engels 1848by Marx and Engels, 1848

A class of laborers, who live only so long as they find work, and who find work only so long as their labor increases capital.

…Th l b h t ll th l i l ditThese laborers, who must sell themselves piecemeal, are a commodity, like every other article of commerce, and are consequently exposed to all the vicissitudes of competition, to all the fluctuations of the market.

….Owing to the extensive use of machinery, and to the division of labor, the work of the proletarians has lost all individual character, and, consequently, all charm for the workman.

…He becomes an appendage of the machine, and it is only the most simple, most monotonous, and most easily acquired knack, that is required of himhim.

Remind you of something?

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The assembly line and mass production

Mass production was popularized in the 1910s and 1920s by Henry Ford, who introduced electric motors to the then‐well‐known technique of chain or sequential production.

Standard of living started increasing after introduction of mass production

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The Ford Innovation: The $5 workday

• Before Ford: many departments hired 300 men per year to fill 100 slotsmen per year to fill 100 slots.

• Ford, in 1914, offered a $5/day wage ($110 in , , / y g (2008 dollars) doubling running wage

• Best mechanics in Detroit flocked to Ford:• Best mechanics in Detroit flocked to Ford:– Brought expertise– Raised productivity– Lowered training costs

• Efficiency meant hiring and keeping the bestEfficiency meant hiring and keeping the best workers

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Fast forward to 2011…Crowdsourcing: The assembly line for knowledge work

• Cost benefits: “It is cheap, and I help these poor guys” [said the robber baron of the 19th century, together with the modern MTurkrequester]

S d d ll li “I 1000 k k• Speed and parallelism: “I got 1000 workers to work on this task” [out of which, 1% workers did 99% of the work, the rest left, generating turnover of 3000%]g g ]

• Breaking down to simple tasks: “Now we give tiny,Breaking down to simple tasks:  Now we give tiny, meaningless tasks to people” [who get bored to death]

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Crowdsourcing in 2011Crowdsourcing in 2011

• We are still in the 19th century!We are still in the 19 century!

ll h i k !• We repeat all the mistakes!

• We need a Henry Ford!

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CrowdSearchingCrowdSearching

• It is not about the cost!It is not about the cost!• It is not about the crowd!

i b i l k !• It is not about simple tasks!

• Crowdsourcing best for “parallel, scalable, automatic interviews” and for finding quickly g q ygood workers

Fi d th b t t i d k f tFind the best trained workers, fast, pay them well, and keep them!