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The Army of Davids Expands

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James Robertson

Posts: 29924
Nickname: jarober61
Registered: Jun, 2003

David Buck, Smalltalker at large
The Army of Davids Expands Posted: May 25, 2006 7:17 PM
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Original Post: The Army of Davids Expands
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What Wired is calling Crowdsourcing is an example of what Glenn Reynolds wrote about in "An Army of Davids" - for any given field, there are underused experts out there. This is going to be a far bigger driver for business change than offshoring is - why go through the hassle of dealing with people half a world away when you can grab the spare cycles of people who are no more than 3 timezones away? The example here has to do with photo licensing, but it applies to things far beyond that:

iStockphoto, which grew out of a free image-sharing exchange used by a group of graphic designers, had undercut Harmel by more than 99 percent. How? By creating a marketplace for the work of amateur photographers – homemakers, students, engineers, dancers. There are now about 22,000 contributors to the site, which charges between $1 and $5 per basic image. (Very large, high-resolution pictures can cost up to $40.) Unlike professionals, iStockers don’t need to clear $130,000 a year from their photos just to break even; an extra $130 does just fine. “I negotiate my rate all the time,” Harmel says. “But how can I compete with a dollar?”

He can’t, of course. For Harmel, the harsh economics lesson was clear: The product Harmel offers is no longer scarce. Professional-grade cameras now cost less than $1,000. With a computer and a copy of Photoshop, even entry-level enthusiasts can create photographs rivaling those by professionals like Harmel. Add the Internet and powerful search technology, and sharing these images with the world becomes simple.

This is going to hit business in any task that isn't completely core, and can be shopped out. Over the next few years, the shops that thought they were cutting edge by moving operations abroad are going to learn that they are already behind the curve.

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