CROWDSOURCING IN CONSULTING: FAD OR THE FUTURE?

INDIAN INSTITUTE OF MANAGEMENT, SHILLONG

The “most insightful sign of whether an industry needs disruption is typically a dearth of innovation or development from sector-leading firms This tendency is also affecting the management consulting sector, which is currently going through a significant disruption that is expected to reshape and improve the sector Although the sector continues to generate billions in earnings, total revenue growth has actually been declining over the previous few years. This is due to a number of factors, such as the lack of effectiveness and depth of actual consulting services; institutions' preference for a particular type of corporate-centric employee, which results in workers at firms having a onedimensional perspective on international and business affairs; and early industry pioneers having created an ineffective status quo that harms the broader economy This is what sets the stage for crowdsourcing.

The global rise of the gig economy and the growing acceptance of crowdsourcing as a workable substitute for small and limited numbers of experts are two of the leading forces propelling the paradigm shift in the consulting industry. These developments have ushered in a new era of cutting-edge management consulting, which has a number of advantages over the industry's conventional approach The use of crowdsourced management consulting, for instance, encourages consulting firms to innovate and offer fresh perspectives.

In layman's terms, turning to a group of people to get the information, products, or services one needs is a process known as crowdsourcing Combining the words "crowd" and "outsourcing," the term "crowdsourcing" is coined As the term suggests, crowdsourcing refers to the process whereby a person or organisation approaches a group of individuals (the crowd) for specific resources This method has been employed by a wide range of companies, people, and organisations to collect ideas, raise funds, and compile and disseminate information. These organisations use the internet, social media, and purpose-built platforms to find and obtain the information, products, or services they need As a result, they may interact with a broader range of sources than they could if they only used their employees, suppliers, and other conventional sources of expertise n addition, the exponential growth of Big Data and Artificial Intelligence has made it possible for the masses to understand vast amounts of complex data with incredibly deep insights Due to this, established organisations with whole floors devoted to business intelligence can compete with smaller advisory firms and even individual freelancers

With the help of technology, organisations may reach large and quick crowds via crowdsourcing While social media platforms and the internet are the foundational technologies for crowdsourcing, there are also specific crowdsourcing tools that can help with this project Specific forms of crowdsourcing are made possible by some technologies For instance, Amazon Mechanical Turk, often known as Mturk, connects companies with people to complete what it refers to as human intelligence activities. Meanwhile, vendors provide crowdsourcing platforms for specialised markets, such as charitable groups seeking to interact with activists over a range of problems and businesses, hoping to engage its workforce to assist in developing new business strategies.

Traditional consultants cannot expect to keep operating in the same manner and get good outcomes in the face of an exponential rise in competition and a wealth of alternative viewpoints. Customers now have a wider selection of consultants to choose from as a result of increased competition, increasing their chances of finding a specialist with the required niche expertise.

This approach is working for Wikistrat, which already has a networked platform with thousands of advisors in numerous specialties. A client's issue is distributed to multiple groups of consultants, who compete with one another to come up with the best and most insightful answers in the firm's recently constructed novel simulation system The business has discovered that a competitive problem-solving atmosphere yields particularly thorough and hitherto impossibly high results Large technological and mining businesses on the Fortune 500 list are among the firm's current commercial and public sector clients. However, Wikistrat is not alone; the business GLG also has a reputation for innovation GLG employs a point-to-point interview format known as "Expert Calls" and works with hundreds of thousands of experts Clients can explain the precise criteria of what they are looking for and receive highly relevant solutions using this method.

These models are perfect for businesses searching for quicker, more efficient solutions so they may concentrate on growth rather than pricy, time-consuming procedures.

To be sure, several major firms already feel the strain of having to innovate as they start acknowledging the realities of their outdated business models For instance, Deloitte is establishing itself and setting itself apart from its rivals as it seeks out cutting-edge technological solutions for its clients The corporation's creation of the Pixel Unit, a platform for crowdsourced business consulting, seems to be a copy of its smaller competitors

It is evident that conventional management consulting is out of date Smaller, more specialised, and niche businesses are starting to replace the pioneering companies that stagnated for far too long. Previously a luxury for wealthy and established organisations, management consulting can now become a mainstream tool that is accessible to all businesses, big and small, thanks to crowdsourcing, Artificial Intelligence, and other data-driven technologies If only the sector, as a whole, would adopt the models and methods of its newest companies, it could indeed experience tremendous growth ”