Answer:
Loosely defined, crowdsourcing is a term used to describe using an open contest or crowd of people, all contributing to solve a problem or get something done. The term was coined by Jeff Howe in Wired Magazine in 2006, and was officially added to the Oxford Dictionary just last year in its June 2013 update.
The premise (and promise) or crowdsourcing is that it allows organizations to solicit the ‘wisdom of the crowd’ by connecting to a large number of people who share a common goal, all at once.
A long history
Although the term is new, the concept has its roots in history. In 1714, the British government needed a solution to what they called “The longitude Problem”. This navigational challenge, if solved, could save the lives of potentially thousands of sailors per year who perished at sea. The British government offered £20,000 (about $5 million in today’s money) to anyone who could invent a solution to this seemingly unsolvable problem. John Harrison, the son of a carpenter won the prize by inventing an accurate, vacuum-sealed watch. This early crowdsourcing experiment is a prime example of the concept that innovation and invention can come from anywhere, even from people outside of the industry.
There is an endless list of modern examples of crowdsourcing, even making the basis for complete business models, such as with Wikipedia. Crowdsourcing has also invaded pop culture, with television shows such as American Idol and dozens of other crowd-powered events making use of the concept.
