As companies mature from fledgling startups into small and medium-sized businesses, it becomes harder to capture and analyze ideas coming from within an organization. Email and spreadsheets are the usual tools used to deal with internal collaboration, but these modes have no way of bringing the best ideas to the top: many times they are lost in the shuffle. Spigit, creators of an enterprise collaboration platform, has come out with a new SaaS product, WE by Spigit, aimed at addressing the collaboration problems small businesses face.
Often times when an enterprise software company moves downstream, they simply strip down many core functions of their enterprise product in order to make it affordable for SMB’s. WE by Spigit has additional features in their enterprise model, such as prediction and idea trading markets, but the main functions at the heart of their service remain unchanged.
When a company purchases WE by Spigit, they are able to create an “innovation community” where their employees (up to 500), are able to contribute and collaborate on projects immediately. Spigit employs constantly evolving algorithms in their system, which, when added to a thumbs up/down feedback system, creates a reputation value for a user. These values are useful because administrators will see topics and ideas which have the highest reputation rise to the top. Each community is hosted on Spigit’s servers.
Another feature is the inclusion of incentives and rewards in order to increase contribution from the communities. Users gain both points and virtual currency for the parts they play in the community; which can then be redeemed for real goods. Spigit hopes that by providing rewards, users will collaborate more, and thus more ideas from within companies can come to fruition.
BrightIdea offers services which are similar to those of Spigit, but they, like most other collaboration platforms, cater to larger enterprises.
WE by Spigit is pay-as-you-go. The product starts at $500 per month for 50 users, and reaches $2500 a month for 500 users. Spigit received $10M in funding from Warburg Pincus in October of 2009, bringing their total funding amount to $14M since their launch in 2007. They have been cash-flow positive for the past 10 months.