Daptiv's Greenhouse: Collaboration Grows

A new open innovation strategy from the software provider asks users to share and follow up on ideas to help improve service

by Ernest Beck

As a senior project manager at Chase Paymentech Solutions in Dallas, Addie Monson oversees part of enterprise operations at the sprawling company, which processes some 20 billion transactions annually from credit cards and point-of-sale payments. But since February, Monson has had an additional responsibility: helping to innovate the portfolio and project-management software from Seattle software developer Daptiv that is used internally by Chase.

Monson was one of some 200 people who participated in beta-testing Daptiv's new customer-driven collaboration initiative, called Greenhouse. No shrinking violet, Monson has let fly with ideas and comments aimed at improving the company's software. "I'm not shy about giving feedback," Monson acknowledges, adding, "To truly be able to help design it [the software] yourself is very empowering."

Greenhouse is provided free to Daptiv clients who can log onto the site from within their project-management software. It is described as "a meeting place to collectively decide" about improving software products. Once on the site, users can explore various categories—such as "plant" or "cultivate"—where ideas are, in Greenhouse-speak, "germinated" and "watered" (discussed and commented on, that is), and finally "harvested" or implemented by Daptiv.

Welcoming the Customer on Board

The initial 200 people in the beta test came from many companies that already use Daptiv software, not just Chase. All their findings have been shared across the platform with other users—and other companies. The next stage, which kicks off June 16, will bring in a larger community of 100,000 Daptiv users at some 700 companies.

A growing number of companies, in consumer products as well as services, are recognizing the power of customer collaboration, which lets consumers and clients play an integral part in the design and innovation process. Companies ranging from Starbucks (SBUX) with mystarbucksidea.com to Chrysler, with its recently announced "customer advisory board," are establishing online platforms, based in part on the concept of social-networking sites, to let customers get more involved in the design and development of consumer products as well as services.

Consider it an e-economy version of the old corporate suggestion box. But here, instead of suggestions being routinely ignored, customers can, in many cases, track whether their ideas are being acted on, listen in on what other users have to say, and vote on ideas.

A Product Development Conversation with Users

For service providers, it's an easy way to get instant—often raw—feedback from customers, which is not subject to market research analysis. It's also a way to portray the company as eager to listen to consumers and to adapt to their needs. Customers feel they are part of a transparent decision-making process because they can monitor whether their ideas are being acted on or ignored.

The theory is that when an entire community of users gets involved and debates and evaluates something, "The best ideas rise to the top," explains Anthony Williams, co-author of Wikinomics, the 2007 book that helped define and promote the concept of mass collaboration (BusinessWeek.com, 6/11/08). "Smart companies are taking that methodology to the next level," Williams adds. "They have discovered that you shouldn't have a product development process that is separate from a conversation with your customers."