What is UX? - GE UX Central

Report
UX Central
The Business Value of
UX
What is UX?
An innovation process that makes great products.
2
What is UX?
User Experience, or UX for short, is the term used
to describe an innovation process that uses a
deep understanding of user needs to help create
GE products and services that provide meaningful
experiences to our customers. UX uses a set of
design methods to unlock actionable insights that
help to define products. It takes these insights to
design and develop the behavior of the products
we create, organize the workflow for interacting
with them, and to connect them with our brand.
3
The UX Process
Working collaboratively and iteratively,
informed by user needs.
4
5
The UX Process
User experiences are created in stages over the
course of a product’s development. UX teams
engage end-users to discover insights; they
design and prototype concepts and work them
into detailed solutions; they implement the final
product and evaluate how customer and users
respond release after release. Every product
requires its own approach based on local
constraints, but these stages represent a healthy
UX process that can bring exceptional user
experiences to life.
6
7
Generate. Test. Iterate.
The UX process is fundamentally iterative.
Research is gathered and synthesized into
insights; insights seed concepts that are cyclically
transformed into full-fledged products. At each
step, the team’s output is validated with users and
other stakeholders, and their feedback is
incorporated into the next iteration of work. This
iterative process helps teams continually improve
the quality of what they make and helps them to
catch problems more quickly.
8
Market Undercurrents
User Experience Design is a necessary
competency to navigate today’s competitive
landscape.
9
Customer
Expectations are
Shifting
More and more companies, particularly those
that provide significant value through
software, differentiate through and are known
by the qualitative details of the experiences
they provide. The push for UX excellence
largely began in the consumer space, and now
the expectations set by electronic devices and
mobile apps are bleeding into industrial and
enterprise contexts.
Many exciting developments in IT area
appearing in the hands of consumers first
and only then making their way into
other arenas.
- MARC ANDREESEN
1
2
3
%
61
OF GEN Y
AND
%
50
OF 30+
believe the technology tools they use in their
personal/social life are more efficient and
productive than those used in their work life.2
1
The Economist, “The Consumer-industrial Complex”
Intel, “Consumerization: What is in Store for IT?” July 2010
The Economist, “The Power of Many”
30
%
Of doctors already use
iPads and 30% more
plan on using them in
the next year.3
10
UX-focused
Companies are
Outperforming
the Market
+63.08%
Growth in TeehaxLax’s UX Fund4
+37.67%
At least in the consumer space, UX-focused
companies create exceptional value for
shareholders.
The TeehanLax UX Fund is an investment
portfolio with equal shares in 10 UX-focused
companies. It was created with the belief that
companies that deliver great user experiences
will see it reflected in their stock price.
NSDQ100
0%
-9%
%
NYSE S&P500
13.76
Growth since Nov. 1, 2006 (as of Oct. 24, 2011)
4 TeehanLax, “UX Fund” as of 10/24/2011, http://www.teehanlax.com/uxfund/
11
Competitors
Have Built
UX
Competencie
s
Not only have competitors developed
UX competencies visible to the
public, they have decided to
monetize them by providing external
consulting services. Additionally,
many are positioning themselves as
thought leaders by using their
brands and resources to push UX
thinking forward.
UX Competencies
External UX
Services
UX Thought
Leadership
Design at IBM
IBM Design Podcast
IBM Interactive
Philips Design
Philips Innovation Services Design for Usability
GE is already differentiating from
Siemens
12
Companies
are Investing in
UX Talent &
Resources
Over the last six years, user experience-related
jobs have increased by as much as 450% in the
U.S. as shown by the growth of job postings
mentioning “User Experience” on Indeed.com5
+450%
Growth in UX jobs in the last 6 years.
Job Trends from Indeed.com
User Experience Jobs
5 Indeed.com,
http://www.indeed.com/jobanalytics/jobtrends?q=%22User+Experience%22&l=
13
Direct Business
Benefits
User Experience activities and investments result
in immediate tangible business benefits.
14
UX Grows the
Top Line
In today's consumerized B2B world, superior
user experiences can positively influence
business results in myriad ways. A strong UX
practice yields more desirable, performative and
cost-effective products.
If GE's combined Energy and Technology
Infrastructure revenue in 2010 is $75.4B7,
committing to UX could hypothetically unlock a
$10.8B opportunity, based on a 14.4% increase
in sales.
+14.4%
More customers on average are willing to
purchase from a company that provides
superior experience versus a company that
provides a poor customer experience
according to Forrester.6
10B
$
The hypothetical opportunity UX could offer
GE’s infrastructure businesses
6
7
Forrester, “Best Practices in User Experience Design (UX)”
GE, Form 10-K 2010
15
UX Increases
Adoption
A superior user experience can redefine a
product category and change the way users
approach a task. Such experiences, delivered
through attractive, well-engineered products can
become “must-haves” for an industry.
%
65
IPC, a financial sector
products and services firm,
achieved first-year
adoption rates of 65% in
an industry with typical
adoption rates of 10%.8
8
IPC Case Study, frog, Inc.
16
UX Increases
Conversion
Users of well-designed products and services make
purchases more frequently, develop brand loyalty
and help secure steadier revenue streams.
%
45
For a major e-commerce
business, streamlined
purchase paths yielded a
46.5% increase in revenue
and a 64.5% increase in
the number of units
ordered between Q1 and
Q4.9
9
frogIndex ROI of Design Presentation, frog, Inc.
17
Great UX
Increases
Perceived Value
Products that connect with customers on an
emotional level can command a premium in the
marketplace.
%
60
A media company’s design
commanded a 60%
premium over comparable
products in a competitive
category – and sold out in
the first year.9
9
frogIndex ROI of Design Presentation, frog, Inc.
18
Great UX
Reduces Churn
The better aligned a product is with user needs, the
better it will accomplish the task he or she is trying
to perform. If well-enough aligned, switching to a
competing experience can be seen as losing
functionality.
%
15.8
Fewer customers on
average are likely to
consider switching to a
competitor when offered
superior experiences vs.
poor user experiences
according to Forrester.6
6
Forrester, “Best Practices in User Experience Design (UX)”
19
Great UX
Increases
Customer
Efficiency
Reductions in task completion times can add up to
massive productivity savings for a business. In a
commerce context, customers who move easily for
information to point-of-purchase will complete sales
more often.
10
%
50
A product redesign for
SAP led to a 50%
reduction in the time users
spent on a given task,
increasing efficiency and
prompting significant
savings.10
SAP Case Study, frog, Inc.
20
Great UX
Improves Product
Performance
Due to tight collaboration between design and
development teams, along with improved focus on
key features, opportunities for experience
optimization are more readily identified. This can
dramatically enhance task completion times and
customer efficiency.
%
80
After a major GUI redesign,
SAP experienced an 80%
improvement in load and
render times for a product.10
10
SAP Case Study, frog, Inc.
21
UX Reduces
Costly Errors
UX can reduce avoidable rework of
produced by mitigating some of the most
common factors for why software projects
fail and get requirements right when the
cost of changes is lowest.
UX activities can be thought of as wellness
activities for product development. UX
activities up-front can avoid a lot of costly
surgery on products down the road .
3
12
OF
Common factors of
software failure are
mitigated by UX
activities.11
11
Cost of fixing
an error IN
development.11
Cost of fixing an
error AFTER
deployment.11
IEEE, “Why Software Fails”
22
If R&D Spend in 2012 is 5B2, even a 10%
reduction in avoidable rework in this
amount would mean a savings of 250M.
Let’s say there are 150 NPI in 2012 12 and
you spend 200K per NPI on UX Activities.
TO
%
50
of work by software
specialists is spent on
avoidable rework.11
$470M in
savings with a
hypothetical
10% reduction
in rework
$4.5B
$4.0B
WITH UX
Even a small reduction in cost could mean
big savings.
%
40
$5.0B
WITHOUT UX
UX Saves on
Product
Development
Costs &
Increases
Margins
$30M in UX
investment
(200K per NPI
for 150 NPIs)
GE R&D Spend
Comparison
GE is still saving $470M overall.
11
12
IEEE, “Why Software Fails”
Estimations based on GE Annual Outlook 2010
23
UX Speeds
Time to Market
On average, 5% of product features are used
95% of the time. UX can prioritize feature sets
to aid in faster time to market and meet
customer expectations.13
13
14
Strategic Data Systems, “UX Business Impacts and ROI”
GE Money Case Study, frog, Inc.
%
75
Faster launch of sites in new markets14
24
Broad GE Benefits
The User Experience Center of Excellence
coordinates the individual UX efforts of product
teams to generate value across businesses.
25
Great UX
Improves Product
Performance
Product teams get support and recognition when
they work with the UX Center of Excellence to
contribute to the broader UX effort at GE.
1
Drive adoption of repeatable UX practices
within GE through projects.
2
Increase productivity of UX investments
via knowledge sharing within and across
GE businesses.
3
Decrease cost per project by leveraging UX
expertise, tools and assets across GE.
UX CoE
Pilot
Programs
UX Central &
UX CoE PR
Efforts
Innovation
Accelerator Projects
Your
Projects
Experience
Curve
Cost
UX Maturity
Productivity
Learning Curve
Product teams can get support and recognition
when they work with the User Experience Center of
Excellence to contribute to the broader UX effort at GE.
1 frog Inc.
26
“We’re measuring GE’s top leaders on how
imaginative they are. Imaginative leaders
are the ones who have the courage to fund
new ideas, lead teams to discover better
ideas, and lead people to take more
educated risks.”
- JEFF IMMELT
27
Next Steps for Leaders
& Product Teams
Invest time and
budgetary
resources in UX
practices
throughout GE
Track,
measure and
document the
success of
UX activities
in your
projects
Partner with and
contribute to the
User Experience
Center of
Excellence before,
during and after
projects
Become an
advocate for the
adoption of UX
practices
Find information
that can help the
UX efforts on your
project on UX
Central
28
References
1 The Economist, “The Consumer-industrial Complex”
2 Intel, “Consumerization: What is in Store for IT?” July 2010
3 The Economist, “The Power of Many”
4 TeehanLax, “UX Fund” as of 10/24/2011, http://www.teehanlax.com/uxfund/
5 Indeed.com,
http://www.indeed.com/jobanalytics/jobtrends?q=%22User+Experience%22&l=
6 Forrester, “Best Practices in User Experience Design (UX)”
7 GE, Form 10-K 2010
8 IPC Case Study, frog, Inc.
9 frogIndex ROI of Design Presentation, frog, Inc.
10 SAP Case Study, frog, Inc.
11 Robert Charette, IEEE, “Why Software Fails”
12 Estimations based on GE Annual Outlook 2010
13 Strategic Data Systems, “UX Business Impacts and ROI”
14 GE Money Case Study, frog, Inc.
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