business value of ux

7/24/2019 Business Value of UX

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The usiness Value of UX


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What is UX

The Business Value of UX | 2

Working collaboratively and iteratively,informed by user needs.


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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.


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The UX Process


An innovation process that makesgreat products.


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User experiences are created in stages over the course of a

products 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.


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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 teams output is validated with users and otherstakeholders, 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.


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Market Undercurrents


User Experience Design is a necessary competencyto navigate todays competitive landscape.


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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.

Mark Andreesen 1

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


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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.

4 TeehanLax, UX Fund as of 10/24/2011, http://www.teehanlax.com/uxfund/
http://www.teehanlax.com/uxfund/http://www.teehanlax.com/uxfund/


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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.


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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.com 5

5 Indeed.com, http://www.indeed.com/jobanalytics/jobtrends?q=%22User+Experience%22&l=
http://www.indeed.com/jobanalytics/jobtrends?q=%22User+Experience%22&l=http://www.indeed.com/jobanalytics/jobtrends?q=%22User+Experience%22&l=


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Direct Business Benefits


User Experience activities and investmentsresult in immediate tangible business benefits.


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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.

6 Forrester, Best Practices in User Experience Design (UX)

7 GE, Form 10-K 2010


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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.

8 IPC Case Study, frog, Inc.


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Users of well-designed products and services

make purchases more frequently, develop

brand loyalty and help secure steadier

revenue streams.

9 IfrogIndex ROI of Design Presentation, frog, Inc.


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Products that connect with customers on an

emotional level can command a premium in

the marketplace.

9 frogIndex ROI of Design Presentation, frog, Inc.


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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.



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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 SAP Case Study, frog, Inc.


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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.



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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 wellnessactivities for product development. UX

activities up-front can avoid a lot of costly

surgery on products down the road.

11 IEEE, Why Software Fails


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Even a small reduction in cost could mean big

savings. If R&D Spend in 2012 is 5B2, even a

10% reduction in avoidable rework in this

amount would mean a savings of 250M.

Lets say there are 150 NPI in 2012 12and you

spend 200K per NPI on UX Activities.

GE is still saving $470M overall.

11 IEEE, Why Software Fails

12 Estimations based on GE Annual Outlook 2010


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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 Strategic Data Systems, UX Business Impacts and ROI

14 GE Money Case Study, frog, Inc.


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Broad GE Benefits


The User Experience Center of Excellence coordinatesthe individual UX efforts of product teams to generatevalue across businesses.


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Product teams get support and recognition

when they work with the UX Center of

Excellence to contribute to the broader UX

effort at GE.

Drive adoption of repeatable UX

practices within GE through projects.

Increase productivity of UX investments

via knowledge sharing within and across

GE businesses.

Decrease cost per project by leveraging

UX expertise, tools and assets across GE.


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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=


7 GE, Form 10-K 2010

8 IPC Case Study, frog, Inc.9 frogIndex ROI of Design Presentation, 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.
http://www.indeed.com/jobanalytics/jobtrends?q=%22User+Experience%22&l=http://www.indeed.com/jobanalytics/jobtrends?q=%22User+Experience%22&l=http://www.teehanlax.com/uxfund/http://www.teehanlax.com/uxfund/

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