Design for Start-ups (and everyone)
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Interactive Brand Advocacy Design for Start-ups (and everyone) February, 2010 Why Design Matters Ed Morrissey Partner & Chief Creative Officer 6321 Clayton Road Saint Louis, MO 63117 314.727.3600 [email protected] www.integritystl.com
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A presentation given by Ed Morrissey during the 2010 StL Innovation Camp that highlights the importance of design for start-ups, product developers and everyone else.
Transcript of Design for Start-ups (and everyone)
Interactive Brand Advocacy
Design for Start-ups (and everyone)February, 2010
Why Design Matters
Ed MorrisseyPartner & Chief Creative Officer
6321 Clayton RoadSaint Louis, MO 63117
www.integritystl.com
Interactive Brand Advocacy
Agenda
–Intro–Define Design–Elements of Design–Rethinking Design–Design ROI?–Case Study–Conclusion
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Interactive Brand Advocacy
What is Design?
– Percentage of Respondents Agreeing with the Statement
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According to the Design Council’s National Survey of Firms, 2004
To develop new products/services
How products look
Products working to meet client needs
Creative thinking process
Produce something that will ‘sell’
Strategic business tool
None of the above
75%
74%
64%
50%
47%
34%
3%
Interactive Brand Advocacy
Quote
–An activity that translates an idea into a blueprint for something useful whether it’s a car, a building, a graphic, a service or a process.
–“Design is the fundamental soul of a man-made creation”
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Interactive Brand Advocacy
Where does Design Matter?
– Architecture– The graphic arts– Industrial design– Animation– Anthropology– Biology– Technology– Automotive–Design is everywhere
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Interactive Brand Advocacy
7 Components of Design
– Unity – all elements must appear to belong together
– Gestalt – the whole should be more than the sum
– Space – white space is beautiful
– Color – used consciously
– Dominance - contrast
– Hierarchy – clear starting point and importance scheme
– Balance – clear, single message
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myspace
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Interactive Brand Advocacy
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Comparison
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Interactive Brand Advocacy
But…
–Can we calculate an ROI?
–Start-ups don’t have, but really need:
• Money• Time• Sales
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Benefits of Good Design
–Save Costs–Save Time–Increase Revenue•Gain Customers• Increase Transactions• Increase Product Sales•Retain Customers
– ALSO: Reduce Training Costs, Decrease Support Costs, Increase Trust, Deter Litigation and the list goes on and on…
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Interactive Brand Advocacy
Cost Prevention
– “The rule of thumb in many usability-aware organizations is that the cost-benefit ratio for usability is $1:$100.
– Once a system is in development, correcting a problem costs 10 times as much as fixing the same problem in design.
– If the system has been released, it costs 100 times as much relative to fixing in design.” (Gilb, 1988)
– Good design eliminates surprises– Good design creates cost efficiencies
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Save Costs Save Time Increase Revenue
Interactive Brand Advocacy
The Time to Design…
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Requirements Phase
DeploymentPhase
DevelopmentPhase
Number of Possible Design Alternatives
Cost of Change
Bias & Mayhew, 1994Save Costs Save Time Increase Revenue
Interactive Brand Advocacy
Make Design Standard
– Centralized design minimizes errors, improves efficiency, avoids duplication, reduces time spent searching for data/answers and capitalizes on reuse, where possible.
– Top principles of leading product developers…
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Aberdeen - The Top Five Principles for Successful Product Development, 2008
Maturity Class Mean Class PerformanceBest-in-Class:Top 20%
• Percent of products that meet/exceed rev targets (82%)• Percent of products launched on-time (83%)• Percent of products that meet product dev budgets (76%)• Percent of products that meet product cost targets (82%)• Percent change in annual product revenue (4%)
Save Costs Save Time Increase Revenue
Interactive Brand Advocacy
Make Design Standard
–Best-in-Class firms were 89% more likely to centralize design
–Best-in-Class firms had a 4% revenue increase while others had a 5%+ decline
–Time is money.
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Aberdeen - The Top Five Principles for Successful Product Development, 2008
Save Costs Save Time Increase Revenue
Interactive Brand Advocacy
This is Simple
–Usable products lead to cost savings and sales–Good navigation makes it easier for users to find
what they’re looking for and to buy•User experience design•Human factors
–Usable products lead to word of mouth•Word of mouth leads to sales• 76.4% of purchasing influenced by WOM (WOM
Research)
–Usable products lead to good product reviews•Good product reviews lead to sales
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Save Costs Save Time Increase Revenue
Interactive Brand Advocacy
Some Other Revenue Stats
–85% of visitors abandon a site (cPulse)
–62% of web shoppers gave up (Zona study)
–50% of web sales are lost (Gartner Group)
–40% of repeat visitors do not return (Zona study)
–50% of product returns due to poor design (Reuters)
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Save Costs Save Time Increase Revenue
Interactive Brand Advocacy
Good Design
– Goes beyond the ‘look’ of a product– Shapes the product for ease of use,
reliability and costs of production and maintenance
– Affects the quality and ease of manufacture of the product
– For services, design can also affect how customers will experience a service, such as a bank or a fast food restaurant, including their experience in the queue
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“Designers have more potential to slow environmental degradation than economists, politicians and environmentalist.
Their power is catalytic.”
– Alastair Faud-Luke, Eco Design
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Newspapers are Dying - Jacek Utko
– http://www.utko.com/– Bulgarian Newspaper
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Newspapers are Dying - Jacek Utko
– http://www.utko.com/
– World’s Best Designed Newspaper
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– Circulation Results– Russia
• +11% 1Y, +19% 2Y, +29% 3Y– Poland
• +13% 1Y, +22% 2Y, +35% 3Y– Bulgaria
• +100%
Interactive Brand Advocacy
The Power of Design…
–People come to love it and loyalty soon follows, along with the three Rs: •Repurchase, •Reuse, and •Recommendations
–Benefits that fall directly to the bottom line
–Such is the power of design
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Conclusion: Good Design is Good Business
– Importance of first impressions (see next slide)– Investor confidence– Must be an integral part of running/starting a business– Shorter sales cycle / faster entry to market– Turns consumers into customers– Creates higher perceived value– With the marketing playing field being leveled, the only
distinguishing characteristic for many companies is design
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It ignites passion, identifies, informs, clarifies, inspires, and communicates.
Interactive Brand Advocacy
Test - Who Would You Buy From?
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Googled ‘software for math and physics visualization’
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Parting thought…the only reliable strategy
–To gain buzz you need to set expectations high. To gain and retain customers, you need to surpass those expectations on a regular basis. A great way to start is by setting the table for quality early on inside your organization and one of the best ways to do this is through design.
– http://sethgodin.typepad.com/
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Interactive Brand Advocacy
Thank You.
Ed MorrisseyPartner & Chief Creative Officer
6321 Clayton RoadSaint Louis, MO 63117
www.integritystl.com
Interactive Brand Advocacy
References
– http://www.readwriteweb.com/start/2009/09/design-for-startups-the-aesthe.php
– http://www.businessweek.com/innovate/content/jan2010/id20100120_303529.htm
– http://www.designcouncil.org.uk/About-Design/Research/Value-of-Design-Factfinder/
– RODI (Return on Design Investment)
• -http://www.designfactfinder.co.uk/
– http://sethgodin.typepad.com/
– http://www.wired.com/
– http://www.fastcompany.com/magazine/95/open_design-index.html
– http://www.webpagesthatsuck.com/
– Sample Sites
• http://www.dpgraph.com/
• http://www.tecplot.com/
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