The Value of Design
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How to convince business and IT to value design? One of the biggest outcomes of the technology consumerization trend is how it has driven the importance of design. There’s no “waiting out” this trend – an unstoppable wave of interest in design centricity is hitting the business world, shifting the focus in product and service development from features to experience. But why? What is the real value of design? Why is it worth the investment?
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The Value of Design
- 1. Public The Value of Design Andreas Hauser SVP, Design & Co-Innovation Center, SAP @HauserAndreas
- 2. Public Design is growing stronger!
- 3. Public The challenge 40k 30k 20k 10k $ $ $ $ Jun’03 Jun’05 Jun’07 Jun’09 Jun’11 Jun’13 228% $39,922.89 $17,522.15 D.INDEX S&P.INDEX Source: Design Management Institute http://c.ymcdn.com/sites/www.dmi.org/resource/resmgr/Docs/DMI_DesignValue.pdf D.INDEX: Whirlpool Ford IBM Nike Starwood Steelcase Coca-Cola Apple Newell Rubbermaid Target Starbucks Disney Herman Miller P&G Intuit Design-centric organizations in the United States:
- 4. Public The options Waiting won’t make it go away.
- 5. Public The challenge TODAY Forrester IT survey, 2013 From Information to Innovation Technology THE FUTURE 72% Keep the lights on 28% Drive business innovation Drive business innovation Keep the lights on
- 6. Public The opportunity Shift from features to experience.
- 7. Public A big wave is coming.
- 9. Public Gain productivity Decrease user errors Save training costs Reduce change requests Design brings monetary value. The good news
- 10. Public UX Value Calculator experience.sap.com/designservices We can measure it! The good news
- 11. Public Increase user satisfaction Increase customer loyalty Increase solution adoption Strengthen relationship between IT and Business But also human value. The good news
- 12. Public CEO CIO Business Employees What do they want now? The audience Reduce costs! Happy users! Get the job done! More Revenue!
- 13. Public What do they want now? The audience Be the innovator Beat the competit ion Enjoy working Lead the market! CEO CIO Business Employees
- 14. Public The approaches Short term Improve the user experience Long term Innovate through design FutureNow
- 15. Public One UX for all Solutions The Offering SAP Fiori User Experience
- 16. Public Show the quick win first! BEFORE AFTER Short term approach SAP Screen Personas – Shell Screens reduced from 7 to 3 43% less clicks
- 17. Public Show the quick win first! Short term approach 408 K Unique views in 3 days +18 M Twitter impressions Re-designing the Stats Experience (NHL)
- 18. Public But improving the current situation is not enough!
- 19. Public The revelation TODAY Forrester IT survey, 2013 We need room to grow. THE FUTURE 72% Keep the lights on 28% Drive business innovation Drive business innovation Keep the lights on
- 21. Public People Process Space Create a culture of innovation. Long term approach
- 22. Public We need the right mix! People (desirability) Business (viability) Technology (feasibility) Innovation Opportunity
- 24. Public Design is a process. Scope 360° Research Synthesize Ideate Prototype Validate Implement Deploy Test DesignDiscover Deliver Long term approach
- 25. Public It needs a space.
- 27. Public Design produces results! Long term approach 29x faster decisions based on UCD powered by SAP HANA Optimizing Signal Detection (eBay) https://experience.sap.com/designservices/work/si mplifying-nct-patient-data-to-save-liveshttp://experience.sap.com/designservices/work/optimizing-ebays-signal-detection
- 28. Public Design produces results! Long term approach 4 design awards (incl. Red Dot) Medical Research Insights (NCT Heidelberg) https://experience.sap.com/designservices/work/simplifying-nct-patient-data-to-save-lives Design + SAP HANA = Innovation
- 29. Public Design produces results! Long term approach AMG Collaborative Planning Tool https://experience.sap.com/designservices/work/simplifying-nct-patient-data-to-save-lives Better plan and track production process via optimized collaboration in ONE tool
- 30. Public CEO CIO Business The outcome I’ll be the Chief Innovation Officer! We are more successful I enjoy working We are generating value! Employees
- 31. Public The learnings Show the value of design
- 33. Public The learnings Invest in Design Skills
- 34. Public The learnings Let people experience design
- 35. Public The learnings Create a culture of innovation
- 36. Public Design transforms the industry. The finale
- 37. Public Thank you experience.sap.com/designservices Andreas Hauser SVP, Design & Co-Innovation Center SAP SE andreas.hauser@sap.com @HauserAndreas linkedin.com/in/hauserandreas
Hinweis der Redaktion
- Design has become a growing wave that will inevitably embrace every industry and organization and every aspect of our lives. Design has changed what people expect from business software. It has shown how simple consumer applications can be. Now, this simplicity is also expected in the business world.
- Design is not a temporal trend. We can’t wait until it goes away. It will just grow stronger! Think about what happened with some famous companies: Nokia – they were no 1 in the mobile market for a long time Kodak – they invented the digital camera Sony – they invented the Walkman Did they wait too long?
- Why? – We won’t get too far if we only keep fixing the current situation! We are spending too much resources in keeping the lights on. We need to simplify so we have more room to grow. Design can help us to achieve this!
- We see a clear shift from focusing just on features and business processes to experience. The good news is: There is opportunity! More and more IT organizations are getting it. They see the importance of understanding the end-users’ needs and hire designers.
- So we have to learn to surf and help others surf with us.
- BUT! There is a bad news: many IT organizations don’t know how to do this, and how to convert that understanding into innovative solutions. And there’s even a terrible news: we know that we can achieve this by using design methods, but many IT business leaders don’t believe yet in the power of design. So how do we convince them?
- Design has a monetary value!
- Design has a also human value!
- First, we need to look at our target audience. There are short term business goals! CEO – Ensure future growth, increase revenue CIO – Reduce costs to keep the lights on Business Units Executive – Ensure future growth, increase revenue for the business unit Employees – Get the job done in a simple way
- And there are also long term business goals! CEO – Become market leader, offer innovative solutions and beat competition CIO – Be seen as innovator Business Units Executive – Become market leader, offer innovative solutions and beat competition Employees – Do a good job and be recognized How do we address all?
- Approach for short term goals – use design to improve the current situation and help them embrace a UX mindset. Approach for long term goals – use design to generate competitive advantage You need both!
- But improving the current situation won’t be enough! Why? Because the market and expectations are changing dramatically. I was last week in Australia at an SAP customer conference and heard an interesting keynote. He spoke about a survey that was done with 16-24 year old people. First he presented a prioritized list of companies: VISA, AMAZON, Mastercard, Walmart, Google, Apple, Microsoft, Starbucks What do you think the question was? At which brand would you open a bank account? Rank 6 was Bank of America … The world is changing!
- So we need to “move the organization not only into a UX mindset but into the role of value-generator through innovation” Do you know why Sony did not invent the ipod? They did not escape the gravity of their success They were market leader in all categories: CONTENT (music, movie), HOME (PS2, DVD, TV), PORTABLE DEVICES, BRAND, DISTRIBUTION all silos The main problem was COLLABORATION between the silos Design Thinking enables collaboration and interdisciplinary teams working together.
- To achieve this mix we need to create a “culture of innovation”. We do this through people, processes and space. Design is a catalyst for this
- Innovation emerges from the right mix of: business, technology, people.
- Design requires certain skills and mindset.
- Design is a whole process!
- The space is important to foster creativity
- With both approaches we manage to address short term and long term goals. “The final outcome is the transformation of IT into a value generator and the transition of the CIO into the role of chief innovation officer. Fortified by the growing understanding within the enterprise about the value of UX, the CIO can use that energy to build a culture of innovation, through the right people, processes and new types of workspaces.“
- Show the value of design. This learning comprises monetary and human values and the possibility to measure the former one. It refers to the section “The good news” of your presentation.
- Start with quick wins. This learning comprises the short term approach. Refers to the section “Short term approach” of your presentation. You can cover the “be visual” part here as well
- Let people experience design. This learning comprises the first part of the “long term approach” section of the presentation. It covers the Venn Diagram, in which you explain that you need people (including users), business and technology together to succeed.
- Create a culture of innovation. This learning comprises the second part of the long term approach. Covers the content from “create a culture of innovation” onwards.
- Design is not added value. Design is value. “Design transforms (or will transform) the industry”
- More information is available on experience.sap.com/designservices