Day One remainder. keynote: Connecting Experience Design to Business yaddayadda
Lou Carbone -- this guy is completely hilarious!
Experience Engineering

A lesson from 21 MN winters
"In our haste, we often don't step back far enough to look at context."

Design vs tech... let go of what you know.

"We live, eat, sleep, breathe and unravel the riddle that is the human experience..."

Howard Johnson, created franchising in the US.
Great ad campaign in the last 6months of HOJO, and yet, the customer counts would dwindle after the launch of the campaign.

He then, in 1979, started working for Disney... "Like being struck by lightning."

Problem: People benchmark best practices instead of making the next practices.

Disney, as a cartoonist, understood the importance of the emotional connection of the customer.
The click. The clues.

What can you embed in four frames that would make the connection with a person?

How does the mouse get people to part with cash?

Frederick F Reichheld - The Loyalty Effect. New Book: The Ultimate Question

Satisfied customers are not necessarily loyal customers.

"Would you recommend to a friend or associate"

Net promoter / net detractor scale.

The problem is that they are using a very old framing.

Data == relationship??

Ownership
Not about rational thought.
Harley Davidson is the pinnacle of ownership... people tattooed everywhere with harley logos.
From people who have crawled out from under rocks in the Ozarks to the CEO of Mobil oil

Loyalty
They don't understand how they make me feel, which is how I feel about myself. W/o upgrade to first class: "I am more important than this!" Hero to zero.


Reject (neg differentiation) --> Accept (neutral diff | Community Zone) --> Preference (positive diff)

What most of us have learned is based in the past. The largest opportunity for peolple in the design community is to think of themselves in designing experience. The creative firepower of the world, not rooted in the indstrial age.

*Creative thought more dynamic than a process.*

All experiences are systems --> all components coming together to create a feeling.

Starbucks: Process + Product + Experience

It isn't the quality as much as it is the impact.

The world of make and sell -->

*The worst thing that happened to the banking industry is that they discovered product. Were in the experience industry, and now focus on churning out product.*

SENSE AND RESPOND

Bus drivers to taxi drivers >> prescribed route vs agile descions

Post Industrial MBA at Berkeley --> Can't silo industries because you need holistic value/experience

The goal is to create value. Profits are the reward.

All the numbers we talk about in business are made up of people

Experience Management:
Move from looking at Behaviors to Attitudes to Emotions to looking at

The Brand Canyon

Brand = product "what people feel"

Service = treatment "ladies and gentlemen serving ladies and gentlemen"

Experience =

===

Brand value - how I feel about the company
customer value - how I feel about the expereience

Need to know how customers think
The power of the unconscious mind (heuristics)
Gerald Zaltman: Book: How Customers THINK
95% of processing takes place at an unconscious level

consciously and unconsciously filter a barrage of clues and organize them into a group of impressions

functional clues - rational
mechanic clues - emotional
humanic clues - emotional

Toilet paper speaks volumes "The toilet paper triangle"

You cannot NOT have an experience; the question is how managed or haphazard is the experience.

> we can systematically and purposefully design exerpience cliues to create feelings that engage and bond the customers

stakeholder + employee + customer

LEARN --> CREATE --> DO

Experience audit

ZMET --> deep metaphor visitation
ClueScan --> immediate fixes

Experience motif

Delivery
"Answer the door" vs "Answer the door and make sure that they feel welcome after their two day trip"

The Practice of Experience Mgmt
Fuse Humanics and Mechanics
Manage Experience Breadth and Depth
Connect Emotionally

Key challenges to Total Experience Management
organization out --> customer back
make / sell --> sense and respond
rational --> emotional AND rational

Lewis Carpone: Book: Clued In

It isn't the delivery vehicle that will win, it is the experience

Designing the experience for the internal group is more important than that of the customer.

Dave Heckel: look for his book



Managing Schizophrenic Projects
Adam Richardson
Frog

Thinking far out in the future while designing in the now.

Frog --> 60% of their work is digital at this time

mom and apple pie:
Innovation -- common application is "spray it on" and call it a day
Competitive advantage occurs in three levels:
Evolve (incremental innovation) ~1 yr advantage
Expand (growth innovation) 2-5 yrs advantage
Envision (breakthrough innovation) 5+ yrs advantage

Typical dist for companies where innovation has stagnated is high on the evolve, very little on expand, next to none in envision
"Measuring Innovation" survey, 2005 Deloitte LLP
Communication --
User Research
Rapid Prototyping

Case Study: alltell
Product: celltop (http://www.mycelltop.com/)
Launched in 12 mos

Concept is to replace the standard phone UI with "cells" which divide the screen in half vertically

Simple from a user perspective, challenging from a technical perspective.

Based on widgets and gadgets

Open system


Schizophrenia
1. Establish the dimensions
Dimensions are enablers not hindrances
Dimensions as walls. some walls are load bearing, you can't do things about them. Others are more decorative, and you can do more with them
For alltell:
1. Monetize
2. Easy to use
3. Quick to implement
4. Differentiated
5. Fit with/influence long-term vision
2. Manage the Communications
In particular, the dimensions have to be well communicated.
Long term metrics are the same as the short term, which tends to kill things.
> Communicate up and down
> No surpises - "Tada type" is no bueno
> No thy organization (see picture)

3. Manage the Design Factory
Stolen from book by same name by Donald Reinertsen
Design is inventory sitting in a factory.
Get stuff out as fast as possible.

> Pay Attention to the interfaces (not the UI in the conventional sense)
break the system up into chunks and then manage the components
For alltell:
every phone is different (88 different celltop apps)
> Manage the queues
a factory is a big queue. You want to manage the batches
Large batch -- take a long time, hold up everything else
Quick turn -- can be done
split things up so that they can be done in parallel so that you can get as many done as possible

*** WHAT IS OUR COMPANY'S VISION ***
need to find ways to break off pieces of tactical vision so that they can be addressed

4. Deply the scouts
<-- illustration <--> prototype <--> partial market test <--> full market entry <--> fast follower -->

try out different pieces of the system with small projects.
fast follower approach is often looked at as a non-innovative approach, but it often allows a company to avoid some of the major costs

for alltell
> can they make the transition from wireless provider to software provider?
> The cells themselves are scouts in that they give feedback into customer desires etc
> developers are scouts

Interview with Catherine Fake
Peter Merholz & Caterina Fake
Yahoo!

CF: Tried to register for Facebook, and was turned down because of her name "Try to use a real name." Cannot fly on Northwest because they throw out her information b/c of her name.

Director of Technology Development Group at Yahoo! Works under Bradley Horrowitz
DTG -- primarily 1) creates culture of innovation and new product design across Yahoo; 2) includes some serious "rockstars" who work side-by-side with the Yahoo dev teams to develop new products, such as Pipes

PM: What is your role?
Brickhouse (she can talk very little about) and Hack (will talk more about soon)

Ludicorp's _The Game Neverending_ evolved into Flickr. Trying to create a game where the reason for playing is to socialize. In some ways, the game itself was a foil for social interactions. Because people couldn't understand the concept, they were unable to get funding. They basically had money for one last thing. The frontend development got 6months ahead of backend dev. They had not done any research into photo sharing. "Fortuitous ignorance." As such they created this thing: Flickr. Convergence of blogging and camera phones and many other things made the timing in 2004 a sweet spot. Before 2003/2004, socially, you needed to have a pretty good reason to have a blog, otherwise you were a weirdo.

First photo: December 15th, 2003: "Dos Pesos, Handsome Fellow"

Flickr was digital native: did not use metaphors from people sharing photo albums, but used all online metaphors.

First iteration of Flickr was an instant messaging program that accommodated pictures. In order to share photos, you needed to be logged on at the same time as your friends.

PM: How were the early design decisions made?
CF: Two founders were both designers. Very design heavy process. Started off fairly clear in what they were trying to achieve in the design. The trick to Flickr was to design something where you could really let the photo be the thing that is shown, without interference from the rest of the options. There was a huge amount of stuff happening on the page. How do you expose the full feature set and yet still let it be subtle enough not to take away from the photo? *At one point they realized that they were doing an average of 10 pushes a day.* Design was done very much in collaboration with the uses. An average of 50posts per day on the forum.

PM: How did the about statement emerge? And how do you maintain coherence in the chaos?
CF: Looking back, we sat down and did soul searching together... wrote down all the reasons. The Flickr About page is what emerged. Had to look at the big picture and then explain it to people.

PM: How useful was it for your team moving forward?
CF: These are the things that will put you on the true path when you are designing a new product.

Q: IN the beginning where did you think the $$ was going to come from?
CF: From the beginning, had in mind a tiered membership program. Free, pay, etc. Some sites, come in as expanded hobbies, and so they have to build a payment and business plan on top of an existing software product. Plus, they were trying to raise money, so they "had a biz plan".
They had been sitting there congratualting themselves. But 6 people in a garage: no problem, blue sky. The real challenge is making something like that happening at an existing company. If you can do that, you are Peter Frampton.

PM: How do you bring these principles into Yahoo?
CF: She brought with her all these practices/prejudices/habits and then she was broadsided by meetings, requirements docs, documentation. "There is no meeting!" >What were the things that made it possible to invent new stuff? One of the groups that was formed was called "Hack Yahoo".
>The way these hacks programs usually work: Red Bull + Pizza + motivated creative engineers + you say build stuff. Give them 24 hrs. At the end, you get everyone together, and you demo.
>When introduced to a field office, they said "We're going to do a Hack Day! OK, we will meet before hand, give ground rule. You must have a PPT, a PRD... etc."
>Hack Days happen once every quarter

Q: Notions about user feedback. One is to look at the user's ideas, the other was to ignore the users because they don't know what they want. How do you know when your customers know what they want?
PM: Firestorm on the adaptive path site about abolishment of the old Flickr accounts.
CF: Cory Doctrow had feedback galore. They listened to everything Cory said. Eventually they realized that his needs were very specific to him and did not apply to most people. A lot of the time, people don't know what they want... they want more of what they already have. In some ways, the best way to go about it is to use the suggestion box, and still work against the ideas you already plan on. Present some ideas that you plan on to the user community and have them vote on them. You have to be careful with how much you listen to the community because there is often a passionate, vocal minority who will disagree with your direction. Listen with compassion.

Q: Ohter than the big changes, the small features can be huge. Is gentleness in the interface a way of giving customers a sense of ownership? eg, geotagging
CF: Don't push features if they look like they are going to be a specialty item.
>Similar to the Yahoo rollout of Pipes. They had underestimated the desirability of the features. Pipes went up to 2000 queries per second shortly after launch!
>SHare amongst some friends, improve it, then go wide audience.


Case Study: Dell 2.0 Designing Customer Experiences
Brooks Protzmann
Dell Computing
Visual identity and Brand Experience

Dell's sales exceed Amazon and eBay daily sales *combined*

Change the way they are servicing the customers and the way things are designed.

Define it right initiative

Dell 2.0: Look holistically at the "Customer Journey"
Add "brand anticipation"

Bring together all aspects of the experience

More conflict within the usability group than anything. the way they are trying to work around it is communication; identifying roles and responsibilities, etc.

When you design for mediocracy for a long time, the best way to sell good design is to show the comparison.

Connecting Design to Real Business Value
Brandon Schauer
adaptivepath

We talk a lot about business "getting" design. What about design getting business?

Does good design create value?
Examples of potential
Razr
Target CleaRx system
jetBlue
Starbucks
Design Within Reach

Maybe not...
Design Within Reach is having a lot of trouble.
jetBlue is not doing so well at scaling up.

UK Design Council did a whole study, and selected top companies because they had won design awards. Is there causality?

Is design really delivering something different? or is it just a fad?

Taylorism - focus on measurement which truely began business management.

sixSigma - defining what quality is. Getting fewer and fewer defects out into the world. Part science, part culture.

Decades of intense improvements in effeciency and productivity. No longer a competitive advantage, because it is so fiully adopted.

As a result: Innovation
Blackberry
Whitestrips
CocaCola Blak

How do you start to reach a good idea of what is going to work in the market.

Instinct that you need to do something new and different.
"How do we become the iPod of insurance?"

Use a value curve
http://en.wikipedia.org/wiki/Blue_Ocean_Strategy

Strategy can be choosing to "zag" where your competitors are choosing to "zig".


level 1: intuition
level 2: user behavior
level 3: project value
level 4: business value
level 5: relevant strategy

User Experience Value Chain

Who cares?

Hoew do you become a better lead of design within your organization?
transformative
transitional
operational -- design is often operational

What can we do as designers to move up that chain?

3 Things every UX designer should know about value:
1. Model the business
Lulu - on demand book publishing
What is the business?
How do they create value?
Then look at how you can affect each of the different aspects
Influencers
Levelers
Opportunities

2. Connect business value with user behavior
(Business opp >> Desired behaviour (design can affect) >> Behavior metric) * value metric = financial outcome
Look at a couple of options and compare them
Business Case Modeling for Design by Henning Fischer
http://www.adaptivepath.com/publications/essays/archives/000654.php

3. Prototype the strategy
It can be super low fidelity. Doesn't even have to be totally representative.
--> "prototype what you don't know" much more likely to find interesting decisions

Customers

Service line

Operations

Capabilities

ANSWER: Design creates value on a project-by-project basis when designers understand their business and design for value.

Labels: adaptivepath, conference, experience design, MXSF07, SF, ux

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