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McLean Donnelly - Design & Business: A New Model of Product Strategy


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McLean Donnelly - Design & Business: A New Model of Product Strategy

  1. 1. Team structure. Design & Business A New Model of Product Strategy McLean Donnelly Vice President, User Experience @McLeanDonnelly
  2. 2. 10,000 websites created each day
  3. 3. 1,000 apps published each week
  4. 4. 176,136 user experience roles on Indeed
  5. 5. 507 Head of Design roles on Indeed
  6. 6. 228% out-performance of the S&P 500 by design-centric companies
  7. 7. Let’s take a moment to celebrate this! We’ve done it!
  8. 8. Hold up.
  9. 9. EBITDA
  10. 10. Weighted Average Cost of Capital
  11. 11. Free Cash Flow
  12. 12. Capital Asset Pricing Model
  13. 13. Wait, what?
  14. 14. “We don’t do that stuff. That’s what business does.” - Every designer everywhere
  15. 15. Waterfall and agile methodologies have centralized business thinking.
  16. 16. Traditional BFA & MFA programs don’t teach the business skills design needs for our next evolution.
  17. 17. Companies aren’t investing in business skills for design.
  18. 18. If I get trained in business skills, I can become a strategic & design leader.
  19. 19. 3 Years of My Life... 8:00 am - 5:00 pm UI Design IxD Wireframes Sketch Photoshop Email templates Branding Ux Research Native Apps Responsive design Prototyping 6:00 pm - 9:00 pm Accounting I & II Finance & Markets Economics Statistical Reasoning Corporate Strategy Supply Chain & Logistics Sales & Negotiation Marketing Business Law Change Management Business Literature Venture Strategies Leadership Capstone 10:00 pm - 7:00 am Regret my decision Pizza Sleep
  20. 20. This layout works great for a dramatic quote or statistic. Insert an amazing image and align it with this grey rectangle for a dramatic transition. Feel free to change the copy to white should want it to show up better against the image. MBA Adventure
  21. 21. Here are 3 classes from my MBA program that every designer should explore.
  22. 22. Finance 101
  23. 23. If you can learn sketch, you can learn finance. Proprietary and confidential
  24. 24. Let’s learn to read an income statement! This is the blueprint to understanding the business model and the biggest variables that make up a business. Proprietary and confidential
  25. 25. Pay close attention to costs and expenses Raw revenue generation will always be a key driver for business, but as designers, our work actually has a profound impact on cost reduction for the company. This type of analysis can give design-lead projects credibility that would have previously been considered, “non-revenue generating.” Proprietary and confidential
  26. 26. Buy a burrito for someone in accounting. Accountants like burritos too. Proprietary and confidential
  27. 27. Next, we should get the hang of Statistics Say you have two basic questions: - How many people visit my website? - How many visitors have I converted into leads or customers? Those answers, easily found in Google Analytics, and with a simple X/Y =Z ratio: eCommerce Conversion Rate = Transactions Completions/Visitors
  28. 28. 77% percent of statistics are made up? Or is it 81%? Proprietary and confidential
  29. 29. Khan Academy is a great resource. Proprietary and confidential
  30. 30. I started fusing these skills into my design process Armed with this new statistical skillset, I was able to incorporate business thinking as an early step in my design process. Proprietary and confidential
  31. 31. I’d take my financial knowledge, add stats and would build a model! Proprietary and confidential
  32. 32. Proprietary and confidential Example “ROI of UX” Calculator Design 1 Design 2 Change Total Visitors to Page 1000 1000 0 Email Conv Rate 20% 10% -10% Email Sign Ups 200 100 -100 Conversion Rate 5% 15% + 10% Purchases 50 150 +100 Price 250 250 0 Total Revenue $12,500 $37,500 + 25,000
  33. 33. Just as there are free design templates, there are free excel modeling templates. Proprietary and confidential
  34. 34. If you put it all together, you can have jaw-dropping designs, with a persuasive business case. Proprietary and confidential
  35. 35. Please remember this information is confidential. Signature experience.Strategy
  36. 36. “Strategy is choosing what not to do.” - Michael Porter Proprietary and confidential
  37. 37. Porter is basically the LeBron James of business thinking. He built a strategic framework. Proprietary and confidential
  38. 38. Porter’s framework gives us three strategic choices: Proprietary and confidential
  39. 39. Cost leadership: Low price, high volume Narrow Segmentation: Ownership of a market Differentiation: A new product or service Proprietary and confidential
  40. 40. If choosing differentiation, I’ve found success in going to the foundations of Human Centered Design Proprietary and confidential
  41. 41. Please remember this information is confidential. Signature experience.Find the emotional connection
  42. 42. Customer Journey Collage A great way to find the emotional connection with your customer is to build a photo journal of their lives. Who are the people they connect with, where do they spend their time...visually connecting these will help identify the emotional connection you want to make. Proprietary and confidential
  43. 43. Solve for those worries
  44. 44. Social Media Dialogue Increasingly, customers use social media channels as a primary method of communication with a company. They are honest and will often engage in constructive dialog about your product and company. Proprietary and confidential
  45. 45. This is your cover. Insert an amazing image and align it with this grey rectangle. Please use the red, patterned, Shutterstock background for internal presentations only. Talk to your customers
  46. 46. Customer interviews can provide in-depth details about a customer’s actions, thoughts, and feelings. 1:1 Interviews & unmoderated viewing
  47. 47. Find your signature experience
  48. 48. Northstar Workshop Getting everyone in the room (UX, Product & Tech) is key. It will foster unique conversation and create a sense of investment in the experience and who you are solving for. Commit the team to building a true “Northstar” blending your product, customer features, signature experience and emotional values.
  49. 49. Venmo
  50. 50. 90% of all Venmo transactions are open to somebody's friend, network, and 75%-plus have a some sort of emoji or written commentary on that transaction.
  51. 51. Shutterstock Editor
  52. 52. In fact, 90% of our customers who download an image edited it. How were they editing? Preset sizing for different ad formats like twitter posts and facebook. Next, our customers told us they wanted to be able to start from templates and the ability to upload their logos.
  53. 53. Please remember this information is confidential. Signature experience.Team Management
  54. 54. “A bad system will beat a good person, every time.” - Dr. Edward Deming
  55. 55. The strength of design is 100% connected to the strength of the design process.
  56. 56. Designers are good at managing the work, not each other.
  57. 57. The principles of Kaizen, a Japanese lean philosophy, is a powerful starting place.
  58. 58. This philosophy is best expressed through the Dr. Edward Deming’s 14 points.
  59. 59. Point 9: “Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service.”
  60. 60. Point 3: “Eliminate the need for inspection on a mass basis by building quality into the product in the first place.”
  61. 61. Org Management 101 1. Every department adopts agile 2. Communicated vision 3. Detailed growth plans
  62. 62. Point 14: “Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job.”
  63. 63. Thanks! @bradfrost @mikeindustries @bertbrautigam @cap