1. UX Central The Business Value of UX

2. What is UX? An innovation process that makes great products.
The Business Value of UX
What is UX? An innovation process that makes great products.

3. What is UX? 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.

4. The Business Value of UX
The UX Process Working collaboratively and iteratively, informed by user needs.

5. The Idealized UX Process

6. The UX Process User experiences are created in stages over the course of a product’s 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.

7. Generate. Test. Iterate.

8. Generate. Test. Iterate. The UX process is fundamentally iterative
Generate. Test. Iterate. 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 team’s output is validated with users and other stakeholders, 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.

9. The Business Value of UX
Market Undercurrents User Experience Design is a necessary competency to navigate today’s competitive landscape.

10. 61% 50% 30 Customer Expectations are Shifting OF GEN Y OF 30+ %
Market Undercurrents
Customer
Expectations are
Shifting
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.
- MARC ANDREESEN 1
OF GEN Y
50%
AND
OF 30+
believe the technology tools they use in their personal/social life are more efficient and productive than those used in their work life.2
Of doctors already use iPads and 30% more plan on using them in the next year.3 30 %
The Economist, “The Consumer-industrial Complex”
Intel, “Consumerization: What is in Store for IT?” July 2010
The Economist, “The Power of Many”

11. +63.08% UX-focused Companies are Outperforming the Market +37.67% -9%
Market Undercurrents
The Business Value of UX
+63.08%
UX-focused Companies are Outperforming the Market
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.
Growth in TeehaxLax’s UX Fund4
+37.67%
NSDQ100 0%
The TeehanLax UX Fund is an investment portfolio that was created with equal shares in 10 UX-focused companies on November 1, 2006:
Apple
Electronic Arts
Google
Jet Blue
Netflix
Nike
Progressive
RIM
Target
Yahoo!
The numbers on the slide represent the change as of the end of day October 24, 2011.
User expectations are changing due to the consumerization of IT
- Andreessen (venture capitalist from Andreessen Horowitz
Sources:
[1] The Economist, “The Consumer-industrial Complex”. October 8th 2011
[2] The Economist, “The Power of Many”. October 8th 2011
[3] Teehanlax, “UX Fund”
-9%
NYSE
-13.76%
S&P500
Growth since Nov. 1, 2006 (as of Oct. 24, 2011)
4 TeehanLax, “UX Fund” as of 10/24/2011,

12. GE is already differentiating from Siemens
Market Undercurrents
The Business Value of UX
UX Competencies
External UX
Services
UX Thought
Leadership
Competitors Have Built UX Competencies
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.
Design at IBM
IBM Design Podcast
IBM Interactive
Philips Design
Philips Innovation Services
Design for Usability
GE is already differentiating from Siemens

13. +450% Companies are Investing in UX Talent & Resources
Market Undercurrents
The Business Value of UX
Companies
are Investing in
UX Talent & Resources
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.com5
Growth in UX jobs in the last 6 years.
Job Trends from Indeed.com
User Experience Jobs
5 Indeed.com,

14. The Business Value of UX
Direct Business Benefits User Experience activities and investments result in immediate tangible business benefits.

15. +14.4% $10B UX Grows the Top Line Direct Business Benefits
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.
More customers on average are willing to purchase from a company that provides superior experience versus a company that provides a poor customer experience according to Forrester.6
$10B
The hypothetical opportunity UX could offer GE’s infrastructure businesses
Forrester, “Best Practices in User Experience Design (UX)”
GE, Form 10-K 2010

16. 65% UX Increases Adoption Direct Business Benefits
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.
65%
IPC, a financial sector products and services firm, achieved first-year adoption rates of 65% in an industry with typical adoption rates of 10%.8
IPC Case Study, frog, Inc.

17. 45% UX Increases Conversion Direct Business Benefits
Users of well-designed products and services make purchases more frequently, develop brand loyalty and help secure steadier revenue streams.
45%
For a major e-commerce business, streamlined purchase paths yielded a 46.5% increase in revenue and a 64.5% increase in the number of units ordered between Q1 and Q4.9
frogIndex ROI of Design Presentation, frog, Inc.

18. 60% Great UX Increases Perceived Value Direct Business Benefits
Products that connect with customers on an emotional level can command a premium in the marketplace.
60%
A media company’s design commanded a 60% premium over comparable products in a competitive category – and sold out in the first year.9
frogIndex ROI of Design Presentation, frog, Inc.

19. 15.8% Great UX Reduces Churn Direct Business Benefits
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.
15.8%
Fewer customers on average are likely to consider switching to a competitor when offered superior experiences vs. poor user experiences according to Forrester.6
Sources: [1] Mike Gualtieri, Forrester “Best Practices in User Experience Design (UX)”
Forrester, “Best Practices in User Experience Design (UX)”

20. 50% Great UX Increases Customer Efficiency Direct Business Benefits
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.
50%
A product redesign for SAP led to a 50% reduction in the time users spent on a given task, increasing efficiency and prompting significant savings.10
SAP Case Study, frog, Inc.

21. 80% Great UX Improves Product Performance Direct Business Benefits
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.
80%
After a major GUI redesign, SAP experienced an 80% improvement in load and render times for a product.10
SAP Case Study, frog, Inc.

22. 3 12 UX Reduces Costly Errors Direct Business Benefits OF
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 wellness activities for product development. UX activities up-front can avoid a lot of costly surgery on products down the road . 12 OF
Sources: [1] Robert Charette, IEEE, “Why Software Fails”, Sep 2005
Common factors of software failure are mitigated by UX activities.11
Cost of fixing an error IN development.11
Cost of fixing an error AFTER deployment.11
IEEE, “Why Software Fails”

23. 40% 50% UX Saves on Product Development Costs & Increases Margins
Direct Business Benefits
UX Saves on Product Development Costs & Increases Margins
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.
Let’s say there are 150 NPI in and you spend 200K per NPI on UX Activities.
GE is still saving $470M overall.
40%
$4.0B
$4.5B
$5.0B
GE R&D Spend Comparison
WITHOUT UX
WITH UX
$470M in savings with a hypothetical 10% reduction in rework
$30M in UX investment (200K per NPI for 150 NPIs) TO
50%
Sources: [1] Annual Outlook 2010, Dec 14, Healthcare in 2010 had 50 NPI. Making an assumption using this figure that there are 150 NPI in 2012 across GE infrastructure businesses
of work by software specialists is spent on avoidable rework.11
IEEE, “Why Software Fails”
Estimations based on GE Annual Outlook 2010

24. Faster launch of sites in new markets14
75%
Direct Business Benefits
UX Speeds
Time to Market
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
Faster launch of sites in new markets14
Sources: [1] Strategic Data Systems “UX Business Impacts and ROI”
[2] frog inc
GE Money Case Study
GE worked with frog design to create design tools for their web-sites. This effort resulted in being able to go to market with new GE Money web-sites 75% faster in new markets.
Strategic Data Systems, “UX Business Impacts and ROI”
GE Money Case Study, frog, Inc.

25. The Business Value of UX
Broad GE Benefits The User Experience Center of Excellence coordinates the individual UX efforts of product teams to generate value across businesses.

26. Improves Product Performance
Broad GE Benefits
Great UX
Improves Product Performance
Product teams get support and recognition when they work with the UX Center of Excellence to contribute to the broader UX effort at GE.
UX CoE Pilot Programs
UX Central &
UX CoE PR Efforts
Innovation Accelerator Projects
Your
Projects
Experience Curve
Cost 1
Productivity
UX Maturity
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. 2
Learning Curve 3
Product teams can get support and recognition
when they work with the User Experience Center of
Excellence to contribute to the broader UX effort at GE.
1 frog Inc.

27. “We’re measuring GE’s top leaders on how imaginative they are
“We’re measuring GE’s top leaders on how imaginative they are. Imaginative leaders are the ones who have the courage to fund new ideas, lead teams to discover better ideas, and lead people to take more educated risks.”
- JEFF IMMELT

28. Next Steps for Leaders & Product Teams
Invest time and budgetary resources in UX practices throughout GE
Track, measure and document the success of UX activities in your projects
Partner with and contribute to the User Experience Center of Excellence before, during and after projects
Become an advocate for the adoption of UX practices
Find information that can help the UX efforts on your project on UX Central

29. References 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,
5 Indeed.com,
6 Forrester, “Best Practices in User Experience Design (UX)”
7 GE, Form 10-K 2010
8 IPC Case Study, frog, Inc.
9 frogIndex ROI of Design Presentation, frog, Inc.
10 SAP Case Study, 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.