Your-ROI-Depends-on-UX-white-paper

<strong>Your</strong> <strong>ROI</strong><strong>Depends</strong>on UXThe Secret to Enterprise Software SuccessAn Enterprise Mobility Agency | ChaiOne.comDecember 2014

IntroductionTypical software developmentmethodologies waste money and too oftenproduce ineffective products. To competeand maintain market leadership, companiesneed solutions that are effective [1]. This iscurrently the exception, not the norm. It isestimated that 25% of software developmentefforts fail outright and 60% producesubstandard or ineffective products [2]. Onaverage, delivered projects are 187% overbudget and 222% behind schedule [2]. Whenlooking at enterprise specifically, 51% ofenterprise resource planning (ERP) projectsworldwide are considered failures with 30%exceeding their budget and completiondates [3]. These failures should be takenseriously because ineffective and over-budgetsoftware debilitates businesses [4, 5]. Forinstance, FoxMeyer Drug Co., a 5 billiondollar wholesale drug distribution companyin Carrollton, Texas, attributes its bankruptcyto poorly implemented resourceplanning software [4].Ineffective software hinders user adoptionand productivity, which is why companiestrack user adoption as a key performanceindicator (KPI) and credit it as one of the coredrivers in software value realization [6, 7].Indeed, over half of enterprise software usersrate the effectiveness of their software asbelow average [6]. Difficult to use, ineffective,cumbersome software leads to low useradoption which accounts for about 70% offailed projects [8-10].When software is effective, it gives companiesan edge over competition by automatingprocesses in a way that supports users in theactual context of their work [6, 7]. Successfulsoftware hastens user adoption, increasesproductivity, drives revenue and user,employee, and customer satisfaction [6, 7].Effective software results from focusing onthe users and their work during alldevelopment efforts. The stakes are higherthan ever as employees are now demandingenterprise software to be as appealing anduser-friendly as the technology they use athome. Companies are beginning to realizethat adopting strategies for softwaredevelopment that place the user at the centerof the project is financially advantageous andis the reason why 93% of executives nowfocus on User Experience (UX) as a topstrategic priority [11].Emphasizing UX requires considering allaspects of the users’ interaction with aproduct. Doing so boosts user adoption,ensures the product meets users’ needs, isuser-friendly and aligns with businessobjectives [2]. Developing software with aUser-Centered Design (UCD) methodologyprotects companies from failed projects andprovides returns to the business that extendbeyond the initial investment.“The biggest tragedy is that software failure is for themost part predictable and avoidable. Unfortunately,most organizations don’t see preventing failure as anurgent matter, even though that view risks harmingthe organization and maybe even destroying it.” [4]2

Business Success <strong>Depends</strong> on UX and UCDExcessive costs and outright failures insoftware development are predictable andavoidable [4], especially with UX and UCDmethodologies. Neglecting user input duringthe development process means thatsoftware requirements are formulated solelyfrom assumptions about users and theirneeds; often, those assumptions areincomplete or incorrect, leading to poor userexperiences and failed projects. IncorporatingUX strategy into the software developmentlifecycle addresses these factors bydetermining requirements directly from thecurrent workflow of users or employees. Thisresults in products that are user-friendly,quickly adopted, and ultimately successful inthe business.Seventy percent of executives agree that thenumber one driver in enterprise softwarevalue realization is user adoption of theproduct, while only 1% believe that softwarefunctionality and features determine its valuerealization [6]. Even if features are the criticalfactor of a software solution, its benefits failto be realized if it is not adopted byemployees. Software adoption is directlyrelated to its value proposition, usability, andoverall users’ satisfaction with the product.Value proposition is how much users desirethe product. For example, if software is veryeasy to use, but provides little or no value tothe person using it, the product will have alow value proposition and will not be used.Alternatively, if software is valued by a userbecause it facilitates accomplishment ofcertain tasks in specific contexts, it will havea high value proposition and be quicklyadopted. Understanding users’characteristics, environment, goals, taskflows, bottlenecks, and pain-points of thework will ensure that the software is valuedand desired. Establishing softwarerequirements with this in mind removesassumptions development teams have aboutusers, their work and needs.Software usability is another critical factorthat determines user adoption. Even ifsoftware has a high value proposition, usersresist products that are complex or toodifficult to use. Furthermore, software thatrequires additional training inflates the totalcost of ownership by exacerbating down-timeand the need for technical assistance [2].Usability issues in software include a widerange of factors: confusing language, featuresthat are not working as expected, nonintuitiveinteractions, excessive time requiredto learn how to use software, input errors,poor readability, cumbersome navigationand so on. Focusing on UX with a UCDmethodology safeguards the final designfrom these issues; user input ensuresthat teams create products that are valued,usable, quickly adopted and supports usersin the context of their work. Done correctly,UX and UCD give businesses an edge overtheir competitors [1, 6, 7].Every dollar spent on UX brings two to a hundredfoldin return, and companies that invest in UX performbetter financially than companies that do not. [9, 12-17]3

<strong>ROI</strong> of Investing in UX and UCDEmphasizing UX with a UCD frameworkreduces software development time andmaintenance costs, increases adoption anduser satisfaction, and grows revenue [6, 7].NASA estimates that every dollar spent on UXbrings two to a hundredfold in return [9, 12-17].Additionally, companies and organizationsthat invest in UX perform better financiallythan companies that do not [15, 16]. The topten UX-focused companies celebrated closeto triple returns, at a cumulative totalof 43%, while the bottom ten companiescollected a negative cumulative total return of-34% [9, 15, 16]. How exactly does emphasizingUX transform into such profits? The UCDframework defines and refines projectrequirements, decreases development timeand costs, which allows faster time-to-marketdelivery, and improves user satisfaction.Software requirements extend fromtechnology constraints and needs (e.g.,platforms, current IT environment) to specificfunctionality, features, and UI specifications.Formulating these user-related requirementsas personas for whom software is developedat the launch of the project preventsbusinesses from losing out on up to fourtimes of investment return [18]. Additionally,the user interface typically takes up 47-66%of total code and 40% of the developmenteffort [19], and users use 5% of features95% of the time [19]. Therefore, establishingusability requirements early on focuses prioritiesand reduces time needed to fix errors at laterstages of development [9, 10].Moreover, 80% ofthe unanticipated fixes during development areissues stemming from the UI, while theremaining 20% are actual bugs [19]. These issuesare avoidable by putting users at the center ofthe development efforts. Without clearrequirements, software re-work can take up40-50% of development time that could bebetter invested in new, value-added work [4].Fixes after software launch can cost as much as100 times more as it would have cost to addresserrors during development [4, 9, 10]. Clearlydefined requirements, on the other hand, canreduce product development cycles by as muchas 33-50% [19].Saved time and costs can be measured directly;however, less tangible <strong>ROI</strong>s such as userperformance and satisfaction are equallyimportant [4, 9, 10]. The UX and UCD frameworkproduces software that requires less training,reduces the number of user errors, increasesease of use, and makes it less likely that changesto the UI will be needed after deployment.Additionally, functional and effective softwareensures high value proposition of the product,increased user adoption, and higher overalluser satisfaction.Revenue trajectory for companieswith & without UX strategyrevenueGood usabilityUser adoptionHigh value propositionEasy to learnUser-friendlyIntuitiveAesthetically appealingComplex user interfaceLow value propositionRequires lots of trainingLow user adoptionPoor usability[9, 15, 16]4

ConclusionAs technology continues to evolve, companieswill explore different solutions that can giveusers an edge over the competition. Giventhat user adoption of software is a criticalfactor in business success, companies shouldseek enterprise technology solutionsdeveloped from UX and UCD principles. Notonly will employees enjoy using the software,but the organization as a whole will be ableto reap the benefits of emphasizing UX suchas reduced project costs and improved userperformance and satisfaction. This will inturn affect the revenue and reputation ofthe company. Now is the time to focus onUX in the enterprise world as employeesare beginning to carry their expectationsfor well-designed and intuitive products fromtheir personal to their work lives. Theseexpectations will intensify as user intimacywith mobile, contextually-aware and wearabletechnology increases. Begin emphasizing UXand UCD on your next project and enjoythe returns to your business that extendbeyond the initial investment.As an enterprise mobility agency, ChaiOnehelps companies transform their businessby leveraging mobility at scale. ChaiOnecombines UX, UCD, and a data-drivenapproach to create elegant mobile experienceswith proven results for oil and gas, energy,retail, financial, and technology clients.ChaiOne 5D Phase DescriptionsDesignDeineDesignIteration 1 Iteration 2 Iteration XDeineDesignDeineDiscoverDevelopDevelopMeasureDevelopDeployDiscover:Internal & external researchCompetitive analysisUser interviews findingsBusiness objectivesSuccess criteriaDiscovery findingsDefine:User requirements & user storiesPersonasPencil sketchesEcosystem mapHigh level visual explorationsInformation architectureContent management strategy &taxonomyTechnical requirementsFunctional and non-functionalrequirementsSEO/SEM requirementsData analytics requirementsDesign:WireframesPrototypesUsability evaluationVisual compsTechnical architectureData modelingDevelop:Daily scrumsCode iteration cycles (sprints)Usability evaluationRelease managementUnit testingFeature & regression testingCode refactoringIntegration testingVelocity metrics &retrospectivesDeploy:User acceptance testingRelease managementData conversion/migrationUser trainingFinal documentationProject closureMeasurement5

AuthorsAdrian GarciaAdrian Garcia is a Senior User Experience (UX) Researcherat ChaiOne. He has published academic articles in the Journalof Human Factors & Ergonomics, designed auditory interfaces,conducted research for the Naval Research Laboratory, leadUX research for an internationally used WYSIWYG editor,and currently helps Fortune 500 companies improve theiruser experience.Evelina TapiaEvelina Tapia is a User Experience (UX) Researcher at ChaiOne.She has published numerous articles in scientific journals ontopics of vision, attention, and cognitive psychology. Currently,she leverages her expertise in human cognition by helpingFortune 500 companies accomplish their business objectives byimproving user experience.6