Opportunity Loss In a world of scarce resource,such as time and money, resources invested in a project involves an opportunity loss where it cannot be invested in another project.
Hosting Hosting in this context is allowing your web solution, be it a web site or web application to be accessible on the internet via a hosting company
Web design / Web development Web design used to be an umbrella term for both Many Agencies or development companies may refer to them separately N.B. Some development companies provide high end development but no graphic design
Web Application Largely this means an application that operates like a website, not an installed application (for example Microsoft Word) Typically, this requires a user account and is different from a website but is often accompanied by one May also be an “internal” solution that is available on the cloud/web for access by disparate teams, clients or suppliers
Application Tiers Design or Presentation Layer (The bit you see) Graphic Design Impact UI and UX Business logic and application function (The bit that does the work) Development Platform (Coldfusion, PHP, ASP) Database – data storage (The place the info gets stored) MySQL, MS-SQL, Oracle
Why, Why notEnough of the definitions what’s next?
Why We’re not buying product, we’re buying services shrink-wrapped as a product Support Design Hosting Knowledge Technical Know-how Experience Problem solving
Biggest mistake: Acting like aconsumer When most companies buy a website, they tend to act like consumers Cannot or will not understand “technical” aspects Not interested in challenges presented by decision forks, just want “solutions” Try to make new media concepts fit old world definitions Hold steadfastly onto predetermined ideas and myths
Relationship – for the long term? Will you need your web designer after your website is built? Do you need to pick a company who is the cheapest or one that will still be alive? What happens when you’re not adding to their bottom line?
Understanding support In product terms, we’re used to the price of support being built in to the product price A small number of incidents to a large bulk of product sales Food: damaged packaging, inconsistent quality, freshness, pricing not matching labels Products: car warranty, recalls, built in safety and oversight/redundancyWhy service packaged as product idea is important
Differentiation between consumerand commercial approach Expect that every eventuality is catered for That a roll-back or replacement warranty is available for lifetime of product: 3/5 years That if a design or solution is “not acceptable” or doesn’t produce desired results, it somehow is the designers fault solely That a customer can simply cancel or re-order a product until completely satisfied
What’s wrong with this thinking? It doesn’t match the legal foundation of a contract law Consumer law offers protections that push risk to supplier. Ignorance is a valid argument! Contracts are in place between two businesses – consumer law doesn’t apply Both sides should have an agreement that describes deliverables and tests for measuring those
What (unrealistic) expectations andpresumptions are in place? That the web designer will map out all possible eventualities – complete “future proofing”. That the client is qualified to make a decision about Design element That the client’s emphasis on design will impact positively on existing/prospective clients
What is a web developer oftenexpected to know Graphic Design/Logo Design Branding Development or Programming languages Development Plaftormsand Database Technology Internet Marketing (all) Future progression of internet technologies, trends, habits and surprises
Pricing Models (Wishfulthinking?) Typically fixed Price All Inclusive Based on What will I pay company A Did John pay less? Could I get it done over there for half?
Why do we care? If your web developer has put a cost of development on a solution and based this on the real cost, where is the cost for support? What will keep the business afloat for the next 12- 60 months?
What often happens? Everything goes well – Great But in 80% of our recent client survey (April 2011, 100 people, by a London based company): Customer – Vendor Relationship hits a wall Customer feels angry: time and money wasted Blames Supplier Supplier feels conned, wasted effort and opportunity loss – blames client for lack of understanding
What’s the cost? Brand and reputation Leads Opportunity cost – wasting time to market Malinvestment of time in developer relationship Lost product – complete write off Start again
What are digital assets? Domain Value Brand and domain link Inherits brand value – e.g. Coke.ie High demand, single or short words Pizza.com, flights.co.uk SEO Value Consistent, high or valuable traffic generated from a search engine “SEO Goodwill” Age, wording, history, investment
Website Ability to generate enquiries Built-in special features or technology Brand Ambassador Content – User Generated, Blog or insightful content No? Then maybe it has no inherent value
Existing User Base Forums, Blogs and Chat Rooms Clients and Subscribers Web App users Account management system (acts as a link to another system – doesn’t provide functionality directly)
Business modelsBackground to valuing and appreciating internet assets