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Design Matters (2002)

Design Matters (2002)



Presented at Fast Company's Company of Friends Mid-Atlantic Conference back in the day, as the kids say.

Presented at Fast Company's Company of Friends Mid-Atlantic Conference back in the day, as the kids say.



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    Design Matters (2002) Design Matters (2002) Presentation Transcript

    • DESIGN MATTERSCompany of Friends | 2002JOE NATOLIC E O N A T O L I D E S I G N G R O U P
    • design matters
    • design matters now more than ever“In a world loaded with stuff that looks like all the other stuff and performs like all the other stuff, design is the only way to stand out.” tom peters corporate management guru
    • design matters now more than everfirst things first why design matters75% of everything a company puts across to itscustomers is a direct result of design.That means appearance and performance. What itdoes, how its used, what it looks like.The other 25% is a shifting combination ofmanufacturing, implementation and marketing spin.The amount of each depends on what youre selling.
    • design matters now more than everfirst things first why design mattersIf you dont agree—more or less—with what I just said,chances are your brand, your product or your company isin trouble.It probably means you have something that people eitherdont want or have issues with, and your sales figuresprobably reflect that.The bad news: you have a serious problem.The good news: you can do something about it.
    • design matters now more than evernext things next building the case for designEffective design emerges at the intersection of cultureand commerce.Developing a deep understanding of how cultures, societiesand people solve problems leads to a competitivebusiness advantage through design.Design may well be the last way to stand out in an erawhere brand awareness has become a corporate mantra.
    • design matters now more than evernext things next building the case for designIn a 1998 article in Forbes ASAP, Harvard Universitymanufacturing professor Bob Hayes notes: “During the 1980s, businesses competed primarily on price. The 90s saw a quality revolution, with Total Quality Management and other initiatives raising the bar for manufacturing. In 2000 and beyond, design is the new competitive frontier.”Competitive pricing, quality and technology are commodities—they’re no longer determining factors in what to buy.
    • design matters now more than evernext things next building the case for designWhat’s left: a product’s ease of use and understanding,its appearance and its level of functionality.These are all design issues.
    • case study the internet
    • case study the internetFive years ago, the first rallying cry was heard:“WE’VE GOT TO BE ON THE WEB!”➡ Growing number of businesses and organizations competed for attention online➡ Competition intensified; need for true differential grew➡ Traditional advantages of price, location, availability disappeared quickly; playing field was leveled by the Internet
    • case study the internet➡ Massive dot-com shakeout pushed need to compete— and survive— to even greater heights➡ Those left standing rushed to overhaul online brand image through web sites, UIs, marketing➡ Forrester Research web design | e-commerce study revealed that poor design is the number one obstacle to customers making a purchase online➡ Many dot-coms only redesigned sites as a last-ditch survival effort—too little, too late.
    • case study the internetSo today, we hear a slightly different cheer: “WE’VE GOT TO BE PROFITABLE ON THE WEB!”
    • case study the internetProject goals and specs have shifted: pre-shakeout post-shakeout Adapt the marketing Create a user-oriented site brochure to the web to strategically position and reinforce brand value Launch the site with Develop a content strategy static content to provide relevant, updated content dynamically
    • case study product design
    • case study product designApple’s iMac is a frequently cited—but excellent—example of the power of design.Computers circa 1998 were acommodity. Drab beige color andboxy shape hardly inspired passion,let alone the urge to buy.The colorful iMac changed allthat—and radically changed howthe industry approached design.
    • case study product designThe iMac’s candy-colored flanks and funky, retro curvestranscended the function of the computer and became ahip personal accessory.Apple focused on the relationship between product and user,on the experience people have with the product
    • case study product designThe first iMac shattered sales records—more than 2 millionwere sold in its first year on the market.Apple—seemingly on its deathbed—became profitableagain. In the months after the iMac’s introduction, Apple’sstock price skyrocketed from $15 to $70 per share.Apple continued to innovate in the years that followed,unveiling the G3 and G4 desktop towers and the G3 cube—each product improving upon the last in all areas ofappearance and performance.
    • case study product designIn 2002, Apple has once againspent an impressive amount oftime, money and effort in thelatest incarnation of the iMac.Results speak for themselves:the company had well over200,000 pre-orders 2 monthsbefore any product beganshipping.
    • case study branding
    • case study brandingTen years ago, most people thought of branding as a catchyproduct name. Or it meant designing a new package. Ormaybe it was the print or TV advertising that communicatedthe brand message.That was a simpler time, where there were fewer mediavehicles and less competition in most product categories.Today, branding is everything. Brands are not just productsor services. Brands are the sum total of all the images,ideas, associations and experiences that people have intheir heads about a particular company and its offerings.
    • case study brandingThe web has proven to be a fertile spawning ground fornew brands. Amazon.com, America Online, eBay, Monster.comand Yahoo are all brands created specifically for the web.These companies have built brand success by making thebrand itself interactive. For example, Amazon.com uses itscustomer profiles to fine-tune the recommendations it provides.
    • case study brandingAs a result of this type of transformation, a new brandmodel has emerged.It’s a model of customer-centric branding that delivers acompelling promise: “ I know you as an individual customer better than anyone else, so you can trust me to assemble the right products and services to meet your individual needs.”
    • case study brandingFedEx didn’t start making deliveries until 1973—but in lessthan 30 years, it has entered our language as a verb, meaning: “Make sure this box gets there quickly and safely, rather than three weeks from now festooned with footprints and looking as if it has spent some time underwater.”
    • case study brandingToday, the FedEx logo appears on more than 40,000 drop boxes,1,400 service centers, and battalions of trucks and planes—not tomention untold numbers of courier carts, handheld scanners andsmiley, baseball-cap-wearing delivery people—and it has become apermanent fixture in the urban landscape.That’s successful branding. Itrepresents an understandingof the power of—and awillingness to make asignificant investment in—design.
    • last words
    • last words design mattersNew rules have emerged, and they’re nothing short ofrevolutionary—because they’re based on a fundamentalreversal in the relationship between customers andproviders.Technology has empowered us with 24/7 shopping, deliveryon demand, power to mute TV ads and an unparalleled abilityto compare, bargain and evaluate products and services.Because of the wealth of information available to us, we’vegrown savvy to the tactics and strategies of marketers; wearen’t easily persuaded.
    • last words design mattersThe final nail in the coffin is that we increasinglyexpect products and services to be individualized andcustomized—leaving little room for mass appeals.The new principles of business mandated by thesechanges will influence the concept and design of everyproduct, service, company and brand over the nextseveral years. The game has not only changed—it’smigrated to the web.Anyone hoping for a reversal should stop looking right now.
    • last words design mattersIn this time of relentless change, there are 5 crucial rules tofollow in designing successful business strategies:1. Know your customers.Success in business—particularly online—is increasinglybased on information advantage. The more you know aboutyour target consumers, your competitors and your market,the better you’ll succeed.Before you design anything—whether it’s a logo or a printcampaign or a web site or a user interface—commit to spendingthe time and money necessary to do a hefty amount of research.Know beyond doubt who they are and what they want from you.
    • last words design matters2. Be relevant.Customization of relevant information is expected—andsometimes demanded. And that means real, tangible benefits,not empty marketing claims.I’m your customer. I’m asking: What do you do? How doesyour product or service improve my life? My business?Talk to me from my perspective. Will your product orservice save me time? Make me richer? Make me moreattractive? When you tell potential customers about yourproduct or service, you must also tell them how it’s goingto affect their lives.
    • last words design matters3. Brand yourself.With so many options available through the internet,companies that don’t appear distinctive—in both theircorporate character as well as their products and services—will die quickly.Take web sites, for example. Because the web is so over-saturated with clutter, brand identity becomes the greatdifferentiator. Why should you go to a site the first time?The second or third time? The brand message sent is apromise; it’s a contract of trust that tells people what toexpect from you.
    • last words design matters4. Be (visually) consistent.Today’s multi-channel business models demand thatthe message that companies send across all media areconsistent in both quality and content.The message consumers receive when they pick a productfrom the shelf should jibe with their experiences shoppingonline or viewing a billboard from the interstate.Why? Because what consumers perceive as quality is reallyconsistency. From packaging to instructions to point-of-purchase to web site, all points of communication have towork hand-in-hand to support the brand’s image.
    • last words design matters5. Evolve or die.We operate in an increasingly intuitive and complex world. Thespeed of business innovation is dizzying and relentless. The rapidlychanging marketplace demands that managers trust their intuitionand make changes quickly.Companies and brands who embrace this uncertainty will prosperwhile their more hidebound competitors fade away.Investigate change continuously. Re-evaluate your brand atevery possible opportunity. If you wait until you’ve got numericproof to make a decision (like investing in user interface researchand analysis), it’s too late.
    • design matters now more than everGood design used to be an option that companies couldembrace if they were looking for a competitive advantage.Now that the Internet is a core component of our dailylives, that concept has radically changed. Design is nolonger about gaining advantage in the marketplace.It’s become the price of admission.
    • DESIGN MATTERSCompany of Friends | 2002JOE NATOLIC E O N A T O L I D E S I G N G R O U P