A lot has changed since the early days of web design, when tools were scarce and skills were in high demand. Design tools, platforms and patterns have become ubiquitous (and often free). Does this spell the end for digital design agencies?

1. Will “Good Enough”
kill the digital design agency?
Ryan McCormack :: May 2010
http://bitstrategist.com
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2. Outline
• Abundance, scarcity and commoditization
• The “good enough” revolution
• The spectrum of graphic design
• Cathedrals, bazaars and the digital design
agency
• Summary & Closing thoughts
Ryan McCormack :: May 2010 :: http://bitstrategist.com

3. Two caveats
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5. Designing for business
Art
Ryan McCormack :: May 2010 :: http://bitstrategist.com

6. Abundance, scarcity
and commoditization
Ryan McCormack :: May 2010 :: http://bitstrategist.com

7. “Abundance breaks more things
than scarcity does.”
– Clay Shirky
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9. Gutenberg Bible (Printed ca. 1445)
Ryan McCormack :: May 2010 :: http://bitstrategist.com

10. A Catholic Indulgence (ca. 1445)
Martin Luther’s “95 Theses”
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12. Johannes Trithemius (Bishop of Sponheim)
“In Praise of Scribes” (1494)
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21. Scarcity drives commodification
Commodification: The process by
which something acquires economic
value (and can thus be sold).
Ryan McCormack :: May 2010 :: http://bitstrategist.com

22. Abundance drives commoditization
Commoditization: The process by
which goods that used to be
distinguishable in terms of attributes
wind up becoming mere commodities.
Ryan McCormack :: May 2010 :: http://bitstrategist.com

23. What’s the tipping point?
Ryan McCormack :: May 2010 :: http://bitstrategist.com

24. Characteristics of a commodity
• Product differentiation difficult
• Competition based primarily on price
• Increased competition
• Reduced customer loyalty
• Increased pressure on margins
Ryan McCormack :: May 2010 :: http://bitstrategist.com

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26. The “good enough” revolution
See Wired: http://www.wired.com/gadgets/miscellaneous/magazine/17-09/ff_goodenough
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28. Digital video
• Lower quality
• Great quality
• Less features
• Feature rich
• Easy! Fun! Cheap!
• Hard to use & Expensive
Ryan McCormack :: May 2010 :: http://bitstrategist.com

29. Telephony
• Lower quality
• “Reliable” service
• Calls drop
• Better call quality
• Cheap (or Free)
• Hard to use & Expensive
• Location-independent
• Geography-dependent
Ryan McCormack :: May 2010 :: http://bitstrategist.com

30. Music
• Lower fidelity
• Higher fidelity
• Infinitely reproducible
• Harder to reproduce
• Cheap and portable
• Not as portable
Ryan McCormack :: May 2010 :: http://bitstrategist.com

31. Software
• Just enough features
• Feature rich
• Downloadable
• Complex
• Free (or $500)
• $4000
Ryan McCormack :: May 2010 :: http://bitstrategist.com

32. The spectrum of graphic design
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33. Traditional
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34. Graphic Arts
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35. Politics and Propaganda
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36. Advertising
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37. Identity
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38. Digital
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40. The first web page (ca 1991)
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49. Maturity and open standards
make design easier
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50. No wheel reinvention
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51. Patterns mean different problems
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52. Efficiency accelerates results
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53. Processes are clearer
Ryan McCormack :: May 2010 :: http://bitstrategist.com

54. Platforms lower
barriers to entry
Ryan McCormack :: May 2010 :: http://bitstrategist.com

55. Underlying technologies
Server software
Linux
Database software
Web server
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56. Multimedia distribution platforms
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57. Publishing platforms
Wordpress
Drupal
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58. The pool of talent has exploded
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61. Cathedrals, Bazaars and the
digital design agency
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64. Trust us…
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67. http://www.chrisbrogan.com/a-perfect-dichotomy/
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72. So what’s possible
with free tools?
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78. Summary &
Closing thoughts
Ryan McCormack :: May 2010 :: http://bitstrategist.com

79. What separates the cathedral & bazaar?
• Design “quality”
• Cost of services
• Uniqueness of design & experience
• Systemic thinking and underlying strategy
(e.g., scalability, extensibility)
Ryan McCormack :: May 2010 :: http://bitstrategist.com

80. Summary
• Abundance creates more problems than
scarcity
• Digital design is evolving quickly due to an
abundance of platforms, tools and knowledge
• Quality differences are subjective
• Business decisions can trump artistic value
Ryan McCormack :: May 2010 :: http://bitstrategist.com

81. So is the digital design
agency doomed?
Ryan McCormack :: May 2010 :: http://bitstrategist.com

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84. DIY Ramen w/cookbook:
• 4 grocery stores
• 2 days :: 12 hrs cooking :: 2 hrs cleaning
Ryan McCormack :: May 2010 :: http://bitstrategist.com

85. Closing thoughts
• Digital design for marketing is a commodity
• For every commodity created, a new
opportunity is born
Ryan McCormack :: May 2010 :: http://bitstrategist.com

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87. Thank you!
Questions?
Ryan McCormack :: May 2010 :: http://bitstrategist.com

88. References
• Clay Shirky: “Here comes everybody” (2008)
• Eric Raymond: “The Cathedral & the Bazaar” (1992)
• Wired.com: “The good enough revolution” (2009)
Ryan McCormack :: May 2010 :: http://bitstrategist.com