5 Levels of UX Strategy
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The document outlines a comprehensive approach to UX strategy, highlighting the importance of understanding customer needs and balancing costs to create effective user experiences. It discusses different organizational structures for UX teams, their strengths and weaknesses, and emphasizes the need for alignment with business priorities. Additionally, it evaluates the impact of customer experience on revenue growth and explores various processes for achieving innovation in UX design.
5 Levels of UX Strategy
- 1. 5 Levels of UX Strategy David Juhlin User Experience Consultant djuhlin@bentley.edu 781-891-3142
- 2. 2 www.Bentley.edu/uxc @davidjuhlin www.davidjuhlin.com David Juhlin www.DavidJuhlin.com
- 3. 3 www.Bentley.edu/uxc @davidjuhlin www.davidjuhlin.com Strategy and tactics CEO “We are the low cost airline” “We need to keep expenses down” CMO VP of marketing “We need to generate word of mouth marketing” Director of Marketing “We need to create a great user experience” Marketing Manager “We need to understand our customers”
- 4. 4 www.Bentley.edu/uxc @davidjuhlin www.davidjuhlin.com Levels of UX strategy Global UX Division Company Industry Project
- 5. Global
- 6. 6 www.Bentley.edu/uxc @davidjuhlin www.davidjuhlin.com Industry analysis- Porters 5 Forces New entrances Substitutes Suppliers Buyers Rivals/ Competitors Source: https://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy
- 7. Industry
- 8. 8 www.Bentley.edu/uxc @davidjuhlin www.davidjuhlin.com Cost or differentiation strategy Cost Differentiation Broad Market Focused Market BMW Ferrari Hyundai Smart car Source: “Competitive Advantage” by Michael E. Porter
- 9. 9 www.Bentley.edu/uxc @davidjuhlin www.davidjuhlin.com Southwest Vs. traditional airline Traditional airline Factors of competition Offerings Southwest Source: https://hbr.org/2002/06/charting-your-companys-future
- 10. 10 www.Bentley.edu/uxc @davidjuhlin www.davidjuhlin.com Price premium of CX/UX Source: The Price Premium Of Customer Experience, Forrester Research, September 4, 2015
- 11. 11 www.Bentley.edu/uxc @davidjuhlin www.davidjuhlin.com Industry CX Dynamics Source: Customer Experiences Drives Revenue Growth 2016, Forrester Research, June 21, 2016
- 12. 12 www.Bentley.edu/uxc @davidjuhlin www.davidjuhlin.com Importance of CX/UX Source: Customer Experiences Drives Revenue Growth 2016, Forrester Research, June 21, 2016
- 13. Company
- 14. 14 www.Bentley.edu/uxc @davidjuhlin www.davidjuhlin.com Contract out Vs. building up internally Contract Contract In-house In-house Backend Frontend Online retailSearch engine Parking fine Off-shore dev.
- 15. 15 www.Bentley.edu/uxc @davidjuhlin www.davidjuhlin.com UX organizational structure & SWOT analysis Fully Centralized Centralized with assignments Matrixed (BU funded) Strengths Weaknesses Opportunities Threats Centralized funding and reporting Standards, governance Company-wide UX vision Shared expertise If BUs hire UX outside central org, competition arisesCross-product insights/innovation Career progression More work to align with BUs May work in isolation Standards, governance Career progression Domain expertise Governance takes more work BUs may lose resources if priorities shift Company-wide UX vision Cross-product insights/innovation If BUs hire UX outside central org, competition arises Works well with agile/scrum Performance tied to product success Domain expertise Governance is difficult Little cross-product collaboration Within-product innovation Efficient product time-to-market Fewer career growth opportunities BU priorities may win out over UX’s user advocacy Can’t reallocate resources if priorities shift Strengths Weaknesses Opportunities Threats Strengths Weaknesses Opportunities Threats Centralized funding and reporting,: A central team assigns resources to BUs BU funds resources, who are centrally managed (matrixed org); solid & dotted-lines Source: Nancy Dickinson & Christian Rohrer
- 16. 16 www.Bentley.edu/uxc @davidjuhlin www.davidjuhlin.com 16 Full Hybrid/Federation Fully Distributed Strengths Weaknesses Opportunities Threats Central group and BU groups, reporting separately into central leadership and BUs, respectively (no dotted lines) Strengths Weaknesses Opportunities Threats Embedded UX teams in BUs. No central org Shared & domain expertise Permits cross-product insights and in-depth product innovation Governance is difficult Competition between central and BU UX orgs may arise Works well with agile/scrum Efficient product time-to-market Lack of cohesion between groups may mean less influence over company-wide UX Lack of cohesion between groups may mean less influence over company-wide UX No possibility for standards/governance Domain expertise Works well with agile/scrum Very few career growth/devel oppys Efficient product time-to-market UX organizational structure & SWOT analysis Source: Nancy Dickinson & Christian Rohrer
- 17. 17 www.Bentley.edu/uxc @davidjuhlin www.davidjuhlin.com Comparison of UX organizational structures 17 Fully Centralized Centralized with assignments Matrixed (BU Funded) Full Hybrid/Federation Fully distributed Description Funding and UX reporting are centralized Central UX group assigns resources to Bus. All central funding. BU-funded teams report into central UX or BU with dotted line to the other. Central team and BU- funded teams. No dotted line reporting. BU-funded teams only. No central UX org. Permits global UX strategy/vision ● ● ◐ ○ ○ Permits standards development and governance ● ● ◐ ○ ○ Fosters domain knowledge ○ ◐ ● ● ● Works well with agile/scrum ○ ◐ ● ● ● Can shift resources quickly ● ● ○ ○ ○ Provides career devel/growth ● ● ◐ ◐ ○ Ensures alignment with BU/product priorities ○ ○ ● ● ● Source: Nancy Dickinson & Christian Rohrer
- 18. 18 www.Bentley.edu/uxc @davidjuhlin www.davidjuhlin.com Mixed/Matrixed structure CentralizedDistributed • Specialized competency • Host specific functionalities • Drive innovation • Educate (organization & UX staff) • Assist during peaks • Domain expertise • Great for agile • UX influence start to finish
- 19. 19 www.Bentley.edu/uxc @davidjuhlin www.davidjuhlin.com Mixed/Matrixed structure External • Peak load • Outside perspective CentralizedDistributed • Specialized competency • Host specific functionalities • Drive innovation • Educate (organization & UX staff) • Assist during peaks • Domain expertise • Great for agile • UX influence start to finish
- 20. UX Division
- 21. 21 www.Bentley.edu/uxc @davidjuhlin www.davidjuhlin.com Inside-out and outside-in Global UX Division Company Industry Project
- 22. 22 www.Bentley.edu/uxc @davidjuhlin www.davidjuhlin.com The “Great” Vs. “Good Enough” Experience Best Average Worst Great (Industry leader) • Higher customer satisfaction • Higher costs Good enough • Reasonable customer satisfaction • Low costs
- 23. 23 www.Bentley.edu/uxc @davidjuhlin www.davidjuhlin.com CX/UX Potential Source: The Revenue Impact Of Customer Experience, Forrester Research, August 11, 2015
- 24. 24 www.Bentley.edu/uxc @davidjuhlin www.davidjuhlin.com Strategy – UX Division Current state Offerings Desired state High Low
- 25. 25 www.Bentley.edu/uxc @davidjuhlin www.davidjuhlin.com Capabilities analysis Staff EquipmentUsers Processes
- 26. 26 www.Bentley.edu/uxc @davidjuhlin www.davidjuhlin.com Process analysis – “good enough” UX Competitor A Competitor B Competitor C Design A Design B Design C Design D
- 27. 27 www.Bentley.edu/uxc @davidjuhlin www.davidjuhlin.com Process analysis – “innovation” UX Design B Design A Idea1 Idea 2 Idea 3 Idea 4 Concept A Concept B Concept C Concept D Design C Design D Design E Design F Design G Design H Design I Competitor A Competitor B Competitor C Design J Design K Design L
- 28. Project
- 29. 29 www.Bentley.edu/uxc @davidjuhlin www.davidjuhlin.com Iterative projects Business Goals Customer Goals Other Units (Marketing, Sales, etc.) UX division
- 30. 30 www.Bentley.edu/uxc @davidjuhlin www.davidjuhlin.com Goals Organizational Goals User Group 1 User Goal 1 User Group 2 User Group 3 User Goal 2 User Goal 3 User Goal 4 User Goal 5
- 31. Thank you! Bentley Univ. User Experience Center www.Bentley.edu/uxc @BentleyUXC Linked in group- Bentley UXC David Juhlin User Experience Consultant djuhlin@Bentley.edu @davidjuhlin www.davidjuhlin.com