5 levels of ux strategy

5 Levels of UX Strategy

David JuhlinUser Experience [email protected]

mailto:[email protected]

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www.Bentley.edu/uxc @davidjuhlin www.davidjuhlin.com

David Juhlin

www.DavidJuhlin.com

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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”

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Levels of UX strategy

Global

UX Division

Company

Industry

Project

Global

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Industry analysis- Porters 5 Forces

New entrances

Substitutes

Suppliers BuyersRivals/Competitors

Source: https://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy

https://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy



Industry

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Cost or differentiation strategy

Cost Differentiation

Broa

d M

arke

tFo

cuse

d M

arke

t

BMW

Ferrari

Hyundai

Smart car

Source: “Competitive Advantage” by Michael E. Porter

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Southwest Vs. traditional airline

Price

Meals

lounges

Traditional airline

Seati

ng choice

s

Hub connecti

vity

Speed

Frequent d

epartures

Factors of competition

Offerings

Friendly s

ervice

User Exp

erience

Southwest

Source: https://hbr.org/2002/06/charting-your-companys-future

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Price premium of CX/UX

Source: The Price Premium Of Customer Experience, Forrester Research, September 4, 2015

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Industry CX Dynamics

Source: Customer Experiences Drives Revenue Growth 2016, Forrester Research, June 21, 2016

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Importance of CX/UX

Source: Customer Experiences Drives Revenue Growth 2016, Forrester Research, June 21, 2016

Company

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Contract out Vs. building up internally

Contract

Contract

In-house

In-house

Backend

Frontend

Online retailSearch engine

Parking fine Off-shore dev.

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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 arises

Cross-product insights/innovation

Career progression

More work to align with BUs

May work in isolation

Standards, governance

Career progressionDomain expertise

Governance takes more workBUs 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/scrumPerformance tied to product successDomain expertise

Governance is difficultLittle cross-product collaboration

Within-product innovation

Efficient product time-to-market

Fewer career growth opportunitiesBU priorities may win out over UX’s user advocacyCan’t reallocate resources if priorities shift





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

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www.Bentley.edu/uxc @davidjuhlin www.davidjuhlin.com16

Full Hybrid/Federation Fully Distributed



Central group and BU groups, reporting separately into central leadership and BUs, respectively (no dotted lines) Strengths Weaknesses


Embedded UX teams in BUs. No central org

Shared & domain expertise

Permits cross-product insights and in-depth product innovation

Governance is difficultCompetition between central and BU UX orgs may arise

Works well with agile/scrum


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


UX organizational structure & SWOT analysis


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Comparison of UX organizational structures

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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 ○ ○ ● ● ●


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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

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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

UX Division

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Inside-out and outside-in

Global

UX Division

Company

Industry

Project

Outside-in

Inside-out

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The “Great” Vs. “Good Enough” Experience

Best

Average

Worst

Great (Industry leader)• Higher customer satisfaction• Higher costs

Good enough• Reasonable customer satisfaction• Low costs

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CX/UX Potential

Source: The Revenue Impact Of Customer Experience, Forrester Research, August 11, 2015

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Strategy – UX Division

AgileWaste

Cost

Current state

Innovation

Validati

on/gate ke

eper

Knowledge sh

aring

Work fluctu

ations

Offerings

Work acro

ss products

Worldwide desig

n

Desired state

High

Low

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Capabilities analysis

Staff

EquipmentUsers

Processes

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Process analysis – “good enough” UX

Competitor A

Competitor B

Competitor C

Design A

Design B

Design C Design D

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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

Project

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Iterative projects

Business GoalsCustomer Goals

Other Units (Marketing, Sales,

etc.)

UX division

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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

Thank you!

Bentley Univ. User Experience Centerwww.Bentley.edu/uxc@BentleyUXCLinked in group- Bentley UXC

David JuhlinUser Experience [email protected] @davidjuhlinwww.davidjuhlin.com