| Why Raise Your
Share Price
The share prices of companies that invest in design performed up to three times
better than the FTSE 100 Index over nearly two years in the run-up to December
2004, according to new data released by the UK's Design Council.
View
the report.
Save Money
According to a report from Forrester Research, the poor usability of applications
may be costing organizations as much as $6 million annually in hidden costs
and lost productivity.
"Savings from earlier vs. later changes: Changes cost less when made earlier
in the development life cycle. Twenty changes in a project, at 32 hours per change
and [a minimal] hourly rate of $35, would cost $22,400. Reducing this to 8 hours
per change would reduce the cost to $5,600. Savings = $16,800." (Human Factors
International, 2001)
"A financial services company had to scrap an application it had developed,
when, shortly before implementation, developers doing a User Acceptance test
found a fatal flaw in their assumptions about how data would be entered. By this
time, it was too late to change the underlying structure, and the application
never implemented." (Dray, 1995)
Detect Problems Early And Save Big
"[Usability engineering techniques] are quite effective at detecting usability
problems early in the development cycle, when they are easiest and least costly
to fix. By correcting usability problems in the design phase, American Airlines
reduced the cost of those fixes by 60-90%." (Bias & Mayhew, 1994)
"One [well-known] study found that 80 percent of software life-cycle costs
occur during the maintenance phase. Most maintenance costs are associated with "unmet
or unforeseen" user requirements and other usability problems." (Pressman,
1992)
"Incorporating ease of use into your products actually saves money. Reports
have shown it is far more economical to consider user needs in the early stages
of design, than it is to solve them later. For example, in Software Engineering:
A Practitioner's Approach, author Robert Pressman shows that for every dollar
spent to resolve a problem during product design, $10 would be spent on the same
problem during development, and multiply to $100 or more if the problem had to
be solved after the product's release." (IBM, 2001)
Free Your Resources From Fixing Defects
"Martin and McClure found that $20-30 billion was spent worldwide on maintenance.
Studying backlogs of maintenance work shows that an "invisible" backlog
is 167% the size of the declared backlog. Anonymous case study data show that
internal development organizations are spending the majority of their resources
on maintenance activities and thus cannot initiate development of strategic new
systems." (Martin & McClure, 1983)
Cost-Benefit Ratio of $1:$100
"The rule of thumb in many usability-aware organizations is that the cost-benefit
ratio for usability is $1:$10-$100. Once a system is in development, correcting
a problem costs 10 times as much as fixing the same problem in design. If the
system has been released, it costs 100 times as much relative to fixing in design." (Gilb,
1988)
"Sun Microsystems has shown how spending about $20,000 could yield a savings
of $152 million dollars. Each and every dollar invested could return $7,500 in
savings." (Rhodes, 2000)
Reduce Training Costs
"At one company, end-user training
for a usability-engineered internal system was one hour compared
to a full week of training for a similar system that had
no usability work. Usability engineering allowed another
company to eliminate training and save $140,000. As a result
of usability improvements at AT&T, the company saved
$2,500,000 in training expenses." (Bias & Mayhew,
1994) |
Improve
Efficiency up to 50% by Fixing Minor Flaws
"The average UI has some 40 flaws.
Correcting the easiest 20 of these yields an average improvement
in usability of 50%. The big win, however, occurs when usability
is factored in from the beginning. This can yield efficiency
improvements
of over 700%." (Landauer, 1995)
Raise User Satisfaction by 40%
"When systems match user needs, satisfaction often
improves dramatically. In a 1992 Gartner Group study, usability methods raised
user satisfaction ratings
for a system by 40%." (Bias & Mayhew, 1994)
Reduce Liability, Employee Absenteeism and Turnover
"Humantech, Inc., studied ergonomic office
environments and productivity for 4000 managerial, technical, and clerical
workers in a broad cross-section of North American industries. Surveys
showed that video display terminal workers had twice as many complaints
of neck and shoulder discomfort, eye strain was reported three times
as often, and there were higher rates of absenteeism less job satisfaction,
and increased (30%) turnover." (Schneider, 1985)
Reduce Support Calls
"A certain printer manufacturer released a printer
driver that many users had difficulty installing. Over 50,000 users called support
for assistance, at a cost to the company of nearly $500,000 a month. To correct
the situation, the manufacturer sent out letters of apology and patch diskettes
(at a cost of $3 each) to users; they ended up spending $900,000 on the problem.
No user testing of the driver was conducted before its release. The problem could
have been identified and corrected at a fraction of the cost if the product had
been subjected to
even the simplest of usability testing." wrote the researcher." (Bias & Mayhew,
1994)
"At Microsoft several years ago, Word for Windows's print merge feature
was generating a lot of lengthy (average = 45 minutes) support calls. As a result
of usability testing and other techniques, the UI for the feature was adjusted.
In the next release, support calls 'dropped dramatically'; Microsoft recognized
'significant cost savings." (Bias & Mayhew, 1994)
Improve Productivity
"With its origins in human factors, usability engineering
has had considerable success improving productivity in IT organizations. For
instance, a major computer company spent $20,700 on usability work to improve
the sign-on procedure in a system used by several thousand people. The resulting
productivity improvement saved the company $41,700 the first day the system was
used. On a system used by over 100,000 people, for a usability outlay of $68,000,
the same company recognized a benefit of $6,800,000 within the first year of
the system's implementation.
This is a cost-benefit ratio of $1:$100." (Bias & Mayhew,
1994)
"In another company, business representatives did a cost-benefit analysis
for
a new system and estimated that a well-designed GUI front end had an Internal
Rate of Return of 32%. This was realized through a 35% reduction in training,
a 30% reduction in supervisory time, and improved productivity, among other things." (Dray & Karat,
1994)
"Inadequate use of usability engineering methods in software development
projects have been estimated to cost the US economy about $30 billion per year
in lost productivity (see Tom Landauers' excellent book The Trouble with Computers).
By my estimates, bad intranet Web design will cost $50-100 billion per year in
lost employee productivity in 2001 ($50B is the conservative estimate; $100B
is the median estimate; you don't want to hear the worst-case estimate!). Bad
design on the open Internet will cost a few billion more, though much of this
loss may not show up in gross national products, since it will happen during
users' time away from the office." (Nielsen, August 28, 1997) |