The Business of Design

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The Business of Design Sept 27, 2004
Phil Terry CEO, Creative Good, Inc. 307 West 38th
Street, 17th Floor New York, NY
10018 1.212.736.2075 x130 phone [phone]
fax pterry_at_creativegood.com
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The Design of Business Sept 27, 2004
Phil Terry CEO, Creative Good, Inc. 307 West 38th
Street, 17th Floor New York, NY
10018 1.212.736.2075 x130 phone [phone]
fax pterry_at_creativegood.com
3
Who are you/why are you here?

• Graduate students
• Faculty
• Industry professionals -
• healthcare, elder services, managed care
• financial services
• government
• group from Bose

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Goal

• Transform the design of business

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Goal

• The design of everyday business

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Why?

• Happiness and profits

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Is there real money? Is there a market here?
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Is there real money? Is there a market here?
Whats required is a fundamental rethinking of
how to design products and make money.
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Is there real money? Is there a market here?
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Global market for 45
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Is there real money? Is there a market here?

• Americans 45 and over control more than half of
  the consumer economybut

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Is there real money? Is there a market here?

• Face a more complex marketplace
• And, more time constraints
• And, they are like other customers just more so

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Average age of a Harley Davidson buyer?
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Average age of a Harley Davidson buyer?
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Progressive Insurance

• Discount for Harley owners

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Progressive Insurance

• Discount for Harley owners
• Checks at the scene of the accident
• Rate comparisons (show competitor rates)

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Progressive Insurance

• Discount for Harley owners
• Checks at the scene of the accident
• Rate comparisons (show competitor rates)
• 2003 - 26 increase in premiums vs. 5.9 for its
  leading competitor AllState

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People over 50 account for what of new car
sales?
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Average age of a Ford designer?
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Average age of a Madison Ave creative director?
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Third Age Suit
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Ford Focus case study

• You tell me

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Ford Focus case study

• Ford Focus 50 months as 1 in UK
• Only bright spot for Ford in 2003 (2nd quarter
  profit of 3 million vs. 400 million the year
  before)
• Part of a larger customer revenue management
  strategy that increased revenue per car by 734
• Note no mention of this business impact on
  multiple usability, ergonomic, etc sites
  including Loughborough University

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Business impact of these cell phones?
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Raku Raku NTT Phone (Universal Design)
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Raku Raku case study

• You tell me

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Raku Raku case study

• 2 million phone sold
• Spawned secondary businesses - training centers
• Retention and loyalty dynamics
• Note no mention in 2 years of annual reports

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Gateway
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Gateway after
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Gateway case study

• 40 increase in sales conversion rate
• 100 million in incremental revenue (directly
  attributable to the online channel)
• Significant indirect sales
• Strategic shift for the whole company

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Healthcare innovation opportunity

• 50 of patients with chronic illnesses misuse
  their medications
• Rates of noncompliance in the elderly are
  estimated between 29 and 59
• Healthcare system is too hard to use and it is
  literally killing people and generating costs

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Conclusion

• Transform the design of business
• Put customers first
• And, make this customer segment a strategic
  priority

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New HF strategist

• Much as I love Human Factors, the discipline
  has a poor record of influencing businesses in
  many areas, such as consumer products
• People who graduate from these programs are
  really crappy sales people. They alienate the VPs
  of marketing and lack social skills, negotation
  skills, and persuasion skills.
• We dont hire out of these programs, we have to
  create our own leaders who understand the power
  of interface but also speak the language of
  business.

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What do you read?
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What do you know about your business?
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Customer Experience Kit

• Magazines
• Books
• Concepts
• Corporate training program - Creative Good Fellows

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Questions to ask yourself/other speakers

• Context - dont tell me about the doorknob, tell
  me about the house and about the design of the
  business that built the doorknob
• Business impact - tell me about the business
  impact
• What do I need to do to change - to play on a
  broader field, to generate larger impact?

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Good Experience Live (Gel) conference

• Video clip

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Select Creative Good clients
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Customer experience councils
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The network user, new and established, is
probably the most neglected element within the
present development atmosphere. - Internet
research study
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About Creative Good

• New York-based consulting firm, founded in 1997
• First multi-channel customer experience firm
• Mission is to improve customer experiences,
  thereby making clients more money