Date post: | 12-Jul-2015 |
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Competing on experience
Walt Buchan, Senior Experience Designer Gareth Parry, Director
Optimal Experience exist to stop this kind of thing happening.
8Interac)ve 8IN / AAPT APT / Accident Compensa)on Corpora)on ACC / AIG Insurance AIG / AIM Proximity AIM / Air New Zealand AIR / AMP / ANZ Na)onal Bank ANZ / APN Digital Media APN / Arc Innova)ons ARC / Archives New Zealand ACH / Asia New Zealand Founda)on ASF / Auckland Council ACL / Auckland Museum AKM / Auckland Regional Transport Authority ART / Auckland Savings Bank ASB / Aurora Lodge AUR / Automobile Associa)on AAI / Bank of NZ BNZ / BBDO Proximity Singapore BBD / BiosecurityNZ BIO / Boost New Media BOO / Breathe Communica)ons BRC / Cancer Society of New Zealand CSO / CanTeen CTN / Canterbury of New Zealand CCC / Career Services CAR / Centre for Community Transforma)on CCT / Chari)es Commission CHC / Chrisco Hampers CHR / Christchurch City Council COU / CIGNA Life CIG / Consumer CON / Contact Energy CEL / Countdown CTD / Crea)ve New Zealand CNZ / Cyberport CYB / Dell DEL / Datacom DAT / Department of Building and Housing DBH / Department of Conserva)on DOC / Department of Internal Affairs DIA / Department of Labour DOL / Direct FX DFX / e-‐gov Watch EGV / Eagle Direct EDT / Effortmark EFM / Endace END / Epi)ro EPI / Every)me EVT / Ezibuy EZI / Fairfax Digital FFD / Ferrit FRT / Financial Markets Authority FMA / Firstlight ERA FLE / Fisher and Paykel Healthcare FPH / Fonterra FON / Foodstuffs FDS / Formway FMW / Founda)on for Research Science and Technology FST / Francis Consul)ng FRC / FUNDIT FUI / Fusion Transac)ve FUS / Futrix FTX / Gallagher GLG / Gareth Morgan Investments GMI / Gen-‐i GEN / Gibson Sheat Lawyers GSL / Greater Wellington GRW / Green Realm Travel GRT / Greentree GTE / GSL Network GSN / Harrison Grierson Consultants Ltd HGC / Health Alliance HLA / Health Sponsorship Council HSC / HewleW-‐Packard New Zealand HLP / HSA Global HSA / Hunter Safety HSL / IAG New Zealand IAG / Immigra)on New Zealand INZ / Infinity INF / Infopower POW / Inform IFM / Infotools ITL / Inland Revenue Department IRD / INRO INR / Ins)tute of Chartered Accountants ICN / Intergen INT / Interna)onal Nepal Fellowship INP / James Dunlop Tex)les JDT / Kickstand-‐help.com KSD / Kineo Pacific FLL / KiwiBank KWB / KiwiRail KWR / Korero Maori KRM / Land Informa)on New Zealand LNZ / Last.co.nz LST / LawFuel LWF / Learning Media LML / Les Mills Interna)onal LMI / Lincoln University LIN / Local Government New Zealand LGN / Localist LOC / Loyalty New Zealand LOY / Mainfreight MAN / Maori Language Commission MLC / Marker MRK / Massey University MAS / Medical Assurance Society MSO / Mercury Projects MER / Meridian Energy MRD / Metservice MET / Mighty River Power MRP / Ministry for Culture and Heritage MCH / Ministry of Agriculture and Forestry MAF / Ministry of Consumer Affairs MCA / Ministry of Economic Development MED / Ministry of Educa)on MOE / Ministry of Foreign Affairs and Trade MFT / Ministry of Health MOH / Ministry of Jus)ce MJS / Ministry of Social Development MSD / Ministry of Tourism MTM / Ministry of Transport MOT / MyInfoSafe MIS / Na)onal Energy Research Ins)tute NER / Navico NVO / Navman Technology New Zealand NAV / New Zealand Couriers NZC / New Zealand Defence Force NZD / New Zealand Emission Units Register EUR / New Zealand Film Commission NFC / New Zealand Food Safety Authority NFS / New Zealand Green Building Council NGB / New Zealand Herald NZH / New Zealand Ins)tute of Chartered Accountants ICA / New Zealand LoWeries NZL / New Zealand Natural Clothing NNC / New Zealand On Screen NOS / New Zealand Police POL / New Zealand Post NZP / New Zealand Trade and Enterprise NTE / New Zealand Transport Agency NTA / Nielsen NetRa)ngs NNR / NZBio NZB / Office of the Auditor General OAG / Open Polytechnic OPT / Orcon ORC / Outward Bound OWB / Palmerston North City Council PNC / Palmerston North City Library PNL / Parliament Counsel Office PCO / Parliamentary Services PLM / Paymark PMK / Peace So]ware PSW / Perweek PWK / PGG Wrightson PGW / Pivot So]ware PVT / Posi)vely Wellington Tourism PWT / Powershop PSL / Professionals Real Estate PRO / Provenco PRV / PSIS PIS / Quit Group QUG / Quotable Value QVL / Rabobank RAB / Real Estate Ins)tute of NZ RNZ / Red Vespa RED / Reserve Bank of New Zealand RBN / Re)rement Commission RCO / Save The Children STC / Scoop SCO / Sell me Free SMF / Serato Audio Research SAR / Silverstripe SIL / SirValUse SVU / Sky Network Television STV / SMX / Snapper Services SNP / So]ware Educa)on SFE / Sonar6 SON / Southern Cross SCO / Sovereign Insurance SOV / SPARC Aotearoa SPA / Sparks Interac)ve SPK / Sproket Markets SPR / Standards NZ STD / State Insurance STE / State Services Commission SSC / Sta)s)cs New Zealand SNZ / Student Management So]ware Solu)ons SMS / Superstructure SUP / Tax Refunds TXR / Te Papa TEP / Team-‐Up TUP / Telecom TNZ / Television New Zealand TVN / TESCO TES / Text2Get TXG / The Rees TRS / The Warehouse Ltd TWL / The Write Group TWG / Thomson Reuters THR / Toi Designz TOI / Tourism Holdings Limited THL / Tourism New Zealand TOU / Tower Insurance TOW / Trade 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>250
The most popular phone when Optimal Experience was founded.
Technology has come along way since Charles Algernon Parsons invented the steam turbine… back when PwC were founded.
Human Centred Designs… Are based on users, tasks, environments
Involve users throughout Are tested with users
Are iterated based on user insight Consider the whole experience
Are designed in multidisciplinary teams
Spaces Services Products Systems
The experience of spaces, services, products and systems.
World class organisations do not compete on spaces, services,
products, systems, cost, differentiation, or niche.
They compete on experience.
Back in the day… people had personal, intimate, supportive, and relational experiences every day
The industrial revolution marked the beginning of the separation of maker and consumer. Experiences were dehumanised.
Mass production delivered increased standardisation, commoditisation, efficiency, and profit. At the expense of experience.
How were we to tell these products, services and systems apart? Packaging, branding and marketing took the place of human experiences.
The ultimate expression of self-service. A conversation with a computer.
Experience Debt
Over 250 years we’ve accumulated a debt. We’re in the grip of a global experience crisis.
How do we think about competition? Michael Porter introduced the Generic Competition Strategy model in 1980. Other models are available.
Marlboro tried competing on cost instead of perceived experience in 1993. Philip Morris’s stock fell by 26%.
Ryanair, infamously low cost airline, experienced a 32% jump in 2014 first half profits by stopping ‘unnecessarily pissing people off’.
Nokia and Blackberry could have chosen to adopt Android OS rather than differentiating with their own smartphone OS. Look what happened to their stock.
Apples iPad defined a new market in 2011. Experience was at the centre of this differentiation strategy.
24% of US smartwatches are set up with no app notifications. What are these smartwatches being used for? What experience are these watches delivering?
SouthWest Airlines fly niche point-to-point services. The exploit this niche with renowned levels of customer service.
So why does experience matter so much?
#1 The Internet
Cost, differentiation, and niche are no longer enough. On the Internet someone can always do it cheaper, expolit a more refined niche and be different every day.
#2 To make sense of complexity
The world we live becomes increasingly complex. Hardware and software tends to become expotentially more complex, in line with Moore’s law for the exponential increase in chip component density.
#3 The experience debt is due
Millenials and Generation Z’s expectations for great experiences are baked in. Strategies that don’t include experience as a default will fail.
What are the hallmarks of a great experience?
Useful, usable Consistent Irresistible
Human
How does experience impact business goals?
People will forget what you said. People will forget what you did. But people will never forget how you made them feel.
Maya Angelou