SIGIA-L: summary: cost benefit resources for IA(long)

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Greetings!

I thought I would summarize to the group some contributions for cost benefit
analysis related to aspects of IA. This is an immediate follow up resources
I received via email: for IA/UX and Metadata/Taxonomy.

If you come across anymore, feel free to send it to me. I'll compile and
send off to IA Wiki, SIGIA website, and other sites.

Thanks everyone! Any questions, just holler

Madonnalisa G. Chan
Stanford Graduate School of Business
chan_lisa_at_gsb.stanford.edu(work)
lchan_at_mywhine.com(personal)

Contributor:Jess McMullin @cognissa
John Rhodes
A Business Case for Usability
http://www.webword.com/moving/businesscase.html
and
Cost-Justifying Usability
Usability in Practice
The Trouble With Computers

<handout from Jess>
Customer Experience ROI
IBM's redesign results in a kinder, simpler Web site (Info World article)
        * IBM Redesign increases traffic 120%; increases sales 400%
        *
<http://www.infoworld.com/cgi-bin/displayStat.pl?/pageone/opinions/hotsites/
hotextra990419.htm>

Mazed and Confused (CIO Magazine article)
        * Hard-to-use content sites can turn off up to 40 percent of
return visitors, and those losses add up quickly. (Forrester)
        * People cannot find the information they are seeking on a Web
site about 60 percent of the time. (UIE)
        * more e-commerce sites are making ease of use a
differentiator. "A year ago, it was a rush to put up applications and
functionality," Thompson says.
        "It's now a rush to be useful." (re: Charles Schwab)
        * Customers and noncustomers come to the lab for one-on-one
usability tests three days a week. (re: Schwab)
        * Costs of different usability improvements (Forrester)
        * <http://www.cio.com/archive/webbusiness/040199_use.html>

You Think Tomaytoes I Think Tomahtoes (CIO Magazine article)
        * Bay Networks spent $3M over 2 years on intranet design and
information architecture
        * Expected cost savings from time saved by employees looking
up documents - $10M/y
        * <http://www.cio.com/archive/webbusiness/040199_nort.html>

Usability Is Good Business (Compuware Corp. Whitepaper)
        * Cost-Benefit ratio from 1:10 to 1:100
        * increased sales and customer satisfaction
        * a competitive edge over competitors who do not take
usability as seriously
        * advertising advantages
        * better notices in the media
        * reduced development and maintenance costs
        * improved productivity and operational efficiency
        * reduced training costs
        * lower technical support costs
        * reduced documentation costs
        * litigation deterrence
        *
<http://www.compuware.com/intelligence/articles/usability.htm>
Sun Microsystems list of usability cost-benefits
        * Usability engineering has demonstrated reductions in the
product-development cycle by over 33-50% (Bosert 1991).
        * 63% of all software projects overrun their budgetary
estimates, with the top 4 reasons all related to unforeseen usability
problems (Lederer and Prassad 1992).
        * The percentage of software code that is devoted to the
interface has been rising over the years, with an average of 47-60% of the
code devoted to the interface (MacIntyre et al. 1990).
        * Ricoh found that 95% of the respondents to a survey never
used three key features deliberately added to the product to make it more
appealing. Customers either didn't know these features existed, didn't know
how to use them, or didn't understand them (Nussbaum and Neff 1991).
        * 80% of maintenance is due to unmet or unforeseen user
requirements; only 20% is due to bugs or reliability problems (Martin and
McClure 1993; Pressman 1992)
        * Design changes due to usability work at IBM resulted in an
average reduction of 9.6 minutes per task, with projected internal savings
at IBM of $6.8 Million in 1991 alone (Karat 1990).

</handout from Jess>

Contributor: Samantha Bailey @first union

Alex Wright
Designing for the Bottom Line
The Selling Points of Hard and Soft ROI

http://www.webtechniques.com/archives/2001/12/wright/

Contributor: Carol Ellerbeck @Harvard Business School
membership is required to read the full text, but the link contains an
abstract
Taxonomy Tool and Techniques
http://www.montague.com/review/starnes.html

Adding Value with Taxonomy
http://www.montague.com/review/round7summary.html

Tip of the Iceberg
http://www.montague.com/review/iceberg.html

Integrating exnterprise and specialized taxonomies
http://www.montague.com/review/crandall2.html

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