Business Case Materials_v1-0

7/27/2019 Business Case Materials_v1-0

1/36

Business case materials (v1-0)

These materials were produced by the Engineering Design Centre, University o

The work was sponsored by the East of England Development Agency

Not for resale

InstructionsDetailed instructions for using this spreadsheet are given below.

These instructions and further copies of this spreadsheet can also can be downloaded from the


2/36

Possible impact factors

The Impact factors sheet lists possible costs and benefits associated with an inclusive

design project. Many of these are similar to those for a general project, but an inclusive

project may impact them in a different way. So, for each factor, we describe common

ways in which inclusive design impacts that factor. For example, we explain how

inclusive design can reduce support costs. We also provide references to some case

studies that show how companies have observed these changes in practice. Other

references provide help in estimating the size of such changes.

Using the list

Not all of the costs and benefits are relevant to each individual project. In addition, somemay be relevant but their effect will not be large enough to make a significant difference

to the business case. Therefore, the first step is to go through the list and identify the

particular factors that you think will be significant for your project.

Using the case studies

Several of the factors have related case studies, listed in the column Case studies.

Rather than giving the whole of each study (which would take up too much space), this

column just lists their reference numbers. The details of the studies can be found in the

Case studies sheet. The reference numbers refer to the numbers in the first column of

that sheet.

These case studies illustrate some of the ways in which inclusive design (and relatedareas of design) can affect the impact factors (the costs, benefits and drivers). Thus, they

may help you to determine whether a factor will be relevant for your project. They can

also serve as back-up evidence to convince others that an inclusive design project can

really make a difference to the factors.

General figures

Similarly, the General figures column contains references to the General figures

sheet. As before, the reference numbers refer to the numbers in the first column of that


3/36

sheet. Unlike the case studies, these references do not describe specific examples of

design. Rather they discuss how you can estimate the size of the change in an impact

factor. For example, the general figures for Cost of change estimate how much more it

will cost to make changes to a product in the development phase or after launch as

opposed to making them in early design.

p3

Initial impact assessment

The Initial assessment sheet helps you to perform an initial assessment of the businesscase for an inclusive design project. Each row of the table examines a different impactfactor and considers how it would be affected by the proposed project. An example isshown in the first row of the table (shaded in grey). The rows for you to fill in are shadedin green. You can add extra rows by copying and pasting existing rows.

Using the sheetBefore using this sheet, it is useful to examine the Impact factors sheet and identify the

particular factors that you think will be significant for your project. The next step is totransfer these factors to the rows in the Initial assessment sheet. One factor goes in eachrow, along with the relevant stakeholder. The main stakeholders are already written in thetable to encourage you to consider all of them. It is important to consider whether thereare any relevant impact factors foreach of these stakeholders. Additional rows can beadded if you have more than one impact factor for a particular type of stakeholder or ifyou identify additional stakeholders.

The remaining columns can then be completed as described below. Comment boxes areattached to each column heading to provide a brief reminder of what goes in that column.

Explanations of the columns

Stakeholder: This indicates which parts of the company or process will beaffected by the project. Some possibilities are given, together with somesuggestions of things that would impact on those stakeholders. These possibilities

are taken from the Impact factors sheet. Extra rows can be added if there ismore than one impact factor for an individual stakeholder.

Impact factor: This describes the factors that will impact on the business case forthe specified stakeholders. These include costs, revenues and other drivers.Suggested impact factors are given in the Impact factors sheet.

Type of cost/benefit: The impact factor can result in increased or decreased cost,increased or decreased revenue, or it may be hard to quantify (Intangible). Clickon the cells in this column to get a drop-down list of possibilities to choose from.

Rationale: This column explains why you think the project will have the


4/36


5/36

Example Calculations

Some examples of full cost-benefit calculations are given in the Examples sheet. They

are based around a fictional project that involves doing some inclusive design work toimprove a product which has usability issues. This involves some design analysis and

usability testing, as well as adding a label to the product. The example is fictitious and

simplified but illustrates how to use the sheet.

Some explanations of the reasoning behind the figures are given in the comment boxes

attached to the cells in the spreadsheet.

0% means that you are absolutely certain that it will not happen. Most likelihoodswill be between 0% and 100% and indicate a level of uncertainty. For instance,the example uses an estimate of 60% to indicate that there is some risk that theinclusive design work will not catch the usability issues that people complainabout in their support calls, but that this is fairly unlikely.If there is a possibility that the change may be greater than estimated (e.g. that the

development costs will turn out to be higher than predicted), then you can give alikelihood of over 100%.

p7


6/36

p9


7/36


8/36


9/36

mbridge, with the Centre for Business Innovation

ness case materials section within the Inclusive design toolkit website

Overview of the business case materials

is often necessary to produce a business case for inclusive design, showing the value

r a business of taking on a specific inclusive design project. This can be done on a

ariety of levels. A more informal business case may simply highlight the key benefits of

e project. In contrast, a detailed cost-benefit analysis calculates the net-present value of

e project and the payback period needed to provide a return on the initial investment.

he business case materials are designed to help you to produce both kinds of businessase. The materials are in the form of a spreadsheet with seven worksheets. The six main

heets look at different parts of the business case. They are intended to be used in the

der given to build up a case step-by-step. The first few sheets can be used to construct a

ore informal business case, while the set as a whole can help you do a detailed cost-

enefit analysis.

his set of instructions goes through each of the worksheets in turn, explaining what it is

nd how to use it:


Case studies

General figures

Initial impact assessmentFull cost-benefit calculation

Example calculations

p3

p4

p4

p5

p6

p9
http://www.inclusivedesigntoolkit.com/betterdesign2/businesscase/businesscase.htmlhttp://www.inclusivedesigntoolkit.com/betterdesign2/businesscase/businesscase.htmlhttp://www.inclusivedesigntoolkit.com/http://www.inclusivedesigntoolkit.com/http://www.inclusivedesigntoolkit.com/betterdesign2/businesscase/businesscase.htmlhttp://www.inclusivedesigntoolkit.com/http://www.inclusivedesigntoolkit.com/http://www.inclusivedesigntoolkit.com/http://www.inclusivedesigntoolkit.com/betterdesign2/businesscase/businesscase.html


10/36

Case studies

he Case studies sheet contains case studies of how inclusive design (and related areasdesign) can affect the impact factors (i.e. the costs and benefits).

ach case study has a reference number (in the first column), which is used to refer to itthe Impact factors sheet. The next few columns contain a brief summary of the

udy. The last two columns explain where the case study came from, usually a paper,ook or web article. Where the article is available online, we have provided a link to it ine Weblink column (the links were checked and worked correctly as of Feb 2011).he Reference column refers to the list of references at the bottom of the sheet, where

tails of all the papers, books and articles are given. Some of these articles describe theudies in more detail, but some only give a brief summary, similar to what is provided inis sheet.

hese case studies are intended to help you to determine whether an impact factor will belevant for your project. They can also serve as back-up evidence to convince others that inclusive design project can really make a difference to the factors.

General figures

he General figures sheet contains more general numbers to help you estimate the sizethe change in an impact factor. They are not relevant to all projects, but can provide a

arting point in thinking this through.

he sheet is structured in the same way as the Case studies sheet. Each row has aference number (in the first column), which is used to refer to it in the Impact factorseet. The next few columns contain a brief summary of the figures and how they relatethe impact factors. The last two columns explain where the figures came from, usually

paper, book or web article. Where the article is available online, there is a link to it in

p2


11/36

e Weblink column (the links were checked and worked correctly as of Feb 2011).he Reference column refers to the list of references at the bottom of the sheet, wheretails of all the articles are given. Some of these articles describe the studies in moretail, but some only give a brief summary, similar to what is provided in this sheet.

p4

Full cost-benefit calculation

required, the Full calculation sheet can then be used to conduct a more detailed cost-enefit analysis, and to calculate the NPV (Net Present Value) and payback period of thempact factors. It is not always necessary to do the full analysis and you can choose avel of analysis that fits your needs.

he layout of the sheethe sheet has a similar format to the Initial assessment sheet and, in fact, the first fourolumns are the same. As with the previous sheet, an example is shown in the first row ofe table (shaded in grey), and the cells for you to fill in are shaded in green. The results

f the calculations are shaded in yellow.

ome further examples of full cost-benefit calculations are given in the Examplesheet. Explanations of each of the columns are given below:

WARNINGThis sheet contains embedded Excel calculations. These will not work if you cut andpaste or move cells.So you must not:

Cut and paste cells Move cells around

You can:

Copy, paste and delete cellsTo add a new row to the table, copy the whole of an existing row (including theintermediate calculation columns) and then insert it as a new row. To do this:

Right click on the row number to the left of an existing row, then selectCopy

Right click on the row number just below where you want to insert a row,then select Insert Copied Cells


12/36

mpact Factor Descriptions columnshe first four columns ofFull Cost-Benefit Calculation sheet are the same as in thenitial Impact Assessment sheet, and their entries can be copied directly from theevious sheet. Explanations of what these columns mean can be found on the previous

age of these instructions.

Size and Likelihood of Factors columnshe next set of columns specify numbers that are important for calculating the cost-enefit value of each impact factor.

Indicator: This describes how you plan to measure the impact factor. If possible,it should be something specific and concrete that can be used to assess how muchthe factor is affected by the project. For example, to determine the change insupport costs, you may decide to examine the number and length of support calls.

p6

Full cost-benefit calculation (cont)

Duration (in months): This describes how long the change in the impact factorwill last in months. If it is a one-off cost or benefit (e.g. the cost of usabilitytesting), then put down a duration of one month, as this is the smallest time unitthat can be put in this column. Otherwise, put the number of months the cost or

benefit will last for. Please only use whole numbers of months. Many cost andbenefits will last for as long as the product is in the market.

Change per year: This column explains how the impact factor varies year-by-year. We have used a year rather than a month here, for simplicity. A one-off costor benefit will have a change of -100% (i.e. its value in Year 2 and subsequentyears will drop to 0). Ongoing costs and benefits may have either negative,

positive or zero changes. A negative change means that the factor has less effectas time goes on. For example, novel features in a product may become lessexciting to consumers over time. A positive change means that the factor hasmore effect over time. For example, a project may involve adding a newcomponent to a product, and the cost of manufacturing this component mayincrease each year. A zero change means that the cost or benefit stays stable overthe 5 year time period.

Cost/Benefit Calculation columnshe remaining columns (with a yellow background) use the values you entered into thest parts of the table to calculate the cost/benefit of each impact factor over a period of 5ars. The overall cost/benefits for each year are also calculated and are shown at thettom of each column. These values are calculated by the spreadsheet and you should

t enter anything into these cells.

ummary resultshe NPV (Net Present Value) and payback period of the impact factors as a whole arelculated and displayed below the table. As before, these are calculated by thereadsheet and you should not enter anything into these cells.

he NPV also depends upon the Company Weighted Average Cost of Capital. This is


13/36

so in a cell below the table and can be changed to reflect your companys situation.

he payback period is given in months and describes how long it will take for the impactctors to pay back the cost of the initial investment. The payback period is a fairlymple estimate and does not use the weighted cost of capital (or discount rate).

p8


14/36


15/36


16/36


17/36


Possible costs and benefits associated with an inclusive design project. Each section examines the factors associated with one stakeholder.

Is this

significant

for my

project?

Impact Factor

Type of

Cost /

Benefit

How might inclusive design impact it?

Case

studies

(ref

numbers)

General

figures (ref

numbers)

Long-termdevelopment costs

Decreasedcost

Inclusive design can reduce long-term development costs by reducing the need for architectural redesign to make future versions ofthe product easier to use.

Revenue for other partsof the business

Increased

revenueSome designs can encourage sales of related products or the use of related services. 25

Meeting businessobjectives

Otherbenefit

Inclusive design can help to meet Corporate Social Responsibility (CSR) goals and other aspects of the business objectives. 5,11

Other

Cost of change(making changes to thedesign)

Decreased

cost

Inclusive design can help to detect required changes early on (especially when these are due to usability and inclusivity problems).

Changes are much easier and cheaper to make early in the development process.1,33 1,2

Cost of project slippage(delayed time tomarket)

Decreasedcost

Inclusive design often reduces the risk of project slippage and reduces development timelines. This is because there is often lessneed for rework, as rework is often required due to incorrect design and miscommunication. In addition, the validity of designs canbe confirmed at early stages of the project.

31 4

Stakeholder: Strategy

Stakeholder: Development


18/36

Documentation cost Decreasedcost

Inclusive products are often easier to explain and thus to document. 26

Development cost Decreasedor Increasedcost

Inclusive design can reduce overall development costs by helping developers to identify and focus on the relevant functionality, bydetecting required changes early and by reducing the need for rework. There are also development costs associated withconducting inclusive design (e.g. staff costs, cost of running usability studies) but these are often outweighed by the overall costreduction. Both of these should be considered in the cost-benefit calculation.

14,15

Appropriatefunctionality

Otherbenefit

Inclusive design enables you to prioritise the functionality that's important for customers rather than spending time developingundesired and unused features

31 4,5

Risk management Otherbenefit

Inclusive design can help to improve risk management by testing the validity of designs early in project development. 3

Developmenteffectiveness

Otherbenefit

Inclusive design can help to encourage good development practices, e.g. accessible websites need to be programmed in a clearerand more structured way.

Other

BOM (Bill of Materials) Decreasedor Increasedcost

Some designs require different materials to be used in manufacturing the product. If this is the case, then the change in the cost ofthe materials should be considered.

Tooling costs Decreasedor Increasedcost

Different designs require different tooling set-ups which may cost different amounts. In particular, making a change to an existingproduct may incur retooling costs.

Production costs Decreasedor Increasedcost

The cost of producing each item (in addition to materials and tooling) may also be affected.

Stakeholder: Manufacturing


19/36

Other

Advertising costs Decreasedcost Inclusive design can improve marketability and thus reduce advertising costs. A positive press response and user response to aninclusive product can also reduce the need for advertising. 6

Retail costs Decreasedcost Some projects may affect retail costs, e.g. making the stock management systems easier to use may improve staff efficiency andreduce retail costs.

Sales Increasedrevenue

Inclusive design can result in increased sales for a variety of reasons. It increases the customer base and the likelihood of repeat

customers. In addition, designs that are easy to use and meet the users' needs often "demo better and sell better". In the particular

sector of e-commerce, websites that are designed to be usable and inclusive enjoy an increased visitor count and conversion rate.

5,6,7,9,11,12,15,18,

21,22,25,

27,37,38,39,40,41

7,8,9

Customer base Otherbenefit Inclusive design increases the customer base by enabling more people to use the product or service. This includes both people withreduced abilities and those who are limited by their environment (e.g. by noise, cold or limited bandwidth). 5,11,21

Repeat customers Otherbenefit Usable and inclusive designs are more likely to result in satisfied customers who will return and use the service again or buy anotherproduct from the company. 22 10,11,14

Brand Otherbenefit

Inclusive design can improve the brand image and market perceptions of a company. 21

Differentiation Otherbenefit Inclusive design can help a product to stand out, particularly in a saturated market. 8,21

Longevity Otherbenefit Inclusive designs may last longer in the market (reducing long-term development costs and increasing the revenue from eachversion of the product)

Stakeholder: Sales


20/36

Word-of-mouthrecommendation/condemnation

Otherbenefit

Inclusive design often leads to more customer satisfaction and thus to more word-of-mouth recommendation. It also avoids the word-of-mouth condemnation that often arises from poor usability.

16

Press response Otherbenefit

Usable and inclusive designs can generate a positive press response (e.g. positive reviews), and avoid the negative publicity thatcan come from usability problems.

2,8,11

Ease of finding thedesired products(specific to e-commerce sites)

Otherbenefit

An inclusively designed e-commerce website is easier to navigate and thus it is easier to find the desired products. This leads to anincrease in sales.

20,36 12,13

Other

Back office costs Decreasedcost

Some projects may affect back office costs, e.g. making distribution systems easier to use may improve staff efficiency.

Cost of returns Decreasedcost

Inclusive design can reduce the rate of returns, as some products are returned because the customers find them too difficult to use. 6

Support costs Decreasedcost

Inclusive products cause less usability problems and hence generate less support calls. However, note that introducing any changeto a system can initially increase the number of support calls before they settle down to the new daily rate.

10,12,15,17,18,19,

3511,12,13

Training costs (internal) Decreasedcost

Fewer training materials and less training time are needed for more usable systems. 4,15,28,29

Maintenance costs Decreasedcost

Inclusive systems are often better structured and thus easier to maintain. 16 18

Stakeholder: Operations


21/36

System costs (servers,

databases, etc to keepthe product running)

Decreasedcost

The system costs vary a lot depending on the nature of the product but need to be taken into account. An inclusive design example

is that an inclusive website with clear and consistent navigation reduces unwanted page downloading and thus reduces bandwidthand server load.

16

Legal costs Decreasedcost Inclusive products reduce the risk of legal action (and negative publicity) associated with inaccessibility. 23,24

User/employeesatisfaction andproductivity

Other

benefit

More inclusive and usable systems can be used more efficiently by staff. In addition, less time is wasted by experienced staff

providing assistance when new users encounter difficulties. Inclusive systems are also often more pleasant to use, increasing userand staff satisfaction.

3,13,14,16,

30,32,34,55,56,57

Other


22/36


23/36

Case studies

Case studies of how inclusive design (and related areas of design) can affect the impact factors (cost and benefits).

Reference

number Company

Issues it

impacts on

Company

sector Details of case study

Weblink (ifavailable)

(Checked Feb

2011) Reference

1 American AirlinesDevelopment (Costof change)

Airline"By correcting usability problems in the design phase, American Airlines reduced the cost of those fixes by60-90%.

http://www.usa

(Bias &Mayhew,1994) Quoted

in (Bevan,2005)

2 AmexSales (Pressresponse)

FinanceThe BBC ran the news headline "Bank upgrade is excluding blind..." after Amex made i ts credit cardstatements less accessible in a format change

. .co.uk/1/hi/programmes/moneybox/7332216.

stm

(Henry & Arch,2010)

3 ARINCOperations(Employeeproductivity)

Intranet

ARINC carried out work to improve the navigation and usability of their intranet pages. "Employees around

the world accepted the new design, since their usage models were taken into account. In fact, reverse card-sort testing found that 96% of the users understood the new site's categorizations and task groupings,compared with only 45% on the old design. [The usability company]'s turnaround time from data gatheringto finished design: only three weeks."

http://www.humanfactors.com/about/arinc.

asp

HumanFactorsInternational

4 AT&TOperations

(Training costs)

Telecommuni

cations"As a result of usability improvements at AT&T, the company saved $2,500,000 in training expenses. http://www.usa

(Bias &Mayhew,1994) Quotedin (Bevan,

2005)

5 B&Q

Strategy (Business

objectives), Sales(Sales, Customerbase)

Productdesign, Retail

B&Q developed two easy-to-use DIY power tools, particularly considering the needs of older users. "Earlyreports suggest healthy sales for each line, reflecting consumer support for B&Q's drive to make its own-label products more user-friendly." These products also fit with B&Q's "commitment to diversity in a

corporate vision statement: 'We want to be a great company that can be trusted to respect the quality of life

of all the people and communities we touch.' "

http://data.bolto(DesignCouncil, no

date)

6 BTSales, Operations(Cost of returns)

Telecommunications

Freestyle 750 BT handset was designed to be more inclusive. "Since its launch in July 08 sales haveincreased 20%. The inclusive design has also minimised product returns thereby improving profitability,

despite higher manufacturing costs."

http://www.inclu(Clarkson etal, 2010)

7 CNET SalesNews andmedia

CNET started providing transcripts, an accessibility measure for people with visual impairments and saw a"30% increase in traffic from Google"

http://www.w3.o(Henry & Arch,2010)

8 Easy Living HomeSales(Differentiation,Press response)

Bathroom

design

Easy Living Home have "developed a new brand of inclusively designed bathrooms called LivingWorkswhich was launched with the first showroom in Eastbourne in July 2007. Several of these designs appear inthe recent Government document Lifetime Homes & Lifetime Neighborhoods as examples of bestpractice. Alison was also delighted to receive two Kitchen & Bathroom Industry design awards for herinclusive kitchen and bathroom designs in the prestigious Ebb Review Industry Awards 2007."

http://www.inclusivedesigntoolkit.com/betterdesign/whatis/whatis8.html

(Clarkson et

al, 2010)
http://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://news.bbc.co.uk/1/hi/programmes/moneybox/7332216.stmhttp://news.bbc.co.uk/1/hi/programmes/moneybox/7332216.stmhttp://news.bbc.co.uk/1/hi/programmes/moneybox/7332216.stmhttp://news.bbc.co.uk/1/hi/programmes/moneybox/7332216.stmhttp://news.bbc.co.uk/1/hi/programmes/moneybox/7332216.stmhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://data.bolton.ac.uk/designonline/pages/pdf/b&q%20power%20tools.pdfhttp://www.inclusivedesigntoolkit.com/betterdesign/whatis/whatis9.htmlhttp://www.w3.org/WAI/bcase/resources.htmlhttp://www.inclusivedesigntoolkit.com/betterdesign/whatis/whatis8.htmlhttp://www.inclusivedesigntoolkit.com/betterdesign/whatis/whatis8.htmlhttp://www.inclusivedesigntoolkit.com/betterdesign/whatis/whatis8.htmlhttp://www.inclusivedesigntoolkit.com/betterdesign/whatis/whatis8.htmlhttp://www.inclusivedesigntoolkit.com/betterdesign/whatis/whatis8.htmlhttp://www.inclusivedesigntoolkit.com/betterdesign/whatis/whatis8.htmlhttp://www.inclusivedesigntoolkit.com/betterdesign/whatis/whatis8.htmlhttp://www.inclusivedesigntoolkit.com/betterdesign/whatis/whatis8.htmlhttp://www.inclusivedesigntoolkit.com/betterdesign/whatis/whatis8.htmlhttp://www.inclusivedesigntoolkit.com/betterdesign/whatis/whatis8.htmlhttp://www.w3.org/WAI/bcase/resources.htmlhttp://www.inclusivedesigntoolkit.com/betterdesign/whatis/whatis9.htmlhttp://data.bolton.ac.uk/designonline/pages/pdf/b&q%20power%20tools.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://news.bbc.co.uk/1/hi/programmes/moneybox/7332216.stmhttp://news.bbc.co.uk/1/hi/programmes/moneybox/7332216.stmhttp://news.bbc.co.uk/1/hi/programmes/moneybox/7332216.stmhttp://news.bbc.co.uk/1/hi/programmes/moneybox/7332216.stmhttp://news.bbc.co.uk/1/hi/programmes/moneybox/7332216.stmhttp://news.bbc.co.uk/1/hi/programmes/moneybox/7332216.stmhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdf


24/36

9 EuroClix website Sales

Website

(loyaltyprogramme)

User trials were used to redesign the EuroClix Website before its launch. In its first six months, it

convinced more than 30,000 users to sign up. This study clearly shows that consumers trust concerns cansignificantly be alleviated by providing relevant information when and where users need it.

http://www.usa

(Egger & deGroot, 2000)

Quoted in(Bevan,2005)

10Ford MotorCompany

Operations(Support costs)

Vehicledesign

Design changes from one usability study at Ford Motor Company reduced the number of calls to the helpline from an average of 3 calls to none, saving the company an estimated $100,000.

http://www.usa(Kitsuse 1991)Quoted in(Bevan, 2005)

11 HP Labs

Strategy (Business

objectives), Sales(Sales, Customer

base, Pressresponse)

Technology

HP developed a gesture-based keyboard to make technology accessible to non-English speakers in Indiaand South-East Asia. The design was developed based on an understanding of the needs of the users and

was iteratively tested with users. The resultant device has opened up new markets and "invigorated HP'sbottom line by developing a vast new pool of loyal customers", as well as winning awards for technology

innovation. The development of this devices helped HP to "meet its historical prime objective, 'listeningattentively to customers to truly understand their needs, then delivering solutions that translate into

customer success.' "

http://www.hu

manfactors.co

m/about/hplabs.asp

HumanFactors

International

12 IBM Sales, Operations(Support costs)

Website,technology

IBM's Web presence has traditionally been made up of a difficult-to-navigate labyrinth of disparatesubsites, but a recent [in 1999] redesign has made it more cohesive and user-friendly... According to IBM,

the massive redesign effort is already paying dividends. The company says in the month after the Februaryre-launch, traffic to the Shop IBM online store increased 120 percent, and sales went up a whopping 400

percent." (Battey, 1999)"On IBM's website, the most popular feature was the search function, because the site was difficult to

navigate. The second most popular feature was the 'help' button, because the search technology was soineffective." They did "a 10-week effort to redesign the site, involving more than 100 employees at a cost

estimated 'in the millions.'" "In the first week after the redesign, use of the 'help' button decreased 84 percent, while sales increased 400 per cent." (Usability Net, 2006)

http://interface.

free.fr/Archives/IBM_redesign

_results.pdf

(Battey, 1999);

(Usability Net,2006)

13 IBMOperations(Employee

productivity)

Technology,

internalcomputer

system

'Design changes due to usability work at IBM resulted in an average reduction of 9.6 minutes per task, withprojected internal savings at IBM of $6.8 Million in 1991 alone.' (Karat 1990)"

http://www.usa (Bevan, 2005)

14 Inland Revenue

Development(Development cost,Operations

(Employee

productivity)

Government,internal

computersystem

The Inland Revenue conducted usability procedures and methods, at a cost of 152,000. In terms ofdevelopment costs alone, the return on investment (ROI) was 1:1.5. In addition, use benefits "are likely tobe substantial, with 30,000 users whose time costs over one Euro a minute" and "usability testing verified

that staff could complete task quickly and to acceptable quality standards on their first day of using the on-

line system."

http://www.usa(TRUMP,

2000)

15Israel AircraftIndustries

Development(Development

costs), Sales,Operations

(Support costs,

Training costs)

Aircraftmanufacturer

Israel Aircraft Industries conducted usability procedures and methods, as a cost of about $27,000. Theysaw the following financial benefits:

- Savings in development costs of $330K.- Increased sales estimated at $400K.

- Reduced support/training costs estimated at $50K

The total benefits were $780,000 with a cost-benefit ratio of 1:29.

http://www.usa(TRUMP,2000)
http://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.humanfactors.com/about/hplabs.asphttp://www.humanfactors.com/about/hplabs.asphttp://www.humanfactors.com/about/hplabs.asphttp://www.humanfactors.com/about/hplabs.asphttp://interface.free.fr/Archives/IBM_redesign_results.pdfhttp://interface.free.fr/Archives/IBM_redesign_results.pdfhttp://interface.free.fr/Archives/IBM_redesign_results.pdfhttp://interface.free.fr/Archives/IBM_redesign_results.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/trump/case_studies/index.htmhttp://www.usabilitynet.org/trump/case_studies/index.htmhttp://www.usabilitynet.org/trump/case_studies/index.htmhttp://www.usabilitynet.org/trump/case_studies/index.htmhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://interface.free.fr/Archives/IBM_redesign_results.pdfhttp://interface.free.fr/Archives/IBM_redesign_results.pdfhttp://interface.free.fr/Archives/IBM_redesign_results.pdfhttp://interface.free.fr/Archives/IBM_redesign_results.pdfhttp://www.humanfactors.com/about/hplabs.asphttp://www.humanfactors.com/about/hplabs.asphttp://www.humanfactors.com/about/hplabs.asphttp://www.humanfactors.com/about/hplabs.asphttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdf


25/36

16 Legal & General

Sales, Operations

(Maintenancecosts, System

costs, Usersatisfaction)

Finance

After usability and accessibility work, Legal & General observed the following benefits:- A reduction in maintenance costs of 66%. The average time for content maintenance was reduced from 5

days to 0.5 days, saving 200,000 a year- A 'significant improvement' in Google rankings and a 50% increase in natural search traffic

- An increase of almost double in the number of visitors seeking quotes and buying Legal & Generalfinancial products online

- Page load times were reduced by 75% and there was positive customer feedback on the noticeablyimproved performance of the site

- Inaccessibility complaints were reduced to zero- The new site was accessible to mobile devices

100% return on investment (ROI) in 12 months

http://www.w3.(Henry & Arch,2010)

17 lucy.comOperations

(Support costs)E-commerce

lucy.com found that improving descriptions and images on product pages meant that users did not have tocall or email customer support with simple questions like What does a shirt look like from the back? The

changes paid off when product-related inquiries dropped by more than 20%.

http://www.usa

(Forrester ,

2001) Quoted

in (Bevan,2005)

18 MicrosoftOperations(Support costs)

SoftwareMicrosoft tracks its support call costs and has seen a significant cost savings resulting from improving theusability of its products, such as Word.

http://www.usa(Reed, 1992)

Quoted in(Bevan, 2005)

19 MicrosoftOperations

(Support costs)Software

At Microsoft several years ago, Word for Windowss print merge feature was generating a lot of lengthy(average = 45 minutes) support calls. As a result of usability testing and other techniques, the user

interface for the feature was adjusted. In the next release, support calls dropped dramatically; Microsoftrecognized significant cost savings.

http://www.usa

(Bias &Mayhew,1994) Quoted

in (Bevan,2005)

20 move.comSales (Ease offinding the desired

product, etc)

E-commerce

After move.com completed the redesign of the home search and contact an agent features based on aUI consulting firm's recommendations, users ability to find a home increased from

62% to 98%, sales lead generation to real estate agents increased over 150%, and [move.coms] ability tosell advertising space on move.com improved significantly. (Vividence, 2001)

http://www.usaQuoted in

(Bevan, 2005)

21 OXO

Sales (Sales,Customer base,

Brand,

Differentiation)

Product

design, Retail

OXO's Good Grips range of kitchen products highlights Inclusive Design as its distinguishing feature. Salesgrowth averaged 27% per year from 1991 to 2009 and the line has won over 150 international design

awards The line has now grown to over 850 products, all developed based on the concept of Inclusive

Design.

http://www.oxo

.com/aboutOX

O.aspx

OXO

22 Staples.comSales (Sales,Repeat customers)

E-commerce

Staples.com determined that the key to online success and increased market share was to make its e-

commerce site as usable as possible.. [They] spent hundreds of hours evaluating users' workenvironments, decision-support needs, and tendencies when browsing and buying office products and

small business services through the Web. Methods included data gathering, heuristic evaluations, andusability testing... [They achieved these results]: 67% more repeat customers... 31-45% reduced drop-off

rates... 10% better shopping experience... 80% increased traffic... Increased revenue: It's hard to pinpointcause and effect with certainty, but third-quarter 2000 sales were up 491% over the previous year and also

increased over the second quarter.

http://www.humHuman

Factors

International

23Sydney OlympicGames

Operations (Legalcosts)

Website(loyalty

programme)

Sydney Olympic Games was required to pay $20,000 (Australian dollars) in damages due to pooraccessibility

http://www.w3.(Henry & Arch,2010)
http://www.w3.org/WAI/bcase/legal-and-general-case-studyhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.oxo.com/aboutOXO.aspxhttp://www.oxo.com/aboutOXO.aspxhttp://www.oxo.com/aboutOXO.aspxhttp://www.humanfactors.com/about/staples.asphttp://www.w3.org/WAI/bcase/socog-case-studyhttp://www.w3.org/WAI/bcase/socog-case-studyhttp://www.humanfactors.com/about/staples.asphttp://www.oxo.com/aboutOXO.aspxhttp://www.oxo.com/aboutOXO.aspxhttp://www.oxo.com/aboutOXO.aspxhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.w3.org/WAI/bcase/legal-and-general-case-study


26/36

24Target

Corporation

Operations (Legal

costs)E-commerce

Target Corporation was taken to court by the US National Federation of the Blind over its website's

inaccessibility to blind and visually impaired users. Target settled for damages of $6 million (US dollars)and attorney's fees and costs over $3.7 million. It also had to make its site fully accessible.

http://www.w3.(Henry & Arch,

2010)

25Unnamed

companiesSales Website

Redesign without usability: "In several large studies conducted by MauroNewMedia during the past 5 years,

it was clear that spending large sums on web site design (re-design) efforts produced almost no benefit itterms of improving the business performance of large E-Com offerings. In one large clients case, serial re-

design efforts by several large web development firms used approximately $100 million in developmentfees. Yet the number of new customers declined, those retained remained level, and almost no customers

were migrated to other services or were involved in cross purchasing of products or services."

http://www.ergo (Mauro, 2002)

26Unnamed

company

Development

(Documentationcost)

Unknown"Usability work eliminated the need to reprint and distribute a manual, saving one company $40,000 in one

year"http://www.usa

(Bias &Mayhew,

1994) Quotedin (Bevan,

2005)

27Unnamedcompany

Sales Unknown"Wixon and Jones (1995) document a case study of a usability-engineered product that achieved revenuesthat were 80% higher than for the first release developed without usability engineering, and 60% above

project expectations."

http://www.usa

(Wixon &

Jones, 1995)Referenced in

(Bevan, 2005)

28Unnamed

company

Operations

(Training costs)Unknown

Karat (1993) "documents a case study of a usability engineered product that required a one-hour trainingsession as compared to one week of training for similar systems built and used within the organization. The

investment in usability save the organization millions of dollars in training costs and in the opportunity costsof the employees' time in the first year alone."


29Unnamedcompany

Operations(Training costs)

Unknown "Usability engineering allowed another company to eliminate training and save $140,000" http://www.usa

(Bias &

Mayhew,1994) Quoted

in (Bevan,2005)

30Unnamed

company

Operations (User

satisfaction)Unknown "In a 1992 Gartner Group study, usability methods raised user satisfaction ratings for a system by 40%. http://www.usa

(Bias &Mayhew,


2005)

31

Unnamedcompany (A largecommercial client

of

MauroNewMedia)

Development (Costof project slippage,Development cost,

Appropriate

functionality)

Unknown

In one large commercial client, the time to execute a quality assurance test fully was reduced by 85%because of a decrease in features brought about through the application of formal usability engineering and

testing during the early phases of development. This amounted to a savings of approximately $15 millionand a reduction in schedule by 18 months over the prior software development iteration.


32Unnamed

company (airline)

Operations

(Employeesatisfaction)

Airline

One airlines IFE (In-flight Entertainment System) was so frustrating for the flight attendants to use thatmany of them were bidding to fly shorter, local routes to avoid having to learn and use the difficult systems.

The time-honored airline route-bidding process is based on seniority. Those same long-distance routeshave always been considered the most desirable. For flight attendants to bid for flights from Denver to

Dallas just to avoid the IFE indicated a serious morale problem.

http://www.usa(Cooper, 1999)


33

Unnamed

company (E-Comsite selling

consumerproducts)

Development (Costof change)

E-commerce

In one large study undertaken by MauroNewMedia involving an E-Com site selling consumer products...

By applying professional usability testing in the design of the search query system, the E-Com site couldhave been improved by a full order of magnitude. Waiting until the database and related search

functionality was complete, however, meant spending more than $1 million in re-design and programming.The cost of a professional usability testing study early in development would have been about $25,000.

http://www.w3.org/WAI/bcase/target-case-studyhttp://www.ergonomia.ca/doc/UsabTesting&ROI.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.ergonomia.ca/doc/UsabTesting&ROI.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.ergonomia.ca/doc/UsabTesting&ROI.pdfhttp://www.ergonomia.ca/doc/UsabTesting&ROI.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.ergonomia.ca/doc/UsabTesting&ROI.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.ergonomia.ca/doc/UsabTesting&ROI.pdfhttp://www.w3.org/WAI/bcase/target-case-study


27/36

34

Unnamed

company (majorcomputer

company)

Operations(Employeeproductivity)

Internalcomputersystem

With its origins in human factors, usability engineering has had considerable success improvingproductivity 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 productivityimprovement 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 $6,800,000within the first year of the systems implementation. This is a cost-benefit ratio of $1:$100.

http://www.usa

(Bias &

Mayhew,1994) Quotedin (Bevan,

2005)

35Unnamedcompany (printer

manufacturer)


Software

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. Tocorrect 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.

http://www.usa

(Bias &

Mayhew,1994) Quoted

in (Bevan,2005)

36Unnamed holidaycompanies

Sales (Ease offinding the desired

product)

E-commerceCreative Good found that "39 per cent of test shoppers failed in their buying attempts [to buy a holidayonline] because sites were too difficult to navigate. Additionally, 56 per cent of search attempts failed".

http://www.usa(Usability Net,2006)

The following examples are about design rather than inclusivity or usability, but also serve to illustrate some of the issues:

37

Castle Rock

Brewery(redesigned

communicationsand graphics)

Sales

Communicatio

ns design,Food and

drink

"Castle Rock Brewery in Nottingham brought in designers The Workroom to give its communications and

graphics a more professional edge. Demand is now outstripping supply and the company's barrel sales

growth has doubled."- "Budget: Approximately 5,000 for initial concepts then further budget was agreed as the project

progressed"- Benefits: Sales growth has doubled

http://www.desi (DesignCouncil, 2010)

38HMV (examinedcustomer use)

Sales Retail

"High street music specialist HMV has had to react to massive changes in the way its customers buy musicand video titles since the arrival of digital files and the internet. It used design to create a next generation

store and whole new brand proposition. Sales at a trial store jumped by 25 per cent."

- Budget: Not disclosed- Benefits: 25% increase in sales at trial store

http://www.desi(DesignCouncil, 2010)

39

Ian MacleodDistillers

(redesignedpackaging)

SalesPackagingdesign, Food

and drink

"Scotch whisky drinking is in decline. So family company Ian Macleod Distillers employed designers tocreate packaging for its new Smokehead whisky aimed at bringing younger consumers to the whiskymarket. Sales have doubled since launch in 2006."

- Budget: 'A few thousand pounds'- Benefits: Sales have doubled

http://www.desi(Design

Council, 2010)

40

McCain

(redesignedpackaging)

Sales

Packaging

design, Foodand drink

"Frozen food company McCain suffered badly following a backlash against poor diets and rising obesity, soit worked with designers Elmwood to rethink the way its packaging speaks to shoppers in supermarkets,promoting the product's natural ingredients and low fat. Sales have since blossomed to record levels."

- Budget: 40,000- Benefits: "returned to growth in a declining market... household penetration of McCain Oven Chips is

now at a record high... value share in the market rose from 16.6% to 18.3% between 2006 and 2007,

following the relaunch"

http://www.desi(DesignCouncil, 2010)

41Thistle Hotels

(image overhaul)Sales

Image design,

Hospitality

"Thistle hotels is using an image overhaul by designers Navyblue to spearhead a multimillion-poundrefurbishment and service improvement programme, and visitor numbers are already rising."

- Budget: Not disclosed- Benefits: Visitor numbers are rising

http://www.desi(Design

Council, 2010)

ReferencesBattey, J. (1999). IBMs redesign results in a kinder, simpler web site. Available: http://interface.free.fr/Archives/IBM_redesign_results.pdf

Bevan, N. (2005). Cost benefits evidence and case studies. Available at: http://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfBias, G. and Mayhew, D. (Eds.) (1994) Cost-Justifying Usability. Academic Press, New York
http://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/management/c_business.htmhttp://www.designcouncil.org.uk/Case-studies/Designs-to-overcome-a-downturn/Castle-Rock-Brewery/http://www.designcouncil.org.uk/Case-studies/Designs-to-overcome-a-downturn/HMV-Group/http://www.designcouncil.org.uk/Case-studies/Designs-to-overcome-a-downturn/Ian-Macleod-Distillers/http://www.designcouncil.org.uk/Case-studies/Designs-to-overcome-a-downturn/McCain-oven-chips/http://www.designcouncil.org.uk/Case-studies/Designs-to-overcome-a-downturn/Thistle-Hotels/http://www.designcouncil.org.uk/Case-studies/Designs-to-overcome-a-downturn/Thistle-Hotels/http://www.designcouncil.org.uk/Case-studies/Designs-to-overcome-a-downturn/McCain-oven-chips/http://www.designcouncil.org.uk/Case-studies/Designs-to-overcome-a-downturn/Ian-Macleod-Distillers/http://www.designcouncil.org.uk/Case-studies/Designs-to-overcome-a-downturn/HMV-Group/http://www.designcouncil.org.uk/Case-studies/Designs-to-overcome-a-downturn/Castle-Rock-Brewery/http://www.usabilitynet.org/management/c_business.htmhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdf


28/36

Clarkson, P. J., Coleman, R., Hosking, I. and Waller, S. (2010). Inclusive design toolkit. Engineering Design Centre, University of Cambridge. http://www.inclusivedesigntoolkit.com

Egger, F. N. & de Groot, B. (2000). Developing a model of trust for electronic commerce: An application to a permissive marketing web site. Paper presented May 15-19, 2000 at the Poster proceedings of the 9th i

Forrester Report (2001) Get ROI from design. Forrester Research, Inc., Cambridge, MA, USA.Henry, S.L. and Arch, A (Eds) (2010) Developing a Web Accessibility Business Case for Your Organization. Published by W3C WAI. http://www.w3.org/WAI/bcase/Human Factors International. Case Studies. http://www.humanfactors.com/about/casestudies-applications.asp

Cooper, A. (1999). The inmates are running the asylum: Why high-tech products drive us crazy and how to restore the sanity. Indianapolis, Indiana: SAMS

Design Council (2010). Designs to overcome a downturn. http://www.designcouncil.org.uk/Case-studies/Designs-to-overcome-a-downturn/

Creative Good (2000, June 12). The dotcom survival guide. Creative Good. Available: interface.free.fr/Archives/DotcomSurvivalGuide.pdf

Design Council (no date). B&Q - power tools. Available from: http://data.bolton.ac.uk/designonline/pages/pdf/b&q%20power%20tools.pdf

Wixon, D. and Jones, S. (1995). Usability for fun and profit: A case study of the re-design of the VAX RALLY. In: Human-Computer Interface Design: Success Stories, Emerging Methods, and Real-World Context. M

OXO. Company website: About OXO. http://www.oxo.com/AboutOXO.aspxReed, S. (1992) Who defines usability? You do! PC Computing (Dec), 220-232

TRUMP (2000). Cost Effective User Centred Design. The TRUMP Project. http://www.usabilitynet.org/trumpUsability Net (2006) The business case for usability. http://www.usabilitynet.org/management/c_business.htm

Karat (1993) Cost-benefit and business case analysis of usability engineering. SIGCHI93, AmsterdamKitsuse, A (1991) Why aren't computers... Across the Board (October) 28, 44-48

Landaur (1995) The Trouble with Computers. MIT PressMauro, C.L. (2002). Professional usability testing and return on investment as it applies to user interface design for web-based products and services (a review of online v lab-based approaches). White paper. Avai


29/36

General figures

General numbers to help you estimate the size of the changes in the impact factors

Reference

number Company

Issues it

impacts on

Company

sector Details of case study

Weblink (ifavailable)

(Checked Feb

2011) Reference

1N/A (Generalfigures)


General"A change may cost 1.5 units of project resource during conceptual design, 6 units during earlydevelopment, 60 during systems testing and 100 during post-release maintenance"

http://www.usa

(Pressman,

1992) Quotedin (Bevan,2005)



General

"Solving one serious usability problem early in the development cycle may require minimal costs in terms ofactual usability testing fees. Leaving that same problem until after launch, however, will cost at least 100times as much to fix. In studies by MauroNewMedia, the actual cost of solving complex usability problems

after beta was closer to 1000 times original costs"

http://www.ergo(Mauro, 2002)


Development costs Software

"The Standish Group (2003) found that only 34% of IT projects completed were on time, on budget, anddelivering the functionality required; 51% of IT projects were 'challenged'meaning that they were not ontime, not on budget, or not delivering the functionality required; and 15% of IT projects failed or were

abandoned. One of the major causes is inadequate user requirements"



Development

(Appropriatefunctionality)

Software,Websites

In traditional software, and even more so in large E-com web development efforts, about 5% of featuresavailable to the customer are used 95% of the time. A more staggering statistic is the fact that some 70%

of user-interface design features are never or rarely used."More than 95% of your customers will use less than 5% of the features and functions of your site.Customers will NEVER use about 75% of the functions on your site"


5N/A (General

figures)

Development(Appropriate

functionality)

GeneralIn discussing the elimination of unnecessary features through usability testing, Mauro says that "For every$10 spent defining and solving critical usability problems early in development using professional usability

research, you will save about $100 in development costs"



Sales (Advertisingcosts)

General"For every dollar spent acquiring a customer you will spend $100 dollars reacquiring them after they leavebecause of poor usability or bad customer service"



Sales (Ease of

finding the desiredproduct)

E-commerce

"You can increase sales on your site as much as 225% by offering sufficient product information to yourcustomers at the time they need it. One way to do this is to develop product lists that dont require shoppers

to bounce back-and-forth between the list and individual product pages... [Customer who did bounce backand forth] added only 11% of the items to their carts. In contrast, shoppers who encountered lists thatdisplayed the right amount of relevant information added 55% of the products to their shopping carts"

http://www.uie.(User Interface

Engineering,2001)
http://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.ergonomia.ca/doc/UsabTesting&ROI.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.ergonomia.ca/doc/UsabTesting&ROI.pdfhttp://www.ergonomia.ca/doc/UsabTesting&ROI.pdfhttp://www.ergonomia.ca/doc/UsabTesting&ROI.pdfhttp://www.uie.com/publications/whitepapers/PogoSticking.pdfhttp://www.uie.com/publications/whitepapers/PogoSticking.pdfhttp://www.ergonomia.ca/doc/UsabTesting&ROI.pdfhttp://www.ergonomia.ca/doc/UsabTesting&ROI.pdfhttp://www.ergonomia.ca/doc/UsabTesting&ROI.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.ergonomia.ca/doc/UsabTesting&ROI.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdf


30/36

8N/A (General

figures)Sales E-commerce

Creative Good estimated that improving the customer experience of e-commerce increases the conversion

rate (and hence the number of buyers) by 40% and the order size by 10%.http://interface.f

(Creative

Good, 2000)


Sales (Sales, Easeof finding thedesired product)

E-commerce

"For every dollar you spend improving the visual design or style of your site, you will receive virtually no

improvement in sales. The same dollar spent on improving core behavioral interactions with your site'scritical way-finding and form-filling functions will, however, return $50-100 if executed in a professional and

rigorous manner"


10N/A (General

figures)

Sales (Repeat

customers)E-commerce

"42% of US Web buying consumers made their most recent online purchase because of a previous good

experience with the retailer"http://www.usa

(Forrester,2001) Quoted

in (Bevan,2005)


Sales (Repeatcustomers)

E-commerceOne study found that new users at a merchant site spent an average of $127 per purchase, while repeatusers spent almost twice as much, with an average of $251"

http://useit.com(Nielsen,1997)

12 N/A (Generalfigures)

Sales (Ease offinding the desiredproduct)

E-commerce A study from Zona Research found that 62% of Web shoppers have given up looking for the item theywanted to buy online (and 20% had given up more than three times during a two-month period)"

http://www.usei (Nielsen,1998)


Sales (Ease offinding the desired

product)

E-commerceIn Jared Spool's study of 15 large commercial sites users could only find information 42% of the time eventhough they were taken to the correct home page before they were given the test tasks"

http://www.usei (Nielsen,1998)

14N/A (General

figures)Sales

E-commerce,

Finance

"3.1 million U.S. adults have discontinued their use of online banking... because they find the service too

complicated or were dissatisfied with the level of customer service""only 35 per cent of online bankers that discontinued their service were inclined to try it again."

http://www.usa(Usability Net,

2006)

15 N/A (Generalfigures)


E-commerce 37% of online consumers have used customer support on a site. B2B [Business to Business] companiesestimate that online service is $5 to $25 cheaper, per incident service

http://www.usa

(Forrester,


2005)



Internal

computersystem

"Because in-house PCs are often hard to use, companies have to provide about $3150 worth of technicalsupport for every user"

http://www.usa

(Gartner

Group, 1997)Quoted in

(Bevan, 2005)

17N/A (General

figures)

Operations

(Support costs)Websites

"The single largest predictor of call center volume is your website's usability. Calls cost an average $22-

$30 per call."http://www.ergo (Mauro, 2002)
http://interface.free.fr/Archives/DotcomSurvivalGuide.pdfhttp://www.ergonomia.ca/doc/UsabTesting&ROI.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://useit.com/alertbox/9708a.htmlhttp://www.useit.com/alertbox/981018.htmlhttp://www.useit.com/alertbox/981018.htmlhttp://www.usabilitynet.org/management/c_business.htmhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.ergonomia.ca/doc/UsabTesting&ROI.pdfhttp://www.ergonomia.ca/doc/UsabTesting&ROI.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/management/c_business.htmhttp://www.useit.com/alertbox/981018.htmlhttp://www.useit.com/alertbox/981018.htmlhttp://useit.com/alertbox/9708a.htmlhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.ergonomia.ca/doc/UsabTesting&ROI.pdfhttp://interface.free.fr/Archives/DotcomSurvivalGuide.pdf


31/36


Operations(Maintenance

costs)

Software80% of software life cycle costs occur during the maintenance phase.80% of maintenance is due to unmet or unforeseen user requirements; only 20% is due to bugs or

reliability problems.

http://www.usa

(Pressman,1992) Quotedin (Bevan,

2005)


Operations(Employeeproductivity)

SoftwareThe average software program has 40 design flaws that impair employees' ability to use it. The cost in lostproductivity is up to 720%.

http://www.usa

(Landauer

1995) Quotedin (Bevan,2005)


Operations

(Employee

productivity)

Internal

computer

system

"Non-technical employees take 4-10% of their time to help co-workers solve their computer problems at acost of $10,500 a year for each computer (Nolan Norton Institute, 1997)"

http://www.usaQuoted in(Bevan, 2005)

21N/A (General

figures)

Operations(Employee

productivity)

Internalcomputer

system

"Unproductive activities with computers (support and housekeeping, response time delays, checks for

accuracy, etc) cost another $5590 per computer per year"http://www.usa

(GartnerGroup, 1997)


ReferencesBevan, N. (2005). Cost benefits evidence and case studies. Available at: http://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfCreative Good (2000, June 12). The dotcom survival guide. Creative Good. Available: interface.free.fr/Archives/DotcomSurvivalGuide.pdf

Forrester Report (2001) Get ROI from design. Forrester Research, Inc., Cambridge, MA, USA.

Landaur (1995) The Trouble with Computers. MIT Press

Usability Net (2006) The business case for usability. http://www.usabilitynet.org/management/c_business.htmUser Interface Engineering (2001). Are the product lists on your site losing sales?. http://www.uie.com/publications/whitepapers/PogoSticking.pdf

Mauro, C.L. (2002). Professional usability testing and return on investment as it applies to user interface design for web-based products and services (a review of online v lab-based approaches). White paper. AvaiNielsen, J. (1997) Loyalty on the web. Jakob Nielsen's Alertbox, August 1, 1997. http://useit.com/alertbox/9708a.html

Nielsen, J. (1998). Failure of corporate websites. Jakob Nielsen's Alertbox, October 18, 1998. http://www.useit.com/alertbox/981018.html

Pressman, R.S. (1992). Software Engineering: A Practitioner's Approach. McGraw Hill, NY
http://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdfhttp://www.usabilitynet.org/papers/Cost_benefits_evidence.pdf


32/36

Initial assessment

al impact assessment

Project Name: Date:

Stakeholder Impact Factor

Type of Cost /

Benefit(choose from

drop-down list)

Rationale

Operations Support Decreased costFewer calls to support helpline as many callsare about usability problems

High

Strategye factors: Long-term development costs,or other parts of the business, Business

objectives, Other >

Developmentfactors: Cost of change, Time to market,entation, Development costs, Other >

Manufacturingble factors: Bill of Materials, Tooling,

Production, Other >

Salesactors: Advertising, Retail, Sales, Brand,

ess response, Longevity, Other >

Operationse factors: Back office, Returns, Support,aintenance, System costs, Legal issues,

er/Employee productivity, Other >

Impact Factor Descriptions Size of

Impact

(choose fromdrop-down

list)

4:44 AM ID-1 Cost / Benefit Analysis CfBI EDC 2011


33/36

Initial assessment



34/36

Initial assessment

he drop-

the table

Types of Cost /

Benefit Factor

Size of

Impact

ow

Decreased cost Medium

Increased revenue High

Decreased revenue

Intangible



35/36

Full calculation

Full cost-benefit calculation

Project Name: Date:

Cost/Benefit for Month

Stakeholder Impact Factor Type of Cost /Benefit

Rationale

Indicator

How will youmeasure the

factor?

Quantity

How muchchange doou ex ect?

Value of the

cost/benefit

(in money)

Value permonth

Evidence/ reasoningfor these figures

Likelihood

of thechange

occurrin

Duration

(in months)How long will the

chan e last?

Change per year

How will the valuevary year-by-year?

1 2 3 4 5

Likeliho

od of thechange

occurrin

Duration

(in

months)

1 2 3 4 5 6 7 8 9 10 11

Exam le

Development

Development

costs: Cost ofinclusive design

work

Increased cost

Some inclusive design work is necessary in

the redesign to identify how best to addressthe usability problems and to make sure thenew roduct is inclusive.

Time taken

to do thework, extra

costs of

Initial work: 3

developers,3 days.

Testin : 1

- 6,650 - 6,650

A developer costs

60/hour (includingoverheads).Partici ants cost 20.

110% 1 -100% - 7,315 0 0 0 0 110% 1 ###### 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Strategy

< Possible factors: Long-term development costs,Revenue for other parts of the business, Business

ob ectives Other >

0 0 0 0 0 0% 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Development

< Possible factors: Cost of change, Time tomarket, Documentation, Development costs, Other

>

0 0 0 0 0 0% 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Manufacturing< Possible factors: Bill of Materials, Tooling,

Production, Other > 0 0 0 0 0 0% 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Sales

0 0 0 0 0 0% 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Operations< Possible factors: Back office, Returns, Support,

Training, Maintenance, System costs, Legalissues User/Em lo ee roductivit Other >

0 0 0 0 0

0% 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

WARNING: The only way to correctly add a new

row is by copying an entire row and then

inserting it.

0 0 0 0 0 0% 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Net Cost /

Benefit: 0 0 0 0 0

cost/ben 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Company Weighted Average Cost of Capital 10%Accumul 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

1 if cost/b 0 0 0 0 0 0 0 0 0 0 0

NPV (Net Present Value) of above Impact

Factors 0

Payback period (simple estimate, does not use

the weighted cost of capital)0 months

* Copy, paste and delete cells

To add a new row to the sheet:

WARNINGThis spreadsheet contains embedded Excel calculations. These will break if you 'cut and paste' or 'move' cells.

So you must not:

* Cut and paste cells

* Move cells aroundYou can:

* Copy the whole of an existing row (including the intermediate calculation columns) and then insert it as a new row. To do this

Cost/Benefit for Year:Impact Factor Descriptions Size and Likelihood of Factors

- right click on the row number to the left of an existing row, then select "Copy"

- right click the row number where you want to insert a row, then select "Insert Copied Cells"

7/25/2013 4:44 AM ID-1 Cost / Benefit Analy


36/36

Examples

Example calculations

Project Name:

Cost/Benefit for Month

Stakeholder Impact Factor Type of Cost /

BenefitRationale

Indicator

How will youmeasure the

factor?

Quantity

How muchchange doou ex ect?

Value of thecost/benefit

(in money)

Value per

month

Evidence/ reasoning

for these figures

Likelihood

of the

change

occurrin

Duration

(in months)

How long will thechan e last?

Change per yearHow will the valuevary year-by-year?

1 2 3 4 5

Likeliho

od of the

change

occurrin

Duration(in

months)

1 2 3 4 5 6 7 8 9 10 11

Development

Developmentcosts: Cost of

inclusive designwork

Increased cost

Some inclusive design work is necessary inthe redesign to identify how best to addressthe usability problems and to make sure thenew roduct is inclusive.

Time takento do the

work, extracosts of

Initial work: 3developers,

3 days.Testin : 1

- 6,650 - 6,650

A developer costs60/hour (includingoverheads).Partici ants cost 20.

110% 1 -100% - 7,315 0 0 0 0 110% 1 ###### 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Manufacturing Bill of Materials Increased cost The redesign adds a label to the product.Extra cost of

label1 label per

product- 0.02 per

product- 200

The cost per label istaken from the

materials cost book.Based on roduction

100% 60 5% - 2,400 - 2,520 - 2,646 - 2,778 - 2,917 100% 60 -200.0 -200.0 -200.0 -200.0 -200.0 -200.0 -200.0 -200.0 -200.0 -200.0 -200.0

Operations Support

Decreased

cost

Fewer calls to support helpline as many calls

are about usability problems

Number and

length of thesupport calls

20% (200)

fewer callsper month

2000/

month 2,000

30% of support callsabout the current

product are aboutusabilit .

60% 60 0% 14,400 14,400 14,400 14,400 14,400 60% 60 1,200.0 1,200.0 1,200.0 1,200.0 1,200.0 1,200.0 1,200.0 1,200.0 1,200.0 1,200.0 1,200.0

Net Cost /

Benefit: 4,685 11,880 11,754 11,622 11,483

cost/ben ###### 1,000.0 1,000.0 1,000.0 1,000.0 1,000.0 1,000.0 1,000.0 1,000.0 1,000.0 1,000.0

Company Weighted Average Cost of Capital 10%Accumul ###### ###### ###### ###### ###### ###### -315.0 685.0 1,685.0 2,685.0 3,685.0 4

1 if cost/b 1 1 1 1 1 1 1 0 0 0 0

NPV (Net Present Value) of above Impact

Factors 37,976

Payback period (simple estimate, does not use

the weighted cost of capital) 8 months

This example project focuses on a product which is generating a lot of calls to the helplineabout usability problems. The proposed project involves doing some inclusive design work to

improve the product. Initial indications suggest that the main change will involve adding a labelto the product. This example is fictitious and simplified but illustrates how to use the "Full Cost-Benefit Calculation" sheet.

Cost/Benefit for Year:Impact Factor Descriptions Size and Likelihood of Factors

Business Case Materials_v1-0

Documents

Transcript of Business Case Materials_v1-0