External benefits Proofs Evaluation.pdfVIP

Return on Investment for Usability Vesa Riihimäki Based on article by A. Marcus, 2002 Agenda Article Analysis Contents ROI Internal benefits External benefits Proofs Evaluation 15th November 2007 Riihimäki on Marcus, ROI for Usability 2 Analysis Aims at Products and Services Software Websites Literature Examples Statistics 15th November 2007 Riihimäki on Marcus, ROI for Usability 3 Return on Investment (ROI) Investment costs C Overal return S = s1 + s2 + … ROI = (S-C)/C Example: C = 100 000 € S = 110 000 € ROI = 10% Time? Yearly ROI Discounting? NPV 15th November 2007 Riihimäki on Marcus, ROI for Usability 4 Internal benefits – for customer Increases user productivity Increases satisfaction Decreases user errors Decreases user support Decreases training costs Early changes savings +support 15th November 2007 Riihimäki on Marcus, ROI for Usability 5 External benefits – for vendor Increases sales Decreases customer support costs Early changes savings Reduced training costs 15th November 2007 Riihimäki on Marcus, ROI for Usability 6 Quality Benefits (ReevesBednar) Price (excellence) Market share (expectations) Costs (specifications) Controlling organizations output 15th November 2007 Riihimäki on Marcus, ROI for Usability 7 Some ”proofs” Event Benefits Reference Early changes ROI = 1000% - Gilb, 1988 savings 10 000% Rhodes, 2000 Development time time: -40% BiasMayhew, 1994 profit : +100%