An innovation process that makes great products.
2

User Experience, or UX for short, is the term used to describe an innovation process that uses a deep understanding of user needs to help create
GE products and services that provide meaningful experiences to our customers. UX uses a set of design methods to unlock actionable insights that help to define products. It takes these insights to design and develop the behavior of the products we create, organize the workflow for interacting with them, and to connect them with our brand.
3

Working collaboratively and iteratively, informed by user needs.
4

5

User experiences are created in stages over the course of a product’s development. UX teams engage end-users to discover insights; they design and prototype concepts and work them into detailed solutions; they implement the final product and evaluate how customer and users respond release after release. Every product requires its own approach based on local constraints, but these stages represent a healthy
UX process that can bring exceptional user experiences to life.
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7

The UX process is fundamentally iterative.
Research is gathered and synthesized into insights; insights seed concepts that are cyclically transformed into full-fledged products. At each step, the team’s output is validated with users and other stakeholders, and their feedback is incorporated into the next iteration of work. This iterative process helps teams continually improve the quality of what they make and helps them to catch problems more quickly.
8

User Experience Design is a necessary competency to navigate today’s competitive landscape.
9

More and more companies, particularly those that provide significant value through software, differentiate through and are known by the qualitative details of the experiences they provide. The push for UX excellence largely began in the consumer space, and now the expectations set by electronic devices and mobile apps are bleeding into industrial and enterprise contexts.
Many exciting developments in IT area appearing in the hands of consumers first and only then making their way into other arenas.
- MARC ANDREESEN 1
1 The Economist, “The Consumer-industrial Complex”
2 Intel, “Consumerization: What is in Store for IT?” July 2010
3 The Economist, “The Power of Many”
61 %
OF GEN Y
AND
50 %
OF 30 + believe the technology tools they use in their personal/social life are more efficient and productive than those used in their work life.
2
30 %
Of doctors already use iPads and 30% more plan on using them in the next year.
3
10

At least in the consumer space, UX-focused companies create exceptional value for shareholders.
The TeehanLax UX Fund is an investment portfolio with equal shares in 10 UX-focused companies. It was created with the belief that companies that deliver great user experiences will see it reflected in their stock price.
+ 63.08
%
Growth in TeehaxLax’s UX Fund 4
+ 37.67
%
NSDQ100
0 %
9 %
NYSE
13.76
%
S&P500
Growth since Nov. 1, 2006 (as of Oct. 24, 2011)
4 TeehanLax, “UX Fund” as of 10/24/2011, http://www.teehanlax.com/uxfund/
11

Not only have competitors developed
UX competencies visible to the public, they have decided to monetize them by providing external consulting services. Additionally, many are positioning themselves as thought leaders by using their brands and resources to push UX thinking forward.
UX Competencies External UX
Services
UX Thought
Leadership
Design at IBM IBM Design Podcast IBM Interactive
Philips Design Philips Innovation Services Design for Usability
GE is already differentiating from
Siemens
12

Over the last six years, user experience-related jobs have increased by as much as 450% in the
U.S. as shown by the growth of job postings mentioning “User Experience” on Indeed.com
5
+ 450 %
Growth in UX jobs in the last 6 years.
Job Trends from Indeed.com
User Experience Jobs
5 Indeed.com, http://www.indeed.com/jobanalytics/jobtrends?q=%22User+Experience%22&l =
13

User Experience activities and investments result in immediate tangible business benefits.
14

In today's consumerized B2B world, superior user experiences can positively influence business results in myriad ways. A strong UX practice yields more desirable, performative and cost-effective products.
If GE's combined Energy and Technology
Infrastructure revenue in 2010 is $75.4B
7 , committing to UX could hypothetically unlock a
$10.8B opportunity, based on a 14.4% increase in sales.
+ 14.4
%
More customers on average are willing to purchase from a company that provides superior experience versus a company that provides a poor customer experience according to Forrester.
6
$ 10B
The hypothetical opportunity UX could offer
GE’s infrastructure businesses
6 Forrester, “Best Practices in User Experience Design (UX)”
7 GE, Form 10-K 2010
15

A superior user experience can redefine a product category and change the way users approach a task. Such experiences, delivered through attractive, well-engineered products can become “must-haves” for an industry.
65 %
IPC, a financial sector products and services firm, achieved first-year adoption rates of 65% in an industry with typical adoption rates of 10%.
8
8 IPC Case Study, frog, Inc.
16

Users of well-designed products and services make purchases more frequently, develop brand loyalty and help secure steadier revenue streams.
45 %
For a major e-commerce business, streamlined purchase paths yielded a
46.5% increase in revenue and a 64.5% increase in the number of units ordered between Q1 and
Q4.
9
9 frogIndex ROI of Design Presentation, frog, Inc.
17

Products that connect with customers on an emotional level can command a premium in the marketplace.
60 %
A media company’s design commanded a 60% premium over comparable products in a competitive category – and sold out in the first year.
9
9 frogIndex ROI of Design Presentation, frog, Inc.
18

The better aligned a product is with user needs, the better it will accomplish the task he or she is trying to perform. If well-enough aligned, switching to a competing experience can be seen as losing functionality.
15.8
%
Fewer customers on average are likely to consider switching to a competitor when offered superior experiences vs. poor user experiences according to Forrester.
6
6 Forrester , “Best Practices in User Experience Design (UX)”
19

Reductions in task completion times can add up to massive productivity savings for a business. In a commerce context, customers who move easily for information to point-of-purchase will complete sales more often.
50 %
A product redesign for
SAP led to a 50% reduction in the time users spent on a given task, increasing efficiency and prompting significant savings.
10
10 SAP Case Study, frog, Inc.
20

Due to tight collaboration between design and development teams, along with improved focus on key features, opportunities for experience optimization are more readily identified. This can dramatically enhance task completion times and customer efficiency.
80 %
After a major GUI redesign,
SAP experienced an 80% improvement in load and render times for a product.
10
10 SAP Case Study, frog, Inc.
21

UX can reduce avoidable rework of produced by mitigating some of the most common factors for why software projects fail and get requirements right when the cost of changes is lowest.
UX activities can be thought of as wellness activities for product development. UX activities up-front can avoid a lot of costly surgery on products down the road .
OF
3
12
Common factors of software failure are mitigated by UX activities.
11
Cost of fixing an error IN development.
11
Cost of fixing an error AFTER deployment.
11
11 IEEE , “Why Software Fails”
22

Even a small reduction in cost could mean big savings.
If R&D Spend in 2012 is 5B2, even a 10% reduction in avoidable rework in this amount would mean a savings of 250M.
Let’s say there are 150 NPI in 2012 12 and you spend 200K per NPI on UX Activities.
GE is still saving $470M overall.
40 %
TO
50 % of work by software specialists is spent on avoidable rework.
11
$5.0B
$4.5B
$4.0B
GE R&D Spend
Comparison
$470M in savings with a hypothetical
10% reduction in rework
$30M in UX investment
(200K per NPI for 150 NPIs)
11 IEEE, “Why Software Fails”
12 Estimations based on GE Annual Outlook 2010
23

On average, 5% of product features are used
95% of the time. UX can prioritize feature sets to aid in faster time to market and meet customer expectations.
13
75 %
Faster launch of sites in new markets 14
13 Strategic Data Systems, “UX Business Impacts and ROI”
14 GE Money Case Study, frog, Inc.
24

The User Experience Center of Excellence coordinates the individual UX efforts of product teams to generate value across businesses.
25

Product teams get support and recognition when they work with the UX Center of Excellence to contribute to the broader UX effort at GE.
1
2
3
Drive adoption of repeatable UX practices within GE through projects.
Increase productivity of UX investments via knowledge sharing within and across
GE businesses.
Decrease cost per project by leveraging UX expertise, tools and assets across GE.
UX CoE
Pilot
Programs
UX Central &
UX CoE PR
Efforts
Cost
Productivity
Experience
Curve
Learning Curve
Innovation
Accelerator Projects
Your
Projects
UX Maturity
Product teams can get support and recognition when they work with the User Experience Center of
Excellence to contribute to the broader UX effort at GE.
1 frog Inc.
26

“We’re measuring GE’s top leaders on how imaginative they are. Imaginative leaders are the ones who have the courage to fund new ideas, lead teams to discover better ideas, and lead people to take more educated risks.”
- JEFF IMMELT
27

Invest time and budgetary resources in UX practices throughout GE
Track, measure and document the success of
UX activities in your projects
Partner with and contribute to the
User Experience
Center of
Excellence before, during and after projects
Become an advocate for the adoption of UX practices
Find information that can help the
UX efforts on your project on UX
Central
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1 The Economist, “The Consumer-industrial Complex”
2 Intel, “Consumerization: What is in Store for IT?” July 2010
3 The Economist, “The Power of Many”
4 TeehanLax, “UX Fund” as of 10/24/2011, http://www.teehanlax.com/uxfund/
5 Indeed.com, http://www.indeed.com/jobanalytics/jobtrends?q=%22User+Experience%22&l =
6 Forrester, “Best Practices in User Experience Design (UX)”
7 GE, Form 10-K 2010
8 IPC Case Study, frog, Inc.
9 frogIndex ROI of Design Presentation, frog, Inc.
10 SAP Case Study, frog, Inc.
11 Robert Charette, IEEE, “Why Software Fails”
12 Estimations based on GE Annual Outlook 2010
13 Strategic Data Systems, “UX Business Impacts and ROI”
14 GE Money Case Study, frog, Inc.
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