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Management of Technology Seminar

UC Santa Cruz

John Schneider

October 27 th , 2005

Agenda

My role at Seagate

Professional Background

Seagate Technology Overview

• eBusiness Solutions

Seagate Internships

Usability Testing with Paper Prototypes

Recent Internship Experience

Management of Technology Seminar (ISM 101) © Seagate Confidential October 27 th , 2005

At Seagate

 Worked in various roles at Seagate for 3 ½ years

 Currently an IT Program Manager

 Responsible for managing multiple projects, often global in nature

 Define business goals and strategic direction

 Analyze payback of IT investments

 Managing the project plan and budget

 Ensure resource availability

 Communicate progress to executives and stakeholders

 Participating in Seagate’s Tuition Reimbursement Plan

 Currently earning MBA from Santa Clara University

 Interest areas include organization theory and international business

Management of Technology Seminar (ISM 101) © Seagate Confidential October 27 th , 2005

Professional Background & Education

 Graduated Cal Poly San Luis Obispo in June ‘99

 Major: Business

 Concentration: Management Information Systems

 Minor: French

 Systems Analyst for Deloitte Consulting in San Francisco

 Oracle ERP practice

 Consulted at HP, Beckman-Coulter, and Lucent

 Consultant for Vigilance in Sunnyvale

 Supply Chain Management Software

 Consulted at Seagate, LSI, Compaq and Avnet

Management of Technology Seminar (ISM 101) © Seagate Confidential October 27 th , 2005

Seagate: Disc Drive Category Leader

• Seagate is the world’s leading provider of hard disc drives

– Q4 FY2005*: 27.3M drives shipped; revenue of $2.18B

Provides drives for Enterprise, Desktop, Mobile Computing and Consumer Electronics applications

– Share leader in Desktop, Consumer Electronics and Enterprise

– 30% overall market share: highest in the industry

– Broadest product offering in the industry – Largest customer base

Ownership and vertical integration of critical technologies: heads, media, motors, and printed circuit boards

Approximately 45,205** employees worldwide

Major operations and sales offices in 15 countries

* For fiscal quarter ended April 1, 2005

** Includes interns, contractors, and agency temps

© Seagate Confidential Management of Technology Seminar (ISM 101) October 27 th , 2005

Seagate’s Global Presence

Fremont,

Milpitas, San Jose,

Scotts Valley, CA

Longmont, CO

Minneapolis, MN

Pittsburgh, PA

Springtown & Limavady,

N. Ireland

Oklahoma City, OK

Paris, France

Beijing, China

Delhi, India

Wuxi, China

Shanghai, China

Bangkok & Korat,

Thailand

Penang & Senai, Malaysia

Ang Mo Kio, Science Park &

Woodlands, Singapore

Tokyo, Japan

Management of Technology Seminar (ISM 101)

Drives and Components

Regional HQ’s and Sales

© Seagate Confidential October 27 th , 2005

Seagate: Disc Drive Category Leader

Innovation

Reliability

Partnership

Management of Technology Seminar (ISM 101) © Seagate Confidential October 27 th , 2005

Seagate: Disc Drive Category Leader

Leadership Model

Leading Technology

– Invest in R&D

– Own underlying technology

Broadest Set of Products and Customers

Lowest Cost Producer

– Superior operational flexibility and leverage

Management of Technology Seminar (ISM 101) © Seagate Confidential October 27 th , 2005

Seagate: Disc Drive Category Leader

An Industry Experiencing…

Long-term growth

Dynamic, emerging markets outside of traditional compute space

– DVRs, Handheld Digital Audio players & Game boxes

Cost of extending technology has driven consolidation

• Fewer players to serve a growing market…

Management of Technology Seminar (ISM 101) © Seagate Confidential October 27 th , 2005

Q4 Financial Highlights

Revenue

Net Income

EPS

Shipments

Margins

Inventory

$2.18 billion – up 63% from Q4FY04

$280 million – up from loss of (33) M in Q4FY04

$0.55 – up from loss of .07 in Q4FY04

27.3 million – up 9 million from Q4FY04

24.8% - compared to 17.1% in Q4FY04

Under 5 weeks – for 6 th consecutive quarter

© Seagate Confidential Management of Technology Seminar (ISM 101) October 27 th , 2005

Market Share Estimates

Total Market - All Form Factors

SMG

8%

Toshiba

8%

HGST

15%

Others

1%

SMG

8%

Toshiba

7%

FUJ

7%

FUJ

7%

WDC

17%

STX

28%

WDC

16%

MXO

16%

Q3 FY05

88.3M Units

Growth

Y/Y = 35%

Q/Q = 3%

Management of Technology Seminar (ISM 101)

Source: Seagate Market Research

© Seagate Confidential

MXO

15%

Q4 FY05

90.9M Units

October 27 th , 2005

HGST

16%

Others

1%

STX

30%

Growing Market and Revenue Access

75%: $17B 97%: $23B TAM: $23B

Network Storage

Server Storage

High Density Storage

Near Line

Low Cost Server

PC Commercial

PC Consumer

$6 billion in new revenue access

Notebook

PVR

Gaming/Audio/Other

Handheld

FY04 FY05

© Seagate Confidential Management of Technology Seminar (ISM 101) October 27 th , 2005

Proliferation in Consumer Applications

• Drive shipments will grow to almost 200 million units in 2007*

• Revenues will grow to $11.5 billion in 2007*

*Source: Seagate Market Research

Management of Technology Seminar (ISM 101) © Seagate Confidential October 27 th , 2005

eBusiness Solutions & SMC IT

 Drive strategy, design and development of seagate.com

 Provide a unified view of Seagate for users, and make it easy for users to do business with Seagate.

 Define and drive design standards and processes

 Improve the quality of solutions, and leverage resources and learning across the enterprise.

 Manage both applications and infrastructure

 SMC applications (e.g., CRM, online ordering, forecasting)

 Sales data mart for reporting

 www.seagate.com and enterprise portal, my.seagate.com, spp.seagate.com.

 Define, develop and implement processes and solutions to support transactional and decision support requirements for

SMC.

Management of Technology Seminar (ISM 101) © Seagate Confidential October 27 th , 2005

UCSC Internships

 Objective:

 Identify challenging projects that give an intern real-world experience (projects last 1 to 2 terms in duration)

 Identify interns with the appropriate skills

 Help intern develop a project plan and gain access to stakeholders and tools required for the project

 General skills:

 Average to advanced skills in statistics (comfortable with Excel)

 Effective written and oral skills (comfortable writing PowerPoint presentations)

 Flexible and self-motivated

Management of Technology Seminar (ISM 101) © Seagate Confidential October 27 th , 2005

UCSC IT Internships within eBusiness Solutions

2004

Spring Summer

Software Enhancement

Tracking Process

Fall

2005

Winter Spring Summer Fall

2006

Winter Spring

Search

Optimization

Search

Usability

Web Analytics

Content

Authoring

Process

Online

Style

Guide

Management of Technology Seminar (ISM 101) © Seagate Confidential October 27 th , 2005

Usability Testing with Paper

Prototypes

John Schneider

October 27 th , 2005

Agenda

What is usability testing?

Why do usability testing?

How to do usability testing.

Why paper prototypes?

Comparison of usability evaluation techniques.

Usability testing demo.

Management of Technology Seminar (ISM 101) © Seagate Confidential October 27 th , 2005

What is usability testing?

An empirical approach to evaluating how well users can use a system.

A technique to involve real users in evaluation of a software product.

A technique to evaluate how easy it is to perform real tasks using a software product.

Management of Technology Seminar (ISM 101) © Seagate Confidential October 27 th , 2005

Why do usability testing?

• Ensure that software actually addresses users’ needs

• Get input from users before it’s too late to make changes

Combat classic testing mistakes

Find more usability problems than other techniques

Management of Technology Seminar (ISM 101) © Seagate Confidential October 27 th , 2005

Software Cost of Poor Quality – timing is everything!

Costs per defects found in plan and design:

 .85 hour/defect

 $75 hour fully burdened rate ($150K year)

 $63.75 per defect

Costs if found in integration test/system test:

 $750 to $3,000 per defect

Cost if found in production:

 $10,000 per defect (HP)

 $140,000 per defect (IBM)

Source: Bender RBT, Inc.

Management of Technology Seminar (ISM 101) © Seagate Confidential October 27 th , 2005

Classic Testing Mistakes

Not reporting usability problems

A testing effort biased toward functional testing

Not testing the documentation

Not testing the installation procedures

An overreliance on beta testing

Testers are not domain experts

Insisting that testers be able to program

A testing team that lacks diversity

Test suites that are understandable only by their owners

Attempting to automate all tests

Embracing code coverage with the devotion that only simple numbers can inspire

Management of Technology Seminar (ISM 101)

From: Classic Testing Mistakes, Brian Marick, 1997.

© Seagate Confidential October 27 th , 2005

Usability Testing vs. Other Techniques

Usability testing finds more global usability problems than other techniques

Usability testing finds most significant problems; finding & fixing more problems may not be worth the effort

Usability testing costs more than other techniques, but has lower per-problem-found cost

Using any technique, software engineers are bad at finding usability problems

Management of Technology Seminar (ISM 101) © Seagate Confidential October 27 th , 2005

What is paper prototyping?

"Paper prototyping is a variation of usability testing where representative users perform realistic tasks by interacting with a paper version of the interface that is manipulated by a person ‘playing computer,’ who doesn’t explain how the interface is intended to work.”

- http://www.paperprototyping.com

Management of Technology Seminar (ISM 101) © Seagate Confidential October 27 th , 2005

How to conduct paper prototype testing.

Set testing goals.

Identify items to test.

Establish test execution team.

Invite testers.

Prepare materials.

Execute tests.

Evaluate results.

Take action!

Management of Technology Seminar (ISM 101) © Seagate Confidential October 27 th , 2005

Set Testing Goals

What do I need to know?

When do I need to know it?

What are the most risky aspects of the user experience?

Management of Technology Seminar (ISM 101) © Seagate Confidential October 27 th , 2005

Identify Items to Test

Software

 Which components?

 Which user tasks

Documentation

 On-line

 Off-line

Administrative functions

Support functions

Management of Technology Seminar (ISM 101) © Seagate Confidential October 27 th , 2005

Establish Test Execution Team

• “Computer”

Interviewer

Note-taker

Observers

Management of Technology Seminar (ISM 101) © Seagate Confidential October 27 th , 2005

Invite Testers

Who needs to participate?

 User level (novice, power, etc.)

 User background

 Non-traditional users (e.g. sys admins, support staff)

How many people need to participate?

Who is available at the right time?

Management of Technology Seminar (ISM 101) © Seagate Confidential October 27 th , 2005

Prepare Materials

Create paper prototypes

 Paper screen shots for each screen the testers may reach

 Sticky notes to represent drop-down menus

 Sticky notes for making on-the-fly adjustments

Note-taking materials for testers

Information packets, thank-yous, non-disclosure agreements, etc. for participants

Management of Technology Seminar (ISM 101) © Seagate Confidential October 27 th , 2005

Execute Tests

Interviewer discusses goals with participant and describes task

Participant attempts to complete task while thinking aloud

Interview interjects questions as necessary to understand what participant is thinking

• “Computer” operates paper prototype

Note-taker records participant actions, thought processes, and other observations

Management of Technology Seminar (ISM 101) © Seagate Confidential October 27 th , 2005

Evaluate Results

Identify areas where design failed to meet participant expectations

Identify areas where participants showed confusion

Identify tasks or actions participants were unable to complete

Management of Technology Seminar (ISM 101) © Seagate Confidential October 27 th , 2005

Take Action

Testing of any sort only has value if the results are used to improve the product!

Management of Technology Seminar (ISM 101) © Seagate Confidential October 27 th , 2005

Why paper prototypes?

Paper

Pros

Cheap

Fast

Can be done very early in design

Can be easily iterated

Catches major problems

On-Line

Closely mimics actual user experience

Catches many usability problems

Cons

• Doesn’t mimic real use closely

• Doesn’t catch as many minor problems

Expensive to create

May set unrealistic performance expectations

Hard to iterate

Cannot be done as early

Strong temptation to use prototype in final product

Management of Technology Seminar (ISM 101) © Seagate Confidential October 27 th , 2005

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