Only 8% of Internet user know what a browser is, do we have to rethink how we market browser?
by Bernhard Schindlholzer, follow me on Twitter

The Google Chrome team has published an amazing video where people on the street have been asked if they know what a browser is. Only 8% percent of the people they asked where able to give the right answer to this question and the other 82% of answers shed light on the understanding of consumers about Internet. Here is the video, see for yourself.

Are users stupid?

The first reaction that one might get is that you should invest in educating people what a browser is (a piece software to navigate on the World Wide Web) and what options they have available (Internet Explorer, Firefox, Safari, Opera, Chrome and others). But maybe a better approach is to ask “Why don’t they know what a browser is?”.

Most users just don’t care

The reason why people don’t know what a browser is, is that they just don’t care about the browser. And why should they? People care about Facebook, Google and Yahoo but how to get to these websites doesn’t matter. And if you are not one of those that are heavily using some browser plug-ins you probably don’t see any differences in using different browsers.

Browsers are a commodity and a better browser is not enough

The key to understand the dynamics in this market is to understand that the available browsers are basically interchangeable because they are only marginal different. Of course there are differences in speed and compatibility but only power users who spend several hours working online can tell a difference – the majority of internet user can’t tell the difference.

The key to success is in creating a differentiated internet experiences

So if user don’t care about the how to get to Facebook and Google, how can you create a remarkable browser that people care about? The key is in re-inventing what it is that a browser does. Focusing on surfing the internet is not enough anymore. Opera is taking a step into this direction with Opera Unite which offers a wide range of additional services and functionalities to the traditional browser concept. It is too early to tell, if the Opera way of differentiation will be relevant to users, but the core idea is the right one – reinventing the browser.

How can we reinvent the browser?

I think it is still unbelievable that we are seeing such a strong growth of social networking sites like Facebook, MySpace and Twitter yet there seems to be no integration into existing browser. Instead there is a range of companies that are developing desktop applications that integrate into these services and provide a differentiated social networking experience.

It is time that these services get stronger integrated into existing web browsers and instead of bribing users to download the new Internet Explorer 8, Microsoft should work on a tighter integration of social networking and deliver a different experience of surfing the internet. Now they have a real use to justify their investment in Facebook.

The question is as well, whether we really need to reinvent the browser or if it will become obsolete? What if social networking clients like TweetDeck and Seesmic will see continuous growth in the future and will become the main entrance point for users when they access social networks? You think that is a crazy idea? Remember, only 8 percent know what a browser is.

How do you see the future of the browser and the future of people accessing the Internet? Share your thoughts and opinions in the comments.


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Interested in Design & Innovation? Don’t miss Stanford Design EXPE 09, June 1st – 6th
by Bernhard Schindlholzer, follow me on Twitter

stanford_logo Inspiration is an essential part developing and coming up with new ideas. If you are looking to be inspired and catch a glimpse at the future, you should visit the Stanford Design EXPE09 at Stanford University from June 1st- 6th.On behalf of the ME310 and CS210 teams at Stanford University and our team at the University of St. Gallen, I would like to cordially invite you to the podium presentations on June 4th from 08:30am – 1:00pm and the subsequent design fair at the Stanford University Campus.Student teams will be presenting their product prototypes and concept ideas that they have worked on for the last 10 months in cooperation with corporate partners such as Audi, Autodesk, Panasonic, Swisscom, Microsoft, Facebook and Yahoo!.

Not your typical student project

The cooperation with corporate partners gives students the opportunity to work on real-world problems while learning how to successfully run their own design and engineering consultancy. The results are definitely interesting and inspiring; the following video resulted from a project with Nokia in 2006/2007 which showcased the future of “Open Internet Communication Culture”.

Another great example is a prototype that was built in 2006/2007 that re-imagined the center-console of a car as a massive touch screen. Some pictures of the prototype, the Pangea Interface:

 

clip_image002

Too futuristic? Not really. In March 2009, a similar concept was introduced in the new Tesla Model S, the much anticipated electric car.

TeslaTouch

If you would like to have a glimpse at the future, you are invited to the join us at Stanfor Design EXPE09. More information and registration is available at http://expe.stanford.edu/The preliminary program for the day:HSG310: Design Thinking & Business Innovation, University of St. Gallen

  • BASF: Total Packaging Design for Printers
  • Lonza: Harvest the creativity and the knowledge of the scientific community
  • Swisscom: Services for Enabling Home Networking Adoption

ME310: Project-Based Engineering Design, Innovation & Development

  • AUDI AG: HMI 2020 in collaboration with TKK (Helsinki, Finland)
  • Autodesk Inc.: Exploring the Opportunities for Collaboration between architects, manufacturers, and contractors in collaboration with UNAM (Mexico City, Mexico)
  • Foundation of Finnish Security and Safety Industry Development: Intelligent Fall Protection in collaboration with TKK
  • Naked Green: Leveling the playing field for Alternative Fuel Vehicles in collaboration with TKK
  • Panasonic: Making Dental Care More Fun & Effective in collaboration with HPI (Potsdam, Germany)
  • Panasonic: Supporting Social Bonds and Friendship with Wearable Technology in collaboration with PUJ (Cali, Colombia)
  • Robert Bosch GmbH: A Sensor System for 3D Measurement and Reconstruction in collaboration with UNAM
  • SAP AG (Germany): Innovating the Work@SAP Experience in collaboration with HPI
  • Telefonica (Germany): Mobile Pursuit of Vital Signs in collaboration with PUJ

CS210: Project-Based Software Design, Innovation & Development

  • Microsoft: Making satellite imagery available for climate modeling
  • Yahoo!: Improving the Internet Search Experience
  • Facebook: Making the Facebook platform a more viable option for the enterprise
  • John Gardner Center: Identifying opportunities for and implementing software to improve after school programs for youth

As you can see, these student projects from around the world are definitely not your typical student project. A large part of my activities at the University of St. Gallen are around a course called “Design Thinking & Business Innovation” that we have setup in a cooperation between Prof. Larry Leifer, Director at the Stanford Center for Design Research and Prof. Walter Brenner, Director of Institute of Information Management. Our students will be there as well, presenting their conceptual prototypes

Let’s get in touch!

If you are planning to visit the Stanford Design EXPE please drop me an eMail at bernhard@customer-experience-labs.com . Together with Sushi Suzuki, Ph.D. student at the Stanford Center for Design Research, we would like to give you a behind the scenes look of the design research and teaching at Stanford University. You should also have a look at the new course website at http://me310.stanford.edu/


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The Role of Design in an Economic Downturn
by Bernhard Schindlholzer, follow me on Twitter

2 of 3 Coast Guard 47' Motor Lifeboat performs storm exercises in wild surf at Morro Bay von mikebaird.Economically difficult times create a lot of uncertainty in organizations and many businesses have to cut back their activities in various areas to limit expenses and protect the sustainability of their business. A lot has been written about the importance of customer-focus, innovation and design in a recession. The conclusion is always the same: these areas are just as important as ever and if you have to trim back in your organization you better do this in non-core business areas and keep on investing in the core-areas of your business.

This is obviously not rocket science but where are the real-world examples of companies that have reinvented themselves in a downturn?

Economic challenging times require a focus on customer value

There are some and my personal favorite is an analysis in BusinessWeek from May 2001 (Sorry Steve, Here’s Why Apple Stores Won’t Work) where the author outlines why Apple’s new retail outlets are not going to be successful.

[The] Problem is, the numbers don’t add up. Given the decision to set up shop in high-rent districts in Manhattan, Boston, Chicago, and Jobs’s hometown of Palo Alto, Calif., the leases for Apple’s stores could cost $1.2 million a year each, says David A. Goldstein, president of researcher Channel Marketing Corp. Since PC retailing gross margins are normally 10% or less, Apple would have to sell $12 million a year per store to pay for the space. Gateway does about $8 million annually at each of its Country Stores. Then there’s the cost of construction, hiring experienced staff. “I give them two years before they’re turning out the lights on a very painful and expensive mistake,” says Goldstein.     

The pundits have been wrong, here are some of current numbers that show the success of the Apple retail stores (found here and here):

  • Twenty percent of Apple’s revenue comes from the Apple Store
  • Apple made $1.25B at the Apple Store in the fourth quarter of this year, which is 42 percent more than last year
  • Apple makes $4,000 per square foot of Apple Store surface area every year

Focus von ihtatho.

Reflecting on this example we can see that even though analysts and journalists believed that this is not the right way to go, it was obviously (or maybe luckily) a successful move. In a recession it is easy for everyone to predict the failure of new products, services or distribution channels. The article additionally shows how much you should rely on others to estimate the success of new products or services.

Indeed it is more difficult to launch new products and services in a downturn compared with boom times. Instead of building new products and services based on any random hype topic in boom times where value is defined investors, media or other entrepreneurs, new products and services have to deliver real value to customers in a recessions.

The world doesn’t need another social network which is merely a clone of Facebook, LinkedIn or Xing. What is needed in challenging economic times are transformational products and services that provide value to customers.

Of course the case study with Apple is not the only one, the UK Design Council, the national strategic body for promoting the use of design in business, has published an article titled “Designs to overcome a downturn – Facts, Figures and case studies” with several case studies where designers worked together with companies from different sizes and sectors to improve their performance during challenging economic conditions. The case studies that are presented are from Castle Rock Brewery, Thistle Hotels, McCain Oven Chips, HMV and Ian Macleod Distillers.

You should also check out the collection of other case studies that highlight the role of design in action.

So what is the role of the design in challenging economic times?

As we can see from these different case studies, approaching these situations with design in mind (in a sense of focusing on delivering “designed” artifacts) as well as with a design mindset (solving the problems through the eyes of a designer) can lead to successful re-definitions of value propositions.

Cost-cutting and trimming excessive resources has been and will be an essential approach to focus on the essential core of a business and to provide the necessary resources so that new products and services can be designed, produced and marketed.

If you think that this downturn is different and you do not need a designer to make your products “look nice” you should think twice. Making things look nice is not the job of a designer. Solving problems and providing value is one of the essential goals of design and looking at current problems from a different perspective might just provide the insight or solution that could prepare you for the next upturn. 

Image courtesy of [mikbaird] and [ihtatho]


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Human Centered Design Toolkit from IDEO
by Bernhard Schindlholzer, follow me on Twitter

image IDEO has released a Human Centered Design Toolkit that is the result of  a project funded by the Bill & Melinda Gates Foundation. The BMGF brought together four organizations —IDEO, IDE, Heifer International, and ICRW—to partner in the creation of a method for guiding innovation and design for smallholder farmers.

imageIt contains the elements to Human-Centered Design, a process used for decades to create new solutions for multi-national corporations. This toolkit has been designed to hear the needs of smallholder farmers in new ways, create innovative solutions to meet these needs, and deliver solutions with financial sustainability in mind.

While many elements of the toolkit are specifically tailored towards the specific questions one faces when innovating with and for smallholder farmers, it is a valuable collection that makes the sometimes vague human centered design process more concrete and therefore transferable and reproducible.

What I really like about this toolkit is that it differentiates between the design team and the facilitators. I think this differentiation and the active nomination of facilitators is one of the unique aspects in design processes and the transfer of design knowledge.

I see a lot of potential to create Human Centered Design Toolkits a specific company and certain industries. It is really helpful to narrow the focus and create a human centered design toolkit for the automotive industry, telecommunications industry or financial service industry.

More information about the toolkit

[via Nick Marsh]

 

 


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Fostering an Innovation Mindset in Organizations
by Bernhard Schindlholzer, follow me on Twitter

iStock_000005866432XSmall Following Tom Kelley’s quote that "Innovation is not just a program, it’s a way of life" I have recently taken a closer look at the characteristics of an "innovation lifestyle", especially in organizations.

During this research I found an article titled "Fostering an innovation mindset" which defines an innovative mindset as a pervasive spirit that stimulates individuals and teams to create newness in all areas of an organization.

Here is an excerpt of the introduction:

You know a company with an innovation mindset when you see the way employees interact with one another. They treat one another with respect, admiration, and cooperation. They smile. They laugh. They express consideration and thoughtfulness. They listen. They focus on the benefits desired by consumers rather than on their own personal gain. They come to work with an optimistic enthusiasm, because they believe that what they do each day really does count. They focus on the future rather than on the past. They exude self-confidence, possess a healthy self-esteem, and believe in their own capabilities and strengths. They have faith in innovation and in one another.

Found in: "Fostering an innovation mindset" by Thomas D. Kuczmarski, based on his book "Innovation: Leadership Strategies for the Competitive Edge".


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