SEEITA Conference

Effective End-User Research in the ICT Sector

September 2007

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Introduction – A little bit about myself & my company

I don’t work directly in ICT, but my industry and my firm service the ICT sector extensively

I have 14 years of experience in marketing research and communications – 12 years with The Strategic Counsel (TSC) in Toronto

TSC is a full service research and communications consultancy – our formula is:

research + insight = effective & strategic “counsel”

Involved in full spectrum of public and private sectors, including a strong specialization in Information and Communication Technologies

The majority of our work has been in Canada and the United States…have also done some ICT sector work in Western Europe

~40% of TSC’s business is in ICT

~90% of my business is in ICT

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Introduction – A little bit about myself & my company

ICT project experience ranges from conception to development to deployment and beyond

Key clients we have worked with in ICT development and provision have included (but are not limited to):

– Microsoft

– IBM

– Intel

– Computer Associates

– Rogers Communications

– AT&T

– Ericsson (Sony/Ericsson)

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Introduction – Why am I speaking here today?

Broadly speaking…I want to address the conference about effective end-user research as it applies to the ICT sector

In my experience end-user research is an extremely important component of a developed and successful ICT sector...

But it is sometimes overlooked or under/improperly used (even after the ICT sector is “developed”)

End-user research took some time to be widely adopted in the North American ICT sector - along the way found most of the pitfalls and pioneered some very effective practices and approaches

I am hoping by speaking here today to encourage ICT developers and providers in this region to think about building end-user research into their processes

– from conception to development to deployment and beyond

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Introduction – Why am I speaking here today?

I am also here this week on a fact-finding mission:

South Eastern Europe is becoming a “hot-bed” of IT and communications development and will continue to be so in the near and longer-term

Markets in this region are developing and aggressively declaring themselves open for business and investment

We are always seeking new business challenges and the ICT sector in Eastern and South Eastern is very compelling to me, given my experience in this area

I am really looking forward to meeting as many of you as I can over the next couple of days and really getting a sense, on the ground, of the ICT realm in Macedonia and South Eastern Europe

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End-User Research – What do I mean by end-user research?

End-users are the target audience or market for any product, service or application (e.g., consumers, existing customers, other business/service providers, internal clients)

What I spend my time doing is primary and secondary research that squarely targets the audiences and markets for ICT products, services and applications

– Surveys

– Focus groups

– In-depth interviews (one-on-one)

– Desk research (literature reviews, news coverage, press releases, etc.)

Findings and learning from end-user research (plus, of course, insight & context) help ICT decision-makers shape and direct effective and strategic outcomes

End-user research can aid ICT developers and providers significantly in the development and deployment of products, services and applications

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How can end-user research benefit ICT providers and developers?

End-user research touches all aspects of ICT:

A means of gaining a deep understanding of the target audience or market for any ICT product, service or application (identifying/confirming/segmenting)

Used to gain valuable usability insight early on and throughout the development process (from concept to development to deployment)

Used in developing and supporting business cases, plans & projections (e.g., sales and revenue forecast models)

Used in the development and evaluation of strategic marketing, communications and promotional initiatives pre and post deployment (acquisition and retention)

Used to gather critical competitive market intelligence pre and post deploymentWhat is the competitive landscape? Where/how do we fit in that landscape?

Can be used to encourage favorable / discourage unfavorable regulatory climates OR challenge misleading competitive claims (depends on regulatory environment)

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How can end-user research benefit ICT providers and developers?End-user research can answer critical questions:

How does the target perceive a product/service/application? Why?

How are they using it? Are usage habits and patterns what was expected?

Does it meet requirements/expectations of the target? How can it be improved?

Who is the market/audience for the product/service/application? How do we reach them/engage them/maintain engagement?

What drives the decision to adopt? What are the adoption barriers? How big is the target audience?

How should a product/service/application be priced? How many of the target will buy? What is the expected revenues curve/optimal revenue?

What is the optimal price/non-price element configuration that will maximize sales and revenue

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How should end-user research be instituted & used?

In an ideal situation:

ICT developers and providers would as a matter of course include end-user research as an important element of the Research, Development & Deployment process

End-user research should be built into the RD&D process, rather than trying to fit it in piecemeal when needed (or demanded) later

End-user research should be used only to confirm or deny assumptions and inform decisions – “fishing trips” or seeing what you can find in a market or among a target is rarely productive

Clearly developed and stated research objectives and desired outcomes ensures success

Using non-biased methodologies and qualified, experienced third-party providers ensures the integrity of research findings

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Does end-user research help the ICT sector? In 14 years in this industry I have seen time and again what end-user research is

capable of bringing to the table – but its success is not always guaranteed

To illustrate, the following are three examples of my experiences (and my assessments of their outcomes):

Not so Good: The development of an interactive online application for a Canadian IT developer that allows (and encourages through rewards) existing customers to buy additional services from a major NA Telecom (telephone, mobile telephone, Broadband Internet and TV)

– 500 in-person live trials of the application plus an online survey and follow-up focus groups run over the course of one week

– End-client was present over the entire 7 day exercise

– ICT developer was attempting to use this research to showcase their product rather than learn anything about it’s usability, or even the extent to which the target would use it

– End-client was left less than impressed with the application and clearly decisions had already been made which made a re-design impossible

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Does end-user research help the ICT sector?

Very Good: The development and deployment of an interactive online application for customers and business partners (e.g., sales force) to interface with a worldwide computer hardware and IT applications and consulting provider

– Multi-stage qualitative research starting with just the concept for an interactive application using basic artificial intelligence to respond to the needs of customers and business partners

– Subsequent iterations moved to actual live interactions of the target audience with the application

– Final product was award winning application for the client and allowed the developer to launch a new business in the US market

– TSC pioneered new research methodologies for the developing Canadian ICT sector (1998/1999)

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Does end-user research help the ICT sector?

Outstanding: The development and deployment of a new digital telephone service over a proprietary broadband network for a major Canadian Telecommunications provider (not a traditional telco)

– TSC has been involved in this initiative from the start

– Market sizing (interest in Digital Home Phone service)

– Concept testing (optimizing the concept of this service)

– Pricing and service configuration (optimizing the price/product configuration for maximum take rates and revenue)

– Currently more than 1,000,000 subscribers (2 years out)

– Now working on integration of the digital home phone business with other lines of business (Bundling of wireless, broadband Internet and Digital television services)

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Is end-user research as presented here today applicable and appropriate for the SEE ICT sector?

Absolutely:

Approaches can be shaped to meet the needs/objectives of the SEE ICT developer or provider in this region and beyond if business targets are in other markets

Data collection can be as complicated or as simple as need be – collection methods must always be market/region/culture/language-specific

– TSC has conducted end-user research in virtually all major languages and in accordance with important cultural sensitivities

Once the data are collected, a vast array of tools and techniques can be employed for analytical purposes

Quantitative research that is well designed and executed can be projected to the universe in which it was conducted

Qualitative research that is well designed and executed can provide valuable directional learning in a given market or among specified groups

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Is end-user research as presented here today applicable and appropriate for the SEE ICT sector? Key considerations when instituting and using end-user research seem much the

same the world over:

• Definition of objectives (What do you need to know?)

• Establishment of timelines (When do you need to know by?)

• Budgetary considerations (How much budget can you devote?)

• Choosing an appropriate supplier – a company or firm with the right experience – someone your team can work with

• Integrating the supplier in critical processes – the more they “know”, the more helpful they can be

• Choosing appropriate methodology and data collection approaches

• Managing expectations of research stakeholders (This is what we will learn and this is how we will use it)

• Implementing key findings and learning from the research

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Final Comments End-user research is a critically important aspect of ICT development and

deployment – knowledge (based on reliable data and insight) is power

The integration of end-user research into the SEE ICT sector will occur as the sector continues to develop and matures – i.e., moves from an entrepreneurial phase to a more established footing

Best end-user research practices and experience, both homegrown and gained in other markets, is applicable to and usable within the SEE ICT sector today

Instituting and using end-user research to help shape and direct strategic and tactical decisions will pay significant dividends to ICT developers and providers in SEE today and in the coming years

Thank You!