Ergonomics, economics & the user experience

Ergonomics, economics & the user experience

The Interaction Economy

In his 1971 landmark work, Future Shock, Alvin Toffler criticized how “economists have great difficulty imaging alternatives to communism and capitalism”, and how they could only envision the economy in the terms of scarcity of resources. He talked about the upcoming “experiential industry”, in which people would be willing to allocate high percentages of their salaries to live amazing experiences. Examples of the accuracy of Toffler’s predictions can be found in the popularity of “extreme” sports and creative adrenalin-fueled pursuits.

In 1982, Holbrook and Hirschman’s pioneering article on the experiential aspects of consumption1 discussed emotional experiences linked to products and services. In 1993, German sociologist Schulze argued for the idea of the “experience-driven society”2. The term Experience Economy was first described in a book written in 1999 by B. Joseph Pine II and James H. Gilmore, titled "The Experience Economy"3. In it they describe the experience economy as the next stage in economic evolution following the agrarian economy, the industrial economy and the most recent service economy.

One of the central arguments for The Experience Economy states that technology, increasing competition, and the increasing expectations of consumers today means most products and many services are treated as commodities.
The evolution of products moves along a continuum with undifferentiated commodities as the base. Differentiation and distinction increase as products and services evolve to higher levels. Just as service markets build on goods markets which in turn build on commodity markets, so transformation and experience markets build on newly commoditized services.
The classification for each stage in the evolution is:
A commodity business charges for undifferentiated products.
A goods business charges for distinctive, tangible things.
A service business charges for the activities you perform.
An experience business charges for the feeling customers get by engaging it.
A transformation business charges for the benefit customers (or "guests") receive by spending time there. 4

Not surprising, the idea of an Experience Economy has been widely criticized and largely discounted in business management circles - if nothing else some question the relevance of a ten year old (or older) idea. Others maintain that a world of increasingly scarce resources requires emphasis on efficiency more than effectiveness. (why not both?) Critics from hospitality and tourism claim there is nothing new in the idea of Experience Economy. They have long emphasized the quality of the customer/guest experience.

I believe we are now living in an experience-driven economy defined by the quality of interaction. Consider the following:
People expect the best they’ve ever experienced.
Examples:
Home grown heritage tomatoes make the grocery store clones seem flavorless.
Zero percent financing. Why is zero percent financing so prevalent? Because it has become the expected standard.
Broadband internet access. Anyone spending time on a major university campus soon feels residential internet speeds are unacceptably slow (just ask students home for holidays). Residential broadband users find dial-up speeds to be quaint - and unacceptably slow.
Good user experience is valued above cost, and even capability.
Examples:
Disney theme parks typically meet or exceed expectations. By any measure, Disney is not among the great values in family entertainment. However, they consistently rank very high in guest satisfaction. One quick observation - when guests are asked to stand in line, signs inform them of the wait time. Invariably the expectation is set (e.g. 20 minutes from here) and exceeded (in reality it is only a 12 minute wait). After all, time should fly when you’re having fun.
Nordstrom personal shoppers. Nordstrom, the department store, offers personal shopping service to anyone - a benefit heretofore available only for the rich and famous.
Apple. Under Steve Job’s leadership Apple has succeeded by demonstrating the consistent ability to package good user experience as an integral part of good product design. The marketplace agrees withe their approach (Apple’s profits grew 46% for Q4; 25% greater than the same period a year ago - Business Week 10/19/2009)
Master Card claims using its product can lead to experiences that are “priceless”.
Experience is defined by interaction.
Interaction results when two or more things affect one another. Without interaction there is no experience. What you do and how you do it with whatever or whomever you are interacting defines the experience of use.

Is interaction a sufficiently strong foundation on which to build an approach to marketing or managing business, much less an economic theory? Two authors of a recent paper argue it may be.

“Throughout history, successive economic eras have evolved as new social and scientific forces stimulated new ways of doing business which, in turn, require new competencies. The era now rapidly emerging and its new ways of doing business demand new kinds of skills in an
ancient arena: human interaction.”5

These authors argue civilization has moved from Agrarian to Manufacturing to Information based economic models. They make the point that user behavior and expectations have moved beyond the limits of the Information Economy.

Francis Bacon once observed “Knowledge is power; the more one knows, the more one can control events.” But I would (and have) argue(d) knowing how to use knowledge is power. Gurowitz and Connolly make a similar point:

“Knowledge has become so available that it constitutes a commodity—available at little or no cost to everyone with access to the Internet. Thus effective, rapid access to information is now the entry to competition rather than the competitive edge. Easy access to information has
increased physical separation and created networks of relationships that exist with little in-person contact. All these Information Economy effects give rise to the fourth great economic shift, what we call the Interaction Economy.

In the Interaction Economy the differentiating factor is not knowledge, but rather the rate at which we do new and valuable things with that knowledge. Rate of adjustment is crucial and is driven by the interaction of three elements: initiators, partners, and information.
Initiators start interactions; they are exploring or are already committed to a strategy for producing value.
Partners are those with whom the initiators must interact to create economic value. Partners may take the form of customers, associates, employees, superiors, suppliers, and/or allies, that is, anyone who must participate for value to occur.
Information is timely, relevant knowledge.
The quality of the interactions between these elements is the competitive frontier in the Interaction Economy.” 6

While this is a strong and valid point, I believe the authors fail to define interaction broadly enough. For them, the only important interaction is person-to-person. There is little doubt interpersonal interaction is essential; however user interaction with tools, devices and environments can have as great (or greater) impact on behavior. This is the “sweet spot” of ergonomics.

One of the goals of ergonomics is to ensure ease of use of products and environments. Recently some ergonomists, behavioral scientists and designers have begun to push beyond ease of use to enjoyment of the experience. Some even argue this concern with affect in design warrants a new term “hedonomics”7.

Invoking hedonsim as a basis for design assumes pleasure is the only thing that matters and the only outcome of benefit to the user. I prefer “Experiential Ergonomics” or Comprehensive Ergonomics. People engage their entire being - bodies, minds, emotions, experience and expectations - as they interact with devices and environments. Physical ergonomics addresses the challenges of physical differences among users. Cognitive ergonomics deals with similarities in how our brains work and how what we think, perceive and remember influences our behavior. The nature of affect and emotion does not easily fit under either physical or cognitive systems. Emotions interact with and users’ bodies (physical) and brains (cognitive). Emotions are an essential part of the user experience. Thus, I believe a comprehensive approach to ergonomics includes all three elements - physical, cognitive and emotional - to define and improve the experience of use.

Few industries have investigated user interaction to the depth and degree as Information Technology. The resulting body of knowledge regarding behavior and interaction has both inspired and borrowed from research and writing on human behavior and product design. For those interested readers, the works of Donald Norman are especially entertaining and enlightening.8

A comprehensive approach to ergonomics must apply available research and science regarding physical, cognitive and emotional factors to improve the user experience. The goal is to move beyond easy to enjoyable; to tempt users to engage; to design not just beautiful appearance but beautiful interaction - to yield an excellent, even enchanting experience of use.

That’s the way I see it from where I sit. Of course I could be wrong.

Tim Springer

PLEASE FEEL FREE TO COMMENT WE WELCOME YOUR INPUT AND FEEDBACK

Footnotes:
Holbrook, M. & Hirschman, E. (1982) The experiential aspects of consumption: COnsumer fantasies, feelings and fun. J of Consumer Research 9, September 1982. pg 132-140.
Sulkunen,P. Holmwood, J. Radner, H & Schulze, G. (Eds.) (1997) Constructing the New Consumer Society. New York: St. Martin’s Press.
Pine, J. and Gilmore, J. (1999) The Experience Economy, Boston, MA: Harvard Business School Press.
http://en.wikipedia.org/wiki/The_Experience_Economy
Gurowitz, E. & Connolly, M. (2007) The Interaction Economy. Paper presented at the annual meeting of the NCA 93rd Annual Convention,. Chicago, IL, Nov 15, 2007
Ibid.
Helander, M. & Tham, M.P. (2003) Hednomics - affective human factors design Ergonomics, 2003, Vol. 46. Nos 13/14. 1269-1272.
Norman, D. (2004) Emotional Design: why we love (or hate) everyday things. New York: Basic Books.

Friday, December 11, 2009