Now more than ever business owners push Web development teams to produce a return on money invested. What can site developers realistically claim to achieve in response to such a demand? What constitutes a good return on investment (ROI)?
By understanding the nature of 'value' in business, Web development teams can better target a site's design to create value and produce that elusive ROI.
In other words, developers must be acutely aware of how the design and functionality of a website positively impacts the business. From there they can determine the achievable goals, understand what is required to attain them, identify possible roadblocks and work out how to overcome them.
The tricky thing for those of us from a development background is that the concept of -value" is not a straightforward, measurable entity. It involves a combination of tangible, easily quantifiable benefits such as reducing the time needed to place an online order, and intangible benefits such as creating a positive feeling about the product or company that may ultimately impact a buying decision and therefore should be taken into account when determining the return on investment.
Add to this that not all results are direct - a site re-design that results in an increase in online sales is a direct benefit. However the same site may also help to drive qualified sales leads into the channel after they have done their research online - an indirect benefit.
As site developers, why should we care about something that seems as vague as value? By showing that we appreciate the nature of value demonstrates that we understand the drivers behind the business and the role that our online presence plays in the wider mix. It also ensures that our designs and online strategy meet the true needs of the business.
To put the case forward for your web development strategy you need to be able to talk the same talk as the decision makers - it is simply part of playing the game. This means positioning your project by the dimensions of direct and indirect benefits to show tangible and intangible value.
| Figure A |
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| Value Map |
Essentially, there are three ways to deliver value to the business - online or off:
- Increase sales
- Reduce operational and administrative costs
- Increase marketing effectiveness e.g. brand perception
We will look at these in detail in Part 2.
Steve Baty is the Senior Analyst at RedSquare, one of Australia's leading full-service Internet agencies. Founded in 1995,Red Square's clients include Telstra, Smorgon Steel Group, P&O Nedlloyd, Youth Hostels Australia and Panasonic Australia.
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