Catalyst Resources Blog

I just noticed that the Velocity Online Conference is coming up next week. This conference is focused on best practices in performance and operations for web applications to improve the user experience as well as a company's bottom line.

I've written previously about the importance of perceived performance in the design of a SaaS application. For SaaS, where customers can easily switch to another provider, user satisfaction is critically important. Low perceived performance can lead to low satisfaction and high customer churn. High perceived performance can result in high customer satisfaction and stability.

But what is the empirical evidence and how much of a change in perceived performance is necessary to have a significant impact? Well I just came across some hard data - metrics for page views, amount of interaction/use and online revenue presented at Velocity 2009 from some data-heavy players.

The empirical data on the impact of web application performance

Microsoft reported that with Bing, a 2 second slowdown in response time reduced the number of searches by 1.8% and reduced revenue/user by 4.3%. That a lot of money left on the table.

Google reported that as little as a 400 millisecond delay resulted in 0.59% fewer searches per user. But perhaps more interesting, even after the delay was removed, these users still had 0.21% fewer searches, indicating that a slower user experience affected long term behavior. While Google did not report revenue directly, fewer searches likely means fewer AdWord clicks.

Shopzilla had the most complete data on the impact of performance on the bottom line. A year-long performance redesign reduced response times by 5 seconds (from ~7 seconds to ~2 seconds). This resulted in a 7-12% increase in revenue.

But it's really perceived performance that matters

This empirical "bottom line" data becomes even more interesting when it is reviewed in the context of the study 'The Truth About Download Times. This study found that users do not rate the download speeds of Web pages based on the actual stopwatch-clocked download speeds. Perceived speed is dependent on how well "users successfully complete their tasks on a site."

In other words, it's not just page load time that matters. It is the time it takes for a user to successfully complete a task that has the real impact. In the case of the Velocity 2009 data, users couldn't interact with a page until it loaded. Those few milliseconds of additional time, prevented users from accomplishing their search tasks. That signficantly impacted the bottom line.

Designing RIAs for perceived performance

So how do you design a SaaS to enable the user to perform real work more productively - to feel fast, responsive and streamlined. Our RIA designers focus on a number of application flow and design areas.

• Determine the high value scenarios and then reduce the number of actions required to accomplish them
• Minimize the need for complete page refreshes and reloads - the waiting between screens creates serious friction with the user
• Incrementally add information and functionality to a page, based on an analysis of how users process the information (e.g. load a modular component only when needed or in the background based on predictive analysis)
• Progressively download data locally to avoid round-tripping to the database (HTML 5 is a great development here)
• Validate designs (visual, information, interaction and architectural) to determine where users perceive adequate performance vs. where they get slowed down and wait for the web application to catch up
• Enable queries or actions to be canceled - it gives the user a feeling of control and lets them move on to something else they consider more important than waiting
• Add reliable indicators of progress on activities (i.e. don't let users get frustrated in front of a screen not knowing how long something will take)

RIAs are about more than features, graphics and nice visuals. Optimizing perceived and actual performance has a real and quantifiable impact on the bottom line. The more productive an RIA/SaaS design, the more users interact with software.

Like everyone, I want to believe that cutting-edge Cleantech will provide the solution to most or all of our environmental and energy problems.  Whether it’s wind, solar,  geothermal, algae-produced biofuels, laser-powered nuclear fusion, or something even more exotic, most efforts to move the world to a low-carbon, low-resource economy view the sustainability challenge in technological terms.  Much of the dollars are flowing this way as well.

But I am increasingly skeptical.  Notwithstanding the closing scene of 1985’s “Back to the Future,” in which Doc Brown returns from the future and refuels his time-traveling DeLorean with a banana peel, beer can and other garbage, for us in the present, a universal power source that consumes our waste and garbage and turns it into clean energy to power our electrical grid and transportation needs, simply does not exist.

Moreover, even with technological breakthroughs,  Cleantech will struggle to compete head-on against incumbents in established markets. It will take time to take root and become widespread outside of niche environments. But time is one luxury we are lacking if we are going to mitigate climate change.

Sustainability as a parallel track to Cleantech

So I see the need for a parallel sustainability track focused on using software and hardware to optimize and manage existing energy and waste/resource management technology. This may not be as “glamorous” as the Cleantech vision of cheap, inexhaustible, carbon-neutral power, but it is likely far more efficacious in the short term, and completely transferable to any new tech in the long term.

As I’ve written previously, companies need to reduce their resource use and waste production in order to:  lower costs across internal operations and their supply chain; meet regulations; and document their sustainability efforts to an increasingly aware consumer.  This requires investment in and development of web applications (specifically SaaS solutions) in order to track, manage, and determine ROI of energy/resource optimization actions.

Innovating the user experience of sustainability

In contrast to Cleantech, the challenge to successfully implementing SaaS-based sustainability solutions is less about designing new technology and more about designing new ways to motivate behavior.  For sustainability SaaS to succeed we need to innovate with user experience. The basic functionality of monitoring and tracking resource use does not really change, but the meaning of the application and the way the user interacts with the application, must be unique and valuable.

Examples of user experience changing the meaning of the mundane abound.  15 years ago, organic food was associated with co-ops and lower incomes.  Along came Whole Foods which changed the experience of shopping organic. The basic product stayed the same, but the meaning and value of the product changed.

The iPod is, of course, a classic example of user experience changing meaning. The iPod was not just an MP3 storage device, it offered a seamless experience for finding, buying, organizing, sharing and listening to music through an intuitive, rich interface.

Design Sustainability SaaS RIAs to be more than record management

As we design SaaS sustainability applications, we need to design the same shift in meaning.  We need to identify propositions so compelling that the customers/business could not have possibly asked for them (user-centered design be damned). This kind of innovation is “push” not “pull” and is based on compelling vision, Rich Internet Application (RIA) design, and the ability to seek inspiration outside of current application.

Most of the pundits for health care IT concur that a move to electronic records and in particular, a move to a SaaS, will significantly benefit insurance companies, hospitals, and physicians.

Looking at just the most basic factors:

• Insurance companies benefit from the online connectivity of SaaS.
• Hospitals benefit from the economies of scale using standardized data and processes.
• Physicians benefit by not having to operate their own patient management and billing systems.

The business case for moving to secure, SaaS-based solutions is real and compelling. But many health care organizations and service providers hesitate to make the first move, in part because of the magnitude of the transition. Where do you start? How do you undertake the project without creating a bloated, interminably delayed IT nightmare.

The answer is, of course, relatively unique for each company and can be determined as part of an application design evaluation. But one "off-the-shelf" approach is simply to identify processes that move electronic information to paper. In most cases these processes introduce both operational overhead expense and the potential for transcription error.

Eliminating this translation step can offer that first step in the design of a SaaS for healthcare markets. Key to success is to build the application UI using modular, reusable components. Re-usability means that you can take any of your modular elements and plug them into new applications or new screens as you expand your application or services. This lets you add on additional services discretely, in a predictable way, implemented over short time scales.

I had planned to get away without having to write a predictions blog this year, but my topic for this week's blog, turns out to also be a prediction.

I've been meeting with many VC firms, investors, and industry leaders in the Valley and it is readily apparent to me that sustainability is a topic on everyone's mind and and a business opportunity on which many startups and established players will focus over the next 5-10 years.

The motivations are very compelling:

• Energy and commodity costs will continue to increase and companies need to reduce their resource use and waste production to lower costs across internal operations and the connected supply chain. (As one colleague put it: "The days of cutting costs via off-shoring are coming to an end. Resource optimization is the future for achieving cost savings").
• Environmental regulation will certainly increase and companies will need to document, track and report their compliance for emissions and waste reductions (as well as potentially monetize their reduced carbon emissions)
• Consumers are becoming aware of and requesting information on corporate sustainability efforts. Brand value will depend on providing transparency into sustainability initiatives.

Sustainability applications will be SaaS

Clearly, companies (both large and small) are already on the move to decrease large expenditures on in-house projects and software installations with a fifth of all enterprises planning to have no internal IT assets by 2012. Instead the move is to cloud computing and SaaS - with no software to install or maintain or upgrade.

So it is a no-brainer to predict that on-premise solutions for sustainability will be rare. Instead businesses (and consumers) will be looking for SaaS solutions that can be easily accessed by employees from desktops, laptops or smartphones.

Since SaaS is inherently "connected in the cloud", a sustainability service can be effectively designed across organizational boundaries, incorporating the entire extended enterprise - partners, suppliers and customers.

Success depends on much time people devote to use

The other no-brainer is that user experience will make or break these SaaS applications. They key to making sustainability applications work, is how compelling and easy they are for users to enter information, how well they are on-boarded, and how easy it is track the impact (visually including mapping, as well as numerically). The user interface should be designed around a clear conceptual model, high value scenarios with desktop levels of performance using RIAs (Rich Internet Applications).

I'll write more about the sustainability topic in the future, but if you were wondering what the application design crystal ball holds for 2010 (and beyond), think SaaS-based energy and environmental optimization software with a compelling cross-device user interface.

In the article “5 Enterprise Trends to Watch in 2010”,  ReadWriteWeb notes how real-time services are becoming more and more integral to the enterprise, particularly those that hook into business intelligence technologies.

This mirrors our own experience on work with SaaS and RIA projects. Increasingly, the driving force behind our clients wanting to move their business to a Software-as-a-Service model and using Rich Internet Applications, is the need to interact with customers and/or data in real-time, and to respond quickly to competitive opportunities or threats.

For example, our work with 3n targeted the design of an efficient workflow and interface to track and notify people in real-time about emergency situations. Our financial services SaaS work centers around applications and dashboards to dynamically monitor and integrate real-time data streams from diverse sources, and enable predictive, spit-second financial transactions. Our biotech client work is focused on real-time, synchronous collaboration for diagnostics.  Etc. etc.

The key principal here is that SaaS and RIA’s represent a shift in software to real-time. The business enterprise of 2010 needs to be on the web 24/7, interacting with customers and data, responding instantly to changing market conditions and multiple information streams.

Clients often ask which Rich Internet Application development tool they should choose - Flex, Silverlight, or an AJAX framework. Excitement over HTML 5 has been stirring up this question in the RIA community even more than usual.

At Catalyst we're in the business of delivering very sophisticated, responsive, interactive and graphically rich applications over the web, not pushing specific technologies. Sometimes Flex is a better option and sometimes AJAX is the better option and other times Silverlight or JavaFX is better. It all depends on the requirements, the team, and the application.

Each of these technologies have the same goal: enable delivery of a rich UI and immersive experiences with the interactivity and user engagement similar to desktop applications, but adding in the availability and interconnectivity of the web.

There are no hard and fast rules for selecting one technology over the other, however there are some rules of thumb.

AJAX - use for incremental, tactical improvements, SEO-friendliness, customizable footprint

If you are updating an existing application and want to implement rich functionality incrementally, with small, frequent updates then AJAX is a good choice. Or if you need to meet specific application footprints and performance requirements (e.g. fast initial page load time) AJAX development frameworks (e.g. jQuery, EXT JS) can be customized and tuned. Importantly you can also use Flash to fill in the gaps where you need richer behaviors, than are easy to create with AJAX (e.g. video players or real-timestock tickers).

Of course HTML 5 (supported in FireFox, Safari, Chrome and IE 8) will add to the allure of AJAX/HTML bringing local storage, multithreading, real-time data sharing, form validation, and more (e.g. 2D and 3D drawing).

See examples of our work in AJAX for Digital Advertising and Teleconferencing.

Flex - use for large-scale, more comprehensive user productivity applications

Like AJAX, Flex also can be used for gradual re-factoring of existing web applications via widgets, but the argument for Flex becomes particularly strong when an application is built from scratch, or has a high level of complexity and data processing. You get better performance (i.e. data sorting, search, display) and easier code maintainability. Also for large applications there is a definite plus with Flex in that you can avoid the necessity for testing and tweaking across browsers and OSs.

See examples of our work in Flex for Real Time Analytics and Media Advertising.

Silverlight - use if you are a .Net shop

Silverlight has many of the same arguments as Flex, except that it is geared for the community of .Net developers and offers seamless integration to .Net tools and components. Enterprises that work in .Net will find it easier to integrate interfaces and application designs created in Silverlight.

See examples of our work in WPF and SIlverlight for Financial Systems and Issue & Support Tracking.

So which technology do we choose?

We are agnostic about RIA technologies. Our developers are facile in all of the relevant options. So the general rule for us is to identify what problems our client needs to solve and then select the appropriate RIA technology. No one technology is inherently better than another. For each applications we look at the requirements for performance, interactivity, security, maintainability, scalability and in-house expertise, and then give our clients a recommendation as to the best technology or combination of technologies.

A primary motivation behind Catalyst’s specialization in modular, reusable UI design systems stems from the need to reduce the time and increase the speed, quality and agility of the UI and application design process during business transformation projects.

Traditional UI design and development process for enterprise business applications typically takes anywhere from 65 - 80% of the overall development time in any application redesign/redevelopment project. Reusable UI design systems significantly reduce this time, and increase flexibility (not to mention decreasing training/support costs and increasing customer satisfaction).

While many of our engagements are focused on full-scale redesign projects or designing new applications from the ground up, another segment of our work is devoted to retooling projects where companies need to migrate legacy applications to SaaS or Rich Internet Applications. Here, reusable UI design systems can play an especially significant role in streamlining redevelopment cycles and shortening implementation windows.

For complex enterprise applications or multi-business unit services, legacy migration, tackled all at once, if often too large to feasibly meet delivery windows and budget plans. Instead projects need to phase in over time, deactivating legacy components along the way. Design and use of a reusable UI component design library can bring quick, progressive “wins” of enhanced functionality, performance, consistency and a rich user experience.

Reusable UI design system components, that encapsulate business logic, data access/entry, and communication/displays, can be applied “as needed” to the transforming application. Reusable UI design is efficient and effective both for a redevelopment approach based on cross-sectioning or one based on multi-function integration on a broader scale.  This is in stark contrast to non-modular, non-reusable design which requires custom coding for integration and an all-or-nothing (read “prone to delays”), non-phased implementation.

Catalyst’s initial reusable UI strategy and architecture sprints focus on identifying high value scenarios, mapping legacy to target design functions/interactions, reuse, redundant workflow consolidation, and data handling as well as working with the development teams to define a strategy for legacy deactivation and transition management.

Once a user validated reusable UI design system is defined, it can be efficiently applied as target systems are transitioned, or as new services are added to support changing business needs.