What design challenges startups face, and how does this affect their development – research

Olexandra Gordienko with Qubstudio, a branding and digital design agency, has prepared studies for AIN.UA on how startups relate to design, why it is important and why it is needed.

We at Qubstudio decided to investigate what design challenges startups face, and how this affects their development. We interviewed 99 startups and hope this research will help unique products succeed in the market.

 

Forbes, 500 startups, Y Combinator, McKinsey & Company, Fast Company, Startup Daily, and authors at Medium assure the founders, the design is critical to the success of a digital product. Materials are filled with design methodologies, design thinking and design sprints.

As a result, more than half of respondents believe that design can have a positive effect on product conversion, revenue, brand and access to new markets.

Most respondents also believe that design plays a decisive role in their product.

But it became interesting to us: if most startups truly believe in the power of design, why aren’t so many products able to incorporate design methodologies into their processes?

This analysis shows that there is a deep gap between the expectations that startup founders place on design and its functional role in the product creation process.

In the survey, we gave companies the opportunity to choose one of the five main stages at which they can be. This is the stage of the origin of the idea, the early stage of development, the stage of creating the concept, the stage of active growth and maturity.

The first stage is called the pre-seed phase. It begins when there are a plan and a plan for its implementation. The early stage of development can be called the seed stage. During it, a business plan begins to form. At the stage of creating the concept, the basic version of the startup, or MVP (minimum viable product) is developed. Subsequently, there is a phase of active growth, in which MVP is gaining momentum, and the product turns into a free float on the market. The last stage in the development of a young product is the maturity phase, in which it ceases to be a startup in the classical sense and develops into a regular business.

The majority of startups surveyed consist of products at an early stage of development and at the stage of active growth. In particular, three startups identified themselves as products that are at the stage of the idea’s emergence, thirty-three – at an early stage of development, and thirty-nine – at the growth stage. None of the startups surveyed consider themselves a mature product.

Most of the respondents chose the usability of the product and look’n’feel the main areas of design in their workflow. Brand creation and design service finished second and third respectively.

These answers show that the companies surveyed view design as the process of creating a visually pleasing and useful product. Only less than a third of respondents believe that design is critical to creating a viable business model, building a product architecture, and supporting marketing processes.

Startups at an early stage of development and at a stage of growth are the dominant segments of respondents. Therefore, we decided to compare them to analyze the perception of design at different stages of digital product development.

For example, companies at an early stage of development choose design rather than product architecture, brand development, or marketing support as their main focus of the design.

But more than half of the companies at the stage of active growth said that their process is focused on product and marketing goals. Twelve companies also noted service design.

It is noteworthy that less than half of the respondents believe that brand development is an important role for design in startups. However, to the question, it is important to create a brand for the product, more than 60% answered yes.

However, only 36% of companies turned to professional assistance in creating a brand. A third of respondents created their brand without the participation of a designer. Probably these products have not developed their brand strategy, but only the logo.

Indeed, the visual value of design is essential to the success of a digital startup on the market, but the design also plays a vital role in mature products. Especially in creating a business model and marketing strategy.

Surprisingly, not one of the companies surveyed believes that UX / UI designers should focus on user experience, although this competency is even included in the name of the profession.

We analyzed the statistics and concluded that mature startups take design more consciously than younger products, so they need a deeper design approach for success.

The various stages at which startups are located require different design approaches. For example, young products may be forced to change their offer until they find their market. Spending a lot of resources on visual design is not always justified.

All companies, especially young ones, benefit enormously from a consistent UX and product strategy. But the majority of startups studied believe that you need to focus on tactical tasks. They perceive them intuitively, not strategically.

The discrepancy between expectations from design and reality can be explained by the fact that companies do not attract a professional design team.

Most startups studied have one designer on their team, or none at all. Less than a quarter of respondents have more than one designer and even fewer collaborate with a professional design team.

So, 58% of all respondents are dissatisfied with design competence in their teams, and only less than half of all respondents are satisfied with their design situation.

This study showed us that, as a rule, startup founders really believe that design is critical to their development. However, they only see and implement the tip of the design iceberg.

If we consider UX / UI design as exclusively a process of creating beautiful screens, then it loses its mission to create effective and useful products. The design should be holistically integrated into product development, starting with in-depth user research and product strategies carried out by a professional design team.

This study helped us understand that:

1. There is a deep gap between the expectations that startup founders place on design and its functional role in the product creation process.
2. Usually, startup founders really believe that design is critical to their development. However, they only see and implement the tip of the design iceberg.
3. The discrepancy between the expectations of design and reality can be explained by the fact that startups do not attract a professional design team.
4. Mature startups are more developed in their perception of design than younger products, so they need a deeper design approach for success.

Of course, each digital product is individual and requires an appropriate approach. But market research and the formation of a product strategy at the beginning of a project can save you from unnecessary expenses. Investing in the correct construction of design processes not only saves money long-term, but also gives young products high chances of success.

Author: Olexandra Gordienko, Qubstudio

Source: ain.ua