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Will “Good Enough”
kill the digital design agency?
Ryan McCormack :: May 2010
http://bitstrategist.com

                                  1
Outline
•  Abundance, scarcity and commoditization

•  The “good enough” revolution

•  The spectrum of graphic design

•  Cathedrals, bazaars and the digital design
   agency

•  Summary & Closing thoughts


                              Ryan McCormack :: May 2010 :: http://bitstrategist.com
Two caveats
          




       Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Designing for business

                                                   Art



                          Ryan McCormack :: May 2010 :: http://bitstrategist.com
Abundance, scarcity
                  
and commoditization
                  



           Ryan McCormack :: May 2010 :: http://bitstrategist.com
“Abundance breaks more things
than scarcity does.”

– Clay Shirky
                                Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Gutenberg Bible (Printed ca. 1445)


                        Ryan McCormack :: May 2010 :: http://bitstrategist.com
A Catholic Indulgence (ca. 1445)




                          Martin Luther’s “95 Theses”
                                Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Johannes Trithemius (Bishop of Sponheim)
       “In Praise of Scribes” (1494)


                          Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Scarcity drives commodification



    Commodification: The process by
    which something acquires economic
    value (and can thus be sold).




                            Ryan McCormack :: May 2010 :: http://bitstrategist.com
Abundance drives commoditization



   Commoditization: The process by
   which goods that used to be
   distinguishable in terms of attributes
   wind up becoming mere commodities.




                           Ryan McCormack :: May 2010 :: http://bitstrategist.com
What’s the tipping point?




                      Ryan McCormack :: May 2010 :: http://bitstrategist.com
Characteristics of a commodity

•  Product differentiation difficult

•  Competition based primarily on price

•  Increased competition

•  Reduced customer loyalty

•  Increased pressure on margins


                            Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
The “good enough” revolution
                           



     See Wired: http://www.wired.com/gadgets/miscellaneous/magazine/17-09/ff_goodenough
                                                                                     

                                          Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Digital video




• Lower quality
       • Great quality
• Less features
       • Feature rich
• Easy! Fun! Cheap!
   • Hard to use & Expensive

                          Ryan McCormack :: May 2010 :: http://bitstrategist.com
Telephony




• Lower quality
          • “Reliable” service
• Calls drop
             • Better call quality
• Cheap (or Free)
        • Hard to use & Expensive
• Location-independent
   • Geography-dependent

                             Ryan McCormack :: May 2010 :: http://bitstrategist.com
Music




• Lower fidelity
            • Higher fidelity
• Infinitely reproducible
   • Harder to reproduce
• Cheap and portable
       • Not as portable

                               Ryan McCormack :: May 2010 :: http://bitstrategist.com
Software




• Just enough features
   • Feature rich
• Downloadable
           • Complex
• Free (or $500)
         • $4000

                             Ryan McCormack :: May 2010 :: http://bitstrategist.com
The spectrum of graphic design
                             




                 Ryan McCormack :: May 2010 :: http://bitstrategist.com
Traditional




       Ryan McCormack :: May 2010 :: http://bitstrategist.com
Graphic Arts




                Ryan McCormack :: May 2010 :: http://bitstrategist.com
Politics and Propaganda




                      Ryan McCormack :: May 2010 :: http://bitstrategist.com
Advertising




               Ryan McCormack :: May 2010 :: http://bitstrategist.com
Identity




            Ryan McCormack :: May 2010 :: http://bitstrategist.com
Digital




     Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
The first web page (ca 1991)



                      Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Maturity and open standards
                          
    make design easier
                     



               Ryan McCormack :: May 2010 :: http://bitstrategist.com
No wheel reinvention




                    Ryan McCormack :: May 2010 :: http://bitstrategist.com
Patterns mean different problems




                    Ryan McCormack :: May 2010 :: http://bitstrategist.com
Efficiency accelerates results




                      Ryan McCormack :: May 2010 :: http://bitstrategist.com
Processes are clearer




                         Ryan McCormack :: May 2010 :: http://bitstrategist.com
Platforms lower
              
barriers to entry
                



           Ryan McCormack :: May 2010 :: http://bitstrategist.com
Underlying technologies



                       Server software




       Linux




                                   Database software
         Web server
                         Ryan McCormack :: May 2010 :: http://bitstrategist.com
Multimedia distribution platforms




                     Ryan McCormack :: May 2010 :: http://bitstrategist.com
Publishing platforms




    Wordpress




                 Drupal


                           Ryan McCormack :: May 2010 :: http://bitstrategist.com
The pool of talent has exploded
                              




                  Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Cathedrals, Bazaars and the
   digital design agency
                       



               Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Trust us…




             Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
http://www.chrisbrogan.com/a-perfect-dichotomy/


                   Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
So what’s possible
 with free tools?
                



           Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Summary &
Closing thoughts
               



          Ryan McCormack :: May 2010 :: http://bitstrategist.com
What separates the cathedral & bazaar?

•  Design “quality”

•  Cost of services

•  Uniqueness of design & experience

•  Systemic thinking and underlying strategy
   (e.g., scalability, extensibility)



                           Ryan McCormack :: May 2010 :: http://bitstrategist.com
Summary

•  Abundance creates more problems than
   scarcity

•  Digital design is evolving quickly due to an
   abundance of platforms, tools and knowledge

•  Quality differences are subjective

•  Business decisions can trump artistic value


                             Ryan McCormack :: May 2010 :: http://bitstrategist.com
So is the digital design
   agency doomed?    



              Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
DIY Ramen w/cookbook:
•  4 grocery stores
•  2 days :: 12 hrs cooking :: 2 hrs cleaning


                            Ryan McCormack :: May 2010 :: http://bitstrategist.com
Closing thoughts

•  Digital design for marketing is a commodity

•  For every commodity created, a new
   opportunity is born




                            Ryan McCormack :: May 2010 :: http://bitstrategist.com
Ryan McCormack :: May 2010 :: http://bitstrategist.com
Thank you!
Questions?
         



       Ryan McCormack :: May 2010 :: http://bitstrategist.com
References

•    Clay Shirky: “Here comes everybody” (2008)

•    Eric Raymond: “The Cathedral & the Bazaar” (1992)

•    Wired.com: “The good enough revolution” (2009)




                                Ryan McCormack :: May 2010 :: http://bitstrategist.com

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Will "Good Enough" kill the digital design agency?