A digital product is a software-supported product or service that offers the user a benefit. Two types can be distinguished: on the one hand, products that offer functions, e.g. email client software, and on the other hand, websites and portals that provide content, e.g. Netflix.In general, digital products can be divided into the following areas:Digital platforms:
Large amounts of content are available, for example on portals like Wikipedia or information and entertainment providers like Netflix, newspapers like the British Guardian or magazines like Spiegel online. On other platforms, e.g. marketplaces like Ebay or Craigslist, people exchange goods or – as in the case of ResearchGate – knowledge. The user experience design revolves primarily around finding relevant content via navigation and search, as well as bookmarking a content and exchanging it among users.E-Commerce & online shops:
Some of the world's largest would be Amazon, JD, Apple, Alibaba, etc. Here, analogue goods are sold and the user experience is designed through the entire process until the goods finally arrive at the customer’s home. The user experience plays a major role, especially on the individual product pages, during checkout and in navigation in order to make shopping fun and pushing conversion.SaaS or licence software:
Applications for accounting software, text editors, email providers or even Photoshop are good examples of software that is provided either as a licence (SaaS: Software as a Service) or in a subscription. Digital Goods:
These include e-books or crypto-currencies, streaming services such as Netflix, Prime and Spotify or cloud services such as Dropbox.To declare the importance of design for digital products, we also use the McKinsey Design Index (MDI). Although this was originally developed for physical goods, it can easily be transferred to digital products.The authors of the 2018 MDI study identified four areas that companies need to keep in mind in order to use design to make a concrete contribution to value creation. Their findings are as follows: 1. Design is more than a feeling:
Design is leadership based on an analytical foundation. The best performing companies measure and promote design performance with the same severity as sales and costs.2. Design is more than a department:
Design is talent that works across functions. Top companies make user-centred design the responsibility of all employees, not a silo function.3. Design is more than a phase:
Design is a continuous process of evolution. The best performing companies reduce the risk of new developments by continuously listening, testing, iterating, discarding and improving – with the end customers.4. Design is more than a product:
Design is usability and user experience. Top companies are breaking down the walls between physical, digital and service design.In other words, companies that see the design of their (digital) products as an essential part of their business success will gain a decisive advantage over their competitors in the long term.