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A Study of Service Innovation Design in
Cultural and Creative Industry
Yu-Yuan Ko1, Po-Hsien Lin2 and Rungtai Lin2
1 Department of Industrial Education and Technology ,
National Changua University of Education
N0 516,Chung Shan Rd,Sec 2, Huatan Village,Changhua county,503, Taiwan
service@jaguarcar.com.tw
2 Crafts and Design Department, National Taiwan University of Art
Ban Ciao City, Taipei, 220, Taiwan.
rtlin@mail.ntua.edu.tw
Abstract: Service design is considered to be one of the pivotal components in
cultural and creative design industries which has a significant impact on
consumer perception of innovation. Despite service design’s recognized
importance, cultural and creative industries lack a systematic approach to it.
Therefore, based on the “Taiwan experience”, this paper proposes a service
innovation design model and provides examples illustrating how to transfer
cultural features into service design, and design these cultural features into
modern products to reinforce their design value. Results presented herein create
an interface for looking at the way service innovation design crosses over
cultures, as well as illustrating the interwoven experience of service design and
cultural creativity in the innovation design process.
Keywords: service innovation design, creative industries, experiencing
culture.
1 Introduction
There has been a recent shift from technological innovation to service innovation
based on discovering new opportunities in the marketplace. Companies are more
focused on adapting new technologies and combining them in ways that create new
experiences and value for customers. With the development of industrial tendency,
most companies gradually realize that the keys to product innovation are not only
market and technology aspects but also service innovation design [2,4,12]. Ulrich and
Pearson [25] point out that service design has received increased attention in the
academic and business communities over the past decade. Both academics and
practitioners emphasized that the role of service design in innovative product
development relates not only to aesthetics, but also to aspects such as ergonomics,
user-friendliness, efficient use of materials, functional performance [8].
However, we now live in a small world with a large global market. While the
market heads toward “globalization”, design tends toward “localization.” So we must
“think globally” for the market, but “act locally” for design. In the global market -
local design era, connections between culture and design have become increasingly
close. For service design, cultural value-adding creates the core of product value. It’s
the same for culture; service design is the motivation for pushing cultural and creative
industries development forward [17, 18, 19]. While service innovation design is under
tough competitive pressure from the developing global market, it seems that the local
design should be focused on “service” to adapt “innovation” to product “design.”
The importance of studying service innovation design is shown repeatedly in
several studies in all areas of the design field. Despite the recognized importance of
service design in cultural and creative design industries, they lack a systematic
approach to it. Therefore, the main purpose of this paper is to study factors affecting
service innovation design. These factors are discussed in order to understand the
change of service innovation design in cultural and creative design industries [28].
A service innovation design approach is proposed which integrates the difference
between products and services of cultural and creative design industries into the
service innovation design activities of current service development practice. A model
is then provided illustrating how the National Taiwan University of Arts (NTUA) has
established the link between service innovation design and cultural and creative
industries through Our Museum, Our Studio and Our Factory respectively. It is the
service innovation design approach that joins design, culture, creativities and
economy, and further illustrates some implications through the cultural perspective .
2 The Change of Service Innovation Design
A literature review summary on innovation and service design is presented. From a
design point of view, we examined previous studies on innovation design and the
concepts used. There is no widely agreed definition of service design in the literature
[1,5,6,7,13,14,20,26,27]. Through the review, it was noted that no matter what the
interpretations for service design were, it was agreed to be crucial to the overall
service development process [28]. However, we will discuss the change of service
innovation design from the design point of view as follows.
2.1 From “Function” to “Feeling” in Design History
In the early 20th century, when users thought about “design”, “form follows function”
often came to mind. Today, the technology progress has shifted dramatically and
provides platforms for completely new forms of “design” and “service” delivery.
Now, we communicate with our friends using a cell phone (design) or plan and buy a
trip around the world using the internet (service). From a design point of view, we
could use five “Fs” to describe the change from designing “function” for the user’s
need to servicing “feeling” for the user’s pleasure as shown in Figure 1. These five
F’s include: (1) 1930’s – design for “Function”, (2) 1950’s - design for “Friendly”, (3)
1970’s - design for “Fun”, (4) 1990’s - design for “Fancy”, and (50) 2001’s - design
for “Feeling”, respectively [17,18].
Along with the technology progress, if we examine the design history of the last
century, we find “form follows function” to be the motto to design for function, and
dominated design conceptualization. After world war II, the new discipline of human
factors was introduced and the concept of “design for human use” applied to product
design. The concept of “user friendly” become common sense with the popularity of
the PC in the commercial market. In the 1970’s, talking too much about “function”
and “friendly” in designing products became boring, and some designers tried
designing “Fun” into the product. The application of post-modernism in the design
field is a typical example of designing for fun. Then, in the 1990s, designers tried
designing “fancy” into their design based on advance technology such as concurrent
engineering or RPT (Rapid Prototyping Technology).and the concept of product
personality became a tool for differentiating the market.
Fig. 1. The change of innovation design from “function” to “feeling”
Finally, designing “Feeling” into products to present the emotional communication
of user experiences become a design trend in the 21st century. As a result, “design for
feeling” became the key factor for innovative products. In other words, the product
must be endowed with an immediate attraction and this therefore renders user
perception of innovative product form an important issue for “pleasure” [9,10,11]. In
Figure 1, we use a pencil sharpener as an example to demonstrate the change from
“design for function” to “design for feeling”.
This change of service in innovation design has also created even more complex
organizations and systems of service delivery to satisfy user needs. The users not only
need the 5 Fs but also innovation service for their integrity needs. The only way to
deal with this complexity is to keep user needs and desires central to any design
development. Indeed, service innovation design is part of the solution to this
challenge, with deep user involvement throughout the creative process and a keen
view of the functional and emotional details that enable people to enjoy the services
that are important in their lives [26,27].
2.2 From OEM to OBM in Taiwan Design Development
Taiwan’s industrial design is developing along with its economic development. The
design development could be represented as a smile face, proposed by the former
ACER president Shi, from OEM (Original Equipment Manufacture), ODM (Original
Design Manufacture), to OBM (Original Brand Manufacture) as shown in Figure 2.
Before 1980, OEM vendors in Taiwan reduced costs to produce “cheap and fine”
products to be successful in the global manufacturing industry. With the OEM style of
having “cost” but without a concept of “ price” in mind, or just by knowing “ cost
down” but not knowing “ value up”, these vendors created Taiwan’s economic
miracle by earning a low profit from manufacturing. Those dependent upon
hard-working patterns from the OEM pattern became obstacles in developing their
own design. These vendors were extremely busy producing products to meet
manufacturing deadlines; there was no time to develop design capabilities, so that
environment could not nurture design talents [17,19].
Design for Innovation
OEM
ODM
OBM
Designing Marketing
BrandingR & D
Manufacturing
Service Innovation Design
Product
Integrity
Innovation Design Service Model
Product
Personality
Value-added By Design
Product
Identity
Product
System
Product
Standard
Design for manufacturing Design for Service
Design Types
Fig. 2. From OEM to OBM in Taiwan design development
After 1980, Taiwan enterprises began to develop ODM (Original Design
Manufacture) patterns to extend their advantages in OEM manufacturing. Taiwan’s
government addressed a series of measures to stimulate the nation’s economic growth,
including the “ Production Automation Skill Guidance Plan”, and the “Assisting
Domestic Traditional Industrial Skill Plan”. These plans were to guide vendors to
make production improvements, to lower costs and to increase competition.
Especially starting from 1989 , the industry Bureau pushed the “Plan for total
Upgrading of industrial Design Capability” within three consecutive five-years plans
to build up working models of experienced design scholars from universities and their
students to work on designs. The design students worked with the enterprises on
specific projects to set up a working pattern of industrial design based on enterprises’
real needs [17,18,19].
Recently, product design in Taiwan has stepped into the OBM (Original Brand
Manufacture) era. In addition, cultural and creative industries have already been
incorporated into the “National Development Grand Plan”, demonstrating the
government’s eagerness to transform Taiwan’s economic development by “Branding
Taiwan” using “Taiwan Design” based on Taiwanese culture [17,18,19]. Designing
“culture” into modern products will be a design trend in the global market. Obviously,
we need a better understanding of service innovation design in cultural and creative
design industries not only for the global market but also for local design. While
cross-cultural factors become important issues for product design in the global
economy, the intersection of service innovation design and culture becomes a key
issue making both local design and the global market worthy of further in-depth study
as shown in Figure 2.
2.3 From” 3Cs” to” 4Cs” in Taiwan Industry Development
In the past, Taiwan developed information technology to produce hi-tech 3Cs
products as “Computer”, “Communication”, and “Consumer” electronic products and
many related accessories. As mentioned above, Taiwan's economic miracle was
promoted by small enterprises through the hard working spirit and cheap labor of the
people. But all these advantages have been replaced by China in recent years. If
Taiwan still wants to play a role in the global economy, it should establish a
Taiwanese cultural brand. Besides its skill leverage, it has to cover both ODM and
OBM, which is the purpose of promoting cultural and creative industries from the
service innovation design point of view. Therefore, the required change in Taiwan's
design industry structure is to maintain its cost down advantage, to reinforce design
value up and to seek service innovation design in cultural and creative design
industries [17,18].
Cultural and creative design industries are the “4Cs” industries: “Cultural”,
“Collective”, “Cheerful” and “Creative”. The 4Cs will be a design evaluation key
point in the future. Many countries that are major in design popularity are promoting
service as design as part of cultural and creative design industries. Taking England as
an example, service design has been the second highest output value of their creativity
industry. The potential market is quite large. In the knowledge economy era, the
connections between culture and industry have been increasingly close.
Designing local features into a product appears to be more and more important in
the global market where products are losing their identity because of the similarity in
their function and form. Cultural features then are considered to be a unique character
to embed into a product both for the enhancement of product identity in the global
market and for the fulfillment of the individual consumer’s experiences [15,16]. The
increasing emphasis on localized cultural development in Taiwan demonstrates an
ambition to promote the Taiwanese style in the global economic market. However, in
order to reach this purpose, some changes need to be made in Taiwan's industry
structure. If we can mix cultural concepts with diverse service innovation design to
make art livable, then we can create a new design model of cultural and creative
design industries and become culturally industrialized to highlight Taiwan's
international image.
3 Conceptual framework
National Taiwan University of Arts (NTUA) established an art museum, known as
“Our Museum”, in 2007 for the purpose of linking professional teaching with the
museum’s research, education, and display functions while presenting cultural and
aesthetic ideas about art and artifacts to the public. Developing craftsmanship and
creativity as well as competences related to the arts are of strategic importance to
NTUA. For turning “Art” to “Business”, we need “Creativity” and “Design” [24].
Therefore, a design studio, known as “Our Studio”, was set up at the college of design
in NTUA following the “Our Museum” for providing innovative products. NTUA is
located in the Taipei metropolitan area, one of the most competitive regions in
Taiwan. This area contains a significant concentration of craftsmanship and research
establishments, linked by various formal and informal networks. Due to the
challenging nature of cultural and creative industries, NTUA is devoted to developing
its regional and international networks by operating a cultural and creative industry
park, known as “Our Factory.” NTUA has established the link between “Art“ and
“Business” and combined “Creativity” and “Design” through Our Museum, Our
Studio and Our Factory respectively. It is a new approach that integrates design,
culture, artistic craftsmanship, creativities and service innovation design in cultural
and creative design industries [23].
Our Museum Our Studio Our Factory
NTUA Art Museum NTUA Design Studio NTUA Idea Factory
R & D Designing Branding
Marketing
OUR MUSEUM
OUR STUDIO
OUR FACTORY
Information
Intelligence
Innovation
Culture
Difference
Cultural
Features
Creative
Products
Craftsmanship
Service Innovation Design
Design Types
Value-added By Design
Service Business Model
Fig. 3. A conceptual framework for service innovation design
With increasing globalization of the economy, rapidly developing information
technology, rapidly growing market competition, shortening life cycles of products
and services, and increasing customer demands, companies and public sector actors
will find it increasingly difficult to survive just on their past operating models.
Therefore, based on the previous review of service design change, we propose a
conceptual framework to innovation service design of cultural and creative design
industries by using the smile paradigm as shown in Figure 3.
According to the smile paradigm, craftsmanship is a part of Cultural creativity, and
like the mouth in the smile face, it must still go up through innovation deign and
branding before it can become a “business”. However, craftsmanship is not the
entirety of culture, nor is creativity the whole of business; good craftsmanship at best
earns outsourcing money, like an OEM vendor. The key to innovation design is to
blend craftsmanship, creativity and service design, and “branding” is the key to any
business [21].
In general, craftsmanship is the use of local materials to develop localized skills;
localization is an important force behind the globalization of any international
conglomerate, especially in the employment of cultural creativity. Crafted products
produced in small volume seek to represent the spirit of “attention to details”, and are
a demand on the person, a representation of the person, an expression by the person,
and a story from the person. Craftsmanship plumbs the depth of skills, while
creativity seeks the height of impression, and branding asks for the width of
acceptance. Only through culture and creativity, by allowing craftsmanship and
creativity to facilitate branding, can one makes one’s way in this field [22].
The goal of the cultural and creative park is to combine artistic craftsmanship and
economy with service design, and ultimately establish NTUA as a distinctive
trademark of the park. To accomplish this goal, NTUA aims to combine artistic
craftsmanship from “Our Museum” with cultural creativities from “Our Studio” in
order to result in aesthetics in business for “Our Factory”. Creativity and business are
the elements for reaching an aesthetic economy. It is the concept of “Think Globally -
Act Locally” to process the “Digital Archive” of Our Museum through the cultural
creativities of Our Studio, producing cultural products in Our Factory in order to
establish a local industry making aesthetic and economical products.
The current development of the Cultural Creative Park at NTUA is based on using
creative knowledge of crafts elements and materials from Our Museum and, through
Our Studio to transform this cultural information into creative industry. In the near
future, we will further practice this exclusive mode of cultural creative production to
promote the “Savoring Culture”, forming “Taiwan industry concept”. We are
encouraging more and more creative products which contain colorful Taiwanese
culture and styles. By supporting the development of cultural creative industry of
NTUA, we can enjoy the fruitful success of an aesthetic culture in creative industry.
4 Experiential journey to the NTUA cultural and creative park
To accomplish this goal, NTUA has taken public education as a commitment since its
beginning. One example is the establishment of the Taiwanese UFO Cultural Creative
Park, known as “Our Factory”, with the cooperation of Taipei County providing an
innovation service by the Holiday Cultural Bus Tour. The Holiday Cultural Bus Tour
is operated between NTUA main campus, the Taiwanese UFO Cultural Creative
Park, and the Lin Family Mansion and Garden. The major purpose is to prompt the
cultural creative development of Banciao City where the University is located. The
tour journeys first to The Lin Family Mansion and Garden for experiencing cultural
aesthetics. Then, based on the structure of Our Museum, Our Studio and Our Factory
of NTUA, the tour customer can appreciate arts in Our Museum, experience crafts in
Our Studio, and also purchase creative products from Our Factory. The purpose of
this customer journey is to fulfill the aesthetic experience by connecting design and
culture through which to synthesize technology, humanity, cultural creativities, and
thus achieve the aim of service design promotion in public.
The Taiwanese UFO Cultural Creative Park is established by NTUA in the
Fu-Jhou suburb of Banciao City, only ten minutes walk from the main campus. UFO
is an abbreviation for “high quality Fu-Jhou suburb” in Chinese and it also describes
the Taiwanese UFO Cultural Creative Park. There are four crafts companies which
are incorporated with the Innovation and Incubation Center of NTUA. Within
additional ceramic and metal studios, each studio provides hands-on workshops in
different craft materials. The public can physically understand and experience
fascinating crafts of ceramic, glass, metal, and fabric.
NTUA has taken the commitment of improving Taiwanese cultural qualities. The
Taiwanese UFO Cultural Creative Park is a significant step to benefit the
surrounding area. Many exclusive projects are under construction by NTUA. We are
expecting a fulfilling aesthetic environment in the near future.
5 Conclusion
With increasing global competition, service innovation design is not merely desirable
for a company; rather, it is mandatory. The importance of studying service innovation
design is shown repeatedly in several studies in all design areas. However, there is a
lack of a systematic approach that covers service design in cultural and creative
design industries. Therefore, a new approach was proposed by applying service
innovation design to the domain of cultural and creative design industries. The service
innovation design model is presented herein to provide designers with a valuable
reference for designing “service” into a successful cross-cultural product. The purpose
of this paper is to fulfill the aesthetic experience by connecting design and culture,
through which to synthesize technology, humanity, cultural creativities, and then,
achieve the aim of service design promotion in public.
For future studies, we need a better understanding of the acculturation process not
only for the service design, but also for innovative product design. While cultural
features become important issues in the interactive experiences of users, the
acculturation process between human and culture becomes a key issue in cultural
product design and worthy of further in-depth study. However, the effectiveness of
using service innovation design in cultural and creative industries can be further
enhanced. This can be done by incorporating more information of the best practices in
service industries into the service innovation design in cultural and creative design
industries.
Acknowledgments. The authors gratefully acknowledges the support for this research
provided by the National Science Council under Grants No. NSC-97-2410-H-144-005.
The authors wish to thank the various students who have contributed to this study
over the years. Especially, the authors would like to thank Dr. J. G. Kreifeldt for his
valuable comments.
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