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Development of Service Design and the Effective Utilization of Industry by Public Sectors

Author Yeolyong Sung, Yoonae Cho, Young-Jin Ro Date 2016.02.01 Page 19
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The service sector represents an increasing share of the global industrial mix, notably in advanced economies, and is moving up the value chain. Meanwhile, manufacturing firms are shifting toward services at a rapid pace by enhancing their product-related service offerings on top of their manufacturing platform. In tandem with such changes, the concept of innovation has expanded beyond products and technologies to include service. In addition, the purchasing power of consumers has significantly increased, on the strength of rising real wages, while market hegemony has significantly moved from the supply side to the demand side due to an oversupply. Along with the “servitization” of the industry, which is characterized by an increasingly service-oriented perspective on the part of manufacturing firms and by the growing sophistication of the service sector, the center of gravity in the world’s industries is moving from technology and the supply side toward people and the demand side. Accordingly, service design is emerging as a path to innovation, as it is necessary to understand user behavior and develop a more user-focused perspective if one is to achieve innovation.
Service design has a short history and is still in its early days in Korea. As such, the service design industry is still at the fledgling
stage and commands a low level of awareness. However, potential demand for service design is high in Korea, given the historic role of the manufacturing sector as the engine of economic growth and the trend toward servitization in manufacturing industries. In
addition, Korea has favorable conditions and strong potential to promote the service design industry from the perspective of the supply side, in that Korea, in the course of developing its IT industry, established a deep pool of design companies with a solid footing in products and Web-based user experience.

The objective of this study is to define the concept of “service design” from the viewpoint of the manufacturing and service industries, to analyze the use of service design by Korean companies and demonstrate its effects, and to highlight the potential of service
design as an instrument of innovation in Korea.