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Value co-creation in tourism:
     Incorporating non-expert's design
       into expert's design activities

                   25th, July 2012
1st Conference on Human Side of Service Engineering


           The University of Tokyo         Tatsunori HARA
                                           Satoshi SHIMADA
                                           Kazuhiro AOYAMA
           Tokyo Metropolitan University   Yohei KURATA
                                           Naoto YABE
                                           Yoshiaki HOMPO
In my Ph.D …                                                                                                                         2
    A CAD system for service innovation
   Service offerings can be designed
                                       Design aids Creative design & imprvm. design
    as well as products by utilizing
    engineering design methods
   Fully-designed services by provider Service      Design
                                                    operations         Conflict detection & TRIZ
                                                                           cases
    Hara et al. “A CAD system for service innovation: integrated                                 Design                   Service
                                                                                                                            1
    representation of function, service activity, and product behavior”,                         wizard
                                                                                                          Service
    Journal of Eng. Design, 20/4, 2009.                                    Outline                         cases     Service   Service
                                                                                                                       2         3



    Modeling            Design review & consensus bld.                                                              Analogical reasoning



                                                                              Evaluation         Subjectivity & CS evaluation

                                                                                     Persona A

                                                                                     Persona B

                                                                                     Persona C
3
Contents
   Background
       Toward a tourism-oriented nation “Japan”
       Packaged tours and Free Individual Travels (FITs)
   Challenges in the Project Rosetta
       Proposed eco-system of tourism services
       Research maps of the project Rosetta
   Research elements
       Survey of tourists activities using GPS logger
       Two computerized systems for expert design and
        co-creative design
       Analysis of “designed by non-expert’s”
   Conclusion
4
Toward a tourism-oriented nation “Japan”
<Goal> Num. of foreign tourists: 9 M  30 M until 2025 !!!
JTB Corporation (The biggest travel agency in Japan)
 has been sending many Japanese tourists abroad by
  designing packaged tours




 • Packaged tours  Free Individual Travels (FITs)
 • How to attract increasing foreign tourists while taking
   advantage of acquired skills on packaging tours?
       Value co-creation with FITs is indispensable
5
Packaged tour ≒ product designed by expert
Processes                Production by provider
                                  Production
                                    design
                                        g


               Concept   Detail    Part
  Marketing                                Assembly Installation   Use   Repair T
                                                                                Take-back
                                                                                        k
                design
                    g    design
                             g    Mnfcrng.
                                   Quality

     Full design by expert
                                   control              Stable use processes

Structure
                                        Sales                      (2) Stable structure
(1) Fully-designed                                                 through use processes
structure of product




                                                                    (3) Measurement of
                                      Feed back                     customer satisfaction
6
 Free individual travel ≒ co-creative service
Processes                               Personalizing design Varied use
                                           by non-expert     processes
  ≒ individual travel with
     tour planning service                               Attention                  Check-in
                                     Production
                                                          Search                    Perceive
                                           g
                                       design
                                                         Assembly                    Action
               Concept      Detail    Part               Configu                                 Reconfi
                                                                                                 R      fi
   Marketing                                  Assembly               Installation     Use                  Get-back
                                                                                                           G      k
                    g
                design      design
                                g    Mnfcrng.            -ration
                                                           a o                                  -guration
                                      Quality            Arrange                    Configure
      Preparation design              control
                                                          Share                      Share
          by expert
Structure
                                            (2) Customer defines personalized structure
 (1) Architecture
 and/or platform




                         (3) Collecting design data, usage data, and CS
7
 Proposed eco-system of tourism services
More          Mass production          Mass             Personalization
                                   customization Long tail
Less                                                                                    Needs
                                                            Free Individual Travelers


     Users of packaged tours
Sales data                                                                  A large amount
 CS data                                                                    of itinerary data
            Prearranged      Custom made
  Goods    package tours                                       Tour planning        Service
                             optional tours
 oriented                                                         service           oriented



                 Design support system                      Interactive tour planning
                 of tour lineup for experts                 system for travelers

                  Evaluation data of     Classification        Data of round trip
 Continuous       tourist attractions    data of tourists      & duration of stay   Continuous
  learning                                                                           learning
Project Rosetta                                                                                                              8
      (Research on Service Eng. for Tourists and Travel Agencies)
                                                          Design thinking
                           What tourists buy                                            What tourists make


                             Design support
                                                     Modularization                            Interactive tour
                           system of tour lineup                                Mass
(customers as subjects )




                                                      & synthesis




                                                                                                                  (customers as partners)
                                                                                              planning system
                                for experts




                                                                                                                    Participatory mindset
                                                                            Personalization
                                                                                                  for tourists
    Experts mindset




                                   Tour service modeling
                                with operational constraints
                                                               New design
                                                               methodology
                               Evaluation of                                    Analysis of “designed by
                             tourist attractions                            tourists”: dynamics of customers
                                                                                  expectation over time
                                                      Evaluation criteria
                                 Early studies          by analyzing             Survey of tourist activites
                                  on tourism           word-of-mouth                using GPS logger
                           How tourist attractions                                            How tourists
                           are evaluated                                                  cognize & behave
                                                 Analytical thinking
Project Rosetta                                                                                                              9
      (Research on Service Eng. for Tourists and Travel Agencies)
                                                          Design thinking
                           What tourists buy                                            What tourists make


                             Design support
                                                     Modularization                            Interactive tour
                           system of tour lineup                                Mass
(customers as subjects )




                                                      & synthesis




                                                                                                                  (customers as partners)
                                                                                              planning system
                                for experts




                                                                                                                    Participatory mindset
                                                                            Personalization
                                                                                                  for tourists
    Experts mindset




                                   Tour service modeling
                                with operational constraints
                                                               New design
                                                               methodology
                               Evaluation of                                    Analysis of “designed by
                             tourist attractions                            tourists”: dynamics of customers
                                                                                  expectation over time
                                                      Evaluation criteria
                                 Early studies          by analyzing           Survey of tourist activities
                                  on tourism           word-of-mouth               using GPS logger
                           How tourist attractions                                            How tourists
                           are evaluated                                                  cognize & behave
                                                 Analytical thinking
10
Survey of FITs’ activities using GPS logger
   Collected about 450 person-day data on tourists activities
    in Tokyo      Kernel density            Network analysis




    Sawanoya
     Ryokan




Keio Plaza
  Hotel
     Obtained basic classifications of tourists for design support
Project Rosetta                                                                                                        11
      (Research on Service Eng. for Tourists and Travel Agencies)
                                                          Design thinking
                           What tourists buy                                            What tourists make


                             Design support
                                                     Modularization                            Interactive tour
                           system of tour lineup                                Mass
(customers as subjects )




                                                      & synthesis




                                                                                                                  (customers as partners)
                                                                                              planning system
                                for experts




                                                                                                                    Participatory mindset
                                                                            Personalization
                                                                                                  for tourists
    Experts mindset




                                   Tour service modeling
                                with operational constraints
                                                               New design
                                                               methodology
                               Evaluation of                               Analysis of “designed by
                             tourist attractions                       tourists”: dynamics of customers
                                                                             expectation over time
                                                      Evaluation criteria
                                 Early studies          by analyzing            Survey of tourist activities
                                  on tourism           word-of-mouth               using GPS logger
                           How tourist attractions                                            How tourists
                           are evaluated                                                  cognize & behave
                                                 Analytical thinking
12
 Analysis of “designed by tourists”
   Dynamics of customer’s expectation on design target over time
                 When planning to visit Japan
        When planning to visit Japan             Right before visiting Japan
                                      Right before visiting Japan                During stay in Japan
                                                                      During stay in Japan
                                                        [%] 0   10   20   30   40    50    60    70
        Travel Experience            Japanese way of life
                     Communication/exchange with locals
             Sightseeing
                                           Culture, Events
             & hospitality           Japanese hospitality
             Services for                  Local guidance
             sightseeing                       Local tours
                                             Public transit
         Transit, shopping,                      Lodgings
         food, and lodgings                           Food
                                                 Shopping
                Tourist Theme parks, Zoos, Aquariums
                         Museums, Industrial sightseeing
              attractions
           Natural scenery, Appreciating the four seasons
            History, Traditional scenery, Temples/shrines
                             Downtown areas, Cityscapes

• Foreign tourists show higher variance of expectations than domestic tourists
• Adaptive planning supports according to temporal distance may be useful
Project Rosetta                                                                     13
(Research on Service Eng. for Tourists and Travel Agencies)
                                  Design thinking
    What tourists buy                                     What tourists make


      Design support         Modularization                      Interactive tour
                              & synthesis         Mass
   system of tour lineup                      Personalization
                                                                planning system
        for experts                                                for tourists




 Primary focus    Expert design                       Co-creative design
                  Consensus building
Secondary focus                                       Marketing tool
                  system
    Users         Travel agencies                     Free individual travelers
    Model         Detailed & multi-layered            Simple & intuitive
 Num. of tours    Multiple                            Single
14
Interactive tour planning system for tourists
   CT-Planner [Kurata 2010, 2011]
     High flexibility in personalizing travel plans
     Co-creating process to gradually capture both explicit and
      implicit needs of free individual travelers


                                               Travel period
                                               Five travel preferences

                                               Recommended plan
                                               under current conditions
15
Design support system of tour lineup for experts (1)
     Variation design / modular design in manufacturing industry
●Mass customization                ●Packaged tours and optional tours




Knowledge on       very poor                            Well
foreign tourists                                     understood

Packaged tours     standard                          customized


     Modules       no definition                      pre-defined

      Tourism      too many
     attractions                                       selected

                   (a) As is: current structure         (b) To be: mass customization
16
Design support system of tour lineup for experts (2)
       Designing and evaluating tour lineup on the computer
  1.Model current tours                  2. Select a change strategy                     3. Derive all possible tours
      The number of tours: 3               e.g.) resource consolidation                                 The number of tours:
                                                                                                             3 ×3 = 9

Place


Activity


Enabler                                               Cutting costs
                                                      by using same
                                                        resources


                               5. Evaluate tour line-ups                                  4. Configure tour line-ups
                                Customer                                                        New tour line-up α
                               satisfaction 150                                                     ツアーA
                                                                                                 New tour line-up β
   The best                                100                                                      ツアーB
                                                                                                      ツアーA
                                                                                                  New tour line-up γ
                                                                                                    ツアーC …
                                                                                                      ツアーB
 tour line-up                               50                      Higher customer                 New tour line-up δ
                                                                                                     ツアーC …
                                                                      satisfaction                         Tour A
                                Lowest       0
                                                  0    500000   1000000 1500000   Cost                     Tour B
                                 cost
                                                                                                          Tour C …
17
Conclusion
   Value co-creation b/w travel agency and tourists
   Eco-system of tourism, capturing the needs of both packaged
    tours and tour planning services (i.e., products and services)
   Engineering method and system for each approach


                             Value
                          co-creation



                  Design and       Customer
                  production       experience
18
Thank you for your attention
Acknowledgement
   This research is supported by Service Science, Solutions and Foundation
    Integrated Research Program, Research Institute of Science and Technology
    for Society (RISTEX), Japan Science and Technology Agency (JST).
       http://www.ristex.jp/servicescience/EN/index.html

Related papers
   T. Hara and T. Arai, Encourage non-designer's design: sustainable value
    creation in manufacturing products and services. CIRP Annals -
    Manufacturing Technology, Vol. 61/1, (ISSN 1660-2773) pp.171-174, 2012.
   T. Hara, K. Aoyama, Y. Kurata, and N. Yabe: Service Design in Tourism:
    Encouraging a cooperative relationship between professional design and
    non-professional design, Global Perspectives on Service Science - Japan
    Chapter, Springer (to be published in 2012).
Contacts
   hara_tatsu@race.u-tokyo.ac.jp

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20120725 "Value Co-creation in Tourism" in the 1st Conference on Human side of Service Engineering

  • 1. Value co-creation in tourism: Incorporating non-expert's design into expert's design activities 25th, July 2012 1st Conference on Human Side of Service Engineering The University of Tokyo Tatsunori HARA Satoshi SHIMADA Kazuhiro AOYAMA Tokyo Metropolitan University Yohei KURATA Naoto YABE Yoshiaki HOMPO
  • 2. In my Ph.D … 2 A CAD system for service innovation  Service offerings can be designed Design aids Creative design & imprvm. design as well as products by utilizing engineering design methods  Fully-designed services by provider Service Design operations Conflict detection & TRIZ cases Hara et al. “A CAD system for service innovation: integrated Design Service 1 representation of function, service activity, and product behavior”, wizard Service Journal of Eng. Design, 20/4, 2009. Outline cases Service Service 2 3 Modeling Design review & consensus bld. Analogical reasoning Evaluation Subjectivity & CS evaluation Persona A Persona B Persona C
  • 3. 3 Contents  Background  Toward a tourism-oriented nation “Japan”  Packaged tours and Free Individual Travels (FITs)  Challenges in the Project Rosetta  Proposed eco-system of tourism services  Research maps of the project Rosetta  Research elements  Survey of tourists activities using GPS logger  Two computerized systems for expert design and co-creative design  Analysis of “designed by non-expert’s”  Conclusion
  • 4. 4 Toward a tourism-oriented nation “Japan” <Goal> Num. of foreign tourists: 9 M  30 M until 2025 !!! JTB Corporation (The biggest travel agency in Japan)  has been sending many Japanese tourists abroad by designing packaged tours • Packaged tours  Free Individual Travels (FITs) • How to attract increasing foreign tourists while taking advantage of acquired skills on packaging tours? Value co-creation with FITs is indispensable
  • 5. 5 Packaged tour ≒ product designed by expert Processes Production by provider Production design g Concept Detail Part Marketing Assembly Installation Use Repair T Take-back k design g design g Mnfcrng. Quality Full design by expert control Stable use processes Structure Sales (2) Stable structure (1) Fully-designed through use processes structure of product (3) Measurement of Feed back customer satisfaction
  • 6. 6 Free individual travel ≒ co-creative service Processes Personalizing design Varied use by non-expert processes ≒ individual travel with tour planning service Attention Check-in Production Search Perceive g design Assembly Action Concept Detail Part Configu Reconfi R fi Marketing Assembly Installation Use Get-back G k g design design g Mnfcrng. -ration a o -guration Quality Arrange Configure Preparation design control Share Share by expert Structure (2) Customer defines personalized structure (1) Architecture and/or platform (3) Collecting design data, usage data, and CS
  • 7. 7 Proposed eco-system of tourism services More Mass production Mass Personalization customization Long tail Less Needs Free Individual Travelers Users of packaged tours Sales data A large amount CS data of itinerary data Prearranged Custom made Goods package tours Tour planning Service optional tours oriented service oriented Design support system Interactive tour planning of tour lineup for experts system for travelers Evaluation data of Classification Data of round trip Continuous tourist attractions data of tourists & duration of stay Continuous learning learning
  • 8. Project Rosetta 8 (Research on Service Eng. for Tourists and Travel Agencies) Design thinking What tourists buy What tourists make Design support Modularization Interactive tour system of tour lineup Mass (customers as subjects ) & synthesis (customers as partners) planning system for experts Participatory mindset Personalization for tourists Experts mindset Tour service modeling with operational constraints New design methodology Evaluation of Analysis of “designed by tourist attractions tourists”: dynamics of customers expectation over time Evaluation criteria Early studies by analyzing Survey of tourist activites on tourism word-of-mouth using GPS logger How tourist attractions How tourists are evaluated cognize & behave Analytical thinking
  • 9. Project Rosetta 9 (Research on Service Eng. for Tourists and Travel Agencies) Design thinking What tourists buy What tourists make Design support Modularization Interactive tour system of tour lineup Mass (customers as subjects ) & synthesis (customers as partners) planning system for experts Participatory mindset Personalization for tourists Experts mindset Tour service modeling with operational constraints New design methodology Evaluation of Analysis of “designed by tourist attractions tourists”: dynamics of customers expectation over time Evaluation criteria Early studies by analyzing Survey of tourist activities on tourism word-of-mouth using GPS logger How tourist attractions How tourists are evaluated cognize & behave Analytical thinking
  • 10. 10 Survey of FITs’ activities using GPS logger  Collected about 450 person-day data on tourists activities in Tokyo Kernel density Network analysis Sawanoya Ryokan Keio Plaza Hotel Obtained basic classifications of tourists for design support
  • 11. Project Rosetta 11 (Research on Service Eng. for Tourists and Travel Agencies) Design thinking What tourists buy What tourists make Design support Modularization Interactive tour system of tour lineup Mass (customers as subjects ) & synthesis (customers as partners) planning system for experts Participatory mindset Personalization for tourists Experts mindset Tour service modeling with operational constraints New design methodology Evaluation of Analysis of “designed by tourist attractions tourists”: dynamics of customers expectation over time Evaluation criteria Early studies by analyzing Survey of tourist activities on tourism word-of-mouth using GPS logger How tourist attractions How tourists are evaluated cognize & behave Analytical thinking
  • 12. 12 Analysis of “designed by tourists”  Dynamics of customer’s expectation on design target over time When planning to visit Japan When planning to visit Japan Right before visiting Japan Right before visiting Japan During stay in Japan During stay in Japan [%] 0 10 20 30 40 50 60 70 Travel Experience Japanese way of life Communication/exchange with locals Sightseeing Culture, Events & hospitality Japanese hospitality Services for Local guidance sightseeing Local tours Public transit Transit, shopping, Lodgings food, and lodgings Food Shopping Tourist Theme parks, Zoos, Aquariums Museums, Industrial sightseeing attractions Natural scenery, Appreciating the four seasons History, Traditional scenery, Temples/shrines Downtown areas, Cityscapes • Foreign tourists show higher variance of expectations than domestic tourists • Adaptive planning supports according to temporal distance may be useful
  • 13. Project Rosetta 13 (Research on Service Eng. for Tourists and Travel Agencies) Design thinking What tourists buy What tourists make Design support Modularization Interactive tour & synthesis Mass system of tour lineup Personalization planning system for experts for tourists Primary focus Expert design Co-creative design Consensus building Secondary focus Marketing tool system Users Travel agencies Free individual travelers Model Detailed & multi-layered Simple & intuitive Num. of tours Multiple Single
  • 14. 14 Interactive tour planning system for tourists  CT-Planner [Kurata 2010, 2011]  High flexibility in personalizing travel plans  Co-creating process to gradually capture both explicit and implicit needs of free individual travelers Travel period Five travel preferences Recommended plan under current conditions
  • 15. 15 Design support system of tour lineup for experts (1)  Variation design / modular design in manufacturing industry ●Mass customization ●Packaged tours and optional tours Knowledge on very poor Well foreign tourists understood Packaged tours standard customized Modules no definition pre-defined Tourism too many attractions selected (a) As is: current structure (b) To be: mass customization
  • 16. 16 Design support system of tour lineup for experts (2)  Designing and evaluating tour lineup on the computer 1.Model current tours 2. Select a change strategy 3. Derive all possible tours The number of tours: 3 e.g.) resource consolidation The number of tours: 3 ×3 = 9 Place Activity Enabler Cutting costs by using same resources 5. Evaluate tour line-ups 4. Configure tour line-ups Customer New tour line-up α satisfaction 150 ツアーA New tour line-up β The best 100 ツアーB ツアーA New tour line-up γ ツアーC … ツアーB tour line-up 50 Higher customer New tour line-up δ ツアーC … satisfaction Tour A Lowest 0 0 500000 1000000 1500000 Cost Tour B cost Tour C …
  • 17. 17 Conclusion  Value co-creation b/w travel agency and tourists  Eco-system of tourism, capturing the needs of both packaged tours and tour planning services (i.e., products and services)  Engineering method and system for each approach Value co-creation Design and Customer production experience
  • 18. 18 Thank you for your attention Acknowledgement  This research is supported by Service Science, Solutions and Foundation Integrated Research Program, Research Institute of Science and Technology for Society (RISTEX), Japan Science and Technology Agency (JST).  http://www.ristex.jp/servicescience/EN/index.html Related papers  T. Hara and T. Arai, Encourage non-designer's design: sustainable value creation in manufacturing products and services. CIRP Annals - Manufacturing Technology, Vol. 61/1, (ISSN 1660-2773) pp.171-174, 2012.  T. Hara, K. Aoyama, Y. Kurata, and N. Yabe: Service Design in Tourism: Encouraging a cooperative relationship between professional design and non-professional design, Global Perspectives on Service Science - Japan Chapter, Springer (to be published in 2012). Contacts  hara_tatsu@race.u-tokyo.ac.jp