Emotional Experience; Value Creation; Value-Based Competition; Framework
한국경영공학회지, v. 21, No. 4, Page. 115-137
The Korean economy recently suffers from the prolonged decline of exports. One of the fundamental causes is due to failure of adjusting to the shifting strategy paradigm in global markets, thereby missing a golden opportunity. It has been argued that selling value is more important than selling simply products or services. With the fourth industrial revolution currently underway, such value concept is also expanding to include connected services enabled by information technology. The emphasis is now on the customer experience of the product, or the service that companies provide. However, designing customer experience is a complicated, subtle, and thus difficult problem. This is due to the emotional aspects of customer experience called emotional experience (EX). Nonetheless, the value created by EX is more critical in business success as artificial intelligence (AI) becomes more widely applied. EX will open new opportunities in humanizing technology, providing products and services with an emotional resonance which AI cannot replace. In order to survive and lead the global markets, Korean companies must transform their strategies to include the creation of EX-driven values; to predict, design, evaluate, and adapt EX in a closed-loop value creation cycle. This paper suggests an EX-based value creation framework for Korean companies in order to lead the value-based competition caused by the fourth industrial revolution. A case study is provided to help understand and employ this framework.