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REPORT 2/20201 EVALUATION OF PROGRAMS FOR CUSTOMER EXPERIENCE, CREATIVE INDUSTRIES, AND HUMAN-CENTRIC BUSINESS EVALUATION REPORT Olli Oosi, Katri Haila, Mikko Valtakari, Juha Eskelinen, Veera Mustonen, Antti Pitkänen, Rama Gheerawo 2 owalgroup The authors: Olli Oosi, Katri Haila, (Owal Group Oy) Mikko Valtakari, Veera Mustonen (MDI) Juha Eskelinen, Antti Pitkänen, Rama Gheerawo Copyright Business Finland 2020. All rights reserved. This publication includes materials protected under copyright law, the copyright for which is held by Business Finland or a third party. The materials appearing in publications may not be used for commercial purposes. The contents of publications are the opinion of the writers and do not represent the official position of Business Finland. Business Finland bears no responsibility for any possible damages arising from their use. The original source must be mentioned when quoting from the materials. ISBN 978-952-457-654-3 ISSN 1797-7347 Cover photo: AdobeStock Graphic design: Maria Singh Page layout: DTPage Oy 3 CONTENTS Foreword ...........................................................................................4 4 Findings from Liideri (2012–2018) ......................................37 1 Introduction ..............................................................................5 4.1 Program implementation..........................................................37 4.2 Concrete results of the programs .............................................39 2 Evaluated programs in context ................................................7 4.3 Impact of the program .............................................................45 2.1 Descriptions of the four evaluated programs .............................7 2.2 Methods of the evaluation ..........................................................9 5 Findings from Luovimo (2010–2016) ..................................52 2.3 Operative environment during program implementation ........18 5.1 Program implementation..........................................................52 2.3.1 Major influencing factors of sectors relevant to 5.2 Concrete results of the programs .............................................54 the programs ..................................................................18 5.3 Impact of the program .............................................................57 2.3.2 Creative economy as a resource for global 6 Findings from Lifestyle (2015–2018)...................................59 competitiveness ..............................................................19 6.1 Program implementation..........................................................59 2.3.3 Platform economy enabling systemic change ................20 6.2 Concrete results of the programs ............................................. 61 2.3.4 Virtual reality as an emerging trend in experience 6.3 Impact of the program .............................................................62 economy / intangible value creation .............................. 21 7 Cross-cutting themes and conclusions................................. 66 2.3.5 The Shift from the Experience Economy to the Transformation Economy .........................................22 7.1 Summary of key results and impacts ...................................... 66 2.3.6 The Rise of The Intelligence Economy ...........................23 7.2 Learnings from program implementation ................................68 2.4 Comparing programs in international perspective ...................24 7.3 Lessons for future in planning actions to support creative industries, consumer business, customer experience, 3 Findings from Feelings (2012–2018)...................................25 and new value creation? .......................................................... 70 3.1 Program implementation..........................................................25 Sources ........................................................................................75 3.2 Concrete results of the programs .............................................29 Appendix 1. Benchmarking report: United Kingdom ....................76 3.3 Impact of the program .............................................................32 Appendix 2. Benchmarking report: Netherlands .......................... 88 4 FOREWORD Intangible value creation and non-technical, human-cen- Regarding the four evaluated programs, one also needs tric business innovations have gained increasing im- to understand that they were executed by organizations portance over recent years as the proportion of service that were different in their goals compared to the current sector in GDP has kept on growing. Business Finland Business Finland, and reflected each their time. Tekes with its preceding organizations Tekes and Finpro have was funding R&D&I projects whereas Finpro was pro- contributed to the area with the four programs that have viding services and not funding. Accordingly, Feelings been evaluated at this report. The “Liideri” (2012–2018), and Liideri were wide-scale programs whereas Luovimo “Feelings” (2012–2018), “Luovimo” (2010–2016), and and Lifestyle were targeted smaller-scale programs. Fur- “Lifestyle” (2015–2018) programs have been among thermore, Finpro was a registered association before forerunners at Tekes and Finpro for promoting hu- its transformation into a government-owned company, man-centric businesses and intangible value creation. whereas Tekes was a governmental agency before the Overall, these programs have served as awareness rais- latest merger. All this adds complexity to goal setting ers of the importance of non-technological innovation and execution and thence to the evaluation of each of within their respective business sectors. Lifestyle pro- the programs, which the evaluators handled well. This gram supported the exports and international growth of study was carried out by Owal Group as the lead con- Finnish design and fashion SMEs. Liideri was a program sultancy, together with MDI. Business Finland wishes to for development of work methods, such as shared lead- thank the evaluators for their thorough approach and ership, networked and fragmented work, and innovative expresses its gratitude to steering group and all others utilization of ICT. Feelings was helping companies un- that have contributed to the evaluation. derstand the value of customer experience as a driving force of business development. Luovimo had the goal of Helsinki, May 2020 developing creative sector, targeting e.g. design, mov- ies, television, performing arts and content creation. Business Finland 5 1 INTRODUCTION Intangible value creation has become increasingly im- has become an integral part of the innovation process as portant. Intangibility can be realized as a service such well as a problem-solving tool. Design is an integrating as digital service, as an instrument for more efficient function, enabling collaboration between multiple disci- operations, and as a product property. Business Finland plines and departments. Furthermore, the evaluation of has contributed to the building of intangible capital for Liito, Serve, and Muoto emphasized that the success and companies by supporting the development of intangible sustainability of the projects in non-technological pro- value creation. The “Liideri” (2012–2018), “Feelings” grams depended more on key personnel, such as project (2012–2018), “Luovimo” (2010–2016), and “Lifestyle” leaders or partners, than they did in technological proj- (2015–2018) programs have been among the forerun- ects. ners at Tekes and Finpro for promoting human-centric According to the evaluation of Working Life 20202, businesses and intangible value creation (see chapter 2). one of the key achievements of the Liideri program was Previously, the non-technological programs of Tekes, attracting a large group of actors with diverse back- i.e., Liito, Serve, and Muoto, were evaluated in 2016.1 The grounds into the project networks. The project succeed- evaluation showed that the contexts of the programs ed in taking into account the changes in the operating have changed remarkably during the 2000s. The propor- environment. The actions appropriate to each stage of tion of service sector in GDP has grown while the propor- the lifecycle were implemented. tion of industries has decreased in the 2000s. Design 1 Oosi et al. 2016. Tekes Report 2/2016. 2 Valtakari, M. & Nyman, J. 2019. Työ- ja elinkeinoministeriön julkaisuja 2019:33. 6 The present evaluation aimed to produce both a qual- 7. What are the lessons learned for planning actions or itative and a quantitative analysis of “Liideri” (2012– programs in Business Finland to support creative in- 2018) and “Feelings” (2013–2018) programs of former dustries, consumer business, customer experience, Tekes, and “Luovimo” (2010–2016) and “Lifestyle” and new value creation? (2015–2018) programs of former Finpro. The evalua- tion questions were as follows: It should be noted that the four evaluated programs were 1. What concrete results have the programs created, originally implemented in different organizations. Their how well have the objectives set for the programs implementation logics, described under each chapter, been achieved, what impacts have they had, and how are vastly different. Feelings and Liideri are wide-scale relevant, efficient, and effective have the programs programs with a wider scale of actions. Luovimo and been? Lifestyle are smaller-scale targeted programs, which 2. How has each of the programs contributed to

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