FROM DIGITAL ARCHIVES TO E-BUSINESS
A Case Study on Turning “Art” into “Business”
Rungtai Lin and Chih-Long Lin
Graduate School of Creative Industry Design, National Taiwan University of Arts, Taichung County, Taiwan
Keywords: e-Business, Digital archive, Cross cultural product design, Cultural difference.
Abstract: Along with Information Technology progress, E-business is becoming a key concept in the Internet and
electronic commerce world. However, in today’s intensely competitive business climate, innovative
products become central to E-business development. Furthermore, changes in consumer perceptions
regarding innovation are also important in E-business. Recently, creative industries are continually
emerging in electronic commerce and have the potential to become a key trend in E-business.
Understanding the E-business models for creative industries and helping designers to design “culture” into
products are important research issues, and issues not yet well covered. Therefore, this paper proposes an
ABCDE approach to illustrate how to transform “Archive” into “E-business”. In order to turn “Archive”
into “Business”, we first need “Creativity” and “Design”; only then can we transform innovative products
into “E-business.” Results presented herein create an interface for looking at the way E-business crosses
over cultures, and illustrate the interwoven experience of E-business and cultural creativity in the innovation
design process and electronic commerce world.
1 INTRODUCTION
Along with the progress of Information Technology,
E-business has become a common concept in the
Internet and electronic commerce world. However,
in today’s intensely competitive business climate,
innovative products become central in E-business
development (Amit & Zott, 2001; Ben Lagha,
Osterwalder & Pigneyr, 2001). To be successful,
innovative products must have a clear and
significant difference that is related to a market
place need. Furthermore, changes in consumer
perceptions regarding innovation are also important
in E-business. In addition, “Culture” plays an
important role in the design field, and “cross cultural
design” will be a key design evaluation point in the
future (Lin, 2007; Lin et al., 2007). Designing
“culture” into modern product will be a design trend
in the global market. E-business is considered to be
one of the pivotal components in cultural and
creative design industries, and this will have a
significant impact on consumer perception of
innovation.
In the global market - local design era,
connections between culture and E-business have
become increasingly close. For E-business, cultural
value-adding creates the core of product value. It’s
the same for culture; E-business is the motivation for
pushing the development of cultural and creative
industries forward. Recently, creative industries
have been continually emerging in electronic
commerce and can become a key trend in E-business.
Obviously, we need a better understanding of E-
business in cultural and creative design industries,
and 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 E-business and creative
industries becomes a key issue making both local
design and the global market worthy of further in-
depth study (Dubosson, Osterwalder & Pigneyr,
2002; Osterwalder & Pigneyr, 2002)..
The importance of studying E-business has been
shown repeatedly in several studies in various areas
of the design field (Amit & Zott, 2001; Ben Lagha,
Osterwalder & Pigneyr, 2001). Despite the
recognized importance of E-business in cultural and
creative design industries, industries lack a
systematic approach to E-business. Understanding
the E-business models for creative industries and
turning “arts” into “business” for designers are
important research issues, and until now these topics
47
Lin R. and Lin C. (2010).
FROM DIGITAL ARCHIVES TO E-BUSINESS - A Case Study on Turning “Art” into “Business”.
In Proceedings of the International Conference on e-Business, pages 47-54
DOI: 10.5220/0002928200470054
Copyright
c
 SciTePress

have not been well covered. In order to transform
“Archive” into “Business”, we first need
“Creativity” and “Design”, only then can results be
transformed into “E-business.” (Ko et al., 2009).
Therefore, this paper proposes an ABCDE approach
for illustrating how to transform “Archive” into “E-
business”. The ABCDE approach integrates the
difference between products and services of cultural
and creative design industries into the E-business
activities of current service development practice.
The ABCDE model provided illustrates how the
National Taiwan University of Arts (NTUA) has
established a link between E-business and cultural
and creative industries through Our Museum, Our
Studio and Our Factory respectively. Through the E-
business approach, we have been able to merge
design, culture, creativities and economy. The
approach also further illustrates some other
implications of the approach through the cultural
perspective. Results presented herein create an
interface for looking at the way E-business crosses
over cultures, and illustrates the interwoven
experience of E-business and cultural creativity in
the innovation design process and electronic
commerce world.
2 FROM OEM TO OBM
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 1 (Lin et al., 2007).

Design for Innovation
OEM
ODM
OBM
Designing
Marketing
Branding
R & D
Manufacturing
Value-added By Design
Product
Standard
Product
Identity
Product
System
Product
Personality
Product
Integrity
Design for manufacturing Design for Service
Desi
g
n T
yp
es
Service Innovation Design & e Business Model
Innovation Design Business Model
Figure 1: From OEM to OBM in e Business.
Before 1980, OEM vendors in Taiwan reduced
costs to produce “cheap, high quality” products as a
strategy to become 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 the environment
could not nurture design talents (Lin, 2007; Lin et al.,
2007).
After 1980, Taiwan enterprises began to develop
ODM 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. Starting from 1989, the
industry Bureau pushed the “Plan for Total
Upgrading of Industrial Design Capability” over
three consecutive five-year plans. The scheme
established working models by experienced design
scholars and students from universities for the
purpose of working on design. The design students
worked with the enterprises on specific projects to
set up a working pattern of industrial design based
on enterprises’ real needs (Lin, 2007;Lin et al.,
2007). Recently, product design in Taiwan has
stepped into the OBM 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 (Lin, 2007; Lin et al., 2007).
There has been a recent shift from technological
innovation to E-business 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 trend, most companies gradually realized
that the keys to product innovation are not only
aspects of market and technology but also service
innovation design (Baxter, 1995; Zhang et al., 2003).
Ulrich and Pearson (1998) point out that service
design has received increased attention in the
academic and business communities over the past
ICE-B 2010 - International Conference on e-Business
48

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, and
functional performance (Gemser & Leenders, 2001).
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. While E-business is under tough
competitive pressure from the developing global
market, it seems that the local design should be
focused on E-business in order to adapt innovation
to product design (Gregoire & Schmitt, 2006).
3 CONCEPTUAL FRAMEWORK
After reviewing the development of Taiwan’s
industrial design, it is clear that E-business is the
force pushing cultural and creative industries
development forward. The main purpose of this
paper is to study factors affecting the E-business
model. These factors are discussed in order to
understand E-business in cultural and creative
design industries. Then, a conceptual framework is
proposed for defining, classifying, assessing, and
modeling the E-business model for the cultural and
creative industries.
 
Cultural Objects
Design Information
Design Elements Creative Product
Identification
Translation Implementation
Investigation
Set a Scenario
Interaction
Tell a Story
Development
Write a Script
Implement
Design a Product
Cultural features Cultural productsDesign model
Conceptual Model
Digital Archive
Design Process
Information Value-Added Knowledge Value-Added Creativity Value-Added
Digital Archive Database
Design Knowledgebase
E-Learning
CAI System
Creative Product Design
CAD System
DesignerLearning Designing
Figure 2: The conceptual framework .
The conceptual framework in Figure 2 consists
of three main phases; conceptual model, digital
archive method, and design process. The conceptual
model focuses on how to extract cultural features
from cultural objects and then transfer these features
to the design model. The digital archive method
consists of three phases; identification (extract
cultural features from original cultural objects),
translation (transfer them to design information and
design elements) and implementation in the final
design of a cultural product (Lin, 2007; Lin et al.,
2009).
3.1 Conceptual Model
The conceptual model is shown in the top of Figure
2 and includes three stages: identifying cultural
features, building the design model and designing
cultural products. To accomplish the goal, there are
four steps including: selecting cultural objects,
transforming design information, extracting design
elements, and designing creative design products.
Then, implementation of the goal is broken into
three phases: identification, translation and
implementation which are described as follows (Lin,
2007; Lin et al., 2009):
Identification phase: the cultural features are
identified from original cultural objects including
the outer level of colors, texture, and pattern, the
mid level of function, usability, and safety (
Holzinger,
2005)
, and the inner level of emotion, cultural
meaning, and stories
(Heimgärtner, Holzinger & Adams,
2008). The designer uses the scientific method and
other methods of inquiry and hence is able to obtain,
evaluate, and utilize design information from the
cultural objects.
Translation phase: the translation phase
translates the design information to design
knowledge within a chosen cultural object. The
designer achieves some depth and experience of
practice in these design features and at the same time
is able to relate this design knowledge to design
problems in modern society. This produces an
appreciation for the interaction between culture,
technology, and society.
Implementation phase: the implementation phase
expresses the design knowledge associated with the
cultural features, the meaning of culture, an aesthetic
sensibility, and the flexibility to adapt to various
designs. At this time, the designer gains knowledge
of cultural objects and an understanding of the
spectrum of culture and value related to the cultural
object. The designer combines this knowledge with
his strong sense of design to deal with design issues
and to employ all of the cultural features in
designing a cultural product.
3.2 Digital Archives Database
How to build a digital archive database is shown in
the middle of Figure 2 and includes information
value-added, knowledge value-added, and creativity
value-added. The application of cultural features is a
FROM DIGITAL ARCHIVES TO E-BUSINESS - A Case Study on Turning "Art" into "Business"
49

powerful and meaningful approach to product
design. Consumers nowadays require a design which
is not only functional and ergonomic, but which also
stimulates emotional pleasure. Lin (2007) took a
cultural object called the Linnak as the example to
build a digital archive database for learning culture
through the internet and e-learning environment. The
data collected after studying its appearance,
usability, and cultural meaning is shown in Table 1.
A design-related format was used to match the
different items based on tribe, name of object, type,
image, material, color, appearance, usability, pattern,
form grammar, form structure, form style, inner
content, and original resource. These items covered
three levels of cultural characteristics and basic
information such as imagery icon, tribe, and name.
We propose that this information will serve as a
reference for designers during the product design
phase (2005; Hsu, 2004; Lin, Cheng & Sun, 2007).
Table 1: The format of the cultural features of Linnak.
1. The long- hooded pit viper or ancient figure pattern on the cup enhances the value of cup.
2. The twin-cup was mostly used in festival ceremonies to demonstrate a warm and harmonious spirit.
3. To drink with the twin cup represented the commitment in love between a male and female.
4. Drinking together represents eternal friendship.
Cultural
content
1. Single cup is created only for the chief to drink liquid in the Paiwan tribe. Sometimes it was used to
contain rice alcohol and to reward a hunting hero for demonstrating valor.
2. The twin -cup was created for use in wedding ceremonies where the bride and groom were required to
drink alcohol together.
3. The Tri-cup was created for the groom and bride and chief (a witness), who stands between groom and
bride to drink alcohol together which represents the greatest honor and wish for the couple.
Using
Scenario
Two drinkers are required to hold the handles with left and right hand on each when drinking alcohol.
Operation
Twin-cup, Single-cup and Tri-cup.
Classification
1. Embossment on handles with a variety of patterns.
2. Total length from 43cm to 91cm, pitch from 29cm to 42cm, and cup capacity from 300 to 600c.c.
3. Single cup with a rectangular column shape and handle on both sides.
4.The Linnak contains two rectangular cups, a beam bridge in between and a handle on both sides.
Principle of
formation
Figure, human-head, long-hooded pit viper pattern, Deer pattern
Pattern
Natural wood color or painting with colors
Color
Wood
Material
Picture
Paiwan, Rukai
Tribe
Drinking container
Type
Linnak or twin cup
Object
Figure 3: Process of building the database.
According to Table 1, a digital archive database
was built to help to understand both the hard and
soft contents of the cultural object. A process of
building a digital archive database included six steps
(Figure 3): (1) select the cultural object, (2) deal
with the image, (3) collect the information, (4)
transfer the information to design knowledge, (5)
format the related information, and (6) build the
database. In addition, a friendly interface was
provided to the designer for accessing the database
easily as shown in Figure 4 and 5 (Hsu, 2004; Lin,
Cheng & Sun, 2007).
Figure 4: Interface of the database.
Figure 5: Interface for referring the pattern.
3.3 Design Process
Based on the cultural product design model, the
cultural product is designed using scenario and
story-telling approaches. In a practical design
process, four steps are used to design a cultural
product: investigation (set a scenario), interaction
(tell a story), development (write a script), and
implementation (design a product) as shown in the
bottom of Figure 2 (Hekkert, 2003; Leong & Clark,
2003).
The four steps of the cultural product design
process are described as follows:
Step 1 / Investigation / Set a scenario: The first
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50

step is to find the key cultural features in the original
cultural object and to set a scenario to fit the three
levels: the outer ‘tangible’ level, the mid ‘behavioral’
level, and the inner ‘intangible’ level. Based on the
cultural features, the scenario should consider the
overall environment such as economic issues, social
culture, and technology applications. This step seeks
to analyze the cultural features in order to determine
the key cultural features to represent the product.
Step 2 / Interaction / Tell a story: Based on the
previous scenario, this step focuses on a user-based
observation to explore the social cultural
environment in order to define a product with
cultural meaning and style derived from the original
cultural object. Therefore, some interactions should
be explored in this step, including interaction
between culture and technology, dialogue between
users and designers, and understanding the user’s
needs and cultural environment. According to the
interaction, a user-centered approach is used to
describe the user need and the features of the
product by story-telling.
Step 3 / Development / Write a script: This step
addresses concept development and design
realization. The purpose of this step is to develop an
idea sketch in text and pictograph form based on the
developed scenario and story. During this step, the
scenario and story might require modification in
order to transform the cultural meaning into a
logically sound cultural product. This step provides
a means to confirm or clarify the reason why a
consumer needs the product and rationale of how to
design the product to fulfill the users’ needs.
Step 4 / Implementation / Design a product: This
step deals with previously identified cultural features
and the context of the cultural products. At this point,
all cultural features should be listed in a matrix table
which will help designers check the cultural features
in the design process. In addition, the designer needs
to evaluate the product features, product meaning,
and the appropriateness of the product. The designer
may make changes to the prototype based on results
from the evaluation, and implement the prototype
and conduct further evaluations.
Based on the cultural product design model,
Figure 6 shows how to transfer the original object --
‘Pottery-pot’ from the Paiwan tribe into a design for
a modern bag. Different cultures use textile
containers designed for their own storage and
transportation needs. Unlike bags or containers made
from rigid materials such as clay or glass, textile
containers offer flexibility of use by adapting to
whatever item they are carrying. they also have the
great advantages of being non-breakable and easy to
store. Figure 7 shows how to use the Taiwan
aboriginal garments as the original cultural objects
to design modern bags. In addition, Figure 8
demonstrates the cultural features extracted from
Taiwan aboriginal garment culture and then
transformed into modern bag design.
Figure 6: The modern bag designed from a pottery pot.
Figure 7: The process of designing modern bags from
cultural objects.
Figure 8: Various bags from the Taiwan aboriginal
garment culture.
4 E-BUSINESS MODEL
After explaining why business executives and
academics should consider a rigorous approach to E-
business models, we introduce a new E-business
FROM DIGITAL ARCHIVES TO E-BUSINESS - A Case Study on Turning "Art" into "Business"
51

Model for the cultural and creative industries. The
new model is called “ABCDE Plan” which shows
that to turn “Art” into “Business”, we need
“Creativity” and “Design”, which allows the creative
products to be transformed into “E-business” as
shown in Figure 9.
OUR MUSEUM
OUR STUDIO
OUR FACTORY
Crafts
Innovation
BusinessDesign Service
Designing Marketing BrandingR & D
Manufacturing
Information
Intelligence
Innovation
Culture
Difference
Cultural
Features
Creative
Products
Value-added By Design
Design Types
Our Museum
NTUA Art Museum
Our Studio
NTUA Design Studio
Our Factory
NTUA Idea Factory
Innovation
E-Business
Art
Business
Design
Creativity
E - Business
Figure 9: The concept of e-Business model.
To implement the ABCDE plan, 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. At the same time the museum would
present 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. Therefore, a
design studio, known as “Our Studio”, was
subsequently set up in the College of Design in
NTUA with the purpose of 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
the 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 has 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 (Roy & Riedel, 1976;
Stevens, Burley & Divine, 1999).
With the 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 based 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 10 (Ko et al., 2009; Lin et al., 2009).
OUR MUSEUM
OUR STUDIO
OUR FACTORY
Crafts
Innovation
BusinessDesign Service
Designing Marketing BrandingR & D
Manufacturing
Information
Intelligence
Innovation
Culture
Difference
Cultural
Features
Creative
Products
Value-added By Design
Design Types
Our Museum
NTUA Art Museum
Our Studio
NTUA Design Studio
Our Factory
NTUA Idea Factory
Innovation
E-Business
Figure 10: e-Business for creative industries.
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
design 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 (Ravasi & Lojacono, 2005).
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,
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52

can one makes one’s way in this field (Yair et al.,
1999, 2001;Veryzer, 1998; Voss & Zomerdijk,
2007).
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 associated with 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
(Ko et al., 2009; Lin et al., 2009).
The current development of the Cultural Creative
Park at NTUA is based on creative knowledge of
crafts elements and materials from Our Museum and
Our Studio. This cultural information is then
transferred into the creative industry. In the near
future, we will further implement this distinctive
mode of cultural creative production to promote the
concept of “Savoring Culture” which has the
potential to become a “Taiwan industry concept”.
We are encouraging more and more creative
products which contain colourful 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 the
creative industry (Lin et al., 2009).
5 CONCLUSIONS
With increasing global competition, E-business in
service innovation design is not merely desirable for
a company; it is a necessity. The importance of
studying E-business as part of service innovation
design has been shown repeatedly. However, there is
no systematic approach that covers E-business in
cultural and creative design industries. Therefore, a
new approach was proposed by applying E-business
in service innovation design in the domain of
cultural and creative design industries. The E-
business in 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. This is turn will
synthesize technology, humanity, cultural
creativities. Finally, we will achieve the aim of
promoting service design amongst the general
public.
For future studies, we need a better understanding
of the acculturation process not only for the E-
business in 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 E-business in
cultural and creative industries can be further
enhanced. This can be done by incorporating more
information of best practice in service industries into
E-business in cultural and creative design industries.
ACKNOWLEDGEMENTS
This paper based on the author’s recent paper (Lin,
2007, 2009). I gratefully acknowledge the support
for this research provided by the National Science
Council under Grant No. NSC-98-2410-H-144-009,
and NSC-98-2410-H-144-010. The author wishes to
thank the various students who have designed the
products presented in this paper, especially, C.H.
Hsu, H. Cheng, M.X. Sun, E.T., Kuo, and colleagues
who have contributed to this study over the years,
specially, Dr. J. G. Kreifeldt and Mr. T.U. Wu.
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