**1. Introduction**

Wearable technology is one of the megatrends. One of its branches is the digital smart jewelry (later in text 'smart jewelry') that are esthetic and jewel-like smart electronic devices, which provide different kinds of value for their user. The smart jewelry is a new product group without an established market. Therefore, the uncertainty in demand is very high. Smart jewels are already on the market, but the sales volume is still modest. Why do not people buy smart

© 2016 The Author(s). Licensee InTech. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. © 2018 The Author(s). Licensee InTech. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

jewelry? What people think the jewelry that contains technology? On the other hand, because of the current movement toward digitalization is everywhere, it may be only a matter of time before digital technology will emerge in jewelry. The aim of this study is to find out whether the smart jewelry has the potential to break through widely and even revolutionize the jewelry industry. In order to reach a holistic view to research problem, the study seeks answers to the following questions:

The objectives and problems of an action research are formulated together with researchers and practitioners. Often, it is somewhat difficult to determine what a customer needs for results. The customer may also be unknown when the research is executed. The purpose of this research was not to influence a specific company but rather to provide with information on the potential of smart jewelry to inspire and prompt some companies to develop smart jewelry in the future. The research was positioned in the first phase of market design, the mental model design such as market definitions for smart jewelry. The action researchers

Digital Smart Jewelry: Next Revolution of Jewelry Industry?

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Reflection is an essential part of action research. It is defined as a conscious, systematic, and critical assessment of events, with the aim to learn something new. It is a matter of distancing oneself from the phenomenon under consideration–by watching it from the outside. Action

The study was conducted as an action research of two researchers. Adapting the above pro-

**1.** Definition of problem: What is the business potential of the smart jewelry. Research questions were set based on uncertainties – in other words, what information is needed to

**2.** State of art: Preliminary understanding about the uncertainty of innovation, user-centered

**3.** Planning: Interventions were recognized and planned to create new knowledge on re-

**4.** Action. Part 1: Hundreds of different smart jewels were brainstormed by potential and nonpotential users, after which the best 30 ideas were conceptualized. Prototypes were designed and manufactured for six different smart jewelry groups. Part 2: Implementation of interventions to get feedback from potential and nonpotential smart jewelry users. **5.** Gathering data: Prototypes, surveys, trial runs, design probes, observation, interviews, conceptualizing workshops, and storytelling were used as methods to gather user data. **6.** Reflection: The action researchers conducted a critical reflection of the user data and cre-

were in the role of an activist by encouraging companies to move forward.

**2.** State of art: what is already known about the problem or solutions

**5.** Gathering data from interventions; for example by observing **6.** Reflection: Assessment of interventions; what was learned [1–4]

innovation, user-study methods, and smart jewelry was created.

ated understanding how people relate to smart jewelry.

research proceeds as follows:

**4.** Action: Doing interventions

**1.** Definition of problem or setting of goals

**3.** Planning of study and interventions

cess, this study proceeded as follows:

understand the business potential.

search questions.


Therefore, the objective was to create new information on demand and thus reduce uncertainty in demand. It was important to understand what potential and nonpotential users think of smart jewelry. Nonpotential users were defined as a group that does not use even traditional jewelry. Uncertainty of innovation, user-centered innovation, and user-study methods were utilized as theoretical themes. Users were participated in innovation in different ways, and user data was collected with various user-study methods. The smart jewelry was divided into two product groups: the LED technology-based light jewelry and the functional jewelry that can contain different kinds of technologies. Jewels in the light jewelry group do not create functional value for their users, but esthetic, status, emotional, and symbolic value. Three different kinds of smart jewel prototypes were manufactured for both the product groups to obtain user feedback concerning five questions presented above. The light jewelry prototypes included light jewelry for consumers, light jewelry for pets, and effect jewelry for a movie and its fans. The functional jewelry prototypes included bola jewelry, lifesaving jewelry, and access control key jewelry.

Next section presents the methodology of the study, after which Section 3 focuses theoretically on uncertainty of innovation, user-centered innovation, and user-study methods. Section 4 presents the action research and its results, and the article ends with conclusions.
