ISSN 0798 1015

Vol. 39 (# 07) Year 2018. Page 4

A process innovation based on activities, types and characteristics

Un proceso de innovación basado en actividades, tipos y características

Vanessa Paola PERTUZ Peralta 1; Adith Bismarck PÉREZ Orozco 2; Neida Coromoto BOSCAN Romero 3

Received: 12/10/2017 • Approved: 04/11/2017

Content

1. Introduction

2. Methodology

3. Results

4. Conclusions

Bibliographic references

1. Introduction

The innovation in services refers to a new or considerable change in the concepts of services or supply processes, which it add value to the customer because they provide novel methods for solving problems (Tidd, 2003). Tacsir (2011) argues that innovation in services is a continuous, widespread and collaborative activity. The innovation changes products and processes inside the companies, while they develope working modalities, that do not necessarily rely on activities of research and development (R & D) (p.10).

Similarly, Küpper (2001) defines innovation in services as the result of a change process and as the process itself, with products characterized by a high degree of immateriality, the need for synchronized contact between supplier and consumer; and high need for personal input. According to the Oslo Manual of the Organization for Economic Co-operation and Development and the Statistical Office of the European Communities (OECD and Eurostat, 2005) corresponds to "a generally continuous process consisting of a series of modifications progressively introduced into products and processes "(P.48).

Innovation in services is the process of systematically implementing new services, or improvements in the aspects associated with their delivery, reflected in products, processes, market or organization. This process is directed to the generation of added value, in order to satisfy the expectations of the stakeholders and the strengthening of the capacities to improve the competitive position of the organization. On the other hand, one of the peculiarities of innovation in services is "the distinction between products and processes is often unclear, because production and consumption occur simultaneously". (OECD and Eurostat, 2005, p.47). although, "in service companies, R & D is not always organized as formally as in manufacturing firms" (OECD, 2003, p.51).

"The dynamics of innovation are not homogeneous in the various services, considering that some are more knowledge intensive, with greater investment in R & D, and higher levels of qualification of the labor force "(Garrido, 2009, p.8). In the innovative activity of small and medium-sized service enterprises, "it is of the utmost importance to interact efficiently with other R & D companies and public research establishments, in the exchange of knowledge and in marketing activities" (OECD and Eurostat, 2005, p.48).

1.1. Theoretical framework

This section presents the literature review related to innovation in services, specifically the activities associated with the innovative process, types and characteristics.

1.1.1. Activities associated with innovation in services

Innovation activities include, first, the acquisition of knowledge abroad: R & D, patents, inventions, licenses, dissemination of know-how and design study. Second, the acquisition of machinery, equipment and capital goods needed to innovate. Third, preparations for innovations: planning and development activities, testing and evaluation and modifications to the computer procedures or service rendering processes. Fourth, the market preparation for innovation. And, Fifth, training, considered a knowledge management practice (OECD and Eurostat, 2005).

1.1.2. Types of innovation in services

According to the Bilderbeek, Hertog, Marklund and Miles (1998), service innovation takes place in four dimensions: service concepts, customer interfaces, provisioning processes and technological options. Ayneto (2010) retakes the model of the authors in mention, and includes the dimension of technological options, innovations in the infrastructures of knowledge, the materials and the organizational ones. The same author adds a new dimension associated with the elements of strategic/operational marketing.

1.1.2.1. New service concepts

A service concept is a way of organizing a solution to make it available to the customer (Gadrey, 1991). Thus, it is possible to innovate by structuring aggregate offers, recombination services, introducing elements, or changes in the business model because "any service provision must generate benefits to the company that provides it. However, the way of obtaining them can be very variable "(Ayneto, 2010, p.4).

1.1.2.2. New interfaces with the client

The interface, understood as the contact structure between the client and the organization, has a direct impact on the service’s evaluation, representing a key dimension for innovation and customer loyalty (Ayneto, 2010). Consequently, this dimension is associated with innovations in: customer waiting time, the duration of the service or the incorporation of services to relax the wait, customer service through staff changes, the use of digital interfaces, as well as the flexibility and personalization of the service (Ayneto, 2010). In this dimension it is necessary to realize market intelligence (ISEA S.Coop and Ministry of Industry, Tourism and Commerce of Spain, 2008).

1.1.2.3. New processes of production of services

Innovations in the processes of service delivery introduce significant advantages. As a result, companies innovate in: cost, quality, answer time and service flexibility. As well as, through changes in activities, staff and customer participation in the service (Ayneto, 2010).

1.1.2.4. New support infrastructures

(Ayneto, 2010, p. 5) states that "infrastructures can be a source of innovation or constitute a tool for innovation in other dimensions." The main support infrastructures for innovation in services are: technological, material related to physical, knowledge and organizational elements.

1.1.2.5. New strategic and operational marketing elements

One of the factors directly affecting the differentiation of companies is marketing activities (Ayneto, 2010, p.2). Thus, it is possible to innovate through the implementation of elements of strategic marketing: segmentation and positioning. And operational: price and service intermediation.

1.1.3. Characteristics of innovation in services

The innovation in services is a recent area of research. It is product of the innovative phenomena amplitude at the sector and the industrial theories approaches (Elche, 2005). Regardless of this, the literature establishes the characteristics of innovation in this sector.

1.1.3.1 Formalization and systematization dependent on economic activity

In services a new approach to innovation is registered, because the companies are more aware of the need to innovate and organize their innovation system. They try to formalize and systematize the innovation system. However, the degree of formalization depends on the activity. The generalized form of innovation in services is an informal and flexible process, combining individual efforts and formalized teams by projects (Elche, 2005).

1.1.3.2 Difficulty in differentiating between product and process innovations

Services are characterized by their immaterial nature. It is difficult to differentiate between production process, product generated, and type of innovation (Elche, 2005, p.106). This activity is easy at the goods production (Evangelista and Sirilli, 1998). Thus, it is difficult to change the output of a service company without changing its production process (Sundbo, 1994, Sundbo and Gallouj, 1998, Sundbo and Gallouj, 2000).

1.1.3.3 Organizational Innovations vs. Technology

Dursta, Mentionb and Poutanenc (2014) argue "one of the reasons for underdevelopment in understanding the concept of innovation in services is couse the domination of the industrial and technological approach to innovation" (p.67). In services, organizational innovation predominates because of the relevance of human factors. Thus, innovation corresponds to the creation of knowledge, or ways of managing resources (Sundbo and Gallouj, 2000). However, "the development of Information and communications technology (ICT) allows a greater number of service companies to adopt higher quality innovations " (Gomez, Zurbano and Etxebarria, 2009, p. 122).

1.1.3.4 Difficulty in protecting innovations

The intellectual property rights in services are protected by copyright and trademarks, rather than patents. This is due to the ease of imitation of innovations, which are not hidden discoveries, but rather, in obvious changes at behavior in individuals (Elche, 2005). Thus, "patents are not generally used to protect intellectual property in many service activities, with firms leaning more on copyright or trade secrecy" (Gomez et al., 2009, p. 123).

1.1.3.5 Incremental and flexible character

Service innovations are less radical than at the industry. It consist in recombination of services, the inclusion of elements, or changes in provision, responding to small changes that do not change their essential function. The innovation system in services is more flexible than in the industry, and in this the informal contributions of the collaborators are relevant, without neglecting the formalized groups (Elche, 2005).

1.1.3.6 Origin concentrated in the market

Innovations in services originate more in the market, than in internal research, by the intervention of consumers. In this context, "the most important information source for innovation are consumers. Followed by sales staff and other employees" (Elche, 2005, p109). Thus, innovation in services applies the " demand pull" integrated in business strategy, not the " science push", adopted in manufacturing (Elche, 2005). Consequently, the time to innovate is relatively short compared to industry (Sundbo and Gallouj, 2000).

This research is descriptive, with a field design, non-experimental, transactional, focused on three dimensions of innovation in services: activities, types and characteristics. The study uses a population census, which analyzed fifteen (15) small and medium enterprises (SMEs) in the textile trade sector (Table 1). As well as, nine (9) companies in the health sector (Table 2). The quantitative study of the dimensions is done through the application of an instrument, direct observation and interviews with managers, in order to serve as a basis for the proposed process.

Table 1
Textile companies in Valledupar, Colombia, 2016.
Source: Own elaboration from the Valledupar Chamber of Commerce (2017).

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Table 2
Healt companies at Valledupar, Colombia, 2016.
Source: Own elaboration from the Valledupar Chamber of Commerce (2017).

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Table 3 describes the methodological aspects of the research:

Table 3
Methodological Aspects of Research. Source: Own elaboration (2017).

For the interpretation of the data, a scale of the average of the textile trade sector (Table 4) and of the standard deviation (Table 5) is established. At the same time, for the health sector a similar scale is designed for the analysis of the average (Table 6) and one referring to the standard deviation (Table 7).

Table 4
Analysis of the average of the indicator in the textile trade sector.
Source: Own elaboration (2017).

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Table 5
Baremo analysis of the standard deviation in the textile trade sector.
Source: Own elaboration (2017).

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Table 6
Analysis of the average of the indicator in the health sector.
Source: Own elaboration (2017).

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Table 7
Scale analysis of the standard deviation in the health sector.
Source: Own elaboration (2017).

The results of the innovation dimensions in services are presented below, which form the basis for the construction of the process.

Table 8
Statistical parameters for the innovation activities dimension in services in the textile trade sector.
Source: Own elaboration (2017).

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Table 9
Statistical parameters for the dimension of innovation activities in services in the health sector.
Source: Own elaboration (2017).

Tables 8 and 9 present the results of the dimension of innovation activities in services. These indicate a low achievement of innovative activities in the trade and health sectors. In the same way, a very high dispersion is obtained in the trade sector, and a high dispersion of the health sector. These sectors only carry out some innovation activities such as the acquisition of machinery and training.

First, in the commerce sector, there is an intermediate presence in the acquisition of machinery, equipment and other capital goods, such as land, buildings, tools and information systems; Obtaining a very high dispersion. The sector carries out with high presence the acquisition of land and buildings, associated with innovations in the material support infrastructures. However, there are cases of companies with vertical integration, a segment that stimulates investment in machines, tools and information systems.

On the other hand, the prevalence of innovation in the health sector is associated with the acquisition of machines, equipment and capital goods, evidencing a high presence, however, a very high dispersion is obtained, indicating that the investment in assets for innovation is not a widespread trend in the sector. In contrast with OECD and Eurostat (2005) state that innovation activities involve the acquisition of capital goods, both those that provide improvements in technological performance and those that are necessary for the introduction of products in the market.

Second, in the commerce sector, there is an intermediate presence in training for the introduction of innovation, with a very high dispersion, which shows that training is not a relevant activity in all the companies analyzed. This result disagrees with the (OECD and Eurostat, 2005) theory that training is considered a fundamental part of the innovation process in services and a knowledge management practice.

In contrast, in the health sector the activity with the second order of prevalence is the acquisition of knowledge abroad, with low presence and very high dispersion, this sector acquires knowledge through licenses and links with other organizations. In this regard, Oslo and Eurostat (2005) argue "for the development and introduction of innovations, in addition to R & D, companies can acquire technologies and know-how in a variety of ways and from a multiplicity of sources" (p.107). Added to this, according to Tacsir (2011), innovation in services is based on "new working modalities that do not necessarily rely on R + D activities or expenditures" (p10).

The lower prevalence in commerce is associated with the preparations for the innovations, obtaining a low presence in front of the accomplishment of the internal activities of planning, tests, tests, and configurations in processes and software. A finding that disagrees with OECD and Eurostat (2005), which states that "innovation involves the development of a series of internal activities, which include both the post-development phases and the introduction of it". On the other hand, the lower prevalence in the health sector corresponds to training for the introduction of innovations, which is absent and with low dispersion.

Table 10
Statistical parameters for the types of innovation in services in the trade sector
Source: Own elaboration (2017).

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Table 11
Statistical parameters for the types of innovation in services in the health sector.
Source: Own elaboration (2017).

Tables 10 and 11 present the results of the types dimension of innovation in services. These show a low presence of the dimension in the two sectors; A very high dispersion is obtained in the trade sector, and a high dispersion in the health sector. First, in both sectors, the prevalence in the types of innovation corresponds to the new concepts of service, obtaining an intermediate presence and a very high dispersion. The trade sector innovates through additional services, such as fashion and craft consultancies. This result supports the fact that "the multiplicity of aspects to be covered in order to solve a real problem makes it more appropriate to speak of an offer of aggregate services than of a single service" (Ayneto, 2010, p.3).

Second, in the commerce sector, there is evidence of an intermediate presence of new support infrastructures, with a very high dispersion. Innovations in the material infrastructures for the provision of the service through changes in the commercial premises, and in the organizational infrastructures are evidenced, through strategic alliances.

In the health sector, the typology with the second order of prevalence corresponds to the new support infrastructures, with low presence and very high dispersion. This result disagrees with Ayneto (2010) establishes a new infrastructure contributes to offer a better service to the clients or to differentiate themselves from the competitors.

The lower level of prevalence in commerce corresponds to the new processes of production of services, typology wich is absent, with an intermediate dispersion. This differs from Ayneto (2010) who indicates that the introduction of innovations in the processes of service delivery introduces significant business advantages. In contrast, the lower level of prevalence in the health sector is associated with new interfaces with the client, a typology that is absent and with low dispersion. In contrast, Ayneto (2010) states that a very relevant dimension of the provision of a service is the interaction with the client.

Table 12
Statistical parameters for the characteristic dimension of innovation in services
Source: Own elaboration (2017).

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Table 13
Statistical parameters for the characteristics dimension of innovation in services in the health sector.
Source: Own elaboration (2017).

Tables 12 and 13 present the results of the characteristic dimension of innovation in services. In the commerce sector, a high presence of the dimension was obtained, with an intermediate dispersion. On the other hand, in the health one, an intermediate presence and dispersion is evidenced.

First, in both sectors the prevalent characteristic is the difficulty of protecting innovations, with a very high presence. In the commerce sector a low dispersion is evident, whereas in the health sector the dispersion is absent. Results indicate that in services, it is difficult to protect innovations and therefore, are easily imitated by other companies. In the same sense, Elche (2005) states that a problem of services is the difficulty to protect their innovations.

Second, the difficulty in differentiating between product and process innovations as a characteristic of innovation, with a low dispersion, is very highly present in trade, which shows that in this sector changes in Activities performed for their provision; A result that supports what was put forward by Evangelista and Sirilli (1998); OECD and Eurostat (2005), who associate this characteristic with the simultaneity between production and consumption.

On the other hand, in the health sector the characteristic with the second order of prevalence corresponds to the organizational innovations vs technological, with high presence and intermediate dispersion. This result coincides with Elche (2005), who concludes that in services, organizational innovation predominates due to the relevance of organizational factors.

Finally, in both sectors the lower prevalence corresponds to the lack of formalization and systematization of the innovative system. In this regard, Sundbo and Gallouj (2000) argue that there is a system of innovation in services, however, this is very weak and has not been consolidated; Validated conclusion Elche (2007) when affirming that "there is a system of innovation in services" (p.9). The COTEC Foundation (2004) also concludes that service companies do not have a structured innovation process, with the exception of financial and technology-based ones. The above results describe the situation of innovation in services in the sectors analyzed. The proposed innovation process is shown below (Figure 1).

Figure 1
Innovation process in services
Source: Own elaboration (2017).

3.1. Innovation process in services

According to the conclusions of Barras (1986), Gadrey (1991), Gallouj and Weinstein (1997), Boden and Miles (2000), Metcalfe and Miles (2000), service innovation contributes significantly to the increase of efficiency and system. The following describes the activities of the process, inspired by the theoretical analysis and its implications in two economic sectors:

A. Analysis: consists of carrying out a strategic analysis of the company and its environment, considering the following aspects: regulatory frameworks, trends, opportunities, competition, knowledge management tools and information of employees and customers.

B. Focus: is to select the focus of innovation according to business strategy. Innovation can be focused on: the services offered, the interfaces with the clients, the processes for the provision of the service, or the support infrastructures of the services.

C. Objectives: corresponds to the definition of the objectives of the innovation participatory. This promotes the collective nature of the process.

D. Equipment: is associated with the definition of a multidisciplinary team to innovate; Through a committee led by employees from different areas. In addition, resources should be allocated to the innovative process, and incentives should be established to encourage employee engagement.

E. Partnerships: Innovation requires the establishment of consolidated strategic alliances, in order to enrich the innovative process, share risks and reduce costs.

F. Project: corresponds to the definition of a project for the development of innovation, in order to delimit the scope of the project, to plan the activities and to quantify the costs.

G. Follow-up: Follow-up to projects, allows the detection of opportunities for improvement and deviations in the planning of innovation.

H. Feedback: it consists of feedback the lessons learned from the innovative project with the collaborators, capturing the value of the process and strengthening learning and organizational knowledge.

I. Deployment: consists of defining the strategy of introduction of innovation in the market, considering aspects such as advertising, pilot testing and market testing according to the target segment.

J. Implementation: The implementation of the innovation involves configurations in the processes, and training of the personnel, guaranteeing the satisfaction of the client, the generation of value and the sustainability of the business strategy.

The proposed process is supported in the generation of an innovative culture as a mechanism to dynamize the business activity.

The textile and health sectors of Valledupar have a low dynamism in innovation activities. In the commerce sector these are associated with the acquisition of machines, equipment and capital goods, such as land, tools and information systems; As well as training and market preparation to innovate. However, there is a low acquisition of knowledge, made only by brands and technical services, rejecting R & D. Which agrees with Salter and Tether (2006) who assert that "one reason why services are thought to lag behind innovation is that official statistics report that they do relatively little formal R & D" (p.18). In addition, trade is characterized by the absence of internal planning for innovation.

In contrast, in the health sector, innovation activities are focused on the acquisition of machines, buildings and capital godos (Pertuz Peralta, Perez Orozco, & Bermudez Rojo, 2016)

. In addition, knowledge is acquired from abroad and the market is prepared to innovate, a result that supports Dursta, Mentionb and Poutanenc (2014) who state that "due to the multidimensional nature of service innovation, there are several ways in which That the process of service innovation can occur "(p.66). Likewise, the sector is characterized by the absence of training activities for the introduction of innovations, and of preparations for innovation.

In another vein, there is a low implementation of types of innovation. In both sectors the innovations are associated with new concepts of service, through additional services and with changes in material support infrastructures. In this regard, Wu (2014) argues that service companies can achieve a sustainable competitive advantage only by grouping novelties in goods with value-added services, which increase customer loyalty and retention. In a specific way, in the trade sector, innovations are evidenced in the elements of operational strategic marketing, in which Aas and Pedersen (2011); Yang, Yang and Chen (2014) argue that service innovation can help organizations differentiate themselves from their competitors; As well as increased customer loyalty (Wu, 2014).

On the other hand, the health sector does not innovate in the contact interfaces with the client and in the elements of strategic / operational marketing, a finding that disagrees with Ruiz, Ortega, Haro and Roldán (2014) who conclude that " The management of customer relations influences the achievement of a level of innovation superior to that of competition "(p.283). However, in the health sector there is a low implementation of innovations in the processes for the provision of the service.

However, the characteristics of innovation in services referenced in the literature are evidenced in the trade sector. There is a prevailing difficulty in protecting innovations, and hence the ability to be imitated by other companies; This result supports Elche, González, Martínez and Ruiz (2009) who argue that, due to the limitations of protection, "many service companies use informal methods based on strategic practices that are included within the company's own strategy" ( P.8). In addition, the sector is characterized by the difficulty of differentiating between product and process innovations, the incremental and flexible nature and the predominance of organizational innovations.

Also, the innovations in the trade sector originate in the market, a result that supports Ruiz et al. (2014) who conclude that "customer expectations and needs for the design and development of new services are significant for service companies with a higher level of innovation than competitors" (p.284). In the same way, the innovation process lacks formalization, systematization and collective character. This is in line with Den Hertog, Gallouj and Segers (2011), when it states that service innovation is less formalized, less explicitly managed and with less budget than in innovative manufacturing companies.

Otherwise, the health sector prevails as characteristics of the difficulty of protection, organizational innovations and the difficulty to differentiate innovations in product and process. However, the origin concentrated in the market, as well as the incremental and flexible nature do not correspond to generalized characteristics of the sector, it also lacks formalization and systematization of the innovative system.

Finally, the research generated an innovation process that provides a framework for SMEs to innovate in services and improve their productivity. This process is a reference to facilitate the development of projects.

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Annexed 1

Instrument of data collection

1. Strongly Disagree
2. Disagree
3. Neutral (neither agree nor disagree)
4. Agree
5. Strongly Agree

1. Ph.D. Management Student at Rafael Belloso Chacín University. Master degree in Research and Development Project Administration, Rafael Belloso Chacín University. Industrial Engineer, Universidad de Santander UDES. Universidad de Santander UDES, Facultad de Ingenierías, Grupo de Investigación Nuevas Tecnologías UDES, Valledupar, Colombia. E-mail: vanesapertuz@hotmail.com  van.pertuz@mail.udes.edu.co  (Corresponding autor)

2. Ph.D. Management Student at Rafael Belloso Chacín University. Master degree in Electronic Engineer, Pontificia Universidad Javeriana. Computer Science Ingineer, Pontificia Universidad Javeriana. Universidad de Santander UDES. Universidad de Santander UDES, Facultad de Ingenierías, Grupo de Investigación Nuevas Tecnologías UDES, Valledupar, Colombia. E-mail: adi.perez@mail.udes.edu.co

3. Master degree in Research and Development Project Administration, Rafael Belloso Chacín University. Titular teacher (Tenure) at Dr. Rafael Belloso Chacín University, Maracaibo, Venezuela. E-mail: nboscan@urbe.edu.ve