Abstract
Innovation is an important key for an organization to win the market competition, both in aspects of organization, culture, and business to produce an excellence service and product. Service innovation has been developed to respond quickly the demand of society that increasingly aware of the importance of quality service. PT. Kereta Api Indonesia (KAI) as one of the Indonesian state-owned companies engaged in public transportation made a breakthrough by launching a service product innovation, purchasing system of train tickets and new trains. This paper analyzes the types of service product innovation, success factors of innovation, and explore the barriers of innovation. This study used qualitative methods based on review of the innovation management literature and semi-structured interviews. The role of leadership has an important influence in shaping the behavior of the organization. These organizational learning concepts are used to gain a dynamic of service innovation, it suggests that the company should still perform improvement processes in developing service innovation to meet the challenges faced.
Highlights
Innovation should become a core activity in the public sector: it helps public services to improve performance and increase public value; respond to the expectations of citizens and adapt to the needs of users; increase service efficiency and minimise costs (Mulgan & Albury, 2003)
Public sector tend to be reluctant to develop innovations compared to the business sector, the condition is triggered by the lack of reward factor, performance measurement and achievement tend to be objective, so it does not motivate individuals to accomplish or performs better (Suwarno, 2008)
Innovation is considered important in the public sector to respond effectively to the challenges posed by social and technological change, and rising public expectations toward public services
Summary
Innovation should become a core activity in the public sector: it helps public services to improve performance and increase public value; respond to the expectations of citizens and adapt to the needs of users; increase service efficiency and minimise costs (Mulgan & Albury, 2003). Public sector tend to be reluctant to develop innovations compared to the business sector, the condition is triggered by the lack of reward factor, performance measurement and achievement tend to be objective, so it does not motivate individuals to accomplish or performs better (Suwarno, 2008). In order to improve the condition, it is necessary to change management system by establishing mindset that innovation is key to the success of an organization to survive and win the competition in the business sector but in the public sector as well. In Indonesia, the services sector contributed 48 percent of GNP while the manufacturing sector accounted for 26 percent, agriculture 13 percent, mining and quarrying 7.8 percent [CBS, 2012]. The services sector consists of hotels and accommodation, transportation and communication, real estate and business services. In 2012, transport and communication services sector contributed 10 percent to the GNP in Indonesia [CBS, 2012]
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
