INNOVATION ACTIVITIES
CHAPTER 5: INNOVATION ACTIVITIES
5.3 Process Innovation
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Figure 5.4 Process Innovation Activities Based on Business Sectors
Table 5.5 illustrates the development of process innovation namely the methods, logistics and supporting activities for both manufacturing and services sectors. The table shows that the process innovations were mostly developed through open innovations system for the manufacturing sectors. For the services sector, joint innovation system was the most favoured way of innovating process except for supporting activities.
Table 5.5 Developers Process Innovation Based on Business Sectors
Developer
New or Significantly Improved
Methods Logistics Supporting
Activities
Manufacturing Services Manufacturing Services Manufacturing Services Closed
Innovation 379 349 391 417 412 412
Joint
Innovation 401 426 408 487 398 403
Open
Innovation 429 416 427 401 415 449
The development of process innovation is in form of closed, joint and open innovation. Figures 5.5, 5.6 and 5.7 show the process innovation of the manufacturing and services sectors for the period of 2012 to 2014. For closed innovation in the manufacturing sector, the highest response was on supporting activities with 34.86% while in the services sector, logistic was the highest with 35.40% (Figure 5.5). For joint innovation, both manufacturing and services sectors have the highest response on logistics with 33.80% and 37.01%, respectively (Figure 5.6). For open innovation, manufacturing sector has the highest response on method with 33.75%, while services sector in supporting activities with 35.47% (Figure 5.7).
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Figure 5.4 Process Innovation Activities Based on Business Sectors
Table 5.5 illustrates the development of process innovation namely the methods, logistics and supporting activities for both manufacturing and services sectors. The table shows that the process innovations were mostly developed through open innovations system for the manufacturing sectors. For the services sector, joint innovation system was the most favoured way of innovating process except for supporting activities.
Table 5.5 Developers Process Innovation Based on Business Sectors
Developer
New or Significantly Improved
Methods Logistics Supporting
Activities
Manufacturing Services Manufacturing Services Manufacturing Services Closed
Innovation 379 349 391 417 412 412
Joint
Innovation 401 426 408 487 398 403
Open
Innovation 429 416 427 401 415 449
The development of process innovation is in form of closed, joint and open innovation. Figures 5.5, 5.6 and 5.7 show the process innovation of the manufacturing and services sectors for the period of 2012 to 2014. For closed innovation in the manufacturing sector, the highest response was on supporting activities with 34.86% while in the services sector, logistic was the highest with 35.40% (Figure 5.5). For joint innovation, both manufacturing and services sectors have the highest response on logistics with 33.80% and 37.01%, respectively (Figure 5.6). For open innovation, manufacturing sector has the highest response on method with 33.75%, while services sector in supporting activities with 35.47% (Figure 5.7).
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Figure 5.5 Developers of Process Innovation (Closed Innovation)
Figure 5.6 Developers of Process Innovation (Joint Innovation)
CHAPTER 5: INNOVATION ACTIVITIES
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Figure 5.7 Developers of Process Innovation (Open Innovation)
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Box 5: Process, Marketing and Organisational Innovations - Innochem Technologies Sdn. Bhd.
Innochem Technologies Sdn. Bhd. was founded in Malaysia in 2011 and is now a fast- developing specialty and customised chemicals producer as well as a service and technology provider company to gas, oil, petrochemicals and petroleum related industries. The main business of the company is the provision of specialty cleaning services for the chemical and oil and gas industries. Pursuant to these services, the company has at its disposal specialty chemicals complete with specialty equipment to apply the chemicals. The chemicals are proprietary blends, which the company holds as company secrets. The company would manufacture the chemical blends as and when required. Other than the specialty chemicals, the company also produces 13 more chemical products normally used in the plant cleaning service industry. The company operates a chemical plant that is capable of blending 30 m3 of specialty chemical.
The company applied process innovation which is a key competitive advantage of its ability to respond to customer requirements – mainly for emergency situations. After the quick response, the company could guarantee that the work required would be completed at least four times faster than any of its competitors. In the course of providing the specialty cleaning services, the company has accumulated specialty equipment as well.
This equipment is common industry machinery, but had become specialty systems because of size (high capacity systems – high pressure, high �low rate systems), high temperature systems and/or systems which are capable of operating in remote sites with its own power packs. These include pumps and vacuum pumps on trucks. Another type of system that is considered specialty equipment are those capable of dealing with dangerous and toxic substances. An example of this is the mercury monitoring and measurement system. The company basically has about 75% of equipment needed for any job at any one time.
In terms of organisational innovation, the company only maintains core personnel of about 30 people, including 4 directors. Any requirement above the 30 staff would be sourced from a freelance personnel pool to reduce staf�ing cost. The freelancers are experienced industry people who do not like being in long term employment. The company values its people with the right certi�ications and licenses. The jobs that the company undertakes are considered dangerous, thus, the personnel involved in any job must have valid and current certi�ications and licenses. Those in the employ of the company are in continuous training to keep their certi�ications and licenses up-to-date, or for up-skilling. So far there is no signi�icant turnover of personnel for the company.
As for process and marketing innovations, the company has been awarded the ISO 9001 certi�icate of quality, and is planning to apply for the ISO 14000 for Environmental Quality standards certi�ication. The company had won a 4 STAR SME Corp. Rating Award for Professionalism. The market for the company is worldwide, but to date the company has been awarded jobs in Malaysia, a few countries in the Middle East, South Africa and Australia. Presently, the company has a subsidiary company representative based in Oman.
CHAPTER 5: INNOVATION ACTIVITIES
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Box 5: Process, Marketing and Organisational Innovations - Innochem Technologies Sdn. Bhd.
Innochem Technologies Sdn. Bhd. was founded in Malaysia in 2011 and is now a fast- developing specialty and customised chemicals producer as well as a service and technology provider company to gas, oil, petrochemicals and petroleum related industries. The main business of the company is the provision of specialty cleaning services for the chemical and oil and gas industries. Pursuant to these services, the company has at its disposal specialty chemicals complete with specialty equipment to apply the chemicals. The chemicals are proprietary blends, which the company holds as company secrets. The company would manufacture the chemical blends as and when required. Other than the specialty chemicals, the company also produces 13 more chemical products normally used in the plant cleaning service industry. The company operates a chemical plant that is capable of blending 30 m3 of specialty chemical.
The company applied process innovation which is a key competitive advantage of its ability to respond to customer requirements – mainly for emergency situations. After the quick response, the company could guarantee that the work required would be completed at least four times faster than any of its competitors. In the course of providing the specialty cleaning services, the company has accumulated specialty equipment as well.
This equipment is common industry machinery, but had become specialty systems because of size (high capacity systems – high pressure, high �low rate systems), high temperature systems and/or systems which are capable of operating in remote sites with its own power packs. These include pumps and vacuum pumps on trucks. Another type of system that is considered specialty equipment are those capable of dealing with dangerous and toxic substances. An example of this is the mercury monitoring and measurement system. The company basically has about 75% of equipment needed for any job at any one time.
In terms of organisational innovation, the company only maintains core personnel of about 30 people, including 4 directors. Any requirement above the 30 staff would be sourced from a freelance personnel pool to reduce staf�ing cost. The freelancers are experienced industry people who do not like being in long term employment. The company values its people with the right certi�ications and licenses. The jobs that the company undertakes are considered dangerous, thus, the personnel involved in any job must have valid and current certi�ications and licenses. Those in the employ of the company are in continuous training to keep their certi�ications and licenses up-to-date, or for up-skilling. So far there is no signi�icant turnover of personnel for the company.
As for process and marketing innovations, the company has been awarded the ISO 9001 certi�icate of quality, and is planning to apply for the ISO 14000 for Environmental Quality standards certi�ication. The company had won a 4 STAR SME Corp. Rating Award for Professionalism. The market for the company is worldwide, but to date the company has been awarded jobs in Malaysia, a few countries in the Middle East, South Africa and Australia. Presently, the company has a subsidiary company representative based in Oman.
CHAPTER 5: INNOVATION ACTIVITIES
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