NATIONAL SURVEY OF INNOVATION 2012
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 most process innovations were developed through closed innovations system while open innovation system was the least favoured way of innovating process in both sectors.
Figure 5.5, 5.6 and 5.7 show the development of process innovation via closed, joint and open
innovation. For closed innovation, the highest response was on methods with 52.76% in the manufacturing sector and 75.32% in the service sector (Figure 5.5). On joint innovation, the highest response was equally on methods with 50.73% and 43.53% for manufacturing and service sector (Figure 5.6). While for open innovation, manufacturing sector recorded 70.63% as the highest in supporting activities and service sector recorded 34.16% as highest in methods (Figure 5.7).
Figure 5.4:Process Innovation Activities Based on Business Sectors
Developer
Numbers of New or Significantly Improved
Methods Logistics Supporting activities
Manufacturing Services Manufacturing Services Manufacturing Services Closed
Innovation 1,501 1,932 697 244 647 389
Joint
Innovation 174 107 74 79 95 78
Open
Innovation 31 55 16 52 113 54
Table 5.5:Developers and Numbers of Process Innovation Based on Business Sectors
52.58%
35.96%
66.29%
34.52%
New / Improved supporting activities
32.47%
New / Improved logistics
35.33%
New / Improved methods New / Improved supporting activities
New / Improved logistics
New / Improved methods
Percentage (%)
ServicesManufacturing
Business Sectors & Process Innovations
0 10 20 30 40 50 60 70
NATIONAL SURVEY OF INNOVATION 2012
Figure 5.5:Developers and Numbers of Process Innovation (Closed Innovation)
Figure 5.6:Developers and Numbers of Process Innovation (Joint Innovation)
Figure 5.7:Developers and Numbers of Process Innovation (Open Innovation)
0 10 20 30 40 50 60 70
80 52.76% 24.50% 22.74% 75.32% 9.51% 15.17%
Methods Logistics Manufacturing
Percentage (%)
Business Sectors & Process Innovation Developers (Closed Innovation)
Services Supporting
activities Methods Logistics Supporting activities
0 10 20 30 40 50 60
Percentage (%)
Manufacturing
Business Sectors & Process Innovation Developers (Joint Innovation)
Services Methods Logistics Supporting
activities Methods Logistics Supporting activities
50.73% 21.57% 27.70% 43.53% 28.42% 28.06%
0 10 20 30 40 50 60 70 80
Methods
19.38% 10.00% 70.63% 34.16% 32.30% 33.54%
Logistics Manufacturing
Business Sectors & Process Innovation Developers (Open Innovation)
Services
Percentage (%)
Supporting activities
Methods Logistics Supporting activities
Figures 5.8 illustrates the comparison by company size of process innovations based on sectors with new or significant improvement on innovation process in terms of methods, logistics handling and processes adopted. While the methods of manufacturing or producing goods or service introduced in medium size companies recorded the highest percentage of 15.82% in manufacturing sector, the small size companies recorded highest percentage of 16% in the service sector. For new/improved logistics, delivery or distribution
Figure 5.8:Comparison of Process Innovation Introduced Based on Business Sectors and Company Size
method, large size companies recorded highest percentage of 8.13% in manufacturing and small size companies recorded highest percentages of 15.07% in service sector. Also, in other improve supporting activities in innovation process such as maintenance system or operations for purchasing, accounting or computing activities, large size companies recorded highest percentage of 15.97% in manufacturing and small size companies recorded highest percentage of 16.13% in service sector.
15.82%
7.69%
8.71%
11.61%
7.40%
9.29%
6.67%
3.87%
4.80%
11.87%
12.80%
12.80%
16.00%
15.07%
16.13%
Percentage (%)
15.38%
8.13%
15.97%
Large
Medium
Small
Large
Medium
Small
ServicesManufacturing
Business Sectors & Company Size
0 5 10 15 20
New / Improved methods New / Improved logistics New / Improved supporting activities
NATIONAL SURVEY OF INNOVATION 2012
Box 5.1
SUCCESS STORY OF POS MALAYSIA
The evolution of traditional postal service from Malaysian yesteryears to today’s digital and versatile services of POS Malaysia Berhad is based upon dedicated struggle for better customer service through innovation. With the growing challenge of encroaching technological surge and globalisation, POS Malaysia could not sustain its successful endurance without innovation strategies. Venturing under Jabatan Perkhidmatan POS, it started rendering several services like payment of bills, insurances and pensions and sales of licenses other than parcel delivery, registrations, insurance service, and transaction of money (postal order and money order) and investment of funds (Post Office Saving Bank) only. Later, POS Malaysia gave a breakthrough by collaborating with banking institutes like Maybank and RHB to entertain on-line as well as physical banking facilities for computer savvy urban customers as well as less resourceful rural customers.
In 1996, it branched off its first wholly-owned subsidiary, DataPOS, to provide mailing and business solutions to its public and private corporate clients. Later, accommodating its customer distinctiveness and disproportionate marketplace, in 2003 it restructured all operations into three strategic business units, POSMel, POSLaju and POSNiaga. These three business units are responsible for distinct functions of more than 200 types of day-to-day mailing service, courier service and networking of all national postal services respectively. The range of services was further diversified by setting up AsiaXpress, POS Malaysia’s subsidiary for international courier service in more than 200 countries.
Inauguration of Pos Ar-Rahnu Sdn Bhd, in 2012, is yet another example of POS Malaysia’s continuous effort to innovate for better customer service and competitiveness. Starting with 2 outlets at Bangi and Kuala Terengganu, it has 50 outlets now serving in providing Islamic micro-financing services to both Muslim national and international customers.
The seven core values of timeliness, customer centricity, decorum, integrity, excellence, integrity, accountability and innovation have paid POS Malaysia Berhad to achieve company’s landmarks and growth. Company strongly believes in role of collaborative and visionary leadership in transforming the mind-sets of its employees and preparing them for restructuring, technology adoption and innovation. To communicate company’s vision, custom designed information disseminating and communication strategies like formal and direct executive meetings and commercialising company score cards are used for distinct hierarchical levels.
Being a public listed company, POS Malaysia Berhad is dynamically busy in elevating Malaysia’s status as member of Universal Postal Union (UPU). Currently with a vast network of 700 national post offices, it enjoys the monopolistic role in the national postal industry and is insistently competing in both the domestic and international markets, directly or indirectly. Company’s future endeavours cover establishing satellite connectivity for rural areas, digital self-service counters for customers to carry out all kinds of transactions and gradual globalisation starting from regional (Southeast Asian countries) to farther international markets.