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Intangibility refers to transformations in service products such as the state of material products, of people and in data rather than being material products. Some are delivered through physical artifacts such as the CD-ROMs and consultancy reports and some are associated with them such as the dental fillings and credit cards.

Interactivity refers to the service processes that require the presence and participation of the client. Some kinds of transformations may require the physical presence, such as transport from place to place, hairdressing, or providing some form of counseling. The service activities feature more intimate producer-consumer relationships than is usual for manufacturers, especially those providing mass-production goods due to numerous points of interaction with the service provider.

3.3 Achieving Effective Innovation Management System in Service Company

According to Oke and Goffin (n.d.) point of view managing innovation in service companies is difficult due to the complex nature of service products, which are mostly intangible and involve close interaction with customers. Services suppliers must interact with customers to develop the service product itself. Therefore, innovation in service companies is not only about “what” is being offered but also about “how” it is being offered. Thus, the development of a new service is often more complex than that for a new manufactured product. Service companies think that service innovation management requires good performance in five areas described below:

Innovation strategy. Management needs to develop a strategy, a vision and communicate the role of innovation within the company. Management needs to decide how to use technology in order to have performance improvements through the use of appropriate performance indicators.

Creativity and Ideas Management. All employees should be involved in stimulating good ideas, which address customer requirements. Close contacts with customers should be cultivated.

Portfolio Management. Once ideas have been generated, the best ones for implementation are selected through efficient means.

Implementation. Once the best idea is selected, they are quickly turned into new products.

Human Resource Management. Management should create a culture in which employees are motivated to contribute to innovation. Often companies fail in creating the reward and recognition mechanisms, which promote innovation thinking.

CHAPTER IV

INNOVATION AND BEST PRACTICES IN HEALTHCARE SECTOR

The last topic discussed is related to the innovations occurring in the healthcare sector. It is chosen to discuss about healthcare sector as healthcare remains in the three biggest industries for R&D spending. It is discussed after discussing the innovations in service sector, as healthcare is a subsector of service sector. The aim of this section is to identify the reasons that make the healthcare sec本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。