Service Innovation in Public Sector : A Case Study on PT. Kereta Api Indonesia

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.