INTRODUCTION

Business innovation – recognized as relevant for social and economic development, in addition to being a guiding element for the growth and advancement of organizations – is a process of change, whose consequences can be incremental or disruptive, in products, processes, market positioning, and mental models, in organization and marketing (Dosi, 1982; IBGE, 2020; Kline & Rosenberg, 1986; OCDE, 2019; Tidd & Bessant, 2015; Zennouche & Zhang, 2014).

Since 2001, the Brazilian Service for Support to Micro and Small Enterprises (SEBRAE) has been investigating and reporting high mortality rates, before the fifth year of incorporation, among micro and small enterprises (MSE), revealing the urgent need for action by institutions of public purpose, to guarantee the survival of MSEs, which correspond to about 99% of Brazilian companies (Rosenbusch et al., 2011; Dao & Zmud, 2013; Sebrae, 2016).

To stimulate the competitiveness of MSEs, the Brazilian government, through the institutions Sebrae and the National Council for Scientific and Technological Development (CNPq), in a technical cooperation agreement, developed the Local Agents of Innovation Program (ALI), which provides for monitoring of companies by scholarship agents trained in innovation concepts, so that they can diagnose and present suggestions for interventions focused on developing innovative capacity (Sebrae, 2018a).

Since 2010, more than 8,000 fellows have attended, in at least one follow-up cycle, more than 300,000 SMEs (Sebrae, 2019c). With an above-average number of visits and dedication to the program, Medicatriz Dermocosmetics, a company that has one of the longest longevities between the program's cycles, draws attention, achieving success recognized in awards and publications, as the National Award of Innovation “Prêmio Nacional de Inovação” (PNI, 2020).

In this context, the main objective of this study is to evaluate the influence of Medicatriz Dermocosmetics’ participation, from 2013 to 2020, in ALI Program cycles, motivated by the dilemma of having a satisfactory creative potential, without, however, being able to convert it into innovations and in the increase in revenue.

As specific objectives, this study is dedicated to: (a) understanding the interventions for the implementation of the open innovation methodology; (b) describe the actions for the development of marketing innovation management; and (c) evidence the suitability of the innovation oriented to the external public, and (d) to the internal public.

THEORETICAL BASIS

In order to sustain an innovative management process, it is necessary to make strategic choices, under internal guidance (related to the organization's structure, the number of people in the team and the adoption of technologies) and external guidance (launching new products, new suppliers and negotiations with the public sector and other entities) in the company (Child, 1997).

According to Johnson, Edquist and Lundvall (2003), innovation is considered a continuous cumulative process, which involves not only radical and incremental innovation, but also its diffusion, absorption and use.

As for external relationships, according to Chesbrough (2003), they can be carried out with customers, suppliers, research centers, other organizations and competitors. Thus, open innovation is defined as a process that is not restricted to the internal activities of a company, as it includes external relationships, which foster internal research and development, in addition to absorbing knowledge that favors innovation. In this way, open innovation contributes with valuable ideas, both from the company and from the market.

Damanpour and Schneider (2006) discuss the importance of innovation having a place in the management of companies, recommending a certain distinction of operation, even in the appointment of key agents in the innovation process.

In this sense, Birkinshaw, Hamel and Mol (2008) point out that change agents, in the context of innovation, can be internal (responsible for deliveries) or external (which bring a higher level of knowledge).

With the objective of promoting the continued practice of innovation actions in small companies, with proactive, free and personalized guidance, Sebrae, in partnership with CNPq, created the ALI Program, which enables small business to increase value capture , through the creation and delivery of innovative solutions, in an accelerated manner. Thus, ALI assumes the role of an external agent, which performs diagnoses and, from there, directs interventions to be carried out by the company in favor of innovation (Sebrae, 2019b).

Due to the difficulties perceived in the MSE innovation process, the ALI Program becomes a useful instrument to encourage the development of skills necessary to create a favorable environment for innovation, stimulating what the program calls an “innovative ambience” (Santos et al. , 2016).

Based on the empirical observation of companies served by the program, Santos et al. (2016) recommend carrying out a more in-depth study of the culture of innovation in these organizations. In this way, analyzing the company that had one of its longest visits represents an advance in understanding the influence of the program on the innovative ambience.

CONTEXT AND INVESTIGATED REALITY

The basis of the ALI Program methodology was defined by eight premises: (1) concrete results; (2) use of indicators; (3) results for Sebrae and the innovation ecosystem; (4) business team involvement; (5) collective construction of solutions; (6) tools; (7) companies motivated to innovate; and (8) ALI as a facilitator of innovation. The latter is an important source of knowledge in the application of the tools, as it supports the implementation of actions, carries out interventions and uses the knowledge of the company's team to generate results (Sebrae, 2018a).

The methodology also defines elements that condition its phases or cycles: (a) communication for positioning; (b) continuity conditioned to interest and overcoming challenges; (c) sprint-based execution; (d) periodic face-to-face meetings; and (e) interaction with the Innovation Ecosystem (Sebrae, 2018a).

In the first two cycles of Medicatriz Dermocosmetics’ participation in the ALI Program (2013-2015 and 2016-2017), the methodology advocated the submission of the company to an innovation diagnosis, structured by a questionnaire, with a practical perspective, analytical balance on management, and for meeting the best metric for measuring innovation and performance (Neely & Hill, 1998).

This questionnaire was based on the unification of the approaches proposed by Bachmann and Destefani (2011) and Sawhney, Wolcott and Arroniz (2006), which totaled 13 dimensions (offer, platform, brand, customers, solution, relationship, value addition, processes, organization , supplier chain, presence, network and innovative ambience).

In the first periods, Medicatriz Dermocosmetics envisaged carrying out actions to implement the open innovation methodology and develop the management of innovation in marketing. In the last two (2019 and 2020), in turn, there was an update of the initial diagnosis, called “Innovation Radar”, which has three layers of analysis of the organization and 13 aspects (Figure 1) (Sebrae, 2019a).

The methodology, then, was divided into four phases: (1) problem discovery – use of interaction approaches with potential customers for validation; (2) problem validation; (3) value proposition – development of the concept of a solution to deliver the value proposition, that is, how much the customer would value what the company intended to deliver, in addition to product/service or price; and (4) business modeling – to innovate a product or service, there was the development of the business model.

At the end of these phases, the company would have a plan for the development of its innovation and the reapplication of the “Innovation Radar” (Sebrae, 2018a), being able to use the methodology of the ALI Program already in the last periods, in order to develop and adapt innovation actions oriented to external and internal audiences.

Medicatriz Dermocosmetics started its activities in 1988, as a compounding pharmacy, having expanded its business in 2005, when it became an industry of “high performance cosmetics” or professional dermocosmetics, given the characteristics that distinguish them from cosmetics for common skin. , being generally used for health and beauty treatments (acne, blemishes, wrinkles, reduction of measures, cellulite, hydration and skin cleansing).

In 2020, the company had two partners and 23 employees, distributed in five major areas of activity: commercial, administrative and financial, distribution, educational technique, and marketing. It is worth mentioning that Brazil is the fourth largest consumer of cosmetics in the world, only behind the United States, China and Japan (ABIHPEC, 2019).

Medicatriz uses most of its formulas for professional use, in small aesthetic clinics (213,072 are formalized as individual microentrepreneurs [MEI]) (National Classification of Economic Activities [CNAE] – 9602501); e for non-formal aesthetic professionals (Portal do Empreendedor, 2020).

Exploring Medicatriz's product lines, most of it is sold exclusively to health, beauty and aesthetics professionals; the other part is aimed at home use, by the final consumer; and there is also the Velox line, for resale in retail channels.

Medicatriz has always had an innovative culture, supported by four premises: humanization, transformation, experimentation and innovation. In terms of humanization, the company stood out for the implementation of engagement projects for employees, thereby achieving financial growth and reduced turnover (employee turnover) (Você S/A, 2019). Regarding humanization, there were also routine practices of connection with professionals in the health, beauty and aesthetics area, which led the company to receive the award of 3rd place in the category industry/company friendly to the professional/esthetics, in the Esthetic Business Awards 2019.

With the culture of innovation at the core of the company, in terms of products and experimentation, this model of open innovation puts more pressure on research and development routines to overcome technological challenges. This made the company a finalist twice (2014-2015 and 2016-2017) for the National Innovation Award (PNI), the largest in its category in Brazil (PNI, 2020); and deserving of honor as a highlight in entrepreneurship, at the event Magia Empreendedora/Brasil Comunidade Empreendedora, in 2018 (Sympla, 2018).

DIAGNOSIS OF THE PROBLEM SITUATION

The dilemma faced by the company was to have a good creative potential, which was little explored and, therefore, incapable of generating revenue growth. The challenge, therefore, was to transform the creative potential into an innovative environment and systematic practice of innovation management. Therefore, after consuming other services from Sebrae, with emphasis on the Empretec course (guidance for finding solutions to the business and developing entrepreneurial skills), Medicatriz Dermocosmetics resorted to the ALI Program, in four cycles, the first two being responsible for the results diagnostics, used as action drivers; and the last two cycles, with the direction of actions, through the application of tools. The diagnoses therefore had different weights for the proposed actions.

ALI program - cycle 1 (2013-2015)

The company presented the degree of incipient global innovation and, among the dimensions evaluated, the highlights were: offer, platform, brand, customers and presence; with the organization and relationship dimensions reaching incipient innovation. The least developed highlights were: solutions, added value, processes, supply chain, network and innovative environment.

During the cycle, the company had modularized production, through a delimited supply chain and outsourcing. Its brand and product portfolio were perceived as sufficient, as were its sales channels.

Internal processes were not documented and did not undergo systematic reflection and analysis, in search of improvement, and there were no structured mechanisms for the production of indicators and the collection of ideas from employees.

The innovative ambience was a reflection of the entrepreneurial profiles of the founding partners, who had the perception of the need for changes and transformation for the business, so much so that they promoted representative changes in the business model.

ALI program - cycle 2 (2016-2017)

During this period of the company's participation in the ALI Program, the interventions proposed in the first cycle were being incorporated, with most of the analyzed dimensions undergoing considerable improvements, including the innovative ambience. Even so, there were some deficiencies linked to the perception of value on the part of customers about some of the solutions offered.

There were also many hypotheses about the interests of the target audience, arising even from perceptions gathered in open innovation rounds. However, despite the success of most offers created from open innovation, some customer reviews did not show the expected result.

ALI program - cycle 3 (2019)

In the third participation cycle, Medicatriz had a new brand positioning and a structured model of open innovation, with several co-creation rounds carried out with the most varied actors. However, there was a lack of deeper understandings that would help to make the investments profitable, as well as something that would add up to the impressions brought about by the results of applied research.

Innovative products, from new launches or incremental changes, were represented in billing; it was necessary, however, to scale this billing as a whole.

ALI program - cycle 4 (2020)

In the fourth participation cycle, Medicatriz received a new opportunity to participate in the ALI Program, in order to continue the process of internal innovation, towards business growth. In this context, all employees were getting used to the innovation models and innovative culture of the company, but there was still a gap in the internal processes of knowledge transfer and professional recognition.

Employees, when leaving the company, carried knowledge that had not been transferred; so, when it was necessary to share daily operational activities with colleagues and new employees, this action was not received attentively, causing knowledge holders to waste time.

Another significant occurrence in the company was the employees' self-esteem being related to knowing and how to perform their daily tasks. So, when someone considered their way of doing things better, there was resistance, resulting more in behavior change than in acquiring knowledge, in addition to generating an unfavorable organizational climate. Thus, if knowledge was not absorbed and used, it would not be transferred.

There was also the perception that the productivity of employees could be improved, which would contribute to the organizational climate, in general, making them more productive; creative; and capable of solving problems, creating tools for the company and even motivating colleagues. To this end, there should be greater professional recognition, as there was no clear career plan in the company, and dissatisfaction related to internal progress was visible.

ANALYSIS AND PROPOSED INTERVENTION TO THE PROBLEM SITUATION

To solve the diagnosed problems, some interventions were proposed for each participation cycle.

ALI program - cycle 1 (2013-2015)

In the first participation cycle, the company implemented rounds to collect ideas. The first edition was the “Medicatriz Innovation Award (PIM)”, with 20 prioritized ideas, with the first three being awarded. The second edition, called “Medicatriz Cup of Ideas”, had a format inspired by the World Cup: the groups contributed with ideas and held disputes in a draw, scoring points; the winning team was awarded.

Another action incorporated was open innovation, inspired by the observation of a case exposed at the 14th National Association for Research and Development of Innovative Companies (ANPEI) Conference. Co-creation was then implemented with various actors in the company's ecosystem and in the dermocosmetics sector in general. This action continues to this day, in a systematic way (ANPEI, 2016).

ALI program - cycle 2 (2016-2017)

In the second participation cycle, the need to explore the marketing innovations of that period was identified, highlighting a new brand positioning, based on branding concepts. As a result, from the mission, vision and values, to the company logo, they were all re-signified and changed.

The third round of the program was aimed at capturing insights for the commercial sector, confirming the continuity of a formal model for collecting ideas, assumed in the first cycle of care, including conducting ethnographic research in the routines of beauticians. from different contexts.

ALI program - cycle 3 (2019)

In the third cycle, Medicatriz, aware of the importance of developing its innovative environment, sought international references (Silicon Valley, Finnish ecosystem, technical visits to essential oil production arrangements in France) to implement new practices.

The proposal for the third participation in the ALI Program covered the work on important points for the market, indicated by professionals, such as high relevance and low satisfaction, leading to decision-making by incorporating such perceptions into actions promoted by the brand.

ALI program - cycle 4 (2020)

In the fourth participation cycle, in the initial diagnosis, the gap in professional recognition by the company's managers was identified. Other desires of the employees became clearer, such as: highlighting the executors of processes; and receive feedback, praise and recognition from peers and superiors. Employees also suggested scoring from one to ten, according to the service performed, and receiving a promotion of position, due to the good execution of processes and tasks, as a form of recognition.

Thus, to support the effectiveness of processes (and reduce costs to the company) and the need for employee recognition (awards and profit sharing), a solution called “Shared Competency Diary” was applied.

These actions, when approved by the direct manager, start to compose individual performance charts, generating scores, based on criteria established seasonally and defined by cycles, such as: sales target, packaging and distribution effectiveness, professionals trained to apply Medicatriz products, among others.

At the end of the individual development plan cycles, the scores are considered for the career plan and internal professional development, favoring the employees with the best performance.

OBTAINED RESULTS

The results obtained with the implementation of the proposed interventions and the conjunctural factors that affected these results, in each participation cycle, are listed below.

ALI program - cycle 1 (2013-2015)

During the period of participation in the ALI Program, the open innovation calls were entitled “VIP Coffee” and, in the first year, three events/editions were held.

The first was the “Vip Coffee Cosmetology”, which featured professors and influencers from the sector, capturing insights for product development and indicating the technological challenges that the research and development sector would need to overcome.

The second, the “Vip Coffee Academic”, held with students of undergraduate and technical level courses in aesthetics, with the aim of gathering information so that future beauticians could contribute to the creations. Based on open innovation (practiced in the first two events) and co-creation, 11 products were launched (including their variations).

The third, promoted in 2015, was the “Vip Coffee Pre-Congress”, held to support innovation in marketing and sponsor, for the first time, the pre-congress of the largest beauty and aesthetics fair in Latin America – Beauty Fair. On that day, Medicatriz promoted all pre-congress activities, with eight hours of lectures and discussion panels.

Medicatriz Dermocosmetics’ open innovation action, presented at the 15th ANPEI Conference, brought together several participants, who contributed ideas and perceptions about the company. This was one of the most praised events at Beauty Fair and used as a differential in the creation of value by the market. This open innovation was a differentiator for the company and its partners, and it continues to this day (ANPEI, 2016).

ALI program - cycle 2 (2016-2017)

In the second participation cycle, the repositioning of the brand brought a different way of presenting the company to the market, which involved everything from the incorporation of strategic foundations to new attributes of speech, through changes in colors and images.

The emotional nature of the brand was assumed to be “human”, evidencing the role of people in its performance: both the person who performs functions as a professional of aesthetics, and those who work at Medicatriz, making the entire purpose of the company real.

“Customer people” and “collaborating people” are part of a society context, in which the company also believes it has a role. To form a “human” culture, projects were developed in three different areas, applied to innovation and value generation, contemplating the universe of customers, employees and the social circle. Thus, for clients, an ethnographic research and human-centered service design was carried out; for employees, a new project for managing people, happiness and flourishing; and for the social circle, the “Mirror, Mirror of Mine” Project.

ALI program - cycle 3 (2019)

In the third participation cycle, the resulting actions complemented those previously worked on, in the renewal of marketing strategies, in particular, the lessons learned from ethnographic research. The external public perceived that four aspects were of great importance, but satisfaction was medium or low. They are: “do your own marketing”, “knowledge”, “professional recognition” and “the client comes back and/or renews the treatments”.

Thus, practices that help professionals to do their own marketing were incorporated into the portfolio of workshops, including articulating partnerships with Sebrae, to bring knowledge of marketing and the management of small service businesses as a whole.

“Knowledge” was highlighted, since there is insecurity among newly graduated professionals and the need for protocol procedures for everyone to act. For this, Medicatriz's technical center was transformed into a knowledge center, with weekly schedules for free workshops, paid courses, reception of aesthetic schools, supervised internship for students, and advanced support, in which the space is open to professionals who have already purchased products, but need practical tests and more detailed assistance.

In this way, all the actions of the technical center are aimed at transforming the aesthetic professional into specialists in result treatments, meeting the main desires of the consumer. More specifically on the pain linked to professional recognition, some mitigation by external factors is expected, from the publication of Law No. 13,643, of 2018 (Brasil, 2018), which regulates the profession of beauticians.

In addition to these actions, searches were initiated for the development of a platform that can meet the needs found in tests, and applications, in partnership with other companies; and options for virtual catalogs were tested, which help professionals in the sale of products for treatment at home.

ALI program - cycle 4 (2020)

During the fourth participation cycle, Medicatriz noticed impacts on the organizational environment and on employee satisfaction, the main results being: migration between junior, full and senior status; reaching higher positions; optimization of training time and permanent access to content; and moments of relaxation during the recordings, which are the most awaited weekly.

The organizational climate and atmosphere became positive, and it was noticed that, in order to achieve results, it is not enough to manage people, but to provide a pleasant environment, in which employees feel motivated and valued.

Great challenges lie in the fact that some employees do not understand the process in a global way, and many link the responsibility to the manager to set an example and directly influence the behavior of the team, emphasizing the importance of assertive communication and the creation of greater proximity between the team members.

Increasing productivity and the feeling of belonging is the great search for results by Medicatriz. The company also knows that there is a challenge and a need for effort and for everyone to be more convinced about the advantages of implantations.

This is one of the humanitarian steps for the company to develop its model of constant development and professional recognition of employees, starting to materialize the innovative and collaborative culture in the internal environment, supported by the learning experience offered by the ALI Program in this trajectory.

CONCLUSION

The ALI Program, when undergoing substantial changes, contributed to the management of Medicatriz Dermocosmetics, which was assisted for a period of seven years, and demonstrated progress in the culture of innovation. Although the Program is not the direct executor of the innovations, the conduction and the incentive were perceived to create an environment conducive to changes and to add value to the business. The diagnoses, interventions, results, products and projects developed during the evolution of the ALI Program methodology in the participation of Medicatriz Dermocosmetics are shown in Table 1.

In the first cycle, results related to product innovation were obtained, favoring the stimulation of the collection of ideas and the implementation of open innovation mechanisms, which boosted the company to overcome some technological challenges, such as the adoption of nanotechnology and the development of sensory bases. and Brazilian materials. These evidences of a culture of innovation led Medicatriz to be a finalist for the National Innovation Award, in the “innovation management” category.

In the second cycle, marketing innovation actions were followed, in which the company presented itself in a new way, from the speech to its visual elements. Based on an ethnographic research, Medicatriz was able to perceive subdivisions between the groups of clients, as well as the appreciation of human relationships, which had great prominence, adding to the emotional nature of the brand, and unfolding in actions for clients, employees and society. Such transformations led Medicatriz to one more final of the National Innovation Award, this time in the category of innovation in marketing.

The third participation cycle had characteristics of innovation in marketing and organizational innovation, especially for presenting continued actions from the previous cycle. The contribution was given by the inspiration of a new business model, whose knowledge, according to research, filled a wide gap between importance and satisfaction. In this way, other classes of business are also benefited, since the company mobilizes numerous aesthetic professionals, working as self-employed or small business owners.

Finally, the fourth participation cycle focuses on process innovation. Even with all the company's trajectory and its routine search for innovation, the organizational climate was unfavorable and employee turnover was too high for the skills needed for each one. It was also noticed that the performance of the sales team could have better results, which would happen if there was a sense of belonging to the company in all employees, that is, if they felt responsible for the profits and important for the performance of other colleagues. At the same time, there was no clear career path in the company, and employees were dissatisfied with their progress, which discouraged them. The methodology applied showed that professional recognition was a stimulating factor in the successful adoption of processes - the program highlighted the need for them to be designed and to have the necessary executions monitored, improved and added to the evaluation of the individual performance of the employee.

The study brings advances by delving into the contributions made by the program, in a period in which Sebrae promoted several changes, including the service time in each cycle. It can be concluded that success was achieved, both by the availability of service, made by Sebrae and CNPq, and by the company's dedication, causing feedback between cycles and, as a consequence, several innovative practices over the seven years of service.

Medicatriz understands that investment in human development increases the chances of organizations becoming productive and captivating for their employees, suppliers and customers. This positive organizational climate makes the brand powerful, uniting principles and values, in addition to improving the quality of life, reflecting greater engagement and dedication to business activities and society.

Acknowledgment

The authors thank the company Medicatriz Dermocosméticos and the Brazilian Support Service for Micro and Small Enterprises in São Paulo/SP (SEBRAE/SP).

Funding

Brazilian National Council for Scientific and Technological Development (CNPq), Process n. 37001/2019-6.

Conflict of interest statemen

The authors declare that there are no conflicts of interests.

Authors’ statement of individual contributions

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Author notes

Corresponding author: davi.araujo@ibirapuera.edu.br

Additional information

Article ID: 2078

JEL Code: LM10

Editor-in-Chief1or Adjunct2: ²Dr. Edmundo Inacio Junior, University of Campinas (UNICAMP)

Handling Editor: Dr. Julio Araújo Carneiro Cunha, Nove de Julho, University, UNINOVE

Executive Editor: M. Eng. Patrícia Trindade de Araújo

Translation / Proofreading: Francisco Antonio Sória Martins

Funding: Brazilian National Council for Scientific and Technological Development (CNPq) #37001/2019-6

Cite as: Marengo, L. L; Soares, A. N; Romão, H. R. da; Araújo, D. L. A de; Zilber, S. N. (2022). The evolution of the local innovation agents (ALI) program methodology and its contribution to the innovation management at Medicatriz Dermocosmetics. Revista de Empreendedorismo e Gestão de Pequenas Empresas, 11(2), Artigo e2078. https://doi.org/10.14211/ibjesb.e2078

Additional information

redalyc-journal-id: 5615

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