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DEVELOPMENT OF THE SOCIAL-ECONOMIC SYSTEMS FROM THE STANDPOINT OF INNOVATIVE-STRATEGIC MANAGEMENT
Gureev P. M., Candidate of economic science, Associate Professor Russia, Moscow, State University of Management
ABSTRACT
The article concerns the issues of the social-economic systems development. It is suggested considering it as the process of realization of the innovative system potential which is a temporal function of the innovation potency. The thesis is given proof that the innovations management for enterprises is one of the determinant one of the innovative-strategic resources.
Innovative development, innovative potential, innovative potency, innovations management, innovative-strategic management.
© 2015 The Author.
ARTICLE INFO
Received 25 November 2015 Accepted 18 December 2015 Published 30 December 2015
KEYWORDS
In its general sense the innovative management is one of the forms of the general functional management the object of which is the processes of the innovative-technical development. Where, on the one hand, the innovative management is a system to prepare, take and realize decisions directed to the formation, support and development of the enterprises' innovative potential, but, on the other hand, is a combination of systemized knowledge of modern management about the methods of creating innovations and their efficiency (Fig. 1).
It is characteristic that over the years to innovations and it means innovation management as well they have referred not only innovations in engineering and technologies but also other types of changes. The sphere of the innovative management application has widened and «gradually in the orbit of innovation management other types of innovations have been included» [19].
In modern economic conditions the priority factor becomes the management ability both as to promote the innovation raise that «in general are really the determining factor of the economic growth and significant line of the perspective development» [10], so as the most effectively to realize the potency of the business enterprise subjects to accept them. Thus, the innovation management must be considered as some integral force using innovations in order to realize the development strategies of the enterprise. At the same time it is necessary to take into consideration that «the innovation processes are quite specific, large-scale, complex and varied by their content of the objects management for the effective development of which it is necessary to use special forms and methods of management influence» [4].
The innovative management must produce managerial and (or) regulating effects in the innovations activity sphere of the business enterprises and these very effects must be based on the complex of formal and (or) informal rules, principles, norms, regulations and value orientations that regulate different spheres of the innovative activity. It means that the innovative management is:
1. The social-economic institute affecting:
- the entrepreneur activity;
- the development of the innovative and (or) investment activity;
- the social-economic and political sphere of the society;
2. «The social group of managers who are professionally engaged in management work in the sphere of public and private business and also creative, pedagogical, scientific activity» [24];
3. The science subject studying the technical-organizational and social-economic aspects of the enterprise's development and management.
Fig. 1 - The components of the innovation management
Nowadays to the innovations management tasks they refer:
I. Planning of the innovative activity of the establishment:
1. Mission formulating:
- defining the strategies of the innovative activity;
- setting the tasks;
- choosing the innovative strategy of development;
2. Organizing the innovative activity;
3. Motivating the participants of the innovative activity.
II. Inner harmonization - creation of the inner firm innovations management:
1. Elaborating the innovative strategic conception;
2. Defining the topics of the activity and innovations projects;
3. Building the structure of innovations management;
4. Planning the industrial processes;
5. Planning the realization of the innovative products;
6. Selecting and arranging the staff;
7. Calendar distributing the work and its control implementation;
8. Creating the system of the intellectual work motivation. III. Outer harmonization:
1. Forming short-term and long-term goals of the innovation activity;
2. Organizing and carrying out the marketing research;
3. Planning the environmental protection actions;
4. Evaluation and utilization of the progressive experience and achievements of the competitors - innovations benchmarking;
5. Organizing cooperation in the innovations programs;
6. Taking into account consumer demands and the objective tendencies of the STP.
In spite the fact that on innovation management there are many publications it, as an independent trend, requires a serious theoretical development, the development of new conceptual and methodological approaches to the issue of innovations management among them. Even a cursory analysis of the mentioned above tasks of the innovation management shows that all of them are of a
strategic character for the enterprise. Therefore, the innovation management has an explicit innovative-strategic focus.
This approach allows defining the main ways of the innovation management development which with a high degree of probability could guarantee the effective realization of innovations in order to provide the dynamic development.
Nowadays it is very topical the necessity to put the Russian industrial enterprises on the innovations route of development. But the actions taken to solve this task do not give the effect needed because «the industrial enterprises have not been active as to the innovative development yet» [17]. «Nowadays in the Russian economy there is imbalance between the innovative possibilities that exist and how many of them are put into practice » [23]. However, everybody understands that any enterprise that is intended to increase its profit and raise its competitiveness must develop its innovative activity that is the innovation development must become its strategic task.
Development is a targeted sustained progress that pursues some definite aim. «Development is transition from the old quality condition to the new one, from the lower to the higher, from the simple to the complex; is a process of logical change or transition from one state into another, a more perfect one» [14].
The strategic innovative development of the enterprise as a social-economic system much depends on what innovative potential it possesses that is how far this system is ready to accept innovations of different character at a definite moment. The realization of the innovative potential has a form of accepting or rejecting the innovations (Fig. 2).
Fig. 2 - realization of the innovative potential of the social-economic system
The readiness of the social-economic system to realize innovations must be considered in a complex, thoroughly and in different aspects taking into consideration that «the main problem of the enterprise's innovations activity is the apparent complexity of the organizational processes and much increasing role of management» [21].
The enterprise's innovation activity is a specific instrument that allows realizing the innovative potential in order to increase the functional system efficiency. The main parameters of efficiency assessment must be:
1. Increase of the product competitiveness by its quality and production efficiency;
2. Balance between stability (the traditional technology management) and resources expenses to realize innovations;
3. Development the enterprise's possibilities to accept changes by the system in combination with the existing management process;
4. Providing interaction of all element of the social-economic system to develop actions to realize innovations.
Summing up all said above it is necessary to note that the innovative potential of the social-economic system is the top one to implement the innovative activity of the enterprise.
The methodological basis of the innovative potential essence is the term «potential» - a «combination of all existing possibilities, means in some sphere, field» [16]. The innovation potential «has specific peculiarities with account of the target area that is providing the set (desired) level of the enterprise's innovative activity» [23]. It should be noted that in the professional literature we can come across different definitions of the term «innovation potential», where these definitions very often contradict each other and are not oriented to the methodological essence of this notion.
For example, a group of the scientists from the State University under the supervision of V.P. Barancheiev [7] define the innovation potential as the degree of readiness to realize the innovative project or innovative change program and innovations implementation. Very close to this definition is the position of A.G. Porshnev, Z.P. Rumiantzeva, N.A. Salomatin [13], who consider the innovation potential as readiness to perform the tasks providing to reach the set innovation goal.
Another approach is demonstrated by B.K. Lisin and V.N. Fridlianov who think that the enterprise's innovation potential is a «combination of scientific-technic, technological, infrastructural, financial, legal, social-cultural and other possibilities to provide acceptance and realization of innovations that is receiving innovations» [11]. They suggest a hypothesis that the innovation potential depends on four components:
- existence of a scientific-technic (technological) set of designs and inventions both their own so as acquired;
- the condition of the enterprise's infrastructural possibilities providing to run the innovation through all stages of the innovative cycle;
- outer and inner factors reflecting the interconnection of the innovation potential with other parts of the combined potential of the industrial enterprise;
- the innovation culture level that characterizes the acceptance degree by the enterprise's staff, their readiness and capability to realize novelties as innovations.
M.N. Titova considers the innovation potential as «the object's ability of the real sector to provide a sufficient degree of the industry factors innovations, their combinations in the technological process of the product made, the organizational-managerial structures and corporate culture» [20].
S.V. Kortov under the notion «innovation potential» understands a «complex of resources comprising staff, facilities, finance, management and others which is sufficient to do a full innovative cycle and to meet the required demands of innovations» [3].
B.A. Pateiev defines the innovation potential of the enterprise as a «combination of information, technical-technological, intellectual, space, financial, organizational-managerial, legal and entrepreneur resources forming an integral system of the ideas appearing and developing in it that provide competitiveness of the finished product and service in accordance to the enterprise's goal and strategies» [15].
D.S. Andianov considers the innovation potential of the enterprise from the systematic approach position and thinks that it is an «ability of the system to transform the real things order so that to satisfy existing or arising needs (of the subject-innovator, customer, market, etc)» [1]. That is the innovation potential is a characteristic of the system ability to change.
The given definitions of the term «innovation potential» shows different interpretations of this notion that can be due to the use of different scientific approaches:
- The structural-institutional approach singles out the structure of the innovative activity from the point of view of the institutional subjects system that realize innovation activity and also the economic connections with science and industry;
- The functional approach determines the time laws of the innovation process: production of the innovation product, its exchange, distribution, consumption and renovation of the innovation process cycle;
- The resource approach is based on the possibility of every business resource to take part in the innovation process.
The notion «innovation potential» is closely connected with the notion «innovation potencyn».
Potency is a hidden force that is naturally found in the ordered environment or put there by human (for artificial ordered environment) which is revealed under certain circumstances [9].
By the innovation potency one should understand the inner structure of the system that foresees the system capacity to change and by the innovation potential we should understand the
system ability to show these abilities and realize them in every concrete moment of the system life cycle that is the innovation potential is a time (temporal) function to realize the innovation potency.
From our point of view the innovation potential is a system feature of the complex social-economic system that allows it to adapt to outer and inner factors changes with the help of efficient realization of innovations of different character. By the social-economic system we, first of all, understand an industrial enterprise.
The composition of the enterprise's innovation potential is defined by the essence of innovation activity and the characteristic feature of modern innovation processes at the enterprise is a tight and inseparable interconnection of the strategic and innovative management - the innovative-strategic management. It is because the innovations must determine the main direction of the industrial enterprise development. But in the modern theory of strategic management the innovation strategies are referred to the strategies of the functional level that does not allow considering innovations as the main competitive resource and important factor of the enterprise's development in modern business conditions [6].
Treating innovations as a targeted change of the structural-functional characteristics of the social-economic system allows to state that the mentioned above approach is not correct. Controlling innovations for the described systems is a life determining innovative-strategic resource. Hence, the process of innovations control by its nature is not innovative but innovative-strategic. It makes it clear that low innovation activity of the industrial enterprises objectively decrease the competitiveness of both the enterprises so the whole Russian economy in general. The transition of the enterprise to the innovative-strategic management must allow finding reserves to raise the product quality, to save material and non-material resources, to increase labor efficiency, improve the industry organization and to increase its productivity.
As it has been said before, the main tasks of the innovative-strategic management are organizing, planning and realizing the processes of design and implementation of innovations in the social-economic systems of different level directed to reach the goals of these systems development.
Planning is one of the basic components of the system of the inner firm management of such a social-economic system as an enterprise and it must include innovations planning as a main component determining the development direction of the system, the strategic one among them.
Innovations planning is a system of calculations with the help of which the choice and grounding of the enterprise's development goals is done and also decisions preparation that are necessary to reach the set goals.
In the enterprise's management plane the innovations planning must perform the functions shown in Fig. 3.
Fig. 3 - The function of innovations planning
Implementing the functions of the innovations planning objectively envisages the system of innovations planning existence.
The system of innovations planning is a complex of different interacting with each other plans directed to implementation of the main functions and tasks of planning.
The factors that determine the complex composition and content are as follows:
- organizational structure;
- industrial structure;
- profile of the innovation activity of the enterprise;
- content of the realized innovation processes;
- scale and steadiness of the innovation activity;
- possibility to involve and use the resources.
One should understand that the activity to plan innovations must be built on some definite principles:
1. The principle of scientific relevance of planning - taking into account the laws and tendencies of the scientific-technological and economic development;
2. The principle of the strategic aspects of planning domination - account of the long-term character of the innovations activity results, the cycle length of innovations realization and their significance to provide competitiveness;
3. The principle of innovation planning complexity - a systemic interconnection of all developed plans, account the supposed structural and functional changes into planning the innovative processes stages;
4. The principle of flexibility and plasticity of innovations planning - a possibility to dynamically correct the plans by arising deviations and (or) changes of the inner and outer factors.
5. The principle of innovations planning continuity - succession and interconnection of the plans of different time length.
The plan types differ by their goals, object, level, content and period of planning but the main tasks of innovations planning, as a rule, are the following:
- choice of basic areas of innovative changes in the business subject's activity;
- distribution of the required work by the time periods;
- scheduling the calendar deadlines of work (length) implementation;
- calculation of resources needed.
The solution of these tasks in general provides a balanced approach to the innovative-strategic planning of the enterprise development, with the following questions putting for the experts' evaluation, as a rule:
1. What changes exactly (quantitative - structural or qualitative - functional) are necessary for the system at the moment and at the perspective?
2. Does the innovative potential of the business subject correspond to the suggested changes?
3. How will the innovative potential change over the time?
4. When will it be favorable time to start innovation activity?
Together with these methodologically unsolved questions there is another global one whether the described system has an innovative potency (a possibility to change) in principle?
It is not disputable that answers for the put above questions much predetermine efficiency of the suggested innovations actions.
Summing up we can note that from our point of view the efficiency of innovations planning and therefore practical innovative-strategic management depends at least on three questions answers:
1. What to do?
2. When to do?
3. How to do?
Answering these questions the managers often have to base on experience (their own or others') and on their own intuition. «Many businessmen are interested only in marketing laws, their own intuition and also familiar economic terms illustrating the current business condition - income, expense, profit, damage. That is why in the implicit rivalry between scientists with their complicated economic categories and close people's opinion very often the victory goes to the «family consulting» [12] (Fig. 4), that is the strategic issues solution to plan innovations is very often done
without taking into account the peculiarities of the innovative-strategic management that leads to a low innovation efficiency and, hence, to a slow economic development.
Without understanding the development law patterns that is without understanding how over tome the main objects characteristics change (or must change) it is impossible a complete innovative-strategic management of the social-economic system of any hierarchy level - from the subsistence economy to the world economy.
Different economic schools have formulated many conceptions to explain the economic development understanding by the development as the evolution process so as the revolution processes. However, most conceptions are characteristic of the fact that the development process is considered as the economic system intention to reach a definite fixed (stable) condition (the market balance).
Fig. 4 - Applying business-advice to plan innovations (According to the data of National Federation of Independent Business and Wells Fargo -
the USA)
There is no need to prove the statement that an absolutely stable (hyper-stable) system in the homeostasis condition has no possibilities to develop because any deviation from the stationary condition is suppressed and the system return to its initial balanced condition. Hence, for any transition into a new condition the system must obligatory become temporally unstable - sensitive to changes. «Arising in the development process instability makes it possible for the system to leap into a different state. Such a leap can be considered as the system reaction to disturbance in order to compensate it and the system returns not in its old state but transits into a new one that is «developing through instability» provides stability at a higher level» [2]. Thus, the «term instability (or unsteadiness) loses its negative connotation... Instability can be a condition of the stable dynamic development. Only the systems that are far from balance, the systems in an unsteady state can spontaneously organize themselves and develop» [8]. On the other hand, «a steady instability can be harmful for the system as hyper-steadiness because it excludes the «memory» of the system, adaptive establishing of useful system characteristics for surviving in this environment» [18]. The unstable systems are eliminated - perish as the result of different natural reasons.
The system condition as well as the tendencies of its development can change with the passage of time. At the same time not only the system state can change (stable or instable), but also entropy (indeterminacy) of the system. Even in XIX c. the Austrian theory physicist Ludwig Boltzmann stated that «by default in the closed system entropy always increases. And it means chaos is exacerbated. It is
possible to reduce it only by the energy supply. This law is observed by us every day. If we do not take care of the garden, house, car and etc., they will simply dilapidate» [5]. From this statement we can draw a conclusion the social-economic systems development requires a definite «energy», revealing in targeted managerial influence that will goal-oriented regulate the development process that is the development of the social-economic system needs the innovative-strategic management process.
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