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processes. So there is no sense to influence the society as a whole, first of all it is necessary to convince the most active part of the society. But how to find and convince them is already a matter of marketing!..
4. Market Entry Strategy of Innovative Products/ Services
Companies today need to focus on the wishes of the consumers with regard to competitors positions in their minds. Rice and Trout 3 distinguish four promotion strategies: a defensive war (the strategy of defence); an offensive war (the strategy of attacking); a flank war ( the strategy of a flanking war); a partizanskaya war ( the strategy of a guerrilla war). Each of these strategies has its peculiarities and principles, suitable for companies of a certain type and has its own distinctive aim. The guerrilla strategy is the most suitable for small innovation companies. The main aim of this strategy is a survival on the market. The company should choose a relatively small segment of the market, where it will become a leader. Such a small market territory is usually not attractive for powerful leaders either because of its small size or its inaccessibility for a large company. Thanks to the flexibility and mobility of the partisans, they can seize the chosen segment much faster and easier than a large company.
To sum up, depending on the stage at which an innovation company is , it faces different marketing issues. At pre-project stage (Seed stage and Start up stage ) an innovation company should carry out the following tasks: the assessment of market indicators, consumer segmentation, the choice of the target segment, forecasting sales, the development of an entry market strategy, budget marketing. At the project stage (the stage of Expansion) the company's tasks vary: the development of product policy (basic goods concept ), the development of price policy (basic price and discounts), the development of sales policy (distribution channels), the development of communication policy (promotion campaign), the development of marketing plan and budget calculation of marketing, the implementation of the plan and its monitoring.
References:
1. F. KOTLER MARKETING BASICS: this PROCEDURE. ED. 12 ED - M:WILLIAMS,2009.
2. Theodore Leviticus: The Marketing Imagination
3. Rice E., Trout J. Positioning: the battle for the minds St. Petersburg: Piter, 2007
ОСНОВНЫЕ ПОДХОДЫ К РАЗРАБОТКЕ, ОПИСАНИЮ И МОДЕЛИРОВАНИЮ ПРОЦЕССНЫХ ИННОВАЦИИ В
РОССИЙСКИХ КОМПАНИЯХ
Алябедева И.И., аспирант, ст. преподаватель кафедры Управления проектами и инновационного менеджмента Московского государственного университета экономики, статистики и информатики (МЭСИ), e-mail: [email protected]
В статье рассмотрены актуальны вопросы управления инновационным развитием Российских компаний, различные подходы к определению, классификации, и моделированию процессных инноваций, проанализированы проблемы, связанные с разграничением понятий «технологические инновации» и «процессные инновации», а также с выбором критериев оценки степени инновационности проводимых изменений и их количественными характеристиками. Предложены возможные варианты решения этих проблем на законодательном и корпоративном уровнях.
Ключевые слова: инновации, инновационное развитие бизнеса. продуктовые инновации, процессные инновации, технологические инновации, бизнес-процессы компании, моделирование бизнес-процессов.
MAIN APPROACHES TO THE DEVELOPMENT, DESCRIPTION AND SIMULATION OF PROCESS INNOVATIONS IN RUSSIAN COMPANIES
Alyabedeva I., PhD student, Lecturer of chair of Project management and innovative management Moscow State University of Economics,
Statistics and Informatics (MESI), e-mail: [email protected]
The article aims to consider the issues of innovative development management of Russian companies, to provide various approaches to the definition, classification and simulation of process innovations, to analyze difficulties connected with differentiating the concepts of "technological innovations" and "process innovations", to assist in the choice of assessment criteria for innovative changes, to offer possible solutions of the above mentioned issues on legislative and corporate levels.
Keywords: innovations, innovative business development, product innovations, process innovations, technological innovations, company business processes, simulation of business processes.
In new conditions of economic management in Russia , which is on the road of market reforms, the competition of goods and services is transformed into the competition of the organizations, the rivalry of managerial knowledge, art and skill of management. This is due to the fact that the world has entered the epoch of «intellectual economy» or «knowledge economy», where innovations and creative and intellectual findings of people are becoming the main sources of wealth and the leading factors of production Therefore, in modern conditions only those companies which are flexible in responding to market demands can survive, create and competently organize the production of competitive products, ensure the efficiency of restructuring processes in management, i.e. innovation development
The basis for the innovation activity of each enterprise is the development (commercialization) of new types of products, methods of their production, delivery and implementation. Therefore, a basic prerequisite for the innovative development of the enterprises is product and process innovations. The essence of a product innovation is expressed in the name and nature of implemented innovations. However, according to a recognized authority in the field of management and one of the founders of the modern theory of innovation P. Drucker, «...the most efficient innovation is another product or service that does not so much represent some improvements, as it creates a new potential meet,... this new and «different» product is more expensive than the previous one; however, the total impact...is that it reduces costs and increases
productivity...». From this it follows that in modern conditions, the priority in the development and implementation of product innovations is to increase the usefulness of customers (consumers).
So, M.Hammer and J. Ciampi in their revolutionary scientific work make the following conclusions about the growth of the role of the client in the modern business environment: «...customers ,consumers and companies do not behave in the same way any more , they require products and services to develop to meet the unique needs...Individual clients, consumers and industrial firms require an individual approach. They expect products to be tailored to their needs, delivered in accordance with their plans of production or working hours and to have convenient ways of payment for them . A number of these factors that influence both individually and together brought about the transition of their impact on the market from the manufacturer to the customer». Consequently, at the present stage the increasing role of innovation in the development of enterprises makes it impossible to use the old management approaches. This is due to the fact that the enterprise can be considered as innovation-active and promising object of the development, provided the trend of this development is due to the comprehensive implementation of all kinds of product and process innovations. The development of production should take place simultaneously with the development of forms and methods of management. At the beginning of economic growth monoproject and relatively simple methods of management can be applied. The growth of the complexity of management in its development
should precede the development of the production. Only such a condition can make it effective. All the above mentioned entails the complication of functional, organizational, motivational and informational relations and further results in a total reorganization of the administrative and controlling subsystems.
Product and technology innovations are traditionally considered to be the main sources of sustainable competitive advantages . They are a necessary but insufficient condition for successful business of a modern company. The practice of the modern leading companies proves that the organizational and managerial innovations today are becoming the source of success of market activity of enterprises.
Thus, process innovations are not less important in the improvement of the innovative capacities of domestic enterprises than product innovations . Their implementation allows you to get significant competitive advantages in a variety of the most promising business entities in various fields.
Difficulties in the study of process innovations result in a number of existing problems. Firstly, this is due to the ambiguity of the interpretation of the category « a process innovation». Nowadays there is a significant number of approaches that either overlap or contradict each other in their definition. Secondly, there are no scientifically substantiated recommendations for accounting and diagnostics of process innovations, indicators for evaluating their effectiveness, impact criteria of the cumulative effect of functioning and development of enterprises have not been developed yet . In this regard, in practical activities, it is difficult enough to identify what kind of process should be attributed to the innovation. The result is a systematic underestimation of the results of innovation activities in the national statistics, and, consequently, the ambiguity of the definition of innovation-active enterprises, the level and the criteria of innovation development.
It should be noted that among Russian scholars there is no unequivocal definition of the concept of «a process innovation». As a rule, the introduction of resource-saving and low-waste technologies is included into new improved processes , the results of which are presented in the form of absolute and relative indicators in the table of accounting and analysis of the innovative activity of enterprises for a certain period. However, a more detailed consideration of the essence of ongoing improvements and science-based definition of the term «a process innovation» are not given. In the Russian Federation the description of the innovative activity is provided in the federal and regional regulations ,in which process innovations are attributed to technological recommendations and there is an explanation which innovations should be considered as a process. In particular, it is noted that process innovations are focused generally on the increase of production efficiency but they can also be used in the production and delivery of technologically new or improved products that cannot be produced or delivered using conventional production methods. However, notes about the organizational and managerial changes in this category are not included.
According to scientists, this approach is not exactly correct. Proving this result, we can cite the following words of P. Drucker: «first of all, the innovation is not to be confused with the invention. The innovation is, rather, an economic term, not a technical one. Being non technological in its nature the innovation. is not less important than any technological invention. The innovation is not limited to research and development - it covers all the components of the enterprise, all its functions and all activities..».
Consequently, process innovations can be divided into: 1) technological process innovations (in the traditional understanding); 2) managerial process innovations (new forms of management in the production and marketing). Thus, process innovations include:
• the improvement of interaction processes of the enterprise with the external environment - innovations in the organization of sales and procurement activities;
• enhancing the control of contractual discipline (improving the efficiency of work with contractors of the enterprise);
• the development of new schemes of cooperation with brokers and sales representatives;
• measures to improve the efficiency and reduce the risk of the interaction with financial institutions acting as lenders and investors;
• the improvement of relations with partners in the supply and sales activities involving new technology product sales and the simplification of purchasing schemes;
• the improvement and change of management processes in the motion of material stocks and funds at the enterprise:
• logistics process innovations
• - production process innovations ;
• the introduction of modern methods of planning, production, supply and distribution (master scheduling);
• the implementation of the methodology of controlling for the purpose of accounting, financial analysis and effective management of financial and economic activities of the enterprise;
• innovations, changes in general business management processes that determine the implementation of activities to reduce ongoing operating costs of the enterprise;
• innovations in technological processes of production, including the development of new technological regulations, the development of new types of technical equipment and special tools.
Therefore, the introduction of these concepts into the practice of management of the enterprise should be defined as a process innovation. Also, the definition of a process innovation must be based on the process approach to management, it is not contrary to the literal translation of the concept of «a process innovation» and English - innovation processes.
According to M. Hammer and J. Ciampi , this approach implies that companies are supposed to be set up not only on the basis of labour division . Now the company must be organized on the basis of key processes. Consequently, the central link in the framework of this approach is a priority focus on client needs. The only goal of business processes is a customer satisfaction by both a final product and a delivery process service. It allows to make a conclusion about the key role of the process approach in the framework of the customer orientation policy , which is essential to determining the need of process innovations.
The base category, which determines the essence of a process approach is « a process»or « a business process». Various scholars interpret «a process» as a logical, consistent, coherent set of activities that consume resources of a provider, create value, and display the result to the consumer. M.Hammer and D.Ciampi define a business process «...as a complex of actions, which, based on one or more kinds of input data, create a valuable result for their clients». Russian specialists in the field of process management, V. Repin in the work « Methods and models of business processes» define this term as follows: «the business-process is a stable, purposeful set of interrelated activities (sequence of works) in which a certain technology converts inputs and outputs that provide value to the consumer».
It is not so difficult to see that the last-mentioned definition of business processes generalizes the previous two and is not contrary to the system approach to study of the enterprise as a complex socioeconomic system. In addition, the theoretical analysis of the economic essence of the category of business processes of the enterprise allows to assume the presence of a synergy between them, the improvement of which has an emerging impact on an aggregate result of the enterprise activity.
A set of interconnected business-processes forms their network, which includes all the basic functions performed by the departments of the enterprise. On this basis, the essence of the process approach to management is to make a network of business processes as a set of activities of the enterprise, assuming subsequent management of these processes with the help of PDCA method (Plan (planning process) - Do (running process) - Check (performance analysis process) - Act (adjustment process), including monitoring of customer satisfaction and internal audit processes.
Therefore, the essence of the PDCA process approach methodology proves the earlier estimated fact of presence of synergies between processes and emergent influence of the results of their alteration or improvement of the cumulative effects. In other words, the innovation processes involve the synergetic effect of the enterprise. Therefore, by the author's approach to the definition of a process innovation and justification of its role in the development of the enterprise, it is relevant to apply the combined approach (process and synergy). Conducted theoretical analysis makes it possible to offer the modern concept of the interpretation of the economic essence of a process innovation.
A process innovation is an innovation that affects the entire spectrum of business-processes of the enterprise whose main priority is the improvement of the activity for the purpose of the choice of the orientation vector to the clients (consumers), and aimed at achieving a synergetic effect of the enterprise due to emergent influence of the efficiency increase of all its functional units.
Proceeding from the above analysis, we propose the following classification of process innovations, subdividing them into the innovations of the first and second levels.
The first level process innovations determine the capabilities of the
Table 1. Theoretical principles of modern approaches to the management of enterprises
Approach Theoretical principles of the approach
1 2
Functional It involves the selection by the principle of relevance or by the type of resource, the emphasis is on the benefits of certain subjects. . Development management is considered as a complex process aimed at the development of the main structural units and functional areas, the development of financial, social, industrial, information spheres, organizational development of the enterprise.
Situational The central point is the situation, that is, a specific set of circumstances, which influence the organisation at the moment. It allows us to understand better what techniques will contribute more to the objectives of the organization in a specific situation; helps determine the trends of the development of the enterprise, diagnose its phase in the life cycle and simulate scenarios for future development of the enterprise; focuses on the identification of the crisis points which expect management actions to correct the trajectory of the development.
Systematic We propose a general scientific methodology aimed at the integral perception of the system objects. It involves the consideration of all aspects of the enterprise development in their interconnection and integrity, the allocation thereof, the relationships between the elements and the determination of the nature of these relations. The management of the enterprise development is aimed at the establishment of basic system-forming factors influencing the processes within the enterprise, and business relationships with the external environment. The consideration of the enterprise as a cybernetic system allows to develop an appropriate mechanism to control its development.
Processual Management is considered as a process of continuous work for the achievement of goals. For the purpose of management of enterprise development, in the framework of this approach, it is necessary to consider the following management functions: accounting, valuation, analysis, regulation, forecasting, organization and motivation, control, adj ustment.
Synergetic It is a kind of a system approach to complex open nonlinear systems. Based on its theoretical basis, the supplemented categories are as follows: a cycle instability, imbalance, the point of bifurcation, disaster, internal and external fluctuations, self-organization, attractor, stage and phase of system development, development management. Accounting synergistic regularities significantly change the traditional understanding in the field of management complex systems, which increasingly begin to be based on building a control action, consistent with the internal tendencies of developing systems. This provides the understanding of the essence of innovative development process of the enterprise and allows to develop the mechanism of its control.
Processual-synergetic (author) It is an integrated association of theoretical positions of the processual and synergistic approaches in a separate mechanism for the enterprise management on the basis of process innovations, that allows to take into account their emerging impact, develop tools of the development management directed to the achievement of a synergy effect. It allows you to formulate a new concept for the understanding of the economic essence of process innovations. Therefore, on the one hand, the combined approach allows to describe business processes, to develop a mechanism of the governance aimed at boosting an aggregate effect of functioning of the enterprise due to the increased efficiency of business processes. On the other hand, it demonstrates the advantages of non-linear thinking in the framework of synergy:it differentiates the alternatives of selected paths of development (adjustment processes) from the position of their optimality of the goals of the innovation development.
Table 2. Improvement of management of innovative development of enterprises
№ n/n Phase control Description of the stage Methods
1 The definition of «bottlenecks» in modern systems of the management of the enterprise development The identification of existing deficiencies in the system of innovative development of enterprises in the theoretical and practical aspects. System analysis. Diagnostics
2 The development of a balanced scorecard (BSC) for the innovation activity of enterprises. It consists of several sub-stages: - the development of the initial list of indicators of the innovation activity of enterprises; - questioning heads, practitioners to clarify the MOP of innovative development; - questioning and expert interviews of scientists for deeper analysis and qualitative selection of indicators; - bringing the results of the expert survey of practitioners and scientists into the common factor space by building matrices of differences in opinions; - the final selection of the indicators of the innovation activity of enterprises. Diagnostics. MOP methodology, the method of expert estimates. The search of models of individual differences. Factor analysis.
3 The diagnosis of the innovative development of enterprises. The development of integral criteria for the diagnostics of innovation activity, the scale of assessment and classification of innovation-active enterprises. Factor analysis. Cluster analysis.
4 The development of the development model of enterprises on the basis of process innovations. The assessment of the level of emergent influence of intensive factors of the development of the enterprise (process innovations) on the profit of enterprises and forecasting of its dynamics. There is an imitation of controlling influence on the process of innovative development of the enterprise. Cobb-Douglas modified production function model.
5 The assessment of the comparability of the synergy effect of the enterprise and the profit gained due to the implementation of process innovations The development of the method based on the modification of Cobb-Douglas production function and the selection of an innovation model . Combining the two methods allows to estimate the effect of the introduction of process innovations on the basis of graphic interpretation of the model of the enterprise development, to build a map of innovation activity and display graphically the optimal level of innovative development of the enterprise. Cobb-Douglas modified production function model. The selection of an innovation model. Graphical method.
innovation development by introducing new methods of management of business processes, development of new technologies of production and sales of products, mechanisms for management of human, financial, capital, material and other kinds of resources, improvement of quality of production and management. For the first time we have included here ecological innovations as environmental management that is one of the directions of the concept of a total quality control.
The second level process innovations are interpreted as the result of changes on the first level , they facilitate businesses to make a revolutionary leap forward in the organizational-economic development of the enterprise and to reach a qualitatively new level, to achieve a competitive advantage in foreign markets, increasing the export potential of the enterprise. It should be emphasized that at this level the legal aspect of the introduced innovations, which includes a description of all business processes and their consolidation in the regulations of the enterprise, the automation of such functions is carried out through information network innovations.
Thus, the management of the enterprise development on the basis of process innovations is an iterative purposeful process, in order to coordinate changes of enterprise activity in all fields, resulting synergetic effect of innovations is crucial to long-term trends for sustainable development of the enterprise. The implementation of such a tool as a process innovation in the management of the enterprise development improves production, sales,organizational and economic opportunities.
Our theoretical framework of managing enterprise development through process innovations dictates a number of priority tasks for the purpose of their practical implementation. In this regard, it is necessary to develop the concept of the management of enterprise development through a business process innovation .
Methodological basis of the concept of forming the principles, which should meet the model of the development management of companies can be defined as follows : consistency, relevance, comprehensiveness, purposefulness, dynamism, synergies, optimal sufficiency, holism, predictability, feedback, and flexibility.
The implementation of the developed concept will allow to build an effective model of the management of the enterprise development on the basis of process innovations and to develop terms of business proposals of principal (for the purpose of legal consolidation of process innovations) and private (for the purpose of enterprises) character.
Thus, on the basis of the developed concept of the development management of companies resting on a process innovation our recommendations include the following:
1. amendments and additions to the Law of Russia « On the innovative activities»:
• the definition of the term « a process innovation», the classification of process innovations;
• the clarification of the term « an innovation-active enterprise»;
2. the improvement of existing statistical reporting standards:
• the development of methodical recommendations for accounting of a process innovation;
• additional accounting standards of innovation activity lines in the directions of a process innovation;
• the diagnostics of an innovative development of enterprises, the application of the integral index, the scale of assessment and classification of innovation-active enterprises;
3. the development of recommendations on inventory, assessment and control of a process innovation at enterprises:
• standards of the description of business processes and the identification of bottlenecks in control systems;
• regulations of business processes of the company;
• forms development planning in process innovations;
• the introduction of methods for monitoring the dynamics of enterprise income at the expense of intensive factors (process and product innovations);
• the introduction of management cards of innovation activity (graphic interpretation of the development model of the enterprises on the basis of process innovations);
• methods of correction of the trajectory of enterprise development in accordance with the dynamics of profits from innovations and the degree of achievement of synergy effect.
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1. Peter Drucker: Management Challenges for 21st Century (New York: Harper Business), 1999:
2. Hammer M. Reinzhinring Corporation: The Manifesto of the revolution in business / M. Hammer, J. Ciampi. - SPb.:Publishing, St. Petersburg University, 1997. 332 s.
3. Popov E. Reengineering business processes and information technology / E. Popov, M. Shappot. - M: UNITY, 1999. -214 pp.
4. Repin V., Elipherov V. Processing Approach to Management: Modelling of Business-processes. - M.: RIA «Standards and Quality», 2006. - 250p.
5. Phihman Y. Quality Management System at Industrial Enterprise / The Guidance on System Engineering. - M.: NTK «Track», 2005. -216 p.
6. Тельнов Ю.Ф. Реинжиниринг бизнес-процессов. - М.: Финансы и статистика, 2001. - 320 с.
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