Success in any sphere of business depends on efficiency of managerial decisions. The project of South Ural State University’s scientists will allow improving the quality of management at high-tech defense enterprises and at companies developing “the markets of the future”. Nowadays for this purpose, 6 unique algorithms were elaborated and registered by SUSU scientists.
Despite the fact that there are already many research works dedicated to study of economic and financial activity of enterprises, today there is no proper attention paid to high-tech business which has its specific features. Scientists of SUSU’s School of Economics and Management developed an algorithm which allows making maximally correct managerial decisions at such enterprises. Co-author of the project(the algorithm has been developed in cooperation with a second-year master’s degree student), Doctor of Economic Sciences, Professor Yulia Babanova told us about advantages of the new method.
The algorithm evaluates the role of non-material resources
“Any enterprise can have both traditional and high-tech manufacture, or just be high-tech. In high-tech companies, venture decisions play a huge role, and therefore the significant part of financing goes to new intelligent products and innovative technologies. The developed-by-us algorithm of management system for economic and financial activity of high-tech enterprises takes into account these specificities: it allows evaluating the role of non-material resources.”
The calculated part of the algorithm is based on the platform of Microsoft Office Excel, which simplifies its use by a wide range of consumers. We carry out monthly analysis of current indicators and annual analysis of strategy indicators. This operation helps determining how much an enterprise’s activity complies with the goals set for the nearest several years. In other words, the algorithm has several levels: strategic, operative and operational. Combination of these levels allows conciliating current decisions with goals and objectives targeted at long-term period of company’s development.
Markets of the future, “Internet of Things” and defense enterprises
“We considered possibilities of the algorithm using the example of high-tech defense enterprises and cooperated with Perm Research and Production Instrument Company and with SKB Turbina AO. These are the companies which develop innovative products and actively implement them. In order to create innovative products that would be in-demand on the market, it is necessary to understand the market’s needs and to know what kind of work is being done in this sphere around the world. By correlating this knowledge with possibilities of an enterprise, we find the development areas which nowadays allow defense enterprises to produce civil products,” explains Yulia Vladimirovna.
Moreover, the algorithm can be applied at high-tech enterprises of IT sphere and during the work with the “Internet of Things” as well as in manufacturing products for markets of the future such as NeuroNet, TechNet, AutoNet, etc. Today, a lot of information is required for making managerial decisions in any large enterprise. And at the present time such information gets processed with the use of various intelligent systems.
Algorithm is a part of the Quick Response Management project
“The specificity of traditional business is in the fact that purchased technologies are used until they recoup the investment. But the world doesn’t stay still and demands every-minute updates. It is always good when profits outnumber costs, nevertheless sometimes costs are meant to contribute for the future, and we can’t always predict the results. Analysis of high-tech enterprises’ activity requires focusing attention on other things. In the traditional business, the result is determined by profit, whereas in high-tech business the result first of all depends on a company’s image and long-term success. Therefore, our algorithm emphasizes today’s results for a successful strategic development.”
The algorithm developed by scientists of the School of Economics and Management can be used for choosing strategy projects of high-tech companies’ development and for evaluating their efficiency, and also for reducing the time of fulfilling a contract with simultaneous reduction of costs and an increase in quality. This algorithm together with other management tools is a basis of the Quick Response Management concept, which is being successfully implemented by SUSU scientists to the activity of Russian companies.