Strategic planning of innovations. Strategic Planning of Innovative Activities Professor, Doctor of Economics. The development and implementation of methods for strategic planning of innovative development of regions will ensure a smooth and effective transition to and
“Innovation in the activity of an enterprise matters only when it improves the activity in accordance with the business development strategy. In fact, innovation in the process of enterprise activity is impossible if they are random one-time impacts and will not be focused on the strategic part of doing business and will imply the achievement of strategic goals.
Innovative business, even more than other types of commercial activity, needs strategic planning. Strategic planning ensures the ability of an innovative business to be competitive through the concentration of innovative resources, a significant improvement in the results of innovative activities and the disclosure of those innovative opportunities that would make it possible to obtain investment resources. For those investors and lenders who are considering financing an innovative business, an innovative enterprise development strategy makes it possible to distinguish the enterprise from its competitors and increase the chances of obtaining financing.
The strategic planning process includes four stages:
- Strategy Development
- Planning
- Execution
- Continuous improvement.
Each stage is an integral part of the strategic planning process. The strategy determines where the main efforts should be focused in order to achieve the goals. Planning for the most part involves sharing information about the new strategy within the enterprise and discussing ways to implement this strategy with the enterprise's shareholders, customers, investors, and creditors. Execution is the implementation of enterprise plans. And finally, continual improvement means continually adjusting and improving plans as they are implemented over time. Therefore, developing a successful strategy is an ongoing process, not a one-time event.
Why engage in strategic planning?
- To ensure sustainable development in an uncertain business environment;
- To take advantage of rapid changes in technological capabilities;
- To evaluate the restrictions placed on your activities;
- To search for opportunities;
- To remain competitive.
What is strategic planning?
Strategic planning is the process of developing and constantly strengthening the sustainable competitiveness of an enterprise. Strategic planning involves such management of the enterprise, which allows you to achieve your goals. Strategic planning solves the following problems of the enterprise:
- What customers will the company have and in what markets will the company operate;
- What business processes should be developed at the enterprise;
- What are the external factors that most affect the results of the enterprise;
- What new products or new services will be offered by the enterprise;
- What specific parameters of the enterprise need to be developed most of all;
- What financial, logistical and human resources will be needed to implement the chosen strategy.
In other words, strategic planning shows how you will manage the activities of the enterprise over the next few years, what resources are needed to ensure that your activities are successful, what you need to do in order to achieve your goals and what risks await you on this. way.
The most limited are resources such as time and money. Therefore, one of the most important tasks of strategic planning is to make decisions about the allocation of resources between the various needs of the enterprise. This decision-making process is the core of strategic planning. Without strategic planning, resource allocation can be spur of the moment and based on considerations of momentary need rather than strategic importance, i.e. work on the principle of "solving burning" problems.
The enterprise must determine where its efforts will be concentrated in order for it to develop its full potential. Will the enterprise depend on customers, or will it rely on innovation, excellence technological processes, clear logistics management or technology?
The strategy is not a producer of different plans. Plans are just a by-product of strategy development. Strategy is the producer of results. The strategy is part of the enterprise management process. As in any other process, when developing a strategy, everyone "gets what they sow." Investing both time and money in strategic planning pays huge dividends in unleashing the potential of the enterprise, building an efficient team and constant attention aimed at achieving the set goal. Ultimately, strategic planning leads to an increase in the competitiveness of the enterprise.
Table 1.
Characteristics of Strategic Planning Systems
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Characteristics of strategic planning
The specific characteristics of strategic planning systems are summarized in Table 2 and are based on a five-point Likert scale ranging from 1 - "no focus on this characteristic" to 5 - "highest concentration on this characteristic" Orientation inward is assessed through the possible degree of attention paid to customer service , the efficiency of the production process, attracting and retaining highly qualified personnel and analyzing the strengths and weaknesses of the enterprise.
Outward orientation is assessed by four factors related to the analysis of opportunities for the use of investments and retained funds, competition and market analysis. Functional orientation is assessed on a four-point scale that distinguishes the expected degree of emphasis placed on functional planning, coordination and integration in strategic planning activities. Key personnel participation is measured by the extent to which the enterprise manager, board members and managers at various levels are involved in the strategic planning process. Creativity in strategic planning is assessed on a nine-point scale that describes the ability of an enterprise to anticipate surprises and crises, adapt to unforeseen circumstances, etc. Aspects of management are evaluated on a 10-point scale showing the degree of concentration on the motivation of managers, cross-exchange of information in the hierarchy of the organization, integration of production aspects, etc. And, finally, the use of planning methods is evaluated by the degree of emphasis placed on the use of financial models, analysis of the investment portfolio and methods of predictive analysis.
Table 2.
Weight characteristics of Strategic Planning Systems
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What does strategic planning provide?
- Assessment of the direction of business development - how the functional tasks of the business are changing;
- Assessment of the direction of development of the enterprise as a company;
- Assessing the direction of technology development – which technologies will be cost-effective in the future;
- Strategic plan, coinciding with the essence and objectives of the enterprise;
- A strategic plan that reveals critical parameters in the activities of the enterprise.
What are the benefits of strategic planning for an enterprise?
- Concentration on the parameters that are critical for the successful achievement of the goals of the activity;
- Risk minimization;
- Improving the use of resources;
- Increasing the flexibility of the enterprise;
- Getting rid of redundant parameters of the enterprise;
- Establishment of priorities for the enterprise;
- Determination of the general direction of development of the enterprise;
- Reducing the volume of unfulfilled tasks and unachieved goals.
What is the price of the fact that the enterprise does not have a strategic plan?
- Loss of competitiveness;
- Control crisis - control actions solve accumulated problems, and do not anticipate their appearance;
- Moving in too many directions and accumulating unfulfilled tasks and unachieved goals;
- The enterprise is strongly influenced by the external environment;
What critical questions need to be answered to determine the essence of business development?
- What business do we want to work in?
- What abilities and capabilities can we take with us to move forward?
- What will our competitors do?
- What to do to stay competitive?
Opportunities for innovative business are constantly expanding. Until recently, many innovative enterprises, especially at the initial stage of development, were limited only to local markets. At present, even for the most beginners, world markets are open. At the same time, global competition is also intensifying. This leads to the fact that the main task of strategic planning is to ensure the sustainable competitiveness of the enterprise. The constant introduction of new technologies is often for many enterprises the main strategic factor for successful competition. Moreover, an even more important factor in competition between innovative enterprises is the speed with which new developments are introduced. Over time, there are more and more investment funds in the economy. But at the same time, investors are becoming more and more selective. Therefore, the need for strategic planning, which would determine the prerequisites for the successful operation of the enterprise, becomes acute and relevant.
InvestmentsOften businesses develop business plans to obtain funding. However, at present, investors and lenders are more likely to require a potential investment object to develop strategic planning, rather than writing a production business plan. Therefore, the business plan should reflect approaches to strategic planning. Such approaches are an indicator of how successfully the management of the enterprise manages its activities. The business plan is a reflection of the fact that the management understands the state of the company and the environment in which it operates, all members of the company understand the goals of the company and the strategy for achieving these goals. Lenders and investors are more interested in your strategy than in financial projections because your approach to enterprise development strategy shows how more or less likely it will be for you to achieve the financial projections shown.
Why engage in strategic planning?A strategic plan is like the game plan of any sports team. Without a specific game plan, the coach could simply instruct the team with the words "Get on the field and play." Although such a team could win due to the physical ability of the players, this is unlikely. At the same time, good players alone are not enough to win games. Many entrepreneurs have great ideas but fail to implement them successfully. You need to have both a great strategy and a great execution. Even so, success cannot be guaranteed. However, having both, the entrepreneur significantly increases his chances of success. This principle is the key to strategic planning: combining great strategy with perfect execution. At the same time, what is ultimately important is not strategic planning itself, but how it is complemented by three key parameters: planning, execution and continuous improvement.
Strategic planning and excellent execution are essential elements in achieving success in today's competitive world. Another essential element is the exchange of information. In the process of implementing plans, there should be feedback and constant adjustment and adaptation of plans. This process is called continuous improvement.
Investing in strategy development increases the company's chances of success, unites the company's management and performers to solve the same problems. In this regard, is strategic planning a short-term or long-term task?
Many people think that strategy is a long-term goal. The fact that the strategy can be short-term is disputed. In reality, strategy has nothing to do with time. Strategy deals with competition. The following example can serve as a demonstration of the last statement. Imagine that you are the general of the only army in the world. There are no competitors like other armies. As a result, you don't need a strategy. Instead, you need a good production plan that decides what color uniforms soldiers wear and how to select musicians for regimental bands. However, it is worth introducing another competitor into the “battle”, as immediately the strategy becomes an important factor. Therefore, the strategy has nothing to do with time. Strategic planning deals with competition.
Is strategic planning a prerogative large enterprises? Strategy has nothing to do with the size of the enterprise. In any competitive environment, enterprises that can think through their actions better than competitors, plan their activities better than competitors, and maneuver better than competitors in the market, receive competitive advantages.
Small and medium enterprises should develop a strategy covering competition within the next three years. Since there will be rapid technological and marketing changes, these businesses will need to adjust their plans to changes in the internal and external environment. Like the general above, you will need to rethink your tactics and hone your maneuvering techniques. This flexibility is the key to success.
Strategic planning is a dynamic process. As the enterprise implements the process of its development, the behavior of the enterprise in the market also changes. Action must be taken fairly quickly. Rapid action based on a strategic approach and quick success create the momentum to move forward.
Most entrepreneurs, especially in innovative business, make excellent decisions on development strategy, because they are constantly thinking about how to improve their business. In this regard, there is no shortage of strategic ideas. Therefore, when an innovative business fails, it is most often the result of weak planning, execution, and continuous improvement processes. Many entrepreneurs think that everyone else on their team understands the goals of their business and therefore doesn't take the time to communicate the goals of the business to everyone. Many entrepreneurs have great ideas but fail to successfully execute them. Often businesses cannot simply focus on the critical parameters that would help them succeed.
StrategyThe process of developing a strategy should be fun, based on clear motivations and uplifting the spirit of the enterprise. The process of developing a strategy is a time of reflection on business, it is a process of moving away from daily worries and thinking about the future of the enterprise. To strengthen strategic thinking, it is recommended to break away from daily worries with the entire management team for at least two days and invite an independent specialist - a consultant to help formulate the strategy. The consultant must know the process of strategic planning, have experience in business in order to create practical advice and also have the ability to systematically summarize the results of group discussions.
The strategic planning process begins with an honest assessment of the current business situation. Albert Einstein is credited with saying that if he had only one hour to solve a problem about how to save the world, he would spend the first 50 minutes analyzing the problem itself. This concept is also true for strategic planning. However, many entrepreneurs indulge in daydreaming and never develop a plan to achieve their goals.
The strategy development process answers the following 4 questions:
- Where are we now?
- Where are we going?
- How will we reach the goal?
While this may seem like a very simple task, it really isn't. However, the strategic planning process, which consists of the above 4 components, provides a structure for the efforts of entrepreneurs and helps to get the maximum result from entrepreneurial activity.
Where are we?The answer to this question is an understanding of what the enterprise and its activities are today. This is an objective assessment of production activities in the broadest sense of the word. This type of business analysis is often referred to as "looking at your business from the opposite side of the street." You need to look at your business through the eyes of others. To do this, you need to look at your enterprise from the point of view of the shareholders of the enterprise, the clients of the enterprise, its personnel, suppliers, as well as from the point of view of the management itself. At this stage, it is necessary to assess the strengths and weaknesses of the enterprise, describe its successes and failures that have befallen the enterprise, evaluate the achievements and problems, opportunities and threats to successful activity. Strategists use another expression to describe this process: hot air balloon” or “View from 10,000 meters”. This process of collecting information about the enterprise is not limited to a simple review of the financial parameters of the enterprise. This process also includes information exchange between shareholders of the enterprise. Finally, sometimes the first step to solving a problem is to acknowledge that there is a problem.
The process of collecting data for strategic planning should include the creation of overviews of all activities of the enterprise, as well as the collection of external information about the markets and the economy in which the enterprise operates. All collected data is then presented to the group that will develop a strategic plan for an objective assessment of the business.
To facilitate the collection of objective information, it is recommended to conduct a survey of those who represent individual elements of the enterprise, as well as all shareholders. These surveys should also cover the personnel of the enterprise, including various levels of managers, customers and suppliers. These surveys should be conducted by persons independent of the management of the enterprise, since if these surveys are conducted by the management itself, then it will not receive objective results. Since it is impossible to interview everyone, it is necessary to select representatives of various groups of respondents. The survey should be carried out on the basis of a single questionnaire and contain enough space to discuss those issues that respondents consider important for the development of the enterprise's business.
During the development of the strategy, the first day is devoted to the processing and discussion of the strategic assessment of the enterprise. The more accurate the assessment, the easier it will be to determine what needs to be worked on in order to achieve the goals.
After an assessment of the current state of the enterprise has been presented to the strategists, the next step is to analyze this state. Simple and effective way conducting this analysis is SWOT - analysis, or analysis of the strengths and weaknesses of the enterprise, the opportunities of the enterprise and the threats to its activities. SWOT analysis allows you to structure information and determine how to take advantage of strengths, how to deal with weaknesses, how to consider opportunities and how to defend against threats. As you go through this analysis, you will inevitably respond to the information by developing solutions to the identified problems.
However, you should not fall into this trap. You need to listen, study and analyze all the facts before making decisions. Your advisor should write down all ideas and suggested actions so that you can review them later. At this stage, the main task is not to focus on problems and weaknesses, but an objective assessment of the situation in which the enterprise is today.
At this stage, you can only determine those aspects of the enterprise on which you must concentrate in order to achieve your goals. Only when you have seen where your business is today can you look to the future through the lens of what you would like to achieve, where you would like to be with your business, and how you can get there.
Where are we going?Once you have done a strategic assessment of your business, you need to understand where the business should go. You must submit your business after 3 years. What will you achieve in three years? What opportunities have you developed? What do your customers, suppliers, staff and shareholders say about your business? What financial results have you reached? What kind key achievements did you manage to provide? While this process involves a certain amount of daydreaming, you must remain realistic and your future must be achievable. You need to strike a balance of far-reaching goals with the understanding that the future you envision is achievable. An achievable future must be understood by all team members. Then the future will become "desired" by all.
In the process of strategic planning, team members must describe in detail the vision of the future state of the enterprise with all its main elements. The more clearly this vision is described, the easier it is to understand this future and convey it to the entire team. Vision is an appropriate term because the term itself implies that you have to see what the future should look like. When developing a vision for the future of the enterprise, you must consider the strategic goal of developing your business. This means that you must decide whether you will focus on manufacturing excellence, customer relationships, products and services, innovation, sales and marketing, or channel development. Determining concentration points will form a vision for the future and help you focus on the highlighted points in the process of executing your chosen strategy. The choice of the main goal of the business or the driving force of the business helps to determine what knowledge the team needs to have in order to achieve the goals. It takes at least half a day to develop such a vision for the future of the business everyone wants.
How will we reach the goal?Once you have assessed the current state of the business and developed a shared vision for the future of the business, the process of determining how to achieve your goals becomes much easier. This process is often referred to as "discrepancy analysis". This analysis identifies the discrepancies between where you are now and where you want to be.
In this stage, you identify the aspects of your business that you need to change and focus on in order to move from where the business is now to where you have defined the future. While you can't foresee every possible impediment, your goal is to focus control actions on identifying the critical parameters that determine the success of your business. The strategic vision you developed in the previous stage helps define these critical parameters. You need to answer the following questions: What parameters of the enterprise do you need to develop in order to achieve your goals? What infrastructure objects should attract your attention in the first place? What obstacles do you have to face? What resources do you need?
The answer to the question "How are we going to achieve our goals?" also includes identifying those key performance indicators that match the parameters that are critical to success. These key parameters form the basis for managing change in the enterprise, and these parameters may differ from the management methods that you have applied in your business before. One of the keys to successfully executing your strategy is to manage the measurables of your business. The old adage “You are what you measure” holds true in this case. Identifying and measuring the key parameters that describe your business helps you focus on the critical success factors in order to make the future you envision a reality. This helps you implement the changes in your business that are necessary to achieve your goals.
Finally, you must decide how the organization of your business is in line with the strategy you have chosen. For example, do the compensation programs you use improve the achievement of your goals? Often a business plan states one goal, and the company's management stimulates completely different ones with compensation programs. It is important that all structures of the enterprise understand their benefits from the fact that the enterprise will achieve its goals.
How will we support the process of constant change?The key to success is constant change to reflect the changing environment. Many businesses engage in strategic planning but then lack the will to put the chosen strategy into action and make constant changes to their organization. For example, when you return after developing strategic plans to the daily concerns of the enterprise, you may again plunge into routine and momentary problems. This cannot be allowed to happen. In the process of strategic planning, it is necessary to develop activities that will provide an environment for the continuous implementation of strategic plans. This requires a certain amount of structure and discipline and usually involves constant discussion of what has been achieved.
Upon completion of strategic planning, it is necessary to address those problems and questions that have accumulated during your absence. Only after you have dealt with industrial crises can you focus on the strategically identified factors that are critical to your success. It is necessary to develop a process for the continuous implementation of the elements of the strategic plan so that the “plan lives on”. Otherwise, strategic success cannot be achieved. In order for the strategic plan to "live", it is necessary to discuss the goals set, plans to achieve them, and the state in which the company is on the path to achieving these plans. In order to formalize and structure the process of work on the implementation of the strategic plan, it is necessary to perform the following set of works:
- communicate to all employees of the company the goals set for the enterprise;
- assign responsibility for certain key components of the strategic plan;
- define group and individual goals;
- identify key activities to implement the strategic plan;
- holding ongoing discussions on the progress of the strategic plan.
It is recommended that discussions on the progress of the strategic plan be held at least once every two weeks. This is a good way to refresh the enthusiasm that was generated in the development of the strategic plan. Discussing the strategic plan allows for a clearer understanding of the implementation challenges of the plan and ensures team members' commitment to the strategic plan. Creating a constant driving force to achieve your goals requires a lot of discipline. Part of the business activity should be the constant introduction of changes in the business processes of the enterprise. The introduction of new methods for assessing the performance of the enterprise, new forms of reporting on the progress of work, new compensation plans that coincide with strategic goals, new investment priorities - all this can help in the implementation of strategic plans.
PlanningAfter you have developed a company development strategy, you know in which direction you are moving and how you should reach your goals. After that, you need to convey the content of the strategic plan to all structures and employees of the company. Many companies do not devote enough time to this process of information exchange. However, if the communication process is not established and the employees and shareholders of the company are not aware of the strategic plans, the implementation of the strategic plan will be very difficult. It is necessary to explain the content of the strategic plan to all owners, shareholders and employees of the enterprise, as well as customers and investors, emphasizing how they can help the implementation of this plan and what they will receive from the implementation of this plan. Repeat information about your plans and report on the progress of their implementation at every opportunity.
Communication should begin as soon as the strategic plan is developed, while all ideas are still fresh in the minds of all involved. This will also make it possible for all participants in the process to understand what agreements have been reached, to understand what contribution each team member can make, what prospects the enterprise expects. The information exchange process may also include regular meetings to discuss the progress of the strategic development plan, develop corrective control actions, redistribute responsibilities and material and technical resources.
A month after the development of the strategic plan, a meeting with staff should be held to discuss the results achieved. The manager of the enterprise should explain what has been done in the past and describe the goals that have been developed. Such a meeting should be motivational. If the meeting is held on the rise, then the team should have a sense of the success of the enterprise in the future. It is necessary to explain the essence of the factors that are critical for success, and the parameters that show the effectiveness of the company. Need to distribute summary report to all present. The main task of such a meeting is to present the developed strategy, create motivation among the team and ensure that all team members contribute to the overall success of the enterprise. Only through the participation of all team members can you achieve commitment to your idea. Your employees must understand their roles and understand what is expected of them to succeed throughout the enterprise.
Writing a business planSometimes notes written at a management team meeting to develop a strategic plan may be sufficient to share information on the results of strategic planning. However, a more detailed presentation of all aspects of the enterprise's activities in the context of the implementation of the strategic plan may be required. Therefore, another effective means of communicating information about the strategic plan is the business plan. Growing businesses usually lack cash flow. Therefore, the development of business plans helps the enterprise to identify funding needs and ways to attract this funding. If additional funding is needed to implement the strategic plan, most lenders and investors will request a business plan in writing. Such a plan is a prerequisite for obtaining financing and is a document that is useful both for investors and for the founders of the enterprise itself and its employees. While a well-written business plan does not guarantee funding, a poorly written business plan will result in your proposal being rejected.
Before you develop a business plan, you need to develop a strategy. Although this axiom seems obvious, many entrepreneurs start by writing a business plan. If you don't have a well-defined strategy, you won't be able to implement your plan or get funding. Investors and lenders have a well-trained eye for recognizing that project managers have not thought through the details of a project and/or have not developed project strategies. While lenders and investors will consider the financial performance of your plan, they are most interested in the strategy behind the plan. They want to make sure that the opportunities are achievable, that the plans to achieve the goals are good, and that the management of the enterprise is able to turn the plan into reality.
A good plan should convey this information to the reader. While external consultants can help develop a business plan and strategy, the plan must grow from the core of the enterprise. Effective business the plan should be a useful tool for conducting the activities of the enterprise. If the business plan captivates the reader, he/she will want to know more about the opportunity presented in the plan.
An important component of the business plan are financial projections. This data is a quantitative expression of your plans for business development, they are the expected financial result of the implementation of your plans. Many entrepreneurs make a common mistake when developing a business plan with specific calculations. Calculating financial projections that reflect what the reader wants to see in the business plan, rather than demonstrating a strategy, is a good recipe for failure. This approach is often referred to as "planning turned upside down". Profit is not the result of focusing on the quantitative performance of your business. Profit is the result of your business developing correctly. Making a profit is not a strategy, it is a result. Strategic planning allows you to determine the critical factors that determine the achievement of your goal. Demonstration of quantitative indicators should be the end of the business planning process, which will show where you are going and how you will achieve your goals. The numbers become a simple financial expression of the plan.
The content of the developed planOnce you have developed a strategic plan and collected background information, you can begin to develop a business plan. Although you need to include certain standard information in your business plan, you must reflect the unique characteristics of your company and your situation. Be aware that for some readers, the information contained in your business plan may be the only information about your company. Therefore, you must create a positive impression of your company. One can think of writing a business plan as writing several memos on various topics. This approach facilitates the process of developing a business plan and allows you to delegate the functions of developing individual parts of a business plan to different team members. A well-designed business plan shows what indicators of the enterprise's budget or balance sheet demonstrate the effectiveness of the enterprise, provides the criteria that management uses to decide management decisions, and invites external readers to familiarize themselves with the directions of the enterprise's development. The business plan should reflect the culture of the enterprise, its values and distribution of leading roles in the company. The plan should be clear, concise and free from errors. The content of the business plan should be logical, for example, financial projections should be consistent with sales volumes and marketing plan. This may seem obvious, however, there are many situations where a business plan does not make sense. Imagine the reaction of a potential investor if, while reading a business plan, he encounters conflicting statements and spelling errors. What would you think of the people who presented you with such a plan?
ExecutionThe execution of a strategic plan is what distinguishes one company from another. The strategy should become part of your business culture and part of your daily work. One of the most effective ways to implement this approach is to change how you measure the success of your business. For each of the 5-6 success-critical factors identified in the strategic plan, you need to identify those key parameters of the enterprise that you must constantly record. In this case, all changes will be tightly woven into the business processes at your enterprise. This may cause you to register parameters that you previously did not notice at all. For example, you may determine that customer relationships are essential to the success of your business. Then you can periodically assess the quality of these relationships by communicating with customers. To improve the effectiveness of such management, you must share with your team the results of this activity, whether they are positive or negative, and concentrate your team's efforts on implementing such changes that would ensure the achievement of the desired result.
Another factor in the successful implementation of the strategic plan is the allocation of "shock positions". This is one of those changes that can be quickly implemented in order to create the key to success and give impetus to moving forward. It is necessary to single out such “shock positions” and distribute priorities between them. Intermediate successes should be celebrated in order to accelerate the implementation of changes. Another effective tool for executing the strategic plan is to change the compensation strategy. It is necessary to link compensatory measures with the results of activities, evaluated in terms of the critical success factors identified in the strategic plan. This allows you to force team members to concentrate on certain aspects of the enterprise. These factors and activities should reflect the content of your plan and be consistent with the compensation and reward structure. This process is also called "levelling".
Another component of successful execution is the degree to which you stick to the plan you have developed. While small changes to the plan are unavoidable, major changes and frequent changes to the rules of the organization of activities can lead to the fact that employees of the enterprise no longer take the activities you implement seriously. The top management of the enterprise not only needs to support initiatives and pave the way for them, but they need to constantly remind employees about what needs to be concentrated on during the implementation of the plan. It is necessary to constantly celebrate successful employees, because. recognition of contribution to the common cause and moral encouragement is also an important component along with monetary compensation.
Continuous improvementEven after a strategic plan has begun to be successfully implemented, there is always room for improvement. This process of continual improvement includes an analysis of what could be done better, what worked better, and what didn't. We need to make sure that the team is not so fixated on the strategic plan that it leaves no room for maneuver and change. For example, the strategy may change if the external environment has changed in the form of the emergence of new competitors or changes in economic legislation. Changes can be made through the mechanism of continuous evaluation of the enterprise. It is recommended to hold meetings dedicated to discussing the results at least once a month and developing measures to correct the course. A successful strategy includes concentration, structuring, discipline, soundness, driving force, commitment, measurability, compensation, communication, funding, goals, and an environment that supports the implementation of the strategic plan. But if this process were simple and easy, everyone would realize their plans, be rich and happy.
The development of any organization should be determined by a specific program of action for a specific period - a strategy that allows you to take into account risks and opportunities, and effectively allocate resources. Having a strategy is a necessary element of management modern organization. Success or failure is largely related to how actively the organization uses innovations and what in this strategy.
An innovation strategy is an interconnected set of actions to strengthen the viability and develop the capacity of a particular organization. It is a detailed comprehensive plan to achieve the set goals.
The innovation process, depending on the level of novelty of the product, may be in the nature of differentiation or diversification. Product differentiation is the process of developing a set of significant modifications to a product that makes it different from competitors' products. Product diversification is applied when an organization begins to produce additional products that it plans to offer to new markets. With diversification, it is possible to change both the product and the markets, or a combination of them.
Based on this, there are two approaches to setting goals and implementing an innovation strategy:
1. method of successive improvements
2. method of leap innovations
The method of successive improvements (conservative method) involves the consistent introduction of changes in the existing technology and product. It is characterized by the following points:
1) does not require significant financial investments and is less risky;
2) involves the search for a segment of the external environment where the existing potential of the organization can be realized;
3) suitable for capital-intensive industries with an increased share of special low-liquid assets, as well as for innovative processes with long-term low financial attractiveness;
4) it turns out to be more effective, provided that the company has a sufficiently strong innovative potential - it has an innovative product and it is necessary to maximize marketing efforts to find possible markets (marketing is necessary to turn the product into a product required on the market).
The disadvantage of this strategy is that improvements cannot continue indefinitely, at a certain stage, profits decrease.
The method of leap innovations (radical method) involves the implementation of radical changes in technology and product, sometimes unrelated to the previous activities of the organization. This method characterized by the following points:
1) it is associated with a high risk to the potential of the organization;
2) is focused on choosing the most promising (solvent) market segment and bringing its own innovative potential to its level;
3) it is typical for more dynamic small and medium-sized businesses, for more large organizations is acceptable provided that the innovation process is spun off for radical innovation and venture capital is attracted there;
4) the emphasis should be placed on scientific and technical activities that would allow the organization to achieve the required level of innovative potential.
The goals and the possibility of implementing an innovation strategy are determined by the state of the organization's potential and its compliance with the external environment. (Table 6.1.)
In the event that the potential and the external environment are relatively balanced, the organization follows the goals of expanding activities, then strategic planning is aimed at maintaining competitive advantages. Such strategic planning is defined as regular marketing.
At the same time, the organization follows a strategy to improve and maintain the quality of goods and services provided, studies their competitiveness, analyzes the competitive advantages of existing and potential customers, and is constantly engaged in innovation policy.
However, in reality, situations are more common when the innovative potential of the organization and the state of the external environment are not balanced. A variant is possible when the organization has sufficiently strong advantages (scientific and technological achievements, resources, etc.) and does not find demand for its products. Another case is when the innovative level of demand is higher than the potential of the organization, i.e. it is not able to offer the market a modern product. Here, rehabilitation marketing is more applicable, the essence of which is the reorganization of the innovation process associated with the redeployment of resources, changes in the organizational structure and management style. In this case, innovation processes are associated primarily with saving the most expensive resources and reducing costs.
The need to form and implement an innovation strategy is determined by two main goals:
1. Efficient allocation and use of resources: "internal strategy". In this case, we talk about the development of portfolio strategies, which determines the combination of activities of the organization.
2. Adaptation to the external environment: effective adaptation to changing external factors. Here, based on the assessment of competitive advantages, competitive strategies are developed that determine the approaches from which the organization should operate in its industry.
In order to optimally allocate resources and select a portfolio strategy, product portfolio matrices are used (BCG matrix, GE, etc.). At the same time, strategic planning of innovative activity is based on the management of the product life cycle, which involves the choice of a specific strategy at each stage of product development. Taking into account the life cycle, an organization can form a product range by changing the combination of products, introducing new products and removing those that can no longer become a product that provides the necessary demand. In this case, how the company realizes its innovative potential, how the risk is distributed at various stages of the innovation process, and how resources are distributed is of decisive importance.
When adapting to the external environment, the organization must determine its position in relation to competitors and in relation to partners (suppliers, consumers, intermediaries).
In relation to competitors, an organization can choose the following strategies:
- an offensive strategy, when sufficient R&D is taken in order to achieve a lead;
- a defense strategy that orients its own NIKOR to a level that allows short time reproduce the achievements of leading firms;
- absorption strategy, the meaning of which is to imitate advanced technology, and direct the main efforts to ensure high efficiency of the production process.
In relation to partners (suppliers, intermediaries, consumers), organizations must decide what work it will perform independently, and which with their participation. In this case, the organization can choose one of several cooperation strategies:
1. direct contracting - temporary transfer on a contract basis to third parties separate organization marketing, distribution and sale of goods (works, services).
2. reverse contracting - transfer of individual production and support functions
3. joint production - an association with another organization to ensure the performance of individual production and service functions.
When developing a new business, there are two ways to increase the number of successful products:
1. Increase the speed to market of a new product;
2. Consistently launch small batches of different projects on the market in the hope that one of them will find a steady demand.
Most companies have a policy aimed at increasing the speed to market of new products, which includes market research, analysis of its segments, comparative analysis indicators of the quality of the developed product with the goods of competitors, analysis of the structure of the industry. But, as a rule, market research of a product based on the use of new concept, are very inaccurate, underestimation of success is as common as overestimation, in both cases the result is detrimental. If the opportunity for success is grossly underestimated, the pioneering company runs the risk that its competitor may try again using the product idea. Conversely, an overoptimistic valuation will create such a gap between expectations and reality that the company will not be able to realize this opportunity.
Considering that consumers are often unable to form clear ideas about new products, the challenge is to acquire knowledge of the market reaction as quickly as possible, so the so-called forward marketing strategy becomes preferable. As you can see, the name contains an analogy with the concept of "expedition", and this alone suggests that this type of marketing is used in the study of undeveloped markets, just as an expedition is equipped to discover or explore new territories.
G. Hammel and K. Prehalad give the following definition of forward marketing: "The task of forward marketing is to accurately determine the goal of the activity, in other words, the set of functional characteristics of the product that are of real value to the consumer, and the distance to the goal are technical and other problems that needs to be decided to achieve a balance between price and performance that will open up new competitive space."
In accordance with the concept of forward marketing, one must quickly master the production of small series of cheap goods and monitor the reaction of the consumer. Now a product or service is quickly established in its intended market only if there is an exact match between functionality, price and technical specifications. The development of an unknown territory is a process of successive approximations (iteration method). The most important thing is not hitting the spot the first time, but the speed with which the arrows are launched. How quickly a company can find the right balance between product features, price, and functionality will determine its market success."
True knowledge of consumer response is acquired only when a product, however imperfect, is put on the market. Forward marketing increases the number of market successes, not because it increases the speed of product launches, but because it increases the number of opportunities for exploring different niches and the reaction of different consumers to product modifications. Thus, its main merit is that it increases the rate of accumulation of knowledge about potential markets.
The problem is how to increase the opportunity for frequent "invasion" of the market with minimal risk to the company. The solution is to minimize the time and cost of product modification.
The speed of each iteration towards the goal depends on the time it takes to develop a product, launch it into production, collect data from the market, make subsequent changes, and re-launch into production. Each modification is the result of some design changes made on the basis of information received from the consumer, and an improved version for the next "invasion". If a company's product development cycle is longer than the life cycle of its competitors' products, it has no chance of winning over the consumer.
The speed of mastering and modifying new products at Toshiba allows it to explore every possible competitive niche and leaves no chance for competitors such as Zenith, Grid, Compak to keep up with it. From 1986 to 1990, Toshiba produced 31 notebook models and in that time phased out more models than its slow-moving competitors launched.
From the point of view of forwarding marketing, the cost of production is no less important than the speed of development of the product. If every arrow is golden, the leadership is unlikely to want to shoot a large number of arrows into the fog. Japanese car firms are penetrating every market niche, from large luxury cars to "motorized shopping carts." Such experiments are only possible due to the extremely low costs of model development and production retooling.
Naturally, the manufacturer, whose costs for the creation of each modification are 3-4 times higher than the costs of a competitor, have problems. Such a company cannot afford the risk of being a market leader. It has loyal, long-term customers, but it certainly won't be able to attract new ones. Leadership will be held by companies that expand the ability to fulfill consumer expectations.
Frequent experimentation with the development of modifications also allows the company to accumulate information about the needs and requests of specific consumer groups.
The possibility of successful implementation of an innovation strategy is determined by the following factors:
- Excellent product: differentiated, with unique properties that bring additional benefits to the buyer.
- Strong marketing orientation: focus on the customer and the market.
- Global product concept: orientation of product design and development to the global market.
- Intensive initial analysis: a feasibility study is needed before development begins.
- Precise formulation of the concept: presentation of a list of specific tasks, selection of the target market, a set of properties and product positioning.
- Structured mastering plan: moving from the intended positioning to the operational marketing plan based on the marketing mix.
- Cross-functional coordination: interaction between R&D, production and marketing during the implementation of the strategy.
- Necessary management support: provision of resources, incentives.
- Use of synergy: involvement of external participants in the interaction.
- Market attractiveness: assessment of the market in terms of attractiveness and profitability.
- Preliminary selection: assessment of the success of the product based on preliminary analysis.
- Control over the progress of development: ensuring control over the implementation of the strategy.
- Access to resources: human and financial resources should be seen as an investment, not a cost.
- The role of the time factor: a quick entry into the market, which can become a competitive advantage for the organization.
- Risk: what level of risk does the firm consider acceptable for each of its decisions?
- Knowledge of past strategies and the results of their application: this will allow the company to more successfully develop new ones.
- Reaction to the owners: the strategic plan is developed by the company's managers, but often the owners can exert forceful pressure to change it.
An important factor in the successful implementation of an innovation strategy is its effective organization, which involves determining the structure and nature of the relationship between the participants in innovation
Topic: Enterprise innovation strategy
1. Strategic management and innovation management.
3. Development and selection of an innovative enterprise strategy.
4. Classification of innovative strategies (typology).
Effective management implies the development and implementation of managerial
policy and management decisions in the strategic and tactical aspects, in the long and short term. Classic control functions in modern conditions are carried out taking into account the peculiarities of the economic development of systems and business entities. The need for strategic planning is due to the logic of management, management methodology, goals, objectives and patterns of development of companies. Following the strategy should not be an end in itself of management, of course, since effective management implies a constant and necessary adjustment of the strategy and strategic attitudes, in accordance with changes in the environmental conditions and the capabilities of the enterprise. However, forecasting and planning changes is an important factor that increases the adaptability and competitiveness of enterprises in the innovation sphere. One of the important characteristics of modern management is a significant strengthening of the planning function. The role of planning is increasing in all areas of company management - from production to sales, from resource allocation to personnel management. This is primarily due to an increase in the dynamics of change, the unpredictability of the business environment and the risk associated with the activities of enterprises, especially in such a dynamic and competitive area as innovation. Of particular relevance is the form long term planning like strategic planning. The search for a permanent competitive advantage necessitates the development of competitive strategies for enterprises and planning their implementation.
Innovation is the most important source of competitive advantage for any enterprise; even if it is not high-tech, any attempts to implement innovative activities are associated with a high degree of uncertainty and the need to take into account the risks of product and technological substitution in the long term. In many ways, this task is solved with the help of the strategic plan of the enterprise. The justification and choice of an innovation activity strategy in a competitive environment depends on strategic planning.
The strategic plan of the enterprise determines the goals and directions of development in all major areas economic activity, including innovation. The innovation strategy refers to the level of the enterprise's functional strategies (along with production, technological, financial, marketing), i.e. is part of the corporate strategy (overall business strategy).
Goals and objectives of strategic planning:
1. Efficient allocation and use of resources
2. Adaptation to the external environment
The main goal is to create a long-term competitive advantage
Phases of strategic planning:
1. Strategy formulation (goals and attitudes, external analysis (chances, strong/weak), analysis of the internal environment)
2. Specification of the strategy
3. Evaluation and control
The main goal of strategic planning in an enterprise is to create a long-term advantage, and the main method is constant adaptation to market conditions and anticipation of changes in the external environment.
Innovation activity planning (diagram)
Modern strategic planning for innovation covers a period of 3 to 10 years (depending on the industry) and consists in development of a set of measures companies for adaptation, foresight, modeling changes in external conditions through the implementation of innovative projects. Those. it is planned to create a system of strategic planning.
Strategic planning system:
ü Market analysis
ü Goal setting
ü Development of alternative strategies
ü Developing a strategic plan
That. main method strategic planning - constant adaptation to the conditions of the external environment (market) and anticipation of changes.
2. Innovation strategy: essence, factors, features.
In general, all types of industries rely on technology to one degree or another.
however, the degree of impact of technological development on the long-term competitiveness of companies is different and depends both on industry specifics and on the culture, values and strategy of a particular company. Even in the competitive strategy of high-tech companies, a variety of factors other than technology, such as industry structure, marketing, finance, logistics, personnel, etc., can play a decisive role. However, there are many companies for which technological development is of key importance and is a defining element of long-term competitive advantage. .
Innovation strategy(IS) of the company is a purposeful process of development and implementation of management decisions aimed at creating and developing product and technological innovations, the principles of which are formed by the overall strategy of the company's business. Target innovation strategy - a long-term competitive advantage of the company, based on continuous effective innovation.
Innovation strategy refers to the level of functional strategies. This means that, along with marketing, production, technological, financial strategies company, is a component of the business strategy as a whole. However, for some innovative companies, focusing on innovation strategy and effective implementation of the decisions made may be the most significant element of corporate strategy. Therefore, the overall business strategy must be most effectively and optimally integrated with the technology and product strategies of the enterprise.
The technological strategy of the enterprise includes the definition, development and use technological competencies, those. specific skills and abilities that technology-based companies possess.
The purpose of the technological strategy is to develop (based on technological competencies) new competitive products and technologies for their production in order to form long-term competitive advantages of the company in the market. The potential benefits of new products are enormous, but expectations are rarely fully realized, as there are many challenges both in choosing the "right" products and in doing so effectively. Choosing the “right” products is a strategic problem that is being solved within the framework of grocery strategies.
The company's product strategy includes determining the directions for the development of the existing range and the introduction of new competitive products.
The determinants (determinants) of innovative development also significantly influence the innovative strategy of an enterprise.
For the choice and justification of the innovative strategy of the enterprise, it is of great importance innovative goals, which are characterized by the following indicators:
Upgradability, i.e. the share of new products in the total output;
Science intensity of products, i.e. the share of R&D expenses in sales volume;
Share of products at the launch and growth stages;
Specific age of production equipment;
Average time to market for new products.
The choice of innovative strategies and the determination of the goals of innovative development of an enterprise are also related to the growth rate of the enterprise.
Conceptual apparatus: strategic planning; current planning; innovation strategy; emergent strategies; active innovation strategies; passive innovation strategies; technology leadership strategy; simulation strategies; leader following strategy; copy strategy; technological uncertainty; market uncertainty; business uncertainty; product differentiation; diversification; horizontal diversification; vertical diversification; integration diversification; venture capital investments; blocking strategy; advance strategy; cooperation strategy; innovative cannibalism.
Essence and content of innovation activity planning
One of the characteristics of modern management is a pronounced strengthening of the function strategic planning. The role of planning is increasing in all areas of company management without exception: from production to sales, from resource allocation to personnel policy.
This circumstance is caused by a number of factors, among which the main place is occupied by the tendency to increase the unpredictability of the business environment and the risk associated with the functioning of companies.
In the new conditions, such a type of long-term planning as strategic planning is of particular relevance. The search by firms for a permanent advantage in the market necessitates the development of their competitive strategies and planning for their implementation.
Strategic planning, in contrast to long-term planning, which is based on the extrapolation method, suggests that, anticipating changes in the external environment, the company develops several alternative strategies to adapt to these changes. When changes come, the company chooses the strategy that is most appropriate for a given situation.
current, or short-term, innovation planning refers to the planning of a specific specific project and refers to an element of business planning.
As a rule, within the framework of current planning, a project budget is developed, plans for departments that are involved in the implementation of the investment project, financial plan by project, etc.
It is obvious that the marketing plan is dominant in this case, and it is based on the marketing program, which is a medium-term document.
The sequential process of making strategic innovative decisions consists of a number of stages.
On the first stage a comprehensive market research is carried out, namely, a study of the product and company structure of the market, an analysis of consumer preferences and motivations, segmentation of consumers and a possible definition of market windows, a study of the company's macro environment, an analysis of trade practices and commercial norms of behavior, a study legislative framework. The optimization of the decision-making process by the company's management depends on the professionalism of this stage, since information plays a primary role in this process.
On the second stage the company's own capabilities are determined and the framework for using one or another innovation strategy is identified. Its effective implementation can be limited by a number of factors. These are, first of all, the availability of financial resources, the adequacy of the development of the technological base and the level of professionalism of employees, i.e. quality of fixed and attracted capital. The degree of competition and the presence of legislative regulation of activities in the chosen industry are essential.
On the third stage due to the instability of market factors and the presence of certain intra-company limits, alternative strategies are being developed (preferably at least three) to adapt the company to new environmental conditions. Particular attention at this stage is paid to the correspondence of alternatives to the overall goals and global strategies of the company, as well as their correction with the information obtained at the first stage of the decision-making process.
On the fourth stage the company's management makes a costly and targeted assessment of each alternative, and considers the possibilities of financing the chosen solution.
Fifth stage involves drawing up an action plan for the implementation of the chosen innovation strategy. At the same stage, a project manager is appointed and a business plan taking into account all possible risks for the project (economic, political, technical). Quite often, consulting firms are involved in the work.
It is interesting
Even big companies like IBM, Motorola, General Electric and ford, when deciding on the introduction of new products, they use the services of consulting firms, despite the fact that the cost of such services in the United States ranges from 1.5 to 5,5% from total cost project. This is due to the fact that consulting firms have extensive databases of alternative projects, in addition, the name and fame of the firm advising the project play an important role in the decision of potential lenders on project financing.
Organization of decision-making - sixth stage on which is happening:
- specification of the conclusions and conclusions formulated at the highest level of management;
- bringing the provisions of the decision to all levels of management;
- distribution of functions;
- delegation of authority to lower managers.
For this, a certain innovative structure is formed in the form of project-target groups, coordinating centers for the development of new products, venture divisions. Largely this stage depends on the ability of managers to create an innovative climate in the company, neutralize possible internal and external resistance and motivate all intra-company entities to achieve the intended result.
Questions for study: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Features of the innovation economy and factors of competitiveness Technological forecasting of activities Expert forecasting and scenario forecasting Technological structures and approaches to the management of innovation activities General planning issues, the role of a strategic plan in the planning system Stages and tools of strategic planning (SWOT analysis method, analysis of core competencies, five forces of competition (Porter Model), SNW analysis, PEST analysis, BCG matrix, etc.) and investment cycles for an innovation strategy Technological audit Tools for taking into account the market and technological position in the formation of an innovation strategy Typical innovation strategies and strategies for creating competitive advantages Features of building a licensed strategy Innovation in the BSC System of strategic innovative planning in the Republic of Belarus Strategic planning of innovative development of the Russian Federation
2 The forecasting method is a method of studying the object of forecasting, aimed at developing a forecast. Forecasting is a kind of ability to foresee, analyze the situation and the expected course of its change in the future. METHODS technological forecasting scenario method expert forecasting
Technological forecasting 1 survey (exploratory) Qualitative and quantitative indicators!!! example Method: extrapolation of time series - statistical data about the object of interest to the researcher 2
Technological forecasting 2 2 normative example development of the forecast is carried out based on the goals and objectives that the organization sets itself in the forecast period equipment, energy resources, etc.) coordinated matrices of lower hierarchical levels are combined into matrices of higher levels up to the main matrices
Method of expert forecasting Stages: 1. Preparation for the development of the forecast. 4. Conducting an examination. 3 2. Analysis of retrospective information, internal and external conditions. 5. Development of alternative options. 3. Determination of the most probable options for the development of internal and external conditions. 6. Evaluation of the quality of the forecast. 7. Monitoring the implementation of the forecast and adjusting the forecast. Tasks in preparation: a procedure for conducting forecasting has been developed; the task for the forecast is formulated; a working (analytical) support group was formulated; an expert commission was formulated; prepared methodological support for the development of the forecast; the information base for carrying out the forecast is prepared.
Scenario method 3 The main purpose of use: to determine possible development trends, the relationship between existing factors, to form a picture possible states, to which the situation can come under the influence of certain influences. Technologies: obtaining an agreed opinion; iterative procedure of independent scenarios; use of interaction matrices, etc.
4 The level of socio-economic development is determined by the impact of a number of complementary factors, among which are: technological; socio-economic; political; cultural, etc. Increasing the socio-economic level of development and technological potential VI Level, potential V IV III II I 1985 -2035 1930 -1990 1880 -1940 1830 -1890 1785 -1835 1800 1850 1900 1950 2000 2050
4 Technological waves (modes): 1) The first wave (1785 -1835) formed a technological mode based on new technologies in the textile industry, the use of water energy. 2) The second wave (1830 -1890) is associated with the spread steam engine. 3) The third wave (1880 -1940) is based on the use of electrical energy in industrial production. 4) The fourth wave (1930 -1990) formed a way based on the development of energy using oil and oil products, gas, nuclear energy. 5) The fifth wave (1985-2035) is based on advances in microelectronics, computer science, biotechnology, genetic engineering, new species, space exploration, satellite communications, etc.
4 Stages of evolution of innovation management theory IV. Management of the "complex" output consumption III. Management of strategic planning tools II. Management of R&D by managers Prescientific I. Management of R&D by scientists Years 1900 1950 1970 1990
4 Pre-scientific stage. The emergence of research laboratories in large companies. T. Edison Laboratory, Kodak Laboratory, General Electric. 1900 -1950 - I. R&D management by scientists. The choice of the direction of research, the selection of projects for development, and the management of the R&D process are carried out by scientific researchers. The functions of the supervisor and the head of the commercial promotion of the project (manager) are not separated. Du Pont - development and introduction to the market of nylon
4 1950 -1970 - II. R&D management by managers. The choice of research and development directions is carried out by the top management of the companies. Development of projects that are of the greatest importance for the development of the company's business. Project management is carried out by the manager. US Airlines, Japanese Automobile Companies 1970 -1990 III. Management of strategic planning tools Formation and management of balanced "R&D portfolios", marketing research for R&D planning purposes. Satisfying the "explicit" needs of consumers. IBM, IT&T, telecommunication companies
4 Since 1990 - IV. Management of the "complex" output-consumption Transition from "closed models" of R&D organization to "open" ones. Organizational separation of innovation generators and innovation commercializers. Creation of functional companies. Development of marketing strategies to meet "hidden" needs. Applying a systematic approach to innovation management. State regulation innovation processes at the macro level, the creation of National Innovation Systems Cisco, Xerox, etc.
5 Planning the activity of the enterprise determination of the main directions and proportions of the development of production, taking into account the available material and labor resources on the basis of the most complete identification of the types, volumes of goods required by the market and the timing of their release. In a broad sense, planning consists in making a set of decisions related to future events. In a narrow sense, planning is reduced to the preparation of special documents - plans that determine the specific actions of the enterprise to implement the decisions made.
The purpose and objectives of planning 5 The main goal is to ensure the effective functioning and development of the enterprise. anticipation of probable market trends and the corresponding adjustment of the production program of the enterprise; study of consumer requirements and the formation of a program focused on their needs; continuous improvement of production efficiency; identification and mobilization of internal production resources; application of the most economical technologies and equipment; coordination of actions with suppliers, consumers, intermediaries of the enterprise and the orientation of these actions to achieve mutually beneficial results. ensuring the release of higher quality products;
5 Principles of planning concreteness; marginality; temporal orientation; flexibility; continuity; complexity; consistency; mandatory performance. Balance planning methods; normative; program target; factorial; economics and mathematics.
5 Planning Concepts (Approach) Concept Analogy Strengths(advantages) Weaknesses (disadvantages) Reactive (from the past) Swimming against the current experience, tradition; continuity; taking into account the interests of all units Inactive (inertia) To stay in a turbulent stream caution; sequence Preactive (anticipation) Interactive (designing the desired future) Ride the first wave Change the course of the river adequate assessment of the external environment; accounting for changes; decision optimization interaction with external environment; participation of personnel in planning lack of consistency and interaction; bureaucratization of management; overestimated needs of units of change are not perceived; creativity and innovation are not stimulated; failure to adapt to change underused experience; fascination with formal planning procedures; the psychological unpreparedness of the staff for changes is closer to the ideal than to the practical model; adaptation, adaptation, not design
5 Types of plans Feature Types of plans Deadline long-term; medium-term; short-term; operational. The content of economic activities R&D plans; production; marketing; sales; material and technical supply; financial plan, etc. organizational plans of the enterprise; structure plans of shops, departments and services; enterprises plans for branches, etc.
5 Characteristics of the company's plans Name of the plan Planning horizon Description Long-term strategic planning (forecasting) 5 10 years strategic goals and tasks by functional divisions. Medium-term strategic planning (forward planning) 2 5 years social development. Short-term planning (current) 1 year Planned technical and economic indicators are calculated and established, systems of norms and standards are developed and established, a business plan of the enterprise is being developed. Short-term planning (operational) Q1 , 1 month, 1 day, 1 shift are being developed production programs production divisions of the enterprise: workshops, services, calendar-planning standards are calculated, tasks are set for sections, workers.
6 Strategic planning of enterprises' activities Strategy means an interconnected set of actions to achieve the set goals. Strategic planning is a set of measures to achieve long-term success (5 1 years) success (goals) in business. 1. Development of the mission of the enterprise 2. Setting goals 6. Formation of strategies (strategy tree) 7. Choice of strategy 3. Analysis of the internal external position of the enterprise 5. Analysis of threats and opportunities 4. Analysis of influencing factors 8. Expected financial results
6 The choice of an innovative strategy depends on the level and dynamics of the development of technology and technology, the technological structure, the industry, competitors. The development of the strategy is carried out using: - tools of strategic analysis; - theories of the life cycle of one manufactured product; - the relationship of generations of manufactured products; - ongoing scientific and technical policy; - technological audit tools, etc.
6 1 SWOT analysis method method of studying strengths and weaknesses Weaknesses SWOT mission Goals organization Strengths Threats Opportunities Form of SWOT analysis table Positive influence Negative influence Strengths (project properties Internal or team giving Weaknesses (properties, advantages over weakening the project) environment others in the industry ) Opportunities (external Threats (external probable factors, External factors that may give additional opportunities to complicate the achievement of the environment for the goal) achievement of the goal)
6 3 Method of analysis of core competencies understanding that in business you need to have something that customers will appreciate unambiguously well Competency properties 1 assessment of capabilities 4 2 3 Assessment of the competencies currently available in the organization Definition of competencies that allow achieving the desired values of the selected factors
4 Model of the five forces of competition (Porter Model) 6 tool for expert analysis of competitive conditions prevailing in the market Impact assessment Attractiveness of the industry for the organization Forces Threat of new competitors new competitors - new players in the market; Intensity of competition impact of suppliers; The threat of the appearance of substitute goods influenced buyers. The market power of buyers of the organization (company) offering substitute products; Bargaining power of suppliers Existing competitors;
6 5 SNW analysis (Strength, Neutral, Weakness) expert method, which gives a qualitative assessment of the "strength" of the internal environment of the organization, represented by several positions deep study of the internal environment of the organization Table form for conducting SNW analysis Strategic positions and characteristics 1. General (corporate) strategy 2. Business strategies for specific businesses 3. Organizational structure 4. Finance as a general financial position 5. Product as competitiveness 6. Cost structure Qualitative assessment S N W
7 When forming the strategy, the following principles are used: - diversification of manufactured goods; - combinations of production of goods improved as a result of the introduction of various types of innovations; - application for various products, depending on their competitiveness, various strategies: violets, patients, commutators or explerents; - development of international integration and cooperation; - improving the quality of management decisions, etc.
6 Birth Affirmation Destructuring Origin Exodus Fall Life cycle Product Simplification Product Life Cycle Stages Stabilization
7 1) Origin The emergence of an idea that will form the basis of a new type of technology, the definition of principles of operation. Establishment of the company zxplerenta. 2) Birth Applied research, as a result of which ways to create new technology are formed. Beginning of the transformation of an explorer company into a patient company. 3) Approval Practical creation samples of a new type of technology. Transformation of the patient's firm into a violet firm. 4) Stabilization The period when technical idea exhausts the potential for further development. Large-scale implementation of new products. Expansion of Violenta's activities on the world market, creation of branches.
7 5) Simplification Optimization of resource consumption in the creation and use of technology. Establishment of a transnational company from Violenta. 6) Fall Comparative deterioration (non-compliance with modern requirements) of most technical economic indicators in the production and use of technology. Improvements at the level of rationalization proposals. Reorganization is the separation of commutator firms. 7) Outcome A change in the function of the operated equipment, a decrease in its importance in production and consumption. 8) Destructuring Rejection of the production and use of old technology. Change in the specialization of firms: release of other products.
7 The organization is forced to work on a product that belongs to three generations of technology: outgoing, dominant and promising. Output B A C Time, t t 1 Structure of the firm's output t 2 t 3 AC A B B B C
Strategic planning of scientific and technological policy requires reliable identification and forecasting of development trends for each generation of relevant equipment at all stages of its life cycle. The scientific and technical policy of an enterprise should carefully monitor domestic and world trends in the development of science and technology. The methodological apparatus for the analysis of information arrays includes methods: determining the characteristics of publication activity; analogue patents; terminological and lexical analysis; scorecards.
8 Technological audit is a tool that allows you to identify production and management processes in need of improvement (used when forming the overall strategy of an organization with an innovative component) Usually it is the basis for the development (acquisition) and implementation of process innovations The basis of technology audit is the formation and study of a value chain - a system of interconnected business processes for the value of creating customer value.
8 Overhead processes General management Work with personnel Logistics Legal support Accounting, etc. Production Logistics Production processes (primary) Implementation Links of the value chain After-sales service
9 The market position of the organization is determined by the combined influence of the following indicators: - controlled market share and the dynamics of its development; - access to sources of financing and raw materials; - positions of a leader or a follower in the industry competition, etc. The choice of strategy is carried out for each product, direction identified when setting a goal.
9 Allocation of production capacities for production is recommended to be carried out on the basis of market analysis and novelty of products. Product/market matrix, %
9 Strategic (dynamic) approach to management future Deterministic strategy present Strategic approach Planned part of the strategy Includes deliberate, purposeful actions Adaptive part of the strategy future 1 future 2 Includes reactions to changes future 3 external and internal environment present
9 Adaptive part Formalized part Large corporations and enterprises that own a large market share and influence the market (for example, Violenta) Formalized part Adaptive part Small innovative enterprises "pioneers" "young" ventures
10 Market Segments for Different Strategies of Innovators Adjusting to the Market Patients Horizontal – Standard Business Local Market Commutators Vertical – Specialized Business Violents Experts Market Change Global Market
10 Standard business medium quality, well-known names, ordinary innovations. A specialized business is characterized by high quality, radical innovation, small volumes. Characteristics of strategies: Violet (power) strategy is typical for organizations operating in the field of large, standard production. Mass production. Medium quality. The patent (niche) strategy is characterized by narrow specialization for a limited circle of consumers. High quality. To order. Commutative (connecting) strategy is designed to take into account the local characteristics of the market. Satisfy individual requests. Explerent (pioneer) strategy is associated with the creation of new or radical transformation of old market segments.
10 When choosing a strategy, it is necessary to take into account: 1) Risk, i.e., an acceptable level of risk is determined for each option. 2) The results of applying previous strategies (if they were strategies), internal and external problems of their implementation. 3) The time frame for the implementation of the strategy, and the corresponding speed of development of the external and internal environment. 4) Consistency of the strategy with the founders and, if necessary, with the authorities, public organizations, population, etc.
11 The purpose of the innovative activity of organizations is to enter the market with new, innovative products and services to profit from the sale of the innovations themselves (for a fee, granting the right to use them) The content of the licensing policy is to find a balance between the options: produce independently innovative products and enter the market with it; concentrate on the initial stages of the innovation process and, through the sale of licenses, entrust the production and marketing of products to other organizations; take a combined approach.
11 Competitive advantage V a ne d ce st e n tio n S t e v a n d e n tio n Benefit from the sale of licenses 1 Advantage from the sale of innovative products Time 2 3 Life cycle of competitive advantage based on innovative development and related products
11 Methods of developing a strategy 1) "Top down" - the strategic program is developed by the organization's management and as an order descends through all levels of management 2) "Bottom up" - each unit develops recommendations for the preparation of a strategic plan within its competence. Then these proposals are sent to the management, which summarizes them and makes the final decision (possibly during discussion in the team) 3) With the involvement of consultants
11 Investment project Control object Start Technical and technological content Result Methods and technologies of project management Innovative project Control object Start? ? ? Project management methods and technologies Result
12 Four directions in the BSC are interconnected and represent a causal chain of strategies: financial indicators reflect the result of activities, show how interested investors are in investing in the company customer relationships show how the company can interest customers in order to attract them and achieve the required financial results internal processes shows which processes play the most important role in the implementation of the company's competitive advantage innovations and staff development show what knowledge, skills, experience, technologies and other intangible assets the company will be able to realize its competitive advantage
12 BSC development: balanced scorecards are developed that reflect the main goals of the enterprise, as well as their decomposition in the form of a set of critical success factors (CSF). The degree of detail of the success factors depends on the specifics of the enterprise and on the level at which it is supposed to monitor and evaluate the implementation of the success factors and, as a result, the achievement of the goal. Example One of the goals Customer loyalty KFU Customer service quality Goods quality
12 Development of the Scorecard: A set of key performance indicators (KPIs) is developed to measure the achievement of success factors. These metrics quantify success factors and can be given formulas or other methods of calculation. KFU Example Quality of customer service KPI Number of complaints and complaints Number of repeated requests Time to work on an order Planned values of goals (success factors) and performance indicators for the strategic and tactical period are set. The achievement of these values is periodically monitored and used to make decisions on changing the plans (goals) of the strategies.
12 Example Scorecard development: Developed indicators of the effectiveness of the enterprise processes and associated with the KFU are the link between the goals of the enterprise and the processes leading to their achievement. Success factors are a kind of condition for achieving the goal, processes show how these conditions are met. One of the goals KFU customer loyalty Quality of customer service Processes Product delivery process Product sales process KPI Number of repeated requests Product quality Number of complaints and complaints Time spent on order
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