Multiplex Waves in the Planning of Innovation Processes in Business Systems

Multiplex Waves in the Planning of Innovation Processes in Business Systems

Mishail Mokiy (State University of Management, Russia), Vladimir Godin (State University of Management, Russia), Pavel Gureev (State University of Management, Russia) and Veronica Filonchik (Russian Presidential Academy of National Economy and Public Administration, Russia)
DOI: 10.4018/978-1-5225-0135-0.ch004
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Abstract

This chapter aims to outline the methodologies for solving the most important challenges in the field of innovation management – assessment of innovative events and activities and selection of optimal calendar periods for carrying them out. A transdisciplinary approach is used as a way of solving this problem. Basic principles of this approach, principles of building transdisciplinary models of informational and temporal order units will be covered, thereby making it possible to represent development as a multiplex or a totality of M-waves. Use of such models allows to offer special methodologies - an innovative chart of business system development. Results of a retrospective analysis of several enterprises are shown, which confirm the effectiveness of this methodical technique, and an example of building an innovative chart of development is presented, including the calculation of schedule periods for development and implementation of investment, as well as mandatory critical points and control points in the future development of business systems.
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Introduction

Business development suggests constant contant change to improve the business situation or enhance its effectiveness. However, there are problems that make achieving this goal much more difficult. According to the results of the PDMA (Product Development and Management Association) research, only one out of nine business development concepts becomes commercially successful. Furthermore, according to the same studies, “Approximately 40% of all innovations fail to start-up or even to be in distant approaches to the market - on testing or creating pilot sampling stages. Practically a half of the company resources directed to the development of new products is expended to the unsuccessful projects”(Cooper).Taking into consideration that the volume of investments to the innovative development of only the first 1000 of the most advanced companies in the world in 2014 make about $425 billion, the losses caused by unsuccessful innovations are very significant.

Therefore, subject to presence of the required amount of resources for implementation of innovative activities, success depends on the factors such as:

  • Quality of innovation itself (ideas, design, charts and the like), i.e. sense of innovation;

  • List of activities to implement innovation in business practices;

  • Justification of selection of time period for execution of measures.

In other words, effectiveness of the innovation process depends on at least the answers to two questions:

  • 1.

    What needs to be done?

  • 2.

    When does it need to be done?

Essentially, in this chapter the authors will reveal these issues and a transdisciplinary based approach to their solutions.

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Background

The answer to the first question “What needs to be done?” assumes an understanding of the terms “innovations” and “innovation management”. This is one of the most discussed issues of the last quarter of a century. In spite of the wide discussions within the framework of GLOBELICS (Oslo Manual, 2005) and inclusion of a definition in the regulatory documents, discussions are still continuing. However, issues of ontologistic nature still remain and we fully share the opinion in the Economist: “Over the past decade, innovation has emerged from the shadows to become a new industrial religion, worshiped by public figures, investors and businessmen alike. Around the world, the rhetoric of innovation unites politicians on the left and right, having replaced the post-war language of welfare economics. Board members see it as the key to increasing profits and market share. Governments hurl money at it when trying to fix failing economies. But despite being responsible for something like half of all economic growth, and the topic of countless government studies, innovation remains essentially black magic”(Improving innovation)

This chapter doesn't imply carrying out an analysis of various points of view on this issue, identification of the definitions of the term “innovation” and the results of innovative development. However, the results of such analysis, previously performed (Gureev & Mokiy, 2015) allow us to state that the majority of researchers define innovation as the exploitation of new ideas. Thus, innovation as process, consumes considerable resources (time and costs), and may comprise large number of non-value effects), for example increase of the moral state of the employees, corporate solidarity, etc.

As for classification of innovations, it is possible to say that allocation of various groups of innovations is the development of classification of Y.Shumpeter, who considered new goods (or goods with new useful quality), a new method of production, the new markets, a new source of factors of production, new type of the organization innovations. Now the most common division of innovations is that according to the character of innovations. In this regard, one can distinguish:

  • «Product innovation»;

  • «Manufacturing innovation»;

  • «Capital-saving innovation»;

  • «Design innovation»;

  • «Factor-saving innovation»;

  • «Financial innovation»;

Key Terms in this Chapter

Critical Point of Business Development: Date of transition of the development from the Quantitative Stage to the Qualitative Stage.

Multiplex Waves or M-Waves: Multiplex wave means not the oscillation amplitude but the calendar duration of the periods in which the development processes pass under the aegis of quantitative or qualitative transformations of the object.

Standard Temporal Parameters: Calendar duration of M-waves, dates of checkpoints and critical points.

Quantitative Stage: Time interval within which the generation and the formation of the stage potency takes place.

Innovative Map Schedule: Methodological technique of innovative process planning based on multiplex. It represents a chart with indication of standard temporal development parameters.

Basic Wave: Duration of the entire uncovering and implementation of the business idea potency.

Qualitative Stage: Time interval within which the uncovering of the stage potency takes place.

Multiplex: Model of a wave complex, a logically fragmenting process of development. In such a way, the multiplex plays the role of a harmonic structure of the object development.

Business Idea: Initial businessman’s idea of his future business. It's not the business object itself who grows older and dies, but the business idea.

Control Point of Business Development: End date of each period in the model of transformation model of the initial business idea.

Innovation: Modification of structural and functional properties of a business object which take place as a result of goal-directed (managing) influences hereon.

System: Order which determines the elements unity.

Background Wave: Minimal calendar duration of the period for a concrete type of business activity in which the logical composability of the object development current events may be found.

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