The current article is devoted to search tools for determining the optimal solution and forming the optimal company strategy for small innovative companies in the business innovation environment of the oil and gas complex. The main area of research in the article is the reasons for the difficulties of innovative Russian entrepreneurship and its entry into the domestic market and work in this market. We also consider tools such as SWIFT-analysis of assessment and forecasting of the company's performance, the portfolio model of BCG (Boston consulting group), a multi-factor matrix for selecting strategies for the most effective planning of the company's activities, as an improved version of the Arthur D. Little model. At the same time, the study revealed that a wider range of project and strategic opportunities for planning and managing a company is formed by the production and economic matrix using SWOT analysis. Thus, based on this study, the following recommendations were formulated for beginning entrepreneurs and developers in the field of innovation: take into account and apply the strategy for small innovative enterprises according to the SWOT analysis for monitoring and forecasting upcoming events (production or economic); use marketing research tools, as well as forms for planning a product plan for the life of the company; take into account that the forecast should be based on strategic analysis, using the optimal method for specific goals, and be the starting point for developing new models and business development plans.
The modern way of innovative development of any
country can be implemented through integration with the
world system. However, business models often focus
exclusively on project activities and do not take into
account the current management and development needs
of a company, region, or country. It remains obvious that
the socio-economic development of the state depends on
innovations of strategic importance, including in the oil
and gas industry. The synthesis of technological and
economic methods can lead to GDP growth. According to
statistics, the current market volume of high-tech
products is 2 trillion 300 billion US dollars. According to
statistics, the US accounts for 39% of this production,
Japan-30%, Germany-16%. Russia's share is only 0.3 %
[
For the second half of 2018 and the first quarter of 2019 US government spent 39.24 billion dollars. to the scientific sector of the economy for development and research. The USA has increased the budgetary allocations for science since 2009 by 29%. Similar expenses of Russia in 2018 amounted to 431,073.2 million rubles. (about 6.79 billion dollars). Russia has increased its budgetary allocations for science since 2009 by about 50%. Thus, in relative terms, the budget expenditures of Russia for innovation are higher, but in fact in absolute terms the difference is quite noticeable (more than 5 times).
The key drawback of Russia's scientific and
innovation policy is the lack of consistency in the
formalization and implementation of scientific and
innovative priorities. There is a gap between the
development and creation of technologies, the
implementation of R&D and the release of technologies
into mass production. Partly, the lag in this area is a
consequence of the established administrative command
system of the USSR, which does not allow fully
developing many promising areas of R&D, as well as the
result of uncontrolled transformations of the 1990s [
During periods of paradigm shift, including in scientific and innovative approaches, namely, the transition from the paradigm of “catching up with foreign innovations” to the paradigm of catching up while creating something fundamentally new, and not just copying existing analogues, there are opportunities to catch up with outrun the leaders. Changing approaches makes it possible to open new paths of development, gain an advantage, and become better in their direction, while others are just learning. However, it is worth noting that one cannot just take and change landmarks, conditions must be created.
Within several years since the creation of the first
nanocenter, 11 centers and 275 start-ups created by them
appeared [
Thus, adaptation of Russian legislation to
international standards, adopted best practices in this
area, closer interaction with the global economic system,
have a positive effect on the business environment of
Russia, creating market growth, including fair
competition, as well as a more attractive investment
climate for high technology long-term forecasts [
Working towards each other is the most reliable and shortest path to understanding and trust in public-private partnerships. Solving the problems of introducing and commercializing innovative technologies, a clear understanding and adoption of measures is necessary both from the state and from the business side. The main part of the mutual cooperation procedure begins on the part of the innovative enterprise, namely, understanding the basic elements of the company’s work and business development strategy.
At present, there are 4 fundamental business
strategies [
strategy, reduction strategy, cost reduction strategy; ˗ diversification growth strategy - centered diversification strategy, horizontal diversification strategy; ˗ integrated Growth Strategy - a strategy of reverse vertical integration, a strategy of forward-going vertical integration.
Each of these strategies has its advantages and
disadvantages, its capabilities and threats. A fairly clear
assessment can be obtained using such tools as SWOT
analysis, the portfolio model of BCG (Boston consulting
group), a multi-factor matrix for selecting strategies for
the most effective planning of the company's activities, as
an improved version of the Arthur D. Little model (Table
1) however, the expert assessment procedure based on
SWOT analysis in the course of the study has shown
SWOT
Concentrated growth strategy
Strengths:
1. Acceptable pricing policy
2. Availability of professional staff
3. Performance of quality services
4. Maintaining the economic balance
of the company thanks to several
products
Weaknesses:
1. Lack of feedback
2. Little information about a new
great informativeness and transparency for developing
strategies together with representatives of large
businesses, in particular innovation areas. The model
included: formation of expert groups by area, analysis
and evaluation of company reports by experts, including
business models in the oil and gas sector. (annual reports
of LUKOIL-Western Siberia, Gazprom, Novatek,
Rosneft, Exxon Mobile, etc. [
SWOT Cost reduction strategy
High level of professionalism New Product Ads Attracting investors Opportunities: 1. Decrease in economic risks 2. Flexible reallocation of resources from areas with low perspectives to where they are high 3. Investment Opportunity 4. Expand existing markets and find new ones. 5. Improve the efficiency of using the accumulated potential 6. Ensure full capacity utilization 7. Adapt to market conditions, actively counteract rivals (including by buying up their enterprises) 8. Reduce partner dependency Development of competitive advantages (maximize opportunities): Strengths: 1. Survival is ensured by obtaining a guaranteed level of profit. 2. Achieving economic stability and Continuous training of employees and the financial stability use of this in competition 3. Gaining a dominant market position Need to follow the trend of technology development Continuous advertising and marketing
Overcoming threats (minimize the consequences of threats): 1. The planned control of fixed assets, including the main area of activity. 2. The increase in customer service due to low prices for services 3. Retention of competitive positions due to customer satisfaction. 4. Professional staff will bring potential customers 5. Image acquisition through quality services Elimination of weaknesses Non-standard events (maximum caution) 1. stay afloat in case of deterioration of 1. Establishment of new business relations with economic indicators by type of activity, the administration, state. familiar inspections since possible failures in one area are offset 2. To expand through the acquisition of new by success in others resources and technologies the possibility of 2. liquidate stocks of enterprises at their optimizing the range of products, financial peak on time and skillfully invest them in flows growing promising firms 3. economies of scale implementation of the product 3. Use of platforms to attract customers and public relations of the company (technology parks, etc.) 4. Search and attraction of partners and distributors Threats: 1. The complexity of the internal coordination of units 2. The uncertainty of the future is growing 3. Reducing the role of the former core production Opportunities: Threats: 1. Price reduction to attract customers and 1. It is fraught with a protracted “price war” create a customer base 2. Decrease in profitability of the company 2. Increase in sales 3. Copying competitor cost reduction methods 3. By reducing costs do not reduce the cost 4. The risk of excessive concentration on cost of the product reduction - lack of marketing 5. The decrease in consumer value of the goods Strengths: Development of competitive advantages Overcoming threats (minimize the 1. Strong price competition (maximize opportunities) consequences of threats) 2. Low brand change costs 1. Conducting targeted marketing for 1. To lay the main production and alternative 3. Cooperation with large customers customers with a more price-sensitive 2. Determine the optimal level of the volume of requiring a price reduction customer DOS. funds for primary and secondary 2. Planned cost reduction through the search 3. Training for new suppliers and ways to reduce costs 4. Presentations to clients, lectures, information refinement 5. Integrity check of counterparties Weaknesses: Elimination of weaknesses Non-standard events (maximum caution) 1. Standard or intended for a wide 1. Setting a clear cost plan and reducing 1. Maintenance of planned inspections for cost range of consumer’s goods variable costs control 2. The inability to diversify the goods 2. Reducing the cost of delivery of products 2. Company privacy mode 3. Standard use of goods 3. Identification of new product markets 4. Competitors can copy cost reduction methods Weaknesses: 1. Poor awareness 2. Low technological equipment 3. Lack of competencies 4. Lack of admin control. The staff 5. The cost of continuing education 6. Lack of relevant standards and regulations 7. Weak customer awareness
It is worth noting that the standard procedure for reaching a solution in any business, given the choice of strategy, combines the following stages: • identification of the problem/possible risks; • information collection; • selecting the analysis method; • select a group of experts for each issue.; • creating a request to experts; • collecting expert responses; • developing a computer model (cognitive,
hierarchical, etc.); • formulation of decisions and conclusions on the
existing issue / problem;
• development of new goals and objectives in
accordance with the established solutions. [
In addition, a novice entrepreneur must necessarily resort to the techniques and tools of marketing research.
So, for example, at the startup stage, conduct a general assessment of the market for your product: ˗ market assessment using Potential Available Market (PAM)1, Total Addressable Market (TAM)2, Served/Serviceable Available Market (SAM)3,
Serviceable & Obtainable Market (SOM)4; ˗ demand assessment - determine the approximate
level of demand for a given product; ˗ sales forecasting - determine the expected level of sales for a given demand.
When a company moves from one stage to another, it becomes necessary to use new or additional techniques, for example, when moving to the early growth stage, the company can use the methods of Primary Marketing - the first, on a small scale, launch of a product, used to determine the possible adoption of the product when launching for more wide market or conduct elasticity - to understand how sensitive the consumer is to price changes. This also includes methods for creating a sales plan, which will include a customer base, a sales funnel, a plan for communicating information to potential customers of the company, through direct marketing or digital marketing, as well as other methods. All this influences quite strongly the decision-making regarding the product and strategic development of the company, as well as the pricing of the product and the financial and economic plan of the company.
It is very important for novice entrepreneurs who are involved in the development and commercialization of their innovative technologies, in the case of cascading strategies, to understand their product plan, which should include at least the terms of development and the timing of products on the market. As one of such schemes, one can cite as an example a table of one of the possible plans for applying strategies in a cascading way for years, where the plan is formed from the beginning of the product development and testing (R&D) stage to entering the market with one strategy, and then switches to a new one, developing and introducing new products. This diagram is presented as a demonstration and can be changed in various conditions and specifics of the enterprise (Fig.1).
It should be noted that for companies that work in innovative activities and not only in this area, the period of development or life cycle (Fig. 2) can be divided into the following stages: ˗ ˗ ˗ startup; stage of growth (early / expansion); maturity.
Fig. 2. The stages of enterprise growth, taking into account the change of strategies over 10 years and the change in the company's revenue (Source: Compiled by the authors - based on worldbank.org, 2019)
As a rule, it is additionally worthwhile to attribute the stage of a company to IPO after the maturity stage, but this applies more to large innovative enterprises, and in this case we consider small innovative enterprises and small business companies. Such a cycle can be presented both for one specifically selected strategy, for example, concentrated growth, and for mixed (hybrid) strategies.
Here, a choice is possible for each of the novice entrepreneurs, where at each stage of the enterprise it is possible to use the tools proposed and discussed earlier to analyze and predict the work of your company, for example: 1) At the Startup stage - Conduct a SWOT analysis applying it both to the choice of a company’s strategy and to evaluate the product of its advantages and disadvantages compared to competitors. Use marketing tools that were previously considered, for example, PAM, TAM, SAM, SOM to assess the market. To formulate a product plan for the terms of product release according to the cascading method of business strategy. 2) At the growth stage, a repeated SWOT analysis is necessary, the use of deeper marketing research and the formation of a sales plan, the adjustment of the product plan by the timing.
3) At the maturity stage, it is necessary to use the same tools, it is also necessary to develop and introduce additional regulations for the conduct of certain operations of a commercial, technological or financial nature, for the stability of the enterprise’s commercial activities and the possibility of developing new models and business development plans.
As a result, threats that appear in a specific period of time for one strategy can be compensated by the capabilities of another, thereby saving the entrepreneur from a crisis situation in the company as a whole (Fig. 3).
By defining new paths and new approaches, working ahead of the curve, it will open up new opportunities for Russia and will make it possible to occupy certain and possibly completely new niches in the world market of high-tech products and diversify its export base. Thus, a more open Russian market, bringing Russian legislation to the international level, as well as closer interaction with the global economic system can positively affect the business climate in Russia and significantly contribute to the competitiveness and growth of investment attractiveness of the service sector. and technology. In addition, it is worth considering the application of such measures that the expert community focuses on: - tighten control over the implementation of decisions and programs; - improve legislation; - introduce tax incentives for innovative activity of enterprises
At the same time, novice entrepreneurs and
developers in the field of innovation are also
recommended:
- take into account and apply the strategy for small
innovative enterprises according to the SWOT
analysis for monitoring and forecasting upcoming
events (production or economic);
- use the tools of marketing research, SWOT analysis
and the formation of a product plan for the life of the
company;
- based on SWOT analysis, build a cognitive model
that evaluates the management process and its
various scenarios in dynamics, and to optimize
decision-making, set the inverse problem using a
genetic algorithm; [
The study was carried out within the framework of RFBR grants 19-07-00455 and 20-04-60185.