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Book part
Publication date: 1 August 2019

Aleksei V. Bogoviz, Tatiana M. Rogulenko, Svetlana V. Ponomareva, Elena N. Lapina and Leonid V. Kolyadov

Purpose: The purpose of the chapter is to study the process of evolution of modern business systems, to distinguish its main stages, and to determine the peculiarities of the…

Abstract

Purpose: The purpose of the chapter is to study the process of evolution of modern business systems, to distinguish its main stages, and to determine the peculiarities of the modern stage of this process. For compiling a fuller dynamic model of evolution of modern business systems, this research is performed by the example of modern Russia – which is one of the most vivid representatives of countries with transitional (forming) economy and which is thus peculiar for very intensive transformation processes in business as compared to the countries that implement the concept of market economy.

Methodology: The methodology of the research is based on the method of logical analysis (analysis of causal connections) and the method of comparative historical analysis, with the help of which regularities of development of modern business systems are distinguished and stages of their evolution are determined. The method of formalization is used for graphic presentation of genesis of modern business systems.

Conclusions: As a result, four stages of evolution of modern business systems are distinguished: paternalism (1991–1997), commercialization (1998–2007), balancing (2008–2017), and technologization (since 2018). Each of the distinguished stages has its peculiarities, and the following regularities and tendencies of development of modern business systems are observed in the process of their evolution: increase of competition in business environment, increase of regulation of business from the state and society, and growth of size of business systems, which leads to complication of their structure, with increase of flexibility of business culture. Sufficiency of adaptation means with modern business systems is substantiated.

Originality/value: The determined outlines of the current stage of evolution of modern business systems allow compiling two following forecast scenarios of their further development, oriented at the period until 2025: scenario of well-balanced development of modern business systems and scenario of increase of disproportions in development of modern business systems. Implementation of these scenarios is possible in any socioeconomic system. Depending on strategic goals and priorities, each system may select the most optimal scenario and conduct the corresponding management of development of modern business systems.

Details

Specifics of Decision Making in Modern Business Systems
Type: Book
ISBN: 978-1-78756-692-7

Keywords

Book part
Publication date: 1 August 2019

Svetlana V. Lobova, Anna V. Bodiako, Liudmila V. Dontsova, Yevgeniy An and Viktor N. Salin

Purpose: The purpose of the work is to study the approaches to classification of modern business systems from business managers through the prism of making of managerial decisions…

Abstract

Purpose: The purpose of the work is to study the approaches to classification of modern business systems from business managers through the prism of making of managerial decisions.

Methodology: The methods of classification, comparative and systemic analysis, induction, deduction, and formalization are used.

Conclusions: As a result of the research, five conceptual approaches to classification of modern business systems are distinguished: organization-oriented, externally-oriented, management-oriented, socially-oriented, and innovations-oriented. Within each of them, various (mutually supplementing) criteria of classification are used, which allow distinguishing a lot of types of modern business systems. In the conditions of the Fourth Industrial Revolution, which includes transition to Industry 4.0, a new classification of modern business systems according to the criteria of their technological mode is offered, and the systems of the mode 3.0 and 4.0 are distinguished. Transition to the new technological mode is connected to additional business risks, which complicates the process of making of managerial decisions.

Originality/value: The performed analysis of classification of modern business systems from business managers showed that all peculiarities of these systems influence the process of making of managerial decisions in them, including the sectorial structure of business environment, size of business systems, sphere in which business systems function, involvement in business environment, internal and external integration of business systems, scale and complexity of business environment, organizational and legal form, business structure and business culture of business systems, types of benefits that they sell, level of legitimacy, responsibility, innovational activity, and technological mode of business systems.

Details

Specifics of Decision Making in Modern Business Systems
Type: Book
ISBN: 978-1-78756-692-7

Keywords

Book part
Publication date: 1 August 2019

Aleksei V. Bogoviz, Leonid F. Malinovski, Tamara G. Stroiteleva, Maxim M. Sharamko and Vera V. Dvoretskaya

Purpose: The purpose of the chapter is to determine the connection between organizational culture and specifics of the process of decision making in modern business systems and to…

Abstract

Purpose: The purpose of the chapter is to determine the connection between organizational culture and specifics of the process of decision making in modern business systems and to determine the directions of managing the organizational culture depending on the set criteria of decision making.

Methodology: A proprietary classification of the types of organizational culture of modern business systems according to the criterion of employees' involvement into decision making is offered. This classification uses two dimensions of employees' involvement into decision making for classification of the types of organizational culture of modern business systems. First dimension: interest of business manager in involvement of employees into the process of decision making. Second dimension: employees' inclination for participation in the process of making of managerial decisions. The factors that influence these dimensions are determined.

Conclusions: Connection between organizational culture and specifics of decision making in modern business systems according to the criterion of employees' involvement in decision making is determined. The minimal level of involvement envisages independent decision making by business manager without participation of employees. In this case, a lot of problems of the business system remain unsolved and possibilities remain unused. Resource intensity of decision making is the highest, and their practical implementation is complicated by employees' dissatisfaction, but this process is conducted very quickly. The medium level of involvement envisages either collective discussion, but decision making by business manager, or collection of feedback by business manager with low interest in it from employees. In this case, resource intensity of decision making is lower, and decisions could be made and implemented faster. The highest level of involvement is connected to collective decision making by employees and business manager. This allows determining problems and using possibilities of the business system with minimal resources. Though the duration of the process of decision making is the highest, solutions are implemented quickly due to employees' support.

Originality/value: The determined specifics show the necessity for considering the influence of the organizational culture on specifics of the process of decision making in modern business systems. It is substantiated that no type of organizational culture of modern business systems according to the criterion of employees' involvement in decision making can provide a guarantee of decisions' optimality. The directions of managing the organizational culture depending on the set criteria (completeness, speed, resource intensity) of decision making are recommended.

Details

Specifics of Decision Making in Modern Business Systems
Type: Book
ISBN: 978-1-78756-692-7

Keywords

Book part
Publication date: 1 August 2019

Aleksei V. Bogoviz, Andrei V. Berezhnoi, Igor S. Mezhov, Olga V. Titova and Olga G. Kryukova

Purpose: The purpose of the work is to determine the possibilities and consequences of decision making in modern business systems by the principles of outsource.Methodology

Abstract

Purpose: The purpose of the work is to determine the possibilities and consequences of decision making in modern business systems by the principles of outsource.

Methodology: During studying the perspectives of decision making in modern business systems by the principles of outsource, the method of logical analysis (analysis of causal connections), the method of structural and functional analysis, and the method of formalization are used.

Conclusions: Perspective directions, advantages, and drawbacks of application of outsource for decision making in modern business systems at different stages of this process are determined. Possible variants of decision making in a modern business system by the principles of outsource and their consequences are determined: information and consultation decision support, business system's overcoming a crisis, optimization of certain business processes, and loss of independence of business system and path to its reorganization.

Originality/value: As a result, it is substantiated that outsource is a perspective tool of making of managerial decisions in modern business systems. Various directions of application of this tool are accessible at each stage of the process of making of managerial decisions in a modern business system. The advantages of decision making by the principles of outsource are attraction of additional resources, access to possibilities of automatization, and low expenses, and the drawbacks include the complexity of organization of this process and temporary character of obtained advantages. Too active usage of outsource and transfer of most managerial decisions to it may lead to loss of independence of the business system and increase of the risk of its reorganization. That's why the principles of outsource are recommended for making of certain managerial decisions by business systems in the period of crisis and by newly formed business systems and those that experience deficit of resources.

Details

Specifics of Decision Making in Modern Business Systems
Type: Book
ISBN: 978-1-78756-692-7

Keywords

Book part
Publication date: 1 August 2019

Margarita V. Melnik, Tatiana V. Skryl, Elena A. Gureeva, Irina F. Vetrova and Aleksandr V. Vetrov

Purpose: The purpose of the chapter is to determine the regularities and tendencies of decision making in business systems by the example of modern Russia.Methodology: The method…

Abstract

Purpose: The purpose of the chapter is to determine the regularities and tendencies of decision making in business systems by the example of modern Russia.

Methodology: The method of logical analysis (analysis of causal connections) and the method of dynamic analysis of development of socioeconomic systems are used. These methods are applied with the current statistical and analytical information. The information and analytical basis of the research is the materials of the Federal State Statistics Service for 2018.

Conclusions: The factors of functioning and development of modern business systems, related to development of E-commerce, liberalization of state regulation of business systems, growth of their competition and corporate responsibility, change of technological mode, and crisis are determined. Influence of these factors on managerial decisions is connected to reduction of resource provision of business systems, accessibility of new managerial tools, complication of made decisions (growth of the number of accessible decisions), growth of the number of new technologies of decision making, and increase of the risk component of decisions. Regularities and tendencies of decision making are determined: striving for saving resources during decision making, more active usage of new managerial tools during decision making, striving for acceleration of the process of making of more complicated managerial decisions, more active usage of new technologies during decision making, and striving for minimization of risks of made decisions.

Originality/value: It is substantiated that the determined regularities and tendencies of decision making lead to increase of contradiction during making of managerial decisions in modern business systems, connected to growth of complexity of this process and simultaneous reduction of resources and time that are accessible to business managers. In order to solve this contradiction, it is necessary to implement cardinal changes into the process of making of managerial decisions in modern business systems, which allow – with minimum managerial cost – determining multiple alternative variants of solutions of the whole specter of current problems of a business system and comparing them as to mutually excluding criteria, thus making complex decisions.

Details

Specifics of Decision Making in Modern Business Systems
Type: Book
ISBN: 978-1-78756-692-7

Keywords

Book part
Publication date: 2 December 2019

Irina V. Gashenko, Elena N. Makarenko, Yuliya S. Zima and Tatyana V. Makarenko

The purpose of the chapter is to study the possibilities of systemic intellectual support for managerial decisions in modern business systems and perspectives of authomatization…

Abstract

Purpose

The purpose of the chapter is to study the possibilities of systemic intellectual support for managerial decisions in modern business systems and perspectives of authomatization of this process on the basis of intellectual technologies.

Methodology

The methodology of the chapter includes the methods of systemic and problem analysis, analysis of causal connections, modeling, and formalization.

Conclusions

Advantages of usage of technologies of intellectual support for decisions in modern business systems are substantiated; they are connected to multitask character, full determination of possibilities and problems of the business system regardless of employees’ involvement in this process, and “scale effect” during making of managerial decisions. Also, drawbacks of intellectual support for decision-making in modern business systems are determined: incompleteness of authomatization of the process of making of managerial decision, foundation primarily on digital data, necessity for complex digitization of the business system, and the problem of security of digital data and intellectual technologies.

Originality/Value

Large opportunities of systemic intellectual support for managerial decisions in modern business systems and wide perspectives of almost full authomatization of this process on the basis of intellectual technologies, accessible at all stages of the process of decision-making, are determined. For this, an algorithm of complex intellectual support for decisions in a modern business system is offered. The obtained results allow determining intellectual technologies of support for managerial decisions in modern business systems as a perspective direction of improving this process.

Details

The Leading Practice of Decision Making in Modern Business Systems
Type: Book
ISBN: 978-1-83867-475-5

Keywords

Book part
Publication date: 1 August 2019

Aleksei V. Bogoviz, Svetlana V. Lobova, Julia V. Ragulina, Alexander N. Alekseev and Arutyun A. Khachaturyan

Purpose: The purpose of the work is to determine the basic principles of functioning and development of modern business systems.Methodology: The author uses the method of logical…

Abstract

Purpose: The purpose of the work is to determine the basic principles of functioning and development of modern business systems.

Methodology: The author uses the method of logical analysis (analysis of causal connections), the method of systematization, and the method of formalization.

Conclusions: The basic principles of functioning of a modern business system are determined: uniqueness, marketing activity, effectiveness, openness, and flexibility. They form under the influence of such factors of the business environment as competition, marketing relations, deficit of resources, globalization, and innovational economy. Only under the condition of observation of all these principles, a business system can achieve and preserve competitiveness and function and development in the business environment. A system of basic principles of functioning and development of a modern business system, which form under the influence of the above factors of the business systems, and results of observation of these principles are shown.

Originality/value: Peculiarities of making of managerial decisions in modern business systems, predetermined by observation of the basic principles, are shown: constant monitoring of external environment for determining new possibilities and actual problems and determining the need for managerial decisions; founding on materials of marketing research, conduct of marketing communications for informing and supporting loyalty of interested parties in the process of implementation of decisions; and striving for increasing or at least preserving the uniqueness and effectiveness of business system during decision making (criterion of optimality of decisions).

Details

Specifics of Decision Making in Modern Business Systems
Type: Book
ISBN: 978-1-78756-692-7

Keywords

Book part
Publication date: 1 August 2019

Evgeniy G. Molchanov, Angelika K. Musaelyan, Ruslan G. Mikhaylenko and Elena N. Smertina

Purpose: The purpose of the chapter is to determine the dependence of the process of decision making in modern business systems on their organizational structure and to…

Abstract

Purpose: The purpose of the chapter is to determine the dependence of the process of decision making in modern business systems on their organizational structure and to substantiate the necessity for considering the requirements to the process of decision making during designing the organizational structure of a business system.

Methodology: A new simplified classification of the organizational structure of business systems according to the criterion of complexity is offered, and its two main types are distinguished – organizational structure of low complexity and organizational structure of high complexity.

Conclusions: According to the offered classification, dependence of the process of decision making in modern business systems on complexity of their business structure at each stage of making of managerial decisions is determined. As a result of analysis of statistical data, it is determined that business systems with organizational structure of low complexity dominate in Russia. By the example of modern Russian business systems with the organizational structure of high complexity – Sberbank, Lukoil, Gazprom, and Rosneft – it is shown that formation of the structure of this type and supporting its functioning requires resources and thus is inaccessible for most modern business systems. Moreover, the expected advantages, related to high probability of making of optimal managerial decisions, are not always gained in practice.

Originality/value: It is substantiated that the process of decision making in modern business systems largely depends on the complexity of their organizational structure. With increase of complexity of a business system, resource intensity of decision making and duration of this process increase, but the risk of nonoptimal decisions decreases. Organizational structure of low complexity is peculiar for business systems that have deficit of financial and human resources, which does not allow using the means of optimization and fully control the process of decision making. However, in this case, managerial decisions are made much quicker. In the conditions of modern market economy, it is necessary to make quick optimal decisions, which cannot be achieved within the organizational structure of either low or high complexity. Thus, it is necessary to find a way to make quick optimal managerial decisions beyond the design of organizational structure.

Details

Specifics of Decision Making in Modern Business Systems
Type: Book
ISBN: 978-1-78756-692-7

Keywords

Book part
Publication date: 1 August 2019

Irina A. Morozova, Alina V. Chesnokova, Olga V. Fetisova and Liudmila S. Maksimenko

Purpose: The purpose of the work is to study the characteristics of leadership and to determine its value in the process of decision making in modern business systems, as well as…

Abstract

Purpose: The purpose of the work is to study the characteristics of leadership and to determine its value in the process of decision making in modern business systems, as well as to determine the possibilities of increasing the effectiveness of this process through changing the characteristics of leadership.

Methodology: Target study of the influence of leadership on the process of decision making in modern business systems on the basis of the methodology of the systemic approach is performed, and two additional characteristics of leadership are determined, apart from management style, in the aspect of making of managerial decisions: contradiction of leaders in business system and authority of a formal leader (business manager) in business system and his competence as to involvement of employees into the process of making of managerial decisions, which includes capabilities. Depending on combination of these characteristics, classification of leadership in modern business systems as to criterion of decision making is offered.

Conclusions: It is substantiated that the most preferable type of leadership in a modern business system as to criterion of decision making is highly effective involvement of employees in the process of making of managerial decisions. Capabilities of increasing the effectiveness of the process of making of managerial decisions in a modern system through changing the characteristics of leadership are connected to transition to this type of leadership through overcoming the contradiction of leaders in a business system and increase of competence of the formal leader (business manager) in a business system as to involvement of employees in the process of making of managerial decisions through his training.

Originality/value: It is substantiated that leadership in business system determines only certain characteristics of the process of making of managerial decisions, and no type of leadership can guarantee optimal decisions. With highly effective involvement of employees in the process of making of managerial decisions, the probability of optimal decisions is the highest, so this type of leadership is the most perspective for modern business systems.

Details

Specifics of Decision Making in Modern Business Systems
Type: Book
ISBN: 978-1-78756-692-7

Keywords

Book part
Publication date: 2 December 2019

Ekaterina S. Kovanova, Angelina E. Kolieva, Raphael F. Mustafin and Zalina B. Tedeeva

The purpose of the chapter is to develop a framework strategy of highly efficient decision-making in modern business systems, which defines subjects, conditions, limitations, and…

Abstract

Purpose

The purpose of the chapter is to develop a framework strategy of highly efficient decision-making in modern business systems, which defines subjects, conditions, limitations, and resources that are necessary for successful practical implementation of the mechanism of highly efficient decision-making in modern business systems.

Methodology

The set goal is achieved with the help of the methods of strategic modeling of dynamic economic systems and the method formalization.

Conclusions

A framework strategy of highly efficient decision-making in modern business systems is developed. The presented strategy has the following advantages as compared to the existing strategies, based on regional models of this process: flexibility of subjects of making of managerial decisions, presence of limitations, consideration of the time factor during organization of the process of making of managerial decisions, and mandatory connection to current conditions in which the business system functions.

Originality/Value

The developed strategy showed importance and necessity for increasing the flexibility of management of modern business systems for supporting their competitiveness, sustainability, and high effectiveness in the changing business environment. In view of the fact that the presented strategy is oriented at high volatility of the conditions of the business system, it should be applied in practice at the downward phase of the economic cycle – that is, in the period of economic crisis and post-crisis restoration of economy.

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