Indian Journal of Science and Technology

Abstract

Objectives: The study considers creation and implementation of organizational innovations in strategic management mechanisms. It aims to help a company select organizational innovation applying component methodology in a company’s internal environment. Methods: Suggested methodology describes the concept and methods for implementing organizational innovations focused on attaining strategic objectives of a company. The novelty of the methodology is in consideration of the uncertainty factors in the company’s evolution applying mathematical tools of fuzzy logic, thus reducing the effects of these factors on the decision-making process in selecting management methods for developing and customizing organizational innovations in the company’s business environment. Findings: Before introducing organizational innovation, an organizational management method has to be selected among such business administration practices as business-process engineering, knowledge management, quality management, lean production and continuous improvement. The study develops the methodology for selecting optimum management method based on applying fuzzy sets. The chain of activities in developing and integrating organizational innovations in the architecture of the company management is decomposed into nested structures that consist of the sets of homogenous metrics. The obtained criterion for fuzzy optimization makes it possible to select optimum options for revising managerial methods, making them economically efficient. Innovative approach to justifying decisions under conditions of uncertainty and with insufficient initial data, based on fuzzy methods, is unparalleled by any approaches described in the works of other authors. This approach employs combination of fuzzy logic and expert evaluations. The authors of this study have tested this approach to solve a number of tasks related to the subject matters that hardly lend themselves to mathematical formalization due to their quantitative nature. Applications/Improvements: This study helps to find the ways to improve competitive power of businesses by optimizing managerial mechanism at methodological level.
Keywords: Balanced Scorecard, Component Methodology, Development Strategy, Fuzzy Methods, Key Performance Indicators, Multi-Objective Optimization, Organizational Innovation