OF MANAGING UNIQUE TECHNOLOGICAL COMPETENCIES

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1 International Journal of Mechanical Engineering and Technology (IJMET) Volume 9, Issue 12, December 2018, pp , Article ID: IJMET_09_12_127 Available online at aeme.com/ijmet/issues.asp?jtype=ijmet&vtype= =9&IType=12 ISSN Print: and ISSN Online: IAEME Publication Scopus Indexed METHOD OF MANAGING UNIQUE TECHNOLOGICAL COMPETENCIES Alexander Ivanovich Kashirin State Corporation "Rostec", Usacheva Str., 24, Moscow, , Russia; Peoples' Friendship University of Russia (RUDN University), Miklukho-Maklaya Str., 6, Moscow, , Russia ABSTRACT The paper presents a method of managing unique technological competencies as a new management object, ensuring the formation and development of an effective system for creating, producing and market launching innovative products and services based on unique technological competencies. The objectives of the proposed methodology are definition of roles and distribution of responsibility between participants of the processes of unique technological competencies management, including a new entity in the form of unique technological competencies team, the formation of new business processes, functionality, key performance indicators, employee motivation systems involved in planning and implementation of unique technological competencies commercialization measures. The paper also formulates definitions of new concepts, presents the life cycle of unique technological competencies and the relationship of unique technological competencies and centers of global technological superiority. Keywords: Competitiveness, Corporate Knowledge Base, Core Competencies, Competitive Strategy, Unique Technological Competencies, Matrix of Unique Competencies. Cite this Article: Alexander Ivanovich Kashirin, Method of Managing Unique Technological Competencies, International Journal of Mechanical Engineering and Technology, 9(12), 2018, pp et/issues.asp?jtype=ijmet&vtype=9&itype e=12 1. INTRODUCTION The issue of applying a company's technological competencies to form a business model is quite popular. On the one hand, the idea of competencies is so widespread that it is not necessary to be an expert in any narrow field in order to join it, by proposing one s own approach, classification, methodology, model. In domestic practice, psychologists, teachers, sociologists, lawyers, economists and representatives of the rarest professions are engaged in the study of competencies. The interest in competencies exists among the majority of professionals who are somehow connected with the issues of efficiency, organization of IJMET/index.asp 1256 editor@iaeme.com

2 Alexander Ivanovich Kashirin activities, selection and training of specialists. A large number of competency models, methods of their evaluation, most modern organizations use them to work in the field of human resource management. Competency boom actually gives freedom of action to any researcher, as it removes serious responsibility from him/her, which is the need to defend the very idea of competencies. On the other hand, the topic of competencies over the last twenty years has been filled with a huge amount of various studies, which, despite their academic balance and statistical validity, did not clarify the main issues, from which the theory of competencies began in the 1970s. No ambiguous answer was found to the questions about the nature of competencies, their structure and dynamics, interrelations and interdependencies. The question of diagnosis of competencies remains open, especially in cases where it is impossible to assess what will be needed in the near future based on past experience. The more knowledge exists about competencies, the more questions arise about what realities are behind this concept. Therefore, the danger of any research into the problems of competencies lies in the fact that it can answer a narrow, private question and leave aside the main difficulties of this topic. 2. BASIC CONCEPTS AND EXPLANATIONS Core competencies of a company a set of interrelated distinctive knowledge, skills, abilities and technologies that ensures the company's competitiveness in carrying out the relevant tasks and distinguishes it from other companies. Key competencies include only the necessary competencies that are vital for the company. They are based on the competency of the company's specialists [1]. Key (opening opportunities) competency is characterized by: value it must be indispensable; distinctiveness (differentiation) among competitors; broad applicability (outlook). As a consequence, the core competency must have protection, i.e. exclude easy copying. Key competencies of a company can be: - marketing related to the skill (ability) to organize sales of products (goods and services) of a company in the market, - organizational, managerial skills (abilities) in the organizational construction of the company's business, including operational adaptation to external environmental challenges, - technological, technical skills (abilities) to perform specific actions in a particular technical field, as well as the ability to create new technologies and products, including development, design, engineering and production. It is important to note that competency carriers in a company are specific employees (groups of employees) who are specialists in their field of activity (marketing, management, design, engineering, production, etc.). Therefore, the term company competencies, strictly speaking, means competencies of a certain team in a company, or as integral concept, the sum of team competencies. This remark allows one to specify the object of management these are the groups of specialists in the enterprise (teams) and not the enterprise as a whole. The key employee is an employee, carrier of key competency, professional in a specific type of activity, and the effective work of the company depends on the results of his/her work. In the extreme particular case, it is the necessary employee who performs the vital function in the work of the company (the key employee s leaving can lead to a crisis, up to the closure of the company). IJMET/index.asp 1257 editor@iaeme.com

3 Method of Managing Unique Technological Competencies Technology a set and sequence of methods and processes of transformation of raw materials, allowing one obtaining products with specified parameters, a way to convert substances, energy, information in the process of manufacturing products, processing and reprocessing materials, assembling finished products, quality control, management. Unique technological competency (UTC) is a set of knowledge, skills, abilities of team of scientists, specialists, which allows them to create innovative technologies and products for various applications, technical characteristics of which meet the criteria of global superiority (exceed the characteristics of the best world analogues) or global competitiveness (comparable with the characteristics of the best world analogues). UTC is a distinctive ability (skills) of a team of specialists in a company to best perform specific actions in a particular technical area, which allows the company to create new competitive technologies and products and lead the market. As a rule, UTC arises on the basis of existing technological competencies in the process of solving new (non-standard) tasks and involves the use of the intelligent non-template approach to solving such problems. UTC can be mastered through training. UTC is the foundation and essential component of the Centers for Global Excellence and the Centers for Global Competitiveness. Thus, UTC management provides management of these centers. The UTC team is a group of scientific and technical specialists headed by the team leader who possesses UTC, and represents a new subject in innovation sphere, as well as the intellectual and innovation elite of the organization. The Center for Global Technological Excellence is a combination of the UTC team aimed at active commercialization of UTC, and the necessary material, technical and financial resources of the organization, which, in collaboration, ensure development and production of innovative technologies and products for various applications, the technical features of which meet global excellence criteria. On the other hand, UTC is a status that is assigned to UTC team by the leadership of the organization, the holding company as an internal mechanism of advanced technological and innovative development, the activities of which are accompanied by appropriate moral and material incentive measures. Skill practical ability to successfully (effectively) act in the subject area based on knowledge, including in cases of significant deviations from the usual (standard, calculated, previously known or expected) conditions. The skill includes both the ability to apply standard action algorithms in expected situations and the formation of new action algorithms in known and new situations. Attainments practical possession of well-known techniques and methods of action in a given subject area in standard conditions or in conditions of expected deviations. 3. COMPARISON OF COMPETENCY AND TECHNOLOGY CONCEPTS The technology is derived from UTC. On the basis of UTC, many individual technologies can be developed for the manufacture of products and goods in various fields of application. Competency is the ability of the team to solve non-standard tasks based on existing experience, and as a result of this, to modify technology and create a new one. In order to study competencies, it is necessary to determine the scale of generalization of the description of competencies and technologies and use the level of aggregation, at which the team has the unique competency and outperforms the competition. The ratio of these concepts is shown in table 1. IJMET/index.asp 1258 editor@iaeme.com

4 Alexander Ivanovich Kashirin Table 1 The ratio of technology and technological competency concepts Technological competency Definition Ability (skills) to perform specific actions in a particular technical field, as well as the ability to create new technologies and products in various fields of application, including development, design, engineering and production. Generic Mother. dependence Stage of maturity It is formed in the process of solving non-standard tasks. Carrier Development team. Competency is an inherent property of its carriers. Technology Combination and sequence of methods and processes for converting initial materials, allowing to obtain products with specified parameters, a way to convert substances, energy, information in the process of manufacturing products, processing and reprocessing materials, assembling finished products, quality control, management. There are two types of technologies: product technology aimed at creating a product, a part, and process technology aimed at performing a process (hardening, heat treatment, etc.). Daughter, derived from the competency. Transfer Through training. Through estrangement. Intellectual capital Owner, proprietor Degree of information disclosure, description details Human capital and its competencies, knowhow. Team of specialists. Wording only (what exactly the team can do), descriptions of competency, without disclosing commercial or other secrets. It is formed in the process of formalizing the worked out solution to the problem, description of the technology. Company. Technology is impersonal, documented and can be estranged, sold. Intellectual property, НМА. Patentee (company). Complete, sufficient for implementation of technological actions on a material object, a specific sequence of operations, indicating the used materials, equipment and conditions (modes). In the framework of the proposed methodology, the emphasis was made on the study of a company's UTC (included along with its marketing, organizational, and others in its core competencies) as the basis of the company's technological advantages and, therefore, its market advantages. 4. PLACE OF COMPETENCY IN THE INNOVATION PROCESS The place of competency in the innovation process is presented in Figure 1. IJMET/index.asp 1259 editor@iaeme.com

5 Method of Managing Unique Technological Competencies Fig. 1 The place of competency in the innovation process From the presented structure, it is clear that competencies are located between knowledge and technology. For this, at present knowledge and technology are formalized, that is, there is a text that reveals information in terms of knowledge in the form of formulas, research results presented in textbooks, scientific articles, and in terms of technology description, information is presented in the form of a sequence of actions and processes. As for technological competency, then, as practice shows, it is extremely rare to find its formalized description. Essentially, this method deals with the formation of a new management object UTC and a new subject of management UTC team and creation of the system for managing these subjects and objects. The method provides for the creation of an integrated UTC management system (UTC MS). 5. THE MAIN PROVISIONS OF UTC MANAGEMENT SYSTEM The purpose of UTC MS is to create and develop a mechanism that ensures the effective use of UTC [2] existing in organizations and also attracted from outside in terms of their commercialization based on creating and promoting globally superior or competitive products and increasing through this the level of diversification [3]. This goal is achieved through the following tasks: Development and formation of elements of management system, including the new functionality; Formation of the order and organization of work on identification, description and formation of plans for commercialization of UTC; Development and implementation of business processes of UTC MS; Development and implementation of a motivation system for UTC management system; Implementation of planned measures for commercialization of UTC. The order of distribution of responsibility for implementation of business processes in UTC MS is carried out through effective organizational and functional structure, which implies a clear division of responsibility and authority among the participants of business processes. IJMET/index.asp 1260 editor@iaeme.com

6 Alexander Ivanovich Kashirin The analysis of new objects of management in the form of UTC and subjects of management in the form of UTC teams, as well as modern approaches to management of innovation processes shows that the following internal actors and external counterparties are participants of UTC MS in the organization [1]. Internal subjects of UTC MS are the managers and employees of organizations and the holding involved in the implementation of certain UTC management business processes. These include: Managers and employees of innovative divisions, divisions of management of intellectual activity (patent department) of organizations, owners of processes for managing UTC; Chief designers, technologists, engineers of organizations and employees of subordinate divisions; Managers and members of UTC teams competency holders; Managers and employees of financial units, including accounting, security, procurement, personnel, and others in organizations; Managers and employees of scientific and technical councils of organizations; Leaders of organizations. External counterparties are third-party individuals and legal entities that assist in the commercialization of UTC and their promotion to the market, which include: The state represented by federal and regional authorities; Potential consumers of UTC represented by individuals and legal entities for whom the use of UTC can solve their scientific and technical problems and future problems; Teams of external training centers that are of interest for their possible involvement in the network of organizations and holding companies, which until now can work in independent creative teams, in small and medium-sized innovative business, universities, scientific and other organizations; Financial organizations, including funds, banks, venture investors; Agents to promote UTC to the market (brokers); Publishing houses, magazines, including domestic and foreign, posted on the Internet, for publication of articles about UTC; Technological, organizational and marketing partners, cooperation with which is necessary for the implementation of UTC, including suppliers, packers, organizers of exhibitions, conferences, forums, consulting companies, universities, research and other organizations. The internal subjects of UTC MS execute certain business processes in relation to each other and external counterparties. The list of business processes of UTC MS is based on the leading Russian and international experience of business organization, as well as on the author's scientific and practical developments of the performer, which are based on the competency approach [2]. The organizational structure of UTC MS as proposed by the organization and holding company Rostec is presented in Figure 2. IJMET/index.asp 1261

7 Method of Managing Unique Technological Competencies Figure 1. Organizational structure of "Rostec" UTC MS The implementation of this organizational structure will allow one: - to increase the level of autonomy and responsibility of UTC teams and other participants of UTC MS to the certain level of decision making; - to combine the experience of project and functional managers; - to establish an effective process of internal communications between various specialists; - to reduce the number of approvals required for decision-making; - to eliminate duplication of functions; - to create opportunities for the integration of existing UTC. The important issue in the proposed UTC MS is that it practically does not change the organizational structure existing in the organization and the holding, but only slightly complements it, mainly in terms of the new functionality of existing employees (UTC teams, UTC carriers) and divisions. To assess the effectiveness of UTC management at the level of organizations, holding companies and the Corporation as a whole, the introduction of key performance indicators is provided, which are presented below. Key indicators of the management system of UTC of organizations, holding companies and Rostec State Company. Plan and fact. 1. Portfolio of UTC Orders: Number of orders (specifications, contracts), units; Total orders, mln. rub.; 2. Innovative products and services based on UTC, sold: Number of completed contracts, units; Total sales, mln. rub., including: Services provided, mln. rub.; 3. Share of innovative products based on UTC in: Total volume of innovative products, %; IJMET/index.asp 1262 editor@iaeme.com

8 Alexander Ivanovich Kashirin Total revenue, %; 4. Number of UTC, units., total: as part of global excellence centers, units, including: created during the reporting period, units, total, including: internal UTC, pieces; external, attracted by UTC, units. 5. The number of people included in UTC team, pers. These indicators make it possible to evaluate the activity on development of UTC in dynamics, including the fulfillment of targets for the sales of innovative products, services provided on the basis of UTC, creation of new UTC inside and involvement of third-party UTC in the contour of the corporation. At the same time, UTC are divided into centers of global superiority and centers of global competitiveness, which makes it possible to assess the level of innovative potential and the prospects for its use [5]. It is known that every phenomenon, process has a certain period of life, similarly - to UTC. The life cycle of UTC is presented in Figure 3. Figure 3. Life cycle of UTC As it can be seen, the life cycle of UTC begins with its creation, the source of which is the global challenge or forecast of scientific and technological development, expressed in problems and tasks with specific technical requirements. The practical solution of these problems and tasks forms the TC and the TC team. In the case of achieving global superiority in the technical characteristics of the required product, the author is talking about the possibility of creating, on the basis of this team, a center of global superiority, by which products can be developed at the given level of competitiveness in various fields of application. Practice shows that after a certain time, competitors master this competency, which leads to a decrease in the status of UTC to the center of global competitiveness. Further, the competency is mastered by a large number of specialists and organizations, which makes it a competency of wide application, which, depending on the specific situation, either continues to exist or is replaced with a new one. Thus, the basis for the creation of new TC are the existing problems and future tasks that are solved either by internal resources of the organization, primarily by scientific and IJMET/index.asp 1263 editor@iaeme.com

9 Method of Managing Unique Technological Competencies technical specialists with relevant technological competencies, within the framework of internal R&D, or external competencies are attracted. In its turn, the fundamental basis for the formation of new global tasks is global challenges. The scheme of interaction between internal and external UTC, problems and tasks is presented in Figure 4. *TRIZ theory of the resolution of invention-related tasks, is "a problem-solving, analysis and forecasting tool derived from the study of patterns of invention in the global patent literature" Figure 4. The scheme of interaction between internal and external UTC, problems and tasks. The effectiveness of this approach is confirmed by the active development of technological brokerage in recent years. Companies of this profile, receiving from corporations and other organizations descriptions of problems and tasks that need to be solved, look for external competencies that can do this. It should be noted that the rapid solution of emerging problems and tasks contributes to the acceleration of innovative development of the organization. Consequently, it is imperative to create problem and task management systems in organizations, including their identification, description of technical requirements (technical tasks) and work on finding teams with the necessary technological competencies to solve them. It is important to separate the problems and tasks that can be solved within the organization in the framework of R&D and those that require the search for external competencies. Such problems and tasks are called requests for external innovations. The main organizers of work with requests for external innovations within the organization are the owners of problems and tasks who possess the necessary qualifications to assess the level and quality of solving problems and tasks. Recently, the term Global Excellence Center has appeared in the world scientific literature. However, in world science, the question remains as to what is the basis of such a center. The analysis showed that the internal content of the Center for Global Excellence is a team of specialists possessing TC of global excellence. On the basis of UTC teams, Global Excellence Centers (GEC), Global Competitiveness Centers (GCC) can be formed, depending on the level of products and technologies created. It is known from world practice that global technological superiority on the basis of UTC allows a company to create monopoly position in the market, which, however, is temporary in natureж it turns into global competitiveness when similar products appear on the market IJMET/index.asp 1264 editor@iaeme.com

10 Alexander Ivanovich Kashirin produced by other corporations, and over time, competencies become just technology owned by a fairly wide range of professionals and companies. Therefore, GEC at the time of its formation and development represents the points of innovation growth, the innovation potential that has not yet been fully realized, and management of UTC, GEC and GCC as new objects and teams of UTC, GEC and GCC as new subjects of management in the innovation sphere opens up wide opportunities to create new technologies and products in various fields of application, that is, in different markets. It seems that the assessment of the own level of technological development on the basis of GEC and GCC provides an insight into the innovative potential that can be used for advanced development. This applies fully to science, industry, universities, small innovative companies, territories. It should be particularly noted that UTC, CGU fully comply with modern approaches of business development in the form of blue ocean strategy, strategies based on developing the company's core competencies and achieving the monopoly position of the product and the company in the market. Moreover, those are UTC, CGU that give new content to the specified strategies. 6. CONCLUSIONS The important role in building the effective innovative business is played by distinctive key resources of business model or the unique competencies that underpin the key activity of the enterprise. It should be particularly noted that UTC, CGU fully comply with modern approaches of business development in the form of blue ocean strategy, strategies based on developing the company's core competencies and achieving the monopoly position of the product and the company in the market. Moreover, those are UTK, CGU that give new content to the specified strategies. ACKNOWLEDGMENTS This paper was financially supported by the Ministry of Education and Science of the Russian Federation on the project No /4.6 "Development of mathematical methods to forecast efficiency of using space services in the national economy". REFERENCES [1] Kashirin, A.I., Semenov, A.S., Strenaluk, V.V., Ostrovskaya, A.A. and Kokuytseva, T.V. Development and management of core competencies in corporation: international experience. International Research Journal, 8(50), 2016, pp DOI: /IRJ [2] Kashirin, A.I., Semenov, A.S., Strenaluk, V.V., Ostrovskaya, A.A. and Kokuytseva, T.V. Modern approach to management of competencies in high-tech corporations. Bulletin of AMS, 4, [3] Kashirin, A.I., Strenaluk, V.V. and Filippov, P.G. Development of guidelines for selection of options for commercialization of results of scientific and technical activities of organizations of the holding company based on UTC. Innovative development of economy, 1(43), 2018, pp [4] Kashirin, A.I., Semenov, A.S., Ostrovskaya, A.A. and Kokuytseva, T.V. and Strenaluk, V.V. The Modern Approach to Competency Management and Unique Technological IJMET/index.asp 1265 editor@iaeme.com

11 Method of Managing Unique Technological Competencies Competencies. QUALITY access to success, 17(154), [5] Kashirin, A.I., Strenaluk, V.V., Semenov, A.S., Ostrovskaya, A.A. and Kokuytseva, T.V. Increasing competitiveness: development of key competencies and corporate venturing. Management Sciences, 4, 2016, pp. IJMET/index.asp 1266