Management-developing of an algorithm for the design decisions in the innovative activity of an organization

Abstract

This article proposes a new algorithm for developing conceptual project decisions in terms of an organization or innovator’s response to changing consumer demands through the development and investment in innovations. The theoretical basis for choosing the type of an algorithm was elaborated by studying the available referencies relevant to present issues of the applicability of types of algorithms for developing management decisions. A multistage multicriteria algorithm (hereinafter referred to as MMA) was developed on the basis of studied algorithms. On developing the stages of the MMA, a set of thinking methods (analysis – synthesis, deduction – induction), a decomposition method, and logical methods were used. MMA is considered as a set of step-by-step sequential descriptions of local processes, formulations and solutions of management tasks, used decision methods and decision-making criteria. The SMART(ER) method was used for managerial tasks at each stage to be set. When solving a management problem, a set of methods was used including an expert method, a factor analysis, brainstorm and methods for calculating economic efficiency. For choosing solutions at each stage to be made, a set of criteria was used. They are the weight of the negative impact on the result of the activity, the yes/no method, the maximum effect, costs minimizing, risks. The schematic design was defined for MMA to be developed. The schematic design was considered as a method of modeling and a method of graphical-analytical displaying of the stages of the process.