Comprehensive approach to business efficiency projects

Abstract

Purpose: The aim is to contribute to improving management of solutions, implementation and sustainability of the effects of entrepreneurial innovation projects through a comprehensive approach to their effectiveness. Scientific aim: formation of system effectiveness criteria of complex business project innovation, creation of model of product usability. Methodology/methods: Based on the theory of innovation. It uses a system approach, comparison, analysis, synthesis, modelling, abstraction, structuring and concretisation. Findings: Most important is the creativity and originality of the solution and implementation of a complex innovation. Object of the effectiveness analysis of the business project is an entire complex innovative action, it is not sufficient only to analyse the effectiveness of selected individual innovations. Improving the preparation of innovative project decisions must be based on this knowledge. Conclusions: The following is a summary of the results of work of the author. A structure of project effectiveness analysis was created, which is the same for the analyses done: before including the project into the plan, when the project solution is in progress, in the scope of documentation for regular manufacturing of the new product, after bringing the product to regular production and to the market. A practical system of analyses of an extensive business project’s effectiveness was created. A system of groups of project effectiveness criteria was created: 1-Criteria of competitiveness by increasing product usefulness, 2-Time criteria, 3-Criteria of quantitative aspect of demand and the level of demand satisfaction, 4-Criteria of project’s complexity and feasibility, 5-Criteria of safety, health, sanitary, ecological, aesthetic and psychological effects of the new product’s manufacturing process, 6- Financial criteria. It is essential to apply all the groups of criteria. The analysis cannot be limited only to the financial criteria. A model of product usefulness, which contains seven groups of parameters, was created. In the group of financial criteria, the “calculation model of cash-flow and other selected indicators” allows different views on the financial effects of the project.