The concept of strategic management of innovative mechanisms for public utilities

Vasyl Albertovych Vorotyntsev


The article is concerned with preconditions that require implementation of reforms on public utilities. The author describes utilities’ business processes that are recommended to be improved in the context of innovation activity as one of adaptive and “stress-free” approaches in reformation. It is specially noted the necessity of developing management mechanisms for innovation activity on strategic level. The article identifies mission, goals and objectives of utilities’ activity. The concept of strategic management of innovative mechanisms them has been designed. It is based on a project approach for innovative activity, includes effective mechanisms for utilities’ management, and is realized via using modern computer decision support systems. Moreover, the work represents the definition and classification of the actors of the external environment of utility companies. All the above information is a fundamental basis for the main strategies that have been formulated in the article in order to give the dimension for the adoption of their innovation activity. The author reveals the influence of such methods as reformation, restructuring, reorganization and reengineering on the use of the strategic management mechanisms for utilities’ innovation activity. Much attention is given to the consideration of the role and place of information system as an element of the strategy that provides information interaction between external environment, authorities and control objects of public utilities. Furthermore, the main classes of information subsystems and ways of information interaction between external environment and utilities are described. In addition, author gives the examples of innovation projects for different utility companies and its connection with their strategies. To crown it all, three principal complexes of strategic management mechanisms for innovation activity of public utilities are proposed: resource management; customer relationship management, assessment of innovative activity efficiency. 


public utilities; mission; strategic management; mechanisms of management; business processes; information system

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Science Works Journal "Ekonomichnyy analiz"

ISSN 1993-0259 (Print)  ISSN 2219-4649 (Online) DOI: 10.35774/econa

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