Max Polyakov Identifies Core Principles of a New Economic-Organizational Model

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Max Polyakov, Founder of Association Noosphere, described basic principles of a complex economic-organizational model of IT development enterprises. As a PhD graduate in International Economics, Polyakov identified useful features and the key performance indicators of this model.

According to Max Polyakov, Founder of Association Noosphere, every IT enterprise has to cater to its customers needs and follow the quick growth of technology. As a result, new terms and new paradigms appear in every day of life in business, and this process is unstoppable. The practical performance of each paradigm depends on its usage. So, they show higher performance when more people use it. As a result, the best one may not be at the top.

Meanwhile, as Max Polyakov said, the number of companies which use information technologies and software programs is increasing. As a result, they need more IT enterprises solutions. That is why a useful tool for business management and customization is always a challenging issue. One such tools is the Balanced Scorecard, BSC, related to the ‘cause-result’ principle. 

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The BSC principle, described by Max Polyakov, contains the financial side of management, as well as human potential, effectiveness, and relations with customers. It is used by leading companies like Coca-Cola, McDonald's, General Electric, L’Oreal, BP, BMW, Samsung Electronics, and Boeing.

The principle can also be useful for IT companies. With its help, IT development enterprises are able to adapt to new conditions and new products, to choose the best technologies and operations.

Max Polyakov believes that the main aim of his research was to develop the core principles of the economic-organizational model for repurposing and optimization in the current IT enterprise structure.

According to BSC, there are four basic groups of purposes and key performance indicators: finance, customers, internal business-processes, and education and career growth.

A strategic chart is built to model this and shows the interconnections between purposes and indicators, which identify the achievement of goals. Each item of the strategic chart shows one strategic purpose.

According to Max Polyakov, the economic-organizational model is built on the basis of this strategic chart or its parts. In what way? We add new indicators and items, which we can control, as for example, to identify a budget size or attracted additional investments, the frequency, and nature of reporting, etc.

A change of technology, workflow, or produced production will cause a change in the strategic chart and the correlation of its items. So, the economic-organizational model is built for each enterprise by choosing a relevant set of indicators.

Max Polyakov said that time expenditure and the amount of resources needed to achieve a goal are able to optimize the model. It allows you to compare different variables, which can be implemented at the business, while the strategic chart stays unchanged. In this case, metrics could be the amount of necessary funding or the duration of transformation.

In such a way, the economic-organizational model allows you to compare and justify the path that will help you achieve such goals, while the BSC is used to control the achievement of the goals.

By  33rd Square