Innovation Program Performance Management at an Industrial Enterprise: An Optimisation Model

Abstract :

At resent, the process of innovative development is best described by the comprehensive systems approach, the one that allows to solve difficult tasks faced by innovative economy.

Innovative activity is very risky, so when making decisions on its implementation we have to first carry out a detailed analysis of its efficiency.

In this study we propose, work out and describe an optimisation model for performance management of an innovation program at an industrial enterprise, using the dynamic programming methods.

This model allows to take into account cash flow changes and permits participation in individual investment projects or shifting their start/completion dates. When building the model, we formalised correlations between individual parameters and constructed an optimisation model for program implementation that comprises three innovation projects. The proposed model can be used for express analysis of an innovation program's performance at an industrial enterprise.