COGNITIVE MODELING FOR STRATEGIC ANALYSIS OF THE COMPETITIVE IT COMPANY STATUS
DOI:
https://doi.org/10.20998/2413-3000.2024.8.3Keywords:
strategic analysis, performance indicator, competitive status, modeling, integral indicator, cognitive map, expert knowledge, fuzzy model, agent modelingAbstract
The stages of strategic analysis from the point of view of determining the competitive potential of the IT company and the market climate are considered. An approach to determining the company's strategic position based on the results of the analysis of the company's internal potential and competitive climate is given. It is shown that according to the theory of I. Ansoff, to calculate the indicator of the company's competitive status, which characterizes its strategic success, it is necessary to conduct an analysis of the company's opportunities to be competitive on the market. It is proposed to determine the company's competitive capabilities as an integral indicator of strategic KPIs - key indicators of the IT company's activity. A description of the system of key performance indicators, which is used by an IT company to analyze the results of its activities according to aspects: finances, customers, business processes and personnel, is described. The need to conduct a factor analysis of the integral indicator of the company's competitive capabilities to determine strategies for the development of aspects of its activity is substantiated. For this purpose, it is proposed to build a cognitive model considering the strategic vision of the development of the IT company during the planned period. The conceptual basis of the cognitive model for determining the development strategy, which establishes a sequence of strategic steps that will ensure the transition from the current state of the IT company to the target one, is described. It is substantiated that carrying out such modeling will allow to determine the prerequisites for creating and maintaining the appropriate level of the company's market advantage. It will also make it possible to assess the elements of the company's strategic potential, for example, the provision of resources for the implementation of development strategies, the adequacy of the chosen strategy to the external environment, etc. A cognitive map was built to display and identify the strength of cause-and-effect relationships between aspects of activity and strategic KPIs, the values of which characterize the achievement of the IT company's development goal. The use of fuzzy cognitive modeling as a means of researching weakly structured systems, including as a tool for strategic analysis of the IT company's activities, is substantiated. The task of fuzzy cognitive modeling was formed to identify the degrees of influence of aspects of activity on the value of the CRI.
References
Cross S. How To Assess Your Company’s Strategic Position. URL: https://morgancross.co.uk/strategy/how-to-assess-your-companys-strategic-position/
Grinchenko, M., Moskalenko, V. Information technology for strategic analysis of IT company projects. CEUR Workshop Proceedings, 2023, 3453, P. 128–138. URL: https://www.scopus.com/record/display.uri?eid=2-s2.0-85170571566&origin=resultslist
Olsen E. Internal & External Analysis. URL: https://onstrategyhq.com/resources/internal-and-external-analysis/
Business-Level Strategy: Definition, Examples, and Implementation. URL: https://solutionshub.epam.com/blog/post/business-level-strategy-definition-examples-and-implementation
Ansoff H.I., Kipley D., Lewis A.O., Helm-Stevens R., Ansoff R. Implanting Strategic Management. 3rd ed. Springer, 2019. 592 p.
Oshilalu A. Z., Baldie Y. C. Critical Strategic Analysis Forecast Of The Oil And Gas Business Unit Of General Electric Company: A Conceptual Review, 2021, Vol.4 (1). Pp. 1-12. Research Journal of Business and Economic Management. URL: https://doi.org/10.31248/RJBEM2020.053
Farida I, Setiawan D. Business Strategies and Competitive Advantage: The Role of Performance and Innovation. Journal of Open Innovation: Technology, Market, and Complexity. 2022; 8(3):163. https://doi.org/10.3390/joitmc8030163 . URL: https://www.mdpi.com/2199-8531/8/3/163
Artemenko O., Seniura N., Lozytskyy O., Web-service for Project Planning and Project Management. 2023 IEEE 18th International Conference on Computer Science and Information Technologies (CSIT), pp.1-4, 2023. DOI: 10.1109/CSIT56902.2022.10000512
Karayev R.A., Mikailova R.N., Safarly I.I., Sadikhova N.Y., Imamverdiyeva X.F. (2018) Cognitive tools for dynamic analysis of enterprise business strategies. Business Informatics, no. 1 (43), pp. 7–16. DOI: 10.17323/1998-0663.2018.1.7.16
Bartosova V., Drobyazko S., Bielialov T., Nechyporuk L., Dzhyhora O. Company strategic change management in the open innovation system. Journal of Open Innovation: Technology, Market, and Complexity, 2023, № 2, p. 100087 https://doi.org/10.1016/j.joitmc.2023.100087
Tyshhenko V., Bielikova N., Ostapenko V. Cognitive modelling in process management of publicprivate partnerships intensifying in Ukraine. Маркетинг і менеджмент інновацій, 2017, № 3. С. 294 – 303.
Vaara E., Sonenshein S., Boje D. Narratives as sources of stability and change in organizations: approaches and directions for future research. Acad. Manag. Ann., 10 (1) (2016), pp. 495-560, 10.5465/19416520.2016.1120963
Karayev R.A., Sadikhova N.Yu. (2020) The advantages of cognitive approach for enterprise management in modern conditions. Business Informatics, vol. 14, no 2, pp. 36–47. DOI: 10.17323/2587-814X.2020.2.36.47
Ezzeddin Bakhtavar, Mahsa Valipour, Samuel Yousefi, Rehan Sadiq, Kasun Hewage. Fuzzy cognitive maps in systems risk analysis: a comprehensive review. Complex & Intelligent Systems, 2020. https://doi.org/10.1007/s40747-020-00228-2
W-Ran Zhang. A cognitive-map-based approach to the coordination of distributed cooperative agents/ Publication: IEEE Transactions on Systems, Man, and Cybernetics. 1992 DOI: 10.1109/21.141315
Shyi-Ming Chen. Cognitive-map-based decision analysis based on NPN logics. Fuzzy Sets and Systems, 1995, Volume 71, Issue 2, P. 155-163. https://doi.org/10.1016/0165-0114(94)00265-9
Гринченко М. А., Москаленко В. Ю. Задача прогнозування стратегічних показників діяльності іт-компанії. Інтегроване стратегічне управління, управління портфелями, програмами, проєктами: тези доповідей ХIV міжнародної науково-практичної конференції «Інтегроване стратегічне управління, управління портфелями, програмами, проєктами», 13-14 лютого 2024 р. / за ред. проф. Кононенка І. В. Харків: НТУ «ХПІ». С.31.
The Nine Key Performance Indicators Every IT Company Should Track. URL: https://www.quotewerks.com/blog/The-Nine-Key-Performance-Indicators-Every-IT-Company-Should-Track.asp
Customer Acquisition Cost (CAC): A Guide for 2023. URL: https://segment.com/growth-center/customer-acquisition/cost/
Verlaque M. What is Monthly Recurring Revenue (MRR)? How is it calculated?. URL: https://www.saasacademy.com/blog/what-is-mrr
Total Guide to Understanding Monthly Recurring Revenue. URL: https://payproglobal.com/monthly-recurring-revenue/#:~:text=As%20far%20as%20its%20aim,revenue%20into%20a%20monthly%20amount
Rapid Recovery Planning Guide - a Service Leadership Asset. URL: https://www.service-leadership.com/news-events/news/2020/q2/
Nissim, D., EBITDA, EBITA, or EBIT?. Columbia Business School Research Paper, 2019. No. 17-71, URL: http://dx.doi.org/10.2139/ssrn.2999675
Analyzing Profitability In Contract Costing. URL: https://fastercapital.com/topics/analyzing-profitability-in-contract-costing.html
Tiveb M, Babaniac A., Hesand M. (2014). Analyzing the applications of customer lifetime value (CLV) based on benefit segmentation for the banking sector, 2nd World Conference On Business, Economics And Management Social and Behavioral Sciences (109), 590-594. https://doi.org/10.1016/j.sbspro.2013.12.511
Curiskis, S., Dong, X., Jiang, F., & Scarr, M. (2023). A novel approach to predicting customer lifetime value in B2B SaaS companies. Journal of Marketing Analytics, 11(4), 587–601. https://doi.org/10.1057/s41270-023-00234-6
Normalization. URL: https://developers.google.com/machine-learning/data-prep/transform/normalization
Benefits of a Balanced Scorecard for Performance Management. URL: https://www.copc.com/benefits-of-a-balanced-scorecard-for-performance-management/
Ante, Lennart; Saggu, Aman. Time-Varying Bidirectional Causal Relationships between Transaction Fees and Economic Activity of Subsystems Utilizing the Ethereum Blockchain Network.. Journal of Risk and Financial Management. 2024. 17 (1): 19. doi:10.3390/jrfm17010019. ISSN 1911-8074.
Harmati, I.Á. (2024). Fuzzy Cognitive Maps: Mathematical Challenges. In: Fuzzy Cognitive Maps. Studies in Fuzziness and Soft Computing, vol 427. Springer, Cham. https://doi.org/10.1007/978-3-031-37959-8_8
Nápoles, G. et al. (2020). Fuzzy Cognitive Modeling: Theoretical and Practical Considerations. In: Czarnowski, I., Howlett, R., Jain, L. (eds) Intelligent Decision Technologies 2019. Smart Innovation, Systems and Technologies, vol 142. Springer, Singapore. https://doi.org/10.1007/978-981-13-8311-3_7
Ginis, L.A. The Use of Fuzzy Cognitive Maps for the Analysis of Structure of Social and Economic System for the Purpose of Its Sustainable Development. (2015). Mediterranean Journal of Social Sciences, 6(3 S5), 113-118. Doi:10.5901/mjss.2015.v6n3s5p113
Ginis L.A. Cognitive and Simulation Modeling of Regional Economic System Development/ L.A. Ginis, G.V. Gorelova, A.E. Kolodenkova. International Journal of Economics and Financial Issues. 2016. Vol 6, No 5, pp. 97-103. ISSN: 2146-4138
Гринченко М., Москаленко В., Фонта Н. Концептуальні аспекти агентного моделювання бізнес-оточення ІТ-компанії для формування портфеля проєктів. Міжнародна науково-практична конференція «Інтелектуальні інформаційні системи в управлінні проєктами та програмами», Коблево, 12–15 вересня 2023 р. Збірник праць. Харків: ХНУРЕ, 2023. С. 69-70.
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Our journal abides by the Creative Commons copyright rights and permissions for open access journals.
Authors who publish with this journal agree to the following terms:
Authors hold the copyright without restrictions and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License (CC BY-NC-SA 4.0) that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
Authors are able to enter into separate, additional contractual arrangements for the non-commercial and non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
Authors are permitted and encouraged to post their published work online (e.g., in institutional repositories or on their website) as it can lead to productive exchanges, as well as earlier and greater citation of published work.
