graduate student Zalysko S.A.

Kiev National University of Civil Engineering and Architecture

 

SUBMISSION OF INNOVATION SYSTEM OF FUNCTIONAL AND ECONOMIC INDICATION OF CONSTRUCTION BUSINESS ACTIVITIES IN VBM FORMAT

The modern enterprise management system is based on the forecasting and planning of all financial flows that mediate both productive and economic activities, provide control over the creation and use of material, labor, and monetary resources. In domestic management, the importance of financial forecasting and planning is unjustifiably humiliated. The change in the principles of governance in recent years has conditioned the urgency of the problem of budgeting in Ukraine. This necessitates the creation of an effective budgeting system at domestic enterprises.

Budgeting is the most important element of an enterprise management system, and not just a financial management tool. The content of budgeting is the technology of planning, accounting, control and analysis of financial, information and material flows, as well as the results obtained. This technology covers all functional areas of the enterprise: marketing, administration, personnel management, production, procurement, quality control, research, sales.

Due to budgeting, the company has the ability to forecast and manage solvency, control the liquidity of the balance sheet, to justify and select sources of increase of financial resources and strengthen its competitive position on this basis. With the help of budgeting tools, an enterprise can effectively perform the following tasks:

Implement the developed strategic objectives in the form of specific financial indicators;

to provide the reproduction process with the necessary sources of financing;

Identify the internal reserves of increase of incomes and ways of their mobilization;

agree the indicators of the production plan with the available financial resources necessary for its implementation;

to substantiate the most profitable directions and projects of investment of funds;

take care of the interests of investors and shareholders in distributing profits;

control the financial status and solvency of the enterprise, which according to the algorithm includes the following steps:

development of rules, procedures, which implement and regulate budget management;

development and optimization of business processes of planning and budget management (including on the basis of functional and cost analysis).

The methods of budgeting are the procedures for expert counseling: founding and expert interviews, document analysis, data collection, formal description of business processes, map building, business process diagrams and business models based on Cost-Based Costing and Due Diligence. . These methods are based on Structured Analysis and Design Techniques (SADT) technology. Cost analysis of functions creates conditions for the application of new management technologies for making strategic marketing and investment decisions, and improving business processes.

In accordance with its own understanding of the tasks of creating an innovative system of functional and economic indication of activity of construction enterprises in the format of value-oriented management (Value-Based Management - VBM) as "the fastest maintenance of enterprise survival and restoration of its competitiveness on the market", consider such interrelated elements of the synergistic measurement actions of the economic-administrative potential in territorial clusters (by degree, form and types): degree: partial and complex; types: managerial, technical, economic, financial, organizational and legal; form: operational and strategic.