Philosophy Doctor in Economic Science

Lukyanova Yelena Yurievna

Yalta, Crimea

ECONOMIC UNITS’ EFFICIENCY IMPROVING WITH BSC USING FOR ECONOMY OF CULTURE

Economy of culture is very important sphere of modern life. Culture as profitable area is valuable economic source in business units’ management aspect. It has three unique features that complicate its assessment: potential of culture creators that was accumulated over the centuries and developed through generations, cultural legacy that was resulted centuries-old creators labor, traditions that was materialized in cultural values population’s interest.

Economy of culture development as science became more valuable. It searches not only whole cultural sphere economic problems but also its separate entities. Theoretical and pragmatic tasks connected to management, financing, structure and organizational systems of cultural institutions were less important before because it was subsidized area in national economy conditions.

Nowadays cultural needs forming and satisfying processes correlation research in macroeconomics, cultural sphere and economic entities microeconomic level aspects are connected to cultural sphere tangible and intangible goods producing, storage, distribution and interchanging that indicates its high commercial potential. It requires to be developed to increase business units’ competitiveness and improve their competitive advantages [1]. Economic entities functioning external environment stochasticity also must be taking into account.

European Commission notes [2]: the role of the cultural and creative sector is still largely ignored within the context of growth and employment with investment and innovations that will be achieved. Indeed, the move to measure the socio-economic performance of the sector is a relatively recent trend. Moreover, the exercise is a contentious one. For many, the arts are a matter of enlightenment or entertainment. That leads to the perception that the arts and culture are marginal in terms of economic contribution and should therefore be confined to the realms of public intervention. This may explain to a large extent the lack of statistical tools available to measure the contribution of the cultural sector to the economy whether at national or international level, in particular compared to other industry sectors.

Economy of culture includes a lot of types of different economic units and non-profit organizations connected to visual arts, performing arts, heritage, film and video, television and radio, video games, music, books and press, design, architecture, advertising, PC manufacturers, MP3 player manufacturers, mobile industry, etc. It is very perspective ones but in the same time they function with the low level of their potential socio-economic efficiency. The possible way to improve it is Balanced Scorecard (BSC) methodological approach [3]. It suggests an effective tool for modern process-oriented and risk management system creation, and contributes institutions sustained development. BSC perspectives suggest organization view from four perspectives: learning and growth, business process, customer, and financial one) that help to develop metrics, collect data and analyze correlations of influence on internals and externals entropy effect reduction.

It is suggested sequence of BSC implementation for economy of culture sphere institutions efficiency improving which also takes into account entropy effect reducing on microeconomic level in domestic economy conditions: to develop and submit balanced scorecard system implementation rationale for business and management evaluation; to design BSC concept for economic units; to allocate balanced scorecard elements for economic units; to use balanced scorecard basic and additional principles for economic units; to adopt and apply balanced scorecard methodical approach for economic units; to optimize economic units management with balanced scorecard applying; to form economic units strategic management office; to apply software systems for creating, implementation, using and supporting of balanced scorecard in economic units; to make a program of balanced scorecard applying in unpredicted internals and stochastic externals; to explore BSC applying in regionalization and globalization trends; to research balanced scorecard problems and development trends on the modern stage of domestic economy and possible ways to overcome them; to benchmark successful projects examples in foreign and domestic balanced scorecard implementing.

Balanced scorecard as a management tool can also promote economy of culture institutions’ security development from diversified treats and protect its tangible and intangible assets with special system of legal, economical, organizational, social, ecological, and IT arrangements. BSC also can define and concretize microeconomic security goal, decompose it to measurable tasks, and find treats and risks impact points. Information mentioned above helps economic entity to provide and overcome possible problems, barriers and damages in its sustained development strategy.

BSC-based economic security evaluation and analysis system includes complex of coherent, interconnected blocks and stages of activity, which are systemized and adapted to the very tasks of techniques, methods, models. It makes possible to identify, assess and reduce the economic risk impact to a corporate resources optimal costs acceptable level. The main business unit functional areas (economic entity property, corporate finance, human resources, technology, innovation and information, microeconomic organizational structure) will correlate to its business processes and balanced scorecard perspectives. Also renewed economic units become more competitive.

Economy of culture sphere economic units’ efficiency improving will be applied by IT support. IT technical support officers for balanced scorecard system in business units and economic entities must be responsible for the smooth running of computer systems and ensuring users get maximum benefits from them in accordance to BSC-oriented strategy, processes and operations [4]. Individual tasks vary depending on the size and structure of institution, but may include: installing and configuring computer hardware operating systems and applications; monitoring and maintaining computer systems and networks; talking staff or clients through a series of actions, either face to face or over the telephone to help set up systems or resolve issues; troubleshooting system and network problems and diagnosing and solving hardware or software faults; replacing parts as required; providing support, including procedural documentation and relevant reports; following diagrams and written instructions to repair a fault or set up a system; supporting the roll-out of new applications; setting up new users' accounts and profiles and dealing with password issues; responding within agreed time limits to call-outs; working continuously on a task until completion (or referral to third parties, if appropriate); prioritizing and managing many open cases at one time; rapidly establishing a good working relationship with customers and other professionals, e.g., software developers; testing and evaluating new technology; conducting electrical safety checks on computer equipment.

There are a number of Balanced Scorecard Collaborative certified program products for BSC: Oros Scorecard; CorManage, Crystal Decisions Balanced Scorecard, FlexBI, Open Ratings Balanced Scorecard, Hyperion Performance Scorecard, Performance Plus, Oracle Balanced Scorecard, Pbviews, Strat&Go, Balanced Scorecard Manager, QPR Scorecard, SAP SEM, SAS Solution for Balanced Scorecard, Strategos and some others. Whole national economy and separated economy of culture economic units’ problem is absence of required quantity of highly qualified personnel for implementing these products. Also there is no the list of requirements to them in economic entities.

Suggested above will help to receive economic units’ efficiency improving with BSC using for economy of culture sphere. This theses information can be useful for regional authorities on improving economical and management innovations, business leaders and economic universities students.

Literature:

1. Lukyanova Ye.Yu. Razvitie ekonomiki kultury v stohasticheskih usloviyah makrosredy: aspekt menedzhmenta (The Economy of Culture Development in Stochastic Macroeconomics Conditions: Management Aspect) / Ye.Yu. Lukyanova // Novaya nauka: ot idei k rezultatu (New Science: from Idea to Result) [Mezhdunarodnoe nauchnoe periodicheskoe izdanie po itogam Mezhdunarodnoy nauchno-prakticheskoy konferentsii, Sterlitamak (29 sentyabrya 2015 g.)]. – Sterlitamak : RITs AMI. – P. 166 – 168.

2. The Economy of Culture in Europe [Electronic Source] – Access Mode: http://www.ec.europa.eu/culture/library/studies/cultural-economy_en.pdf.

3. Lukyanova Ye.Yu. Balanced Scorecard as a Proper Way of Domestic Economy Entropy Reducing on Microeconomic Level / Ye.Yu. Lukyanova // Perspektywiczne opracowania są nauką i technikami – 2014 (Prospective Studies of Science and Techniques) [Materiały X międzynarodowej naukowi-praktycznej konferencji, Przemyśl (07–15 listopada 2014 r.)]. – Przemyśl : Nauka i studia. – Volume 4. Ekonomiczhne nauki. – S. 11–13.

4. Lukyanova Ye.Yu. IT-Support for Balanced Scorecard Implementation in Entropy of Domestic Economy / Ye.Yu. Lukyanova // Conduct of modern science – 2014 [Materials of XI International scientific and practical conference, Sheffield (November 30–December 07, 2014)]. – Sheffield : Science and Education LTD. – Volume 5. Economic science. – Р. 40–42.