Strategic aspects of the enterprise development project selection: models and instruments

Theory of Strategic Planning

A brief description of the most common methods and criteria for assessing the compliance of projects with the enterprise strategy was given. We proposed to consistently apply a set of interrelated practices and instruments to increase choice validity. In order to define the target position more precisely, we recommended the strategic positioning method in combination with a balanced scoreboard. The nature, objectives and stages of strategic positioning were revealed. We proposed using a business model of an enterprise as a tool for transition from current position to the objective.  The comparative analysis of different approaches to business model determination was conducted. It was shown that the most common characteristic of the business model is its focus on creating a value for the customer based on understanding the cost creation and distribution chains and allocation of the total cost between participators of the whole process.  The approach to an analysis of the existing business model and the development of recommendations about its improvement based on the Osterwalder & Pigneur model was viewed. An approach allowing to develop a business model architecture based on typical models of successful corporations was described as an alternative option of the application of business models in practical management of Russian companies.  The method of selecting an enterprise development project providing a decision-making increase based on complementing traditional methods (project potential assessment, screening models, methods for assessing the economic efficiency of investments) with instruments of strategic positioning and assessment of compliance of the project with the business model was offered. The stages of decision-making were determined, the original instruments of implementing, such the positioning map of business models, the criteria and the rating scales of the compliance of the project with the selected groups of business models, the decision matrix based on market potential and safety margin aspects, were determined. The proposed methods were tested, revealing such advantages as versatile and visual assessment due to integration of qualitative and quantitative characteristics of the project, application of matrix methods of analysis, time saving and cost-cutting of the evaluation process based on step-to-step analysis and successive elimination of the least promising projects.