Management Of Investment Projects Research Articles

Protecting Energy Infrastructure against the Uncertainty of Future Climate Change: A Real Options Approach

The coastal impacts of climate change, including flooding and erosion due to storms and sea-level rise, and the possible adaptation responses have been studied using very different approaches; from very detailed site-specific, process-based investigations and interventions to global macroeconomic assessments of coastal zone vulnerability. This paper presents a flood defense real option analysis methodology that values potential investment decisions made in the building and maintaining of flood defenses around electricity infrastructure at local spatial scales for a large region. Real option analysis embraces uncertainty in future climate conditions and flexibility in the management of investment projects to produce a more precise optimal outcome than attained with traditional discount cash flow analysis alone. The method uses high-level analysis from flood inundation models to assess the cost of flooding for energy infrastructure at the present-day up to the highest plausible sea-level rise for the UK in 2100 known as the H++ scenario, which projects a sea-level rise of 1.8 m. These costs feed into a real option valuation model able to identify which energy infrastructure will benefit from investment, and when. This northwest UK study identifies two infrastructure sites that, today, would benefit from flood defence investment over discount cash flow analysis, increasing to an additional 14 in 2050. Using this method has identified 46 sites that would benefit from deferring flood defence investment now, reducing to 35 sites in 2050. This method of project valuation can be applied to any feature within the floodplain, e.g. infrastructure or residential housing, making it an adaptable and useful tool in identifying vulnerable features that require investment to ensure they stay resilient to extreme flood events in the future. This work is the result of an inter-disciplinary collaboration between hydrodynamic modelling, flood risk assessment and economics. The outputs of which are ideal to be fed into a decision-support tool, allowing stakeholders to interrogate and disseminate information about the spatial locations they are interested in.

WORLD EXPERIENCE OF BUSINESS PROCESSES ORGANIZATION BUILD-INVESTMENT PROJECTS NEW FORMS AND MANAGEMENT IN THE FIELD OF UKRAINE COMPLEX OBJECTS DEVELOPMENT

The scientific principles and practical recommendations on the organization and management of business processes and construction investment projects in the real sector of the Ukrainian economy are developed. These issues are considered on an example of the development of objects and processes in the oil and gas complex. The basis of its improvement is proposed to apply new forms and best international experience to ensure the modern progress and competitiveness of complex industrial and business systems. It is determined that the practical recommendations given in the article can be successfully applied in industry and other sectors of the real economy sector of Ukraine. Their use should ensure the acceleration of modern progress and the growth of the competitiveness of the domestic economy.

Optimization of Investment Planning Based on Game-Theoretic Approach

The game-theoretic approach has a vast potential in solving economic problems. On the other hand, the theory of games itself can be enriched by the studies of real problems of decision-making. Hence, this study is aimed at developing and testing the game-theoretic technique to optimize the management of investment planning. This technique enables to forecast the results and manage the processes of investment planning. The proposed method of optimizing the management of investment planning allows to choose the best development strategy of an enterprise. This technique uses the “game with nature†model, and the Wald criterion, the maximum criterion and the Hurwitz criterion as criteria. The article presents a new algorithm for constructing the proposed econometric method to optimize investment project management. This algorithm combines the methods of matrix games. Furthermore, I show the implementation of this technique in a block diagram. The algorithm includes the formation of initial data, the elements of the payment matrix, as well as the definition of maximin, maximal, compromise and optimal management strategies. The methodology is tested on the example of the passenger transportation enterprise of the Sverdlovsk Railway in Ekaterinburg. The application of the proposed methodology and the corresponding algorithm allowed to obtain an optimal price strategy for transporting passengers for one direction of traffic. This price strategy contributes to an increase in the company’s income with minimal risk from the launch of this direction. The obtained results and conclusions show the effectiveness of using the developed methodology for optimizing the management of investment processes in the enterprise. The results of the research can be used as a basis for the development of an appropriate tool and applied by any economic entity in its investment activities

Improvement of the system of investment projects management of liquidation of accumulated environmental damage in the AIC

Improvement of the system of investment projects management of liquidation of accumulated environmental damage in the AIC

Управление рисками инвестиционного проекта

The article presents the results of a study on risk management of an investment project, using the example of projects in the coal mining sector. Issues of identification and evaluation of project risks are considered. An integrated and holistic mechanism for understanding problems related to risk management of investment projects has been formed.

Economic security in investment projects management: convergence of accounting mechanisms

Implementation of business processes in Ukraine has become more structured in recent years. If previously the only goal was to get the most profitable investment and pay-off in the short term, and the attention to drawbacks and considerable riskiness of these projects was given already in case of their occurrence, now there is another management approach. Thus, the decision to attract additional funds involves a detailed analysis of the potential and existing risks of the project. The management focuses on continuous monitoring of the project implementation. Accordingly, it is necessary to develop an effective mechanism to evaluate an investment project, the effectiveness of its implementation, but from the perspective of the company’s economic security aimed at identifying and diversifying risks. As such, the accounting system of the enterprise’s economic safety management is presented as to the investment projects execution based on the convergence of budgeting, management, financial accounting and elements of the economic analysis and control. The proposed system of investment project management is based on the definition of responsibility centers during the investment project implementation. The developed plan of actions and methods is aimed at creating effective tools for identifying risk factors and monitoring the investment projects effectiveness. Such a system provides an opportunity to operate an investment project promptly and flexibly, following clearly defined management tasks within the chosen strategy of enterprise’s economic security. System management of investment project, which is a part of the overall business management, contributes to the achievement of goals set by the company at a given level of risks and financial performance.

Development of Monitoring System of Project Activity of Financial Organization

Currently, in the economic literature on project management, issues of investment project management are most widely considered. Project management in modern management is also devoted to a lot of publications and scientific research. At the same time, the scientific literature mainly examines the individual forms and tools of monitoring of the company's project activity, and the opportunities for their combination and interaction are not fully disclosed. In our opinion, the first step towards solving this problem can be the definition of the concept of regular monitoring mechanism in relation to the project activities of the company. Although the concept of a regular monitoring mechanism for project activities has not been clearly defined in the economic literature, it is often found in corporate governance. The regular monitoring mechanism for project management can be defined as a set of tools, as well as rules through which systematic monitoring is carried out, oriented to the analysis and evaluation of the implementation and results of the project activities of the company. An effective project management system consists of: project management methodology, monitoring of key indicators, optimal organizational structure, use of modern informatization tools, clear allocation of responsibility and authority.

Моделирование системы поддержки принятия решений в управлении инвестиционными проектами по предупреждению чрезвычайных ситуаций

Моделирование системы поддержки принятия решений в управлении инвестиционными проектами по предупреждению чрезвычайных ситуаций

The Paradigm of the Integration of Different Types of Management Information Systems in Investment and Construction Company Implementing the Project Approach

The report examines trends in the development, construction project management systems in the overall system of the global network economy. The approaches of system developing the information tools of investment and construction project management of complex infrastructure projects is proved throughout their lifecycle from project initiation to disposal facility.

Performance management of investment projects based on real option theory and method of analysis of hierarchies

The article is devoted to the development of the method for evaluation and control of investment projects efficiency in conditions of high uncertainty. There are marked the limitations of the traditional evaluation methods of investment projects efficiency and proposed more relevant approach based on the application of real option theory, which allows evaluating projects with consideration of their multivariate and opportunity of decision making at every stage of their development. The article shows that, despite the high relevance of real option theory, its practical use is very difficult for a number of reasons. The main problem in estimating the value of real options is the need to use a sufficient number of a priori statistics regarding the project, which in practice is difficult. The authors propose a method in which the probabilistic characteristics of the model project are replaced with the correct expert ratings, named the modified ROV – method (MROV). The method is based on the binomial model of real option value assessing, based on the building of a decision tree, at each node of which there is possible the development according to the “optimistic” or “pessimistic” forecast. Since the development of the project under any scenario depends on a number of criteria environments, the task of assessing the value of real options becomes a multicriteria task. One of the most reasonable and practically relevant methods of solving such problems is the method of analytic hierarchy process (AHP), which is used in the basis of the developed MROV-method. The article also details the algorithm of the method application to determine quantitative estimates of the relative probabilities of the development of the project on “optimistic” or “pessimistic” scenario in each node of the binomial tree. Obtained estimates are used as weights in the calculation of the net present value of the optional investment project for a decision on the feasibility of its realization and inclusion in the project evaluated real options.

The Determinants of Investment Efficiency in West African Economic and Monetary Union (Waemu)

Recently, there has been a noticeable increase in investment in West African Economic and Monetary Union (WAEMU) area. However, economic growth does not necessarily follow the observed increase in public investment. Even within WAEMU region, countries that have higher investment rate do not have the highest growth rate. Moreover, a comparative analysis of the relationship between investment rate and economic growth rate show that WAEMU countries are lagging some Africans countries with similar economic structure (reference countries). The objective of this study is twofold. First, it aims to analyze, comparatively, the efficiency of investment in WEAMU countries and in reference countries. To that aim, the Incremental Capital Output Ratio (ICOR) has been computed and used as a measure investment efficiency. The results show that two groups of countries emerge within WAEMU. The first consists of Burkina Faso, Côte d'Ivoire and Togo with an ICOR of less than 3. In these countries, investment is more effective than in the second group consisting of Guinea-Bissau, Benin, Mali, Niger, and Senegal, which have a combined average ICOR of 5.7. Overall, the average ICOR in WAEMU countries is 4.6, which is significantly higher than the average level of 2.8 observed in the reference countries. This results suggest that investments are relatively more efficient in the reference countries than in WAEMU countries. Botswana, Ethiopia, Mozambique and Rwanda are the countries where the return on investment is the highest. Second, the study seeks to understand the determinants of investment efficiency in a selected group of sub-Saharan African countries by analyzing the causal relationships that can exist between the ICOR and some macroeconomic and institutional variables, including GDP per capita, the real interest rate, the share of exports in GDP and corruption. In that regard, an empirical analysis using Dynamic Ordinary Least Square (DOLS) estimation procedure has found GDP per capita, real interest rate, human capital, the ratio of export to GDP and corruption to be the most important determinants of investment efficiency. The overall results of this article shed some light on how important public investment project management is to their efficiency. In the light of empirical results, the following policy recommendations could be made to improve the efficiency of investment in the WAEMU countries. First, investment should be made on growth promoting sectors or on sectors that can significantly improve the overall productivity of the economy. Second, policy makers in WAEMU Countries should improve transparency in awarding and the execution of public infrastructure contracts. Finally, WAEMU countries should step up their efforts to quantitatively and qualitatively improve human capital in the region.

Анализ программных средств управления инвестиционными проектами

Анализ программных средств управления инвестиционными проектами

Research and Analysis on the Management of Government Investment Projects

Research and Analysis on the Management of Government Investment Projects

MANAGEMENT OF INVESTMENT PROJECTS PERFORMANCE

This article deals with the problems of the investment projects management effi ciency. We have analyzed specifi c risks that should be considered in the course of development of performance indicators of the investment project. Approaches to solving this problem have been identified and substantiated. On the basis of the research the author offers a number of methods for evaluating the stability and effi ciency of the project, as well as the procedure of calculating the expected project outcome; the author has also formed the stages of simulation modeling, which allows estimating the possible range of effi ciency variation for different project environments.

Survey on the Level of Knowledge and Skills of Project Managers in Regional Development

The level of knowledge and skills of project managers in the field of regional development shows a high level of differentiation, which has an impact on management of (non)investment projects in the given region. For effective addressing problems of regional development is crucial that projects will be processed, handled and managed at a professional level. The paper aims to confirm or disprove the given hypothesis and to identify the knowledge areas affected by the ignorance the most. For this purpose the survey on the level of knowledge and skills of project managers in regional development in NUTS III region in the Czech Republic was conducted. The survey results has allowed identifying the level of knowledge and skills of project managers in regional development in project management knowledge areas and thereby has enabled to identify the knowledge areas affected by the ignorance the most. Among these knowledge areas belong mainly Risk management, Scope management and Quality management. The results have also enabled to present the level of differentiation of the level of knowledge and skills of project managers from the mean and to compare findings in the particular NUTS III region of the Czech Republic among each other. The findings show a high level of differentiation of the knowledge and skills of project managers.

Приоритетные направления по привлечению инвестиций и развитию реального сектора экономики в 2016 году

The article presents an assessment of the development of the Orel region. The main directions and prospects of state support of investment activity in the Orel region are presented. Among the priority activities it is proposed to implement a system of special investment contracts and project management and to create the Center of Cluster Development based on Entrepreneurship Support Fund.

MANAGEMENT OF THE CREATION PROCESS OF RESIDENTIAL BUILDINGS

The focus of the study was on the analysis of the process of management of investment projects in housing development market by developers with consideration for a new approach to management. The study presents the effects of housing estate development in Poland, importance of housing estate to developer's activities and the process of real estate creation was analysed. The hypothesis of improved effectiveness of management in housing development and the effect of IT solution on facilitation and optimization of business processes that are performed in developer enterprises was verified. The results obtained in the study confirmed the hypothesis, leading to the conclusion that implementation of the IT system should substantially support optimization and controlling of the investment projects.

The Unique Experince of Gasprom in Management of Large-scale Investment Projects

Рецензия на книгу: Ананенков А.Г., Резниченко В.С., Чугунов Л.С., Ленинцев Н.Н. Система управления разработкой и реализацией инвестиционных проектов и программ в корпорации и её дочерних обществах: справочное пособие для специалистов. 2-е изд., доп. и перераб./под общ. ред. про­фессоров А.Г. Ананенкова и В.С. Резниченко. М.: Спутник+, 2015. 518 с.

FEATURES OF AN ESTIMATION OF INVESTMENT PROJECTS AT THE ENTERPRISES OF AVIATION INSTRUMENT

The relevance of this study due to the fact that the current situation in Russia is complemented by the negative effects of market reforms in the economy and economic sanctions adopted against our country and in particular the different level companies. In view of this, to effectively manage the activities and the development of aviation instrument companies and enterprises of different ownership forms are highly relevant issues related to the assessment of investment projects. The general crisis that engulfed almost all industry in Russia, demanded the application of a new ideology of the organization and management of investment projects, as well as their assessment at the enterprises of aviation instrument. In Russia, began a new stage in the development of project management establishment of a domestic methodology, complex tools and training for professional project management on the basis of domestic achievements, global experience and creativity of its processing based on the actual conditions of our country. The need for the use of project management methodology in Russia is determined by two factors: the increasing complexity of projects and the organizations that operate them, and the fact that project management is widely used in countries with market economies. Projects at the enterprises of aviation instrument making and evaluation are characterized by complexity and uncertainty, a significant dependence on the dynamic environment, including socio-economic, political, financial, economic, legislative influence of both the state and competing companies. In this paper, a study of modern methods of evaluating investment projects at the enterprises of aviation instrument. Methodology. The methodological basis of this paper appeared comparative and economic-mathematical analysis methods. Results. As part of the presentation of the present article the author, it was found that the activity of modern companies is not linear and is determined by a variety of environmental factors that can influence the reliability and stability of business development of the company. In the new (innovative or cognitive), the economy is not only a change of theoretical and empirical management paradigms based on a new understanding of the interaction of three key institutional actors (government, business and science), but also increases the level of uncertainty in making long-term management decisions related to investment projects. Conclusions / relevance. The proposed structure of the investment decision-making support system shows that a lot of administrative decisions should be localized in phase space is defined as a business reliability of the border. Output solutions beyond the phase space of growth and potentiates the risk may mean the loss of stability of the company. The bulk of the toolkit developed procedures formalized and rigorously justified, which greatly reduces the proportion of subjectivity inherent in all existing methods of management analysis.

Инновационные подходы к управлению инвестиционными проектами в нефтегазовом комплексе

В статье рассмотрены рыночные проблемы мирового нефтегазового комплекса, осложняющие развитие международных и российских нефтегазовых компаний. Основное внимание уделено вопросам негативного влияния западных санкций и мировой конъюнктуры на состояние и перспективы развития отечественных компаний, а также внутрикорпоративным факторам, разрешение которых возможно собственными силами компаний. Проанализированы причины, снижающие качество управления инновационными процессами, и необходимые условия повышения эффективности инвестиционных проектов, в том числе стратегическое планирование и управление проектами и бизнес-процессами, улучшение кадровой политики.