New Economy and Business Process Reengineering in the Public Transport Security System Vadim Pashkus Natalie Pashkus Anna Bulina

2 Structure  1. Introduction  2. The New Economy. The Business Technology Implementation in the Sphere of the New Economy  2.1. Factors of the New Economy  2.2. The New Russian Economy  3. The Russian Company of the “New Economy” Type  3.1. St.Petersburg Scientific Production Business “The System Technologies”  3.2. “The System Technologies” is an “Explerent” Firm  4. The Security and Consistency of Transport Companies  4.1. The Basic Forcing Factor of the Security and Consistency of Transport Companies  4.2. The Technical Decision of “The System Technologies”  4.3 The Gained Success of Implementation  5. Conclusion

3 New Economy 4 basic approaches to determination of the New Economy: 1.from the position of a mass culture 2.analysis of institutional and organizational changes underlying «New Economy» 3.global financial markets and «a financial component» of «New Economy» 4.increase of the human capital role when knowledge and information become major economic resources

4 New Economy The New Economy approach is based on the knowledge and new technologies, and the intellectual part of a product and service becomes the main component. The biggest part of an enterprise’s revenues is based on original ideas and technologies and new models of doing business as well. (Hammer, 2002) Therefore, innovative products become the main factor of economic development.

5 New Economy There is a tightening of the competition, but the strengthening of cooperation among companies that only together can overcome the growing risks and uncertainty of environment, and create entirely new products. A greater attention is paid to a “social capital” – to the human resources – rather than to a physical capital. (Kunde, 2002; Wright, Dunford & Snell, 2007)

6 New Russian Economy Russian economy in its present state is not able to compete with its western competitors. But nevertheless, it’s a common knowledge that Russian specialists are able to survive in such difficult conditions and there is a stable demand for their products. (Rybakov, 2008; Russian Economic Policy.., 2002) Russian specialists are very competitive but the majority of Russian firms are not able to reach even the average level of development. Unfortunately this paradox is based on the history of Russian business: Upon unstable legislative system and the whole political instability and economical crises when it’s often more profitable and easy to gain on resale than on creating and producing something new.

7 New Russian Economy Governmental programs supporting innovation sector are ineffective and cause more opposite reaction. In Russia it is unprofitable to carry out mass production of an innovative product. Mainly small innovative companies that create their profitable niche markets can survive and, above all, those that were able to start trial shipments of products under state order

8 St.Petersburg Scientific Production Business “The System Technologies” “The System Technologies” are able to work in all the innovative sectors due to the following: 1.Usage of a new technology, new technological processes and new market-driven models of service delivery and their promotion. 2.Implementation of products with absolutely new characteristics, shaping a new technology pre-trip medical monitoring 3.Changes in the delivery of services and the level of harmonization of the interests of employees at various levels, as well as partner agencies, relating to different forms of ownership. "The System Technologies" has implemented a process reengineering service delivery. And that means higher levels of consistency and a more flexible control. Thus, the business ideology has changed.

9 The Security and Consistency of Transport Companies The basic factor of transport companies security as well as manufacturing firms security which has high risks of mass catastrophe depend on two types of risk:  the risk of the reliability of technical devices and  the risk of the "human factor". These risks are in focus on such companies. St.Petersburg Metro is a public transport system where the possibility of such risks is very high.

10 Technical Decision of “The System Technologies” The technical decision that was offered by “The System Technologies” to lower the risk of human resources factor was based on the implementation of complementary pulse measurement system together with the standard pre-run (pre-work) procedures of medical inspection of all the drivers.

11 Technical Decision of “The System Technologies” The system is made as an integrated operational complex, where each part of informational complex is combined with all other parts of the entire transportation system. The system include measurement terminals (medical inspection rooms), administrative terminals (Locomotive Administration, Sanitary Inspection, polyclinics) and servers. Each modulus in the system has got their own tasks and all of them together work with unified data base for the optimal connection and interaction to lower the human factor risks.

12 Technical Decision of “The System Technologies” In general, despite some problems the implementation of a new informational system may be characterized as a very successful one. The positive results of the implementation in St.Petersburg Metro led to the construction of the same system in Moscow Metro in (Tuminas, 2007) And further examination proved to be even more successful than they had been expected to.

13 Conclusion The activities of “The System Technologies” have greatly influenced its corporate clients and the society. “The System Technologies” company continues to develop its innovative activity by creating new innovative products and finding new markets for their practical implementation. Undoubtedly such companies are the future of Russian economy and Russian business.

Thank you for your attention! 25/10/2013 Doctor of Economic Sciences Vadim Pashkus, docent of Department of Economic Theory and Economic Policy, Faculty of Economics, St.Petersburg State University, Russia Doctor of Economic Sciences Natalie Pashkus, docent, Head of Department of Marketing and Strategic Planning, Faculty of Economics, The Herzen State Pedagogical University of Russia, Russia Anna Bulina, master student at Department of Economic Theory and Economic Policy, Faculty of Economics, St.Petersburg State University, Russia