Download High-tech Enterprise R&D Integrated Financial Management Mechanism and Operation

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High-tech Enterprise R&D Integrated Financial Management
Mechanism and Operation
QI Junye1, 2
1. School of Management, Wuhan University of Technology, P.R. China, 430072
2. School of Accounting, Hebei University of Economic and Trade, P.R. China, 050061
[email protected]
Abstract: The paper adopts normative research method, to company of new and high technology"
research and development system based on fast strain" features, requirements of integrated financial
management are studied, the formation of new high-tech enterprises based on R&D financial
management mechanism research. The study concluded that R&D based financial management
mechanism is closely around the characteristics of high-tech enterprises, emphasis on resource,
technology, knowledge, organization, personnel and other management factors to financial forecast,
financial decision-making, financial control and financial analysis of the full range of integrated to
enhance the ability of competition of science and technology and their ability to respond to market
demands.
Keywords: R&D, Integrated, Financial management
1 Foreword
In the era of knowledge economy, enterprise's survival and development are inseparable from the
research and development activity (R&D), and a corporate R&D investment scale and technology level
of development and growth has the inseparable relations, to a certain extent reflects the technical level
of enterprises, innovation and economic growth potential. High and new technology enterprise is the
biggest characteristic to technological innovation as the core, enterprise growth mainly rely on high
added value of new technology and its products, rely on new and high technology brought about by the
marginal profits rise. At the same time, R&D the uncertainty of the high-tech enterprises forms the high
investment, high risk and so on. Therefore, the enterprise R&D investment and performance status
directly affects the high-tech enterprises to survive and develop continuously, it also makes the
development of high and new technology enterprise R&D on financial management becomes an urgent
task.
Along with our country government increases pair of high-tech businesses give aid to strength,
high-tech enterprises especially the State High-Tech Industrial Development Zone enterprises has been
basically formed the" generation of production, design generation, development generation, idea
generation" of new product R&D mechanism, strong demand and R&D activities to adapt system,
normative financial management theory and method system. Therefore, the financial management of
high-tech enterprise R&D deep-level research, is the enterprise RD practice process to solve the
problem, it is the high-tech enterprise sustainable development needs. Progress of science and
technology and social development, not only economic growth promoting factors gradually from labor,
capital to technology and knowledge, but also the integration of the world economy is developing more
and more quickly, resulting in economic development of unprecedented scale. The development change
to break the traditional division line, ask our management thought from division of labor to highlight the
integration on. Secondly, the intense competition of market economy leads to social organization or
enterprise consciously to the production elements of integration. With the market competition and
economic integration, the enterprise or the organization faces more and more risks and challenges, new
technology is ceaseless emerge in large numbers, breakthrough difficulty increases ceaselessly,
development of more and more closer to the limit, resources, strength of the relatively limited
increasingly technical innovation bottleneck, so in reality" integrated" development activities more and
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more., enterprises or organizations have consciously to the production elements of integration, to
improve the efficiency of. The profound social background, we must seriously study the integrated
management of the basic principles and operation rules, carry on the research on the high-tech enterprise
R&D integrated financial management theory and law. In the high-tech more and more deeply into the
enterprise's economic activity, making full use of various resources synergy, realize the advantages of
integration, in order to adapt to the rapid development of the requirements of the times. Enterprise
integrated financial management is in this context of emerges as the times require. Financial
management guiding ideology is stressed from the division into emphasize integration. In the era of high
technology, more and more intense competition among enterprises, enterprise's business risk and
financial risk is also growing, research and development costs are rising rapidly, capital is relatively
limited has increasingly become the bottleneck of enterprise innovation success, so the reality of
economic life of requirement company financial management to" integrated" direction of development.
2 Integration and Financial Integration Management Framework of Analysis
2.1 Integration and integrated management
Integration is guidance with systematic thought, through purposeful, consciously compare, select and
optimize, creativity ground will be two or more than two elements of system integration as an organic
whole process, this process results in the formation of an organic system, it is guidance with systematic
thought and emphasize the person's subjective creative feature. In essence, the integrated thought
originates from system theory, information and control theory, because of the numerous management
elements of creative fusion of composition of organic whole system itself is a system for information
processing and control process. Integration is the key to establish dynamic environment coordination
and control mechanism, through the optimization of resource configuration, implementation system of
autonomic regulation and coordination of interactive management.
Integrated management is the person or group with integrated thought as the instruction, the integration
principle and method creatively used for management practice, from the integrated new perspective
analysis of human tissue and the purpose of social flow, the human understanding and practice activities
of various resource elements incorporated into the management of the scope and boundaries, and the
inside and outside the organization according to certain elements of the integrated mode of integration,
comprehensive use of various methods, means and tools, the integrated element function matching,
complementary advantages and process reengineering, resulting in the new system and make the system
overall efficiency multiplication management process, it is comprehensive, complexity, cooperative and
innovative features. It is the integration of internal resources and external resources, to achieve business
process reconstruction, to play a product research and design, procurement, production, marketing,
brand management, service management, human resource management and financial management
synergy, enhanced fast strain capacity and competitive ability, to explore and enhance the value of
effective technical means.
2.2 Integrated financial management framework analysis
2.2.1 R&D integrated financial management connotation
R&D integrated financial management in high-tech enterprises internal and external resources for the
foundation, with innovative mechanism as a driving force, expand the R&D financial management
vision, enhanced R&D financial management object integration degree, and comprehensive use of
various means and methods to promote the financial factors, features and advantages of the matching
between the financial resources to achieve the overall optimization.
2.2.2 High-tech enterprise R&D integrated financial management target
High tech enterprises financial management target should be R&D and company goals; because of
high-tech enterprises to the characteristics of R&D, R&D high-tech enterprises financial management
goal should be to achieve the sustainable growth of enterprise value. Because investment in R&D is not
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the pursuit of profit, but the pursuit of future enterprise sustainable development, the pursuit of
enterprise value growth. This goal is the high-tech enterprises -- the ultimate goal of enterprise value
maximization in the R&D financial management in the field of embodiment.
Due to R&D activity diversity, uncertainty and returns lag, the value of enterprise sustainable growth
index has two: one is the enterprise value absolute value increases; two is sustained growth rate of return
index. The short-term R&D project to the value quantity index to measure gives priority to, enterprise
value sustainable growth measures supplemented; and long-term R&D project risk is very big, benefit
lag is more obvious, the R&D value of enterprises sustainable growth indicators measured, the value
quantity index to measure the supplement.
2.2.3 R&D integrated financial management operation mechanism
2.2.3.1 The overall optimization.
R&D integrated financial management emphasizes aspects of financial resources integrated operation,
required to achieve fusion amplification effect, its primary operation mechanism is the overall
optimization. Global optimization approach is to process R&D financing, investment, financial risk,
R&D expenditure accounting treatment and R&D performance evaluation from the overall coordination,
highlighting elements of combination among the amplification effect.
2.2.3.2 Chain interaction.
In the R&D integrated financial management, the integrated elements are mutual connection, mutual
influence, a certain elements if a change occurs, other relevant contact elements to a corresponding
change and adjustment, so as to ensure the integration optimum operating state. Therefore, R&D
integrated financial management financial management is to solve R&D complex system integrated
method, in the implementation of the requirements of R&D financial management flexibility.
3 High-tech Enterprise R&D Integrated Financial Management Motivation -Integrated Effect
Integrated effect, simply put, is due to the actual effect of integration. Financial management of
enterprises from the perspective of integrated effect finally, mainly reflected in the financial
management activities of the economic effect. It is an enterprise integrated financial management caused
by the enormous economic benefits to attract and induction, which makes the integrated thought
gradually infiltrated into the traditional financial management practice, and causes the enterprise
integrated financial management generation and appearance. Thus, the integrated effect is the result of
enterprise integrated financial management the fundamental cause of.
3.1 The scope of economic effect
An economy of scope is the western scholars in the study of the enterprise application of advanced
manufacturing technology in the production of economic benefits when presented with a new concept. It
is associated with the concept of scale economy relatively, reflecting the different production
environment of a kind of new management concept. Economies of scope are defined through the
expansion of enterprises by providing products or services and cause economic benefits to increase
performance. Along with the social life of the progress, people's consumption demand diversification,
personalized feature, advantage of economies of scale has been unable to meet the needs of the new
situation. Economies of scope are produced along with the progress of science and technology and the
social economy development and the emergence of proud. Economies of scope are emphasized with the
appropriate cost as much as possible to provide more variety of products, types, and the development
trend of the times. The scope economy of implementation must have certain conditions, i.e., integrated
management. With advanced manufacturing technology as the core manufacturing system, integrated
system to lay the economies of scope in the presence of base, advanced manufacturing technology
system integration but also the needs of integrated financial management, cost management system,
such as just-in-time JIT financing, investment analysis system. The scope of economic success, cannot
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leave all sorts of advanced manufacturing technology and management information system integrated
application, also cannot leave the support of integrated financial management. In this sense, it is due to
the integrated, which leads to the scope economy effect.
3.2 Agglomeration economy effect
Agglomeration economy effect is obviously an integrated effect; because the congregation itself is
integrated behavior is a manifestation of. The enterprise through the integrated financial management
can produce agglomeration economy effect, is mainly composed of the following reasons.
3.2.1 Reduce transaction cost.
Traditional financial management, due to business transactions between many barriers exist, leading to
high cost. When the implementation of the integrated financial management mode, each enterprise in the
area can be close to each other, through the spatial agglomeration can greatly reduce the transaction cost.
3.2.2 Can realize the matching elements, the advantage is complementary, enhance economic efficiency.
Through the integrated financial management, can make numerous businesses contact business together,
so that each factor of production to achieve optimal configuration, implementation advantage is
complementary, so as to obtain better economic benefit. Network finance can produce agglomeration
economy effect.
3.2.3 Facilitate the sharing of resources, access to external economies of scale.
High and new technology industrial zone, is actually in order to realize the sharing of resources, speed
up the turnover of capital, reduces cost, use of personnel, promote the business enterprise technique
innovation, opening and competition, thereby obtaining the external scale economy effect. In order to
cooperate with industry of new and high technology zone enterprises truly realize the agglomeration
economy effect, enterprises must realize the integrated financial management.
3.2.4 Help enterprises to better understand the technical competition, improve the innovation level.
Enterprises through the implementation of the integrated financial management, capital more timely
manner to ensure the need of competition, so as to improve the enterprise technological innovation
ability and level.
3.3 Speed economy effect
In current economic field changes are too busy to attend to all, competition pattern vary from minute to
minute, increasingly fierce competition. Who is able to speed ahead, who often have the initiative. The
traditional enterprise financial management often pays close attention to the cost of the product and
price. As accelerate the upgrading of products, which can quickly development, create new products to
the market, which is more likely to win. Speed economy effect is refers to the enterprise in operation
speed than the competitors with greater advantages and win a comparative economic benefit. Enterprise
integrated financial management can greatly accelerate the enterprise financial operational ability,
achieve the financial rate economic effect, i.e., faster than the competition, quickly respond to the
market. Enterprise integrated financial management is the demand of financial management in
enterprise overall strategy height, on the market a variety of rapid response to change, make their own
strain capacity greatly strengthened, can improve their own in the capital market strain capacity, but also
improve the product market, internal management capability. Enterprise integrated financial
management can also be used to other enterprises in financial management advantages together for their
own use, it is also a kind of speed economy effect.
3.4 Knowledge economy effect
The traditional financial management is mainly based on experience, because then people's knowledge
level is generally not high, people can not be applied too much scientific knowledge to improve the state
of company financial management. With the development and progress of society, people master and the
accumulation of knowledge is more and more advanced, more and richer. The acquisition of knowledge
economy effect is the fundamental way to improve financial management in the process of knowledge
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content. The financial management of enterprises with advanced electronic information technology, the
integration strategy of creative thinking, financial management system of enterprises of various
elements and functions are injected to the growing knowledge of content, information, intelligent,
flexible feature is increasingly apparent, enterprise integrated financial management knowledge gained
economic effect is also increasing, such as now many enterprises have successfully carried out
large-scale, high level of capital management, is a kind of intellectual economy effect is specific reflect.
4 High-tech Enterprise R&D Integrated Financial Management Principles
High tech enterprise R&D integrated financial management is to the overall business development
strategy and financial management target oriented, from the enterprise overall systematic analysis,
identification and evaluation of enterprises in the financial management activities in the face of the
financial risk and the implementation of the corresponding control, to achieve the integrated financial
management target. It from the system theory and the strategic point of view, using the method of
integration and integration management information system and other technical means, on the R&D
financial resource management integration. As the high-tech enterprises R&D with high investment,
high risk and other characteristics, in the R&D in the process of financial management must abide by the
following principles:
4.1 The cost, benefit principle
High tech enterprises financial management, R&D activity cost benefit principle is: R&D value of
output and input ratio rise, i.e. with less R&D cost to maximize the profits. But the enterprise R&D
activities, cost benefit principle and traditional cost, benefit principle, R&D activity with high risk, its
income has lagged behind. If one kind of new technical invention is performed by repeatedly R&D
succeeded. R&D activity allowed failing, allowing repeated requires additional input, economic benefits
in the follow-up phase only gradually. Therefore, R&D to reduce costs more reflected in improving the
successful rate of R&D project, as long as the R&D final income growth rate is greater than the cost of
R&D growth rate, consistent with the R&D cost, benefit principle.
4.2 The principle of risk
Risk, is in the given situation and the specific period, those that may happen in the future the actual
result and the anticipated goal differences between results. High tech enterprise R&D projects with high
risks, enterprises in the R&D financial management, we must first consider the R&D project risk to the
enterprise? Secondly considering the investment return, must be at the risk and return between the
decision analyses. High-tech enterprises by R&D failed to shut down it is often seen. However, the high
risk often brings high profit, R&D financial management taking unpredictable technology, market risk at
the same time, to avoid the investment, financing risk.
4.3 Plan principle
According to the high and new technology enterprise business objectives, R&D strategic objectives and
R&D stages of financial demand, formulate flexible financial plan, reasonable financing, investment, so
that the limited resources can be optimized, reasonable configuration, ensure that R&D project to
continue funding needs, improve the overall efficiency of enterprises.
4.4 Flexible principle
R&D integrated financial management idea requires financial management flexibility, because a flexible
process “change” and uncertainty and the ability. Because the high technology and new technology
enterprise R&D activity is highly uncertain, in the R&D financial management implements the flexible
management, R&D can be predicted during the uncertainty caused by the sudden financial needs, timely
treatment, reduce financial risk, avoid the possibility of financial distress.
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5 High-tech Enterprise R&D Integrated Financial Management Operation
Analysis
Company of new and high technology" research and development of system for rapid strain" features,
requirements of integrated financial management, to meet this demand, high-tech enterprises based on
the formation of R&D financial management mechanism. It tightly around the characteristics of
high-tech enterprises, emphasis on resource, technology, knowledge, organization, personnel and other
management factors to financial forecast, financial decision-making, financial control and financial
analysis of the full range of integrated to enhance the ability of competition of science and technology
and their ability to respond to market demands. Therefore, integrated financial management operation is
not to abandon traditional financial management, but the traditional method of financial management in
the new environment of development and extension.
5.1 The strategy and planning ahead -- concept integration (financial forecast and budget
development function extension)
High and new technology enterprise development strategy determines the direction of research and
development activities. Strategy is the integrated financial management activities in accordance with the
general programmer, strategic management theory, strategic decision function, function structure. The
function and structure is a project integrated body attributes of the host, is the R & D activities where the
direction. Thus, strategy is a system integration management of the premise and foundation of. Planning
ahead is a project" feed forward" of the planning design and management work, is essentially a kind of
creative thought or concept integration activities, helps to create a good operating environment, reduce
management risk, is conducive to the overall utilization of resources, especially the intellectual
resources integration application. Strategy and planning ahead in the integrated financial management
operation is essentially a kind of concept integration. Notably, we highlight here high-tech financial
management " feed forward", is not to say that the" feedback" for the financial management of high-tech
enterprises does not play role. Feed forward feedback is not to deny, but a complement. But the
high-tech enterprise R & D activities early input, high risk features so that we have to pay more
attention to forward, and in the high-tech enterprises, the feedforward feedback was more significant
than. In practice, if the high-tech enterprises financial management if combined with the use of
feedforward and feedback, through the" feedforward" advance sensing interference information,"
pretreatment" to eliminate known interference may appear deviation, but also through the" feedback" to
obtain the deviation information processing, to eliminate unknown interference information under the
influence of the actual deviation, so high-tech enterprises R & D activities of financial management will
achieve better results.
5.2 The unified leadership and fund collection -- the organization integration
The organization is integrated management and operation mechanism to safeguard, the different
organizational structure directly influences the effect and level of integration management. High-tech
times transformation of management idea, from the emphasis of division of labor to emphasize the
comprehensive, integrated thought. In fact, the development of contemporary science and technology is
a comprehensive interdisciplinary integration characteristic. In the high-tech enterprises, due to the high
technology triggered high investment, high risk features of its decision in risk prevention mechanism on
the unique organizational settings for integration: technology integration group of experts. It is
composed of managers, scientists and engineers with extensive research, development and
manufacturing background people together form the core of the group. The so-called" integration",
refers to a company's internal research and development process of integration, and not used to create
new products to the different techniques of" fusion". Technology integration of expert panel on the
company's research and development activities for the unified leadership, on R & D funds collection
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management. Integration group take a broad and systematic point of view, and gives its considerable
authority, so that it can create the new generation product concept and product technology. They were
given full responsibility for developing this product, they work with developers, as the manufacturer
provides a perfect product and manufacturing processes, in many cases, developers and suppliers are
responsible for a single component, and the integration of the entire project team. In addition, the
company with a large number of resources for the integration of group company capital formation", a
collection of cash pool", make its can test various technical possibilities, ultimately find a technology
integration method. This kind of technology and capital finance integrated management mode to
improve the high-tech enterprise financial decision-making efficiency and effect, thereby reducing the
risk of developing.
5.3 Information and control systems -- Method of integrated
In the integrated management practice, integrated activities are mostly to information and control system
as the core of the method of integrated. For example, function integration, is the office automation
( OA ), management information system ( MIS ) and decision support system ( DSS ) function of system
integration; integration of process, is to use the principle of concurrent engineering, business process
reengineering, establish a new network integration of organizational system, the implementation of
dynamic alliance and supply chain management; technology integration, is the artificial intelligence
technology, data processing technology, database technology, computer technology, communication
technology and management science and methods apply integrated, build a new integrated information
management system (IMIS).
High tech enterprise R & D environment produced extensive and profound changes. With the
development of computer science and the development of Electronic Science and penetrate into
high-tech enterprises R & D system, reaction theory of modern system theory, information theory,
cybernetics and intelligent theory and research and development integration. Computer technology,
information technology, automation and control technology, and system management technology and
high-tech enterprises financial management integration, so that high-tech enterprises financial
management mechanism has its own adaptability and self - organization, distributed control, systematic,
intelligent features.
6 Conclusion
High-tech enterprises “research and development of system for rapid strain” features, requirements of
integrated financial management, to meet this demand, high-tech enterprises have been formed based on
the R&D financial management mechanism. It tightly around the characteristics of high-tech enterprises,
emphasis on resource, technology, knowledge, organization, personnel and other management factors to
financial forecast, financial decision-making, financial control and financial analysis of the full range of
integrated to enhance the ability of competition of science and technology and their ability to respond to
market demands. Integrated financial management of traditional financial management operation is not
abandoned, but the traditional method of financial management in the new environment of development
and extension.
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