Nonlinearity and Stability of an Industrial Enterprise in the
Information Analysis of Management
Sergey Vitalievich Chuprov
Baikal State University, Irkutsk, Russia
Keywords: Information, non-linearity, management, stability, chaos, effect, economic system.
Abstract: The development of theoretical views, methodological and applied tools of sustainability management of
industrial enterprises is now a priority among the urgent economic tasks for managers of industrial enterprises
and the business community. Within the framework of ensuring reliable competitive positions of enterprises
and their successful innovative modernization, professional analytics focuses on the conditions and features
of the functioning of enterprises that are affected by growing globalization and the crisis of the world and
domestic economy. The perturbed modes of behavior generated by them and their own triggers demonstrate
features of nonlinearity with their inherent restructuring, oscillation, loss and gain of stability. The study goal
is to use the insights of system analysis, cybernetics, nonlinear dynamics, catastrophe theory and information
to analyze and interpret the metamorphosis that industrial enterprises undergo. In view of this, the article
presents an economic explanation of scenarios for the transformation of industrial enterprise and the linking
of its evolution with the amount of information, entered by the management system and materialized in the
means of enterprise production. At the same time, for information analysis, a significant analytical aid is the
modification of exponential dependence of the disordered functioning of enterprises controlled complex, the
amount of accumulated control information and the enterprise economic effect (according to V. Trapeznikov),
which makes it possible to introduce into this dependence the indicator of management excellence level
achieved at industrial enterprise and assess the impact of the latter on the amount of information inherent in
it. In the conditions of incompleteness of the initial information, the task of using and processing both
quantitative and poorly formalized qualitative information is actualized due to the use of the fuzzy sets
apparatus. The study significance is to enrich the concept, technology and algorithms of adaptive management
of an industrial enterprise in a highly perturbed and knowledge-intensive business environment.
1 INTRODUCTION
The era of rapid and intense changes in the political
and social space dynamizes the environment of
regional and corporate economic systems, subjecting
their structure and functioning to increasing
perturbation and the risk of weakening the
competitiveness and degradation of industrial
enterprise resources. In view of this, traditional
approaches to the design of its management and
sustainability management of the enterprise in a
stationary environment retreat to the time demands,
need theoretical and methodological verification and
revision, taking into account the postulates of both
social and natural science branches of knowledge.
And the information analysis of the nature of their
restructuring and tools to ensure the vitality of
industrial enterprises in a vortex environment with a
sequence of stable and unstable states acquires
priority importance in understanding the evolution of
developing economic systems.
Currently, studies on the sustainability of
economic systems go back to both the classical
concepts of fundamental property of dynamic
systems (Chuprov, 2016) and expand the range of
analytical works on the problems of ensuring the
sustainability of innovative development in an
uncertain and dynamic external environment
(Khudyakova, Shmidt, 2018) and the formation of a
new technological order of economic structures
(Alekseeva, Babkin, Makhmudova, Yung, 2020). In
this context, we have recently seen a surge of interest
in the modernization of management technologies for
making management decisions based on the use of
intellectualization of the search for solutions
(Veretyokhin, Yachmeneva, Sevastyanova,
Chuprov, S.
Nonlinearity and Stability of an Industrial Enterprise in the Information Analysis of Management.
DOI: 10.5220/0010698700003169
In Proceedings of the International Scientific-Practical Conference "Ensuring the Stability and Security of Socio-Economic Systems: Overcoming the Threats of the Crisis Space" (SES 2021),
pages 281-285
ISBN: 978-989-758-546-3
Copyright
c
2022 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
281
Osmanova, Yachmenev, 2020) and digital platforms
(Belyakova, Belyakov, Fokina, Shpak, 2020;
Gribanov, Bezrukova, 2018).
In order to develop the stability management of
nonlinear functioning of industrial enterprises, the
task is to ensure the use of poorly formalized source
information and algorithms of fuzzy sets in
management technology, which opens up the
possibility of saturating it with valuable knowledge
about the properties of enterprise behavior in the face
of increasing threats. As a result, it is possible to
increase the information transparency of decision-
making environment and the adaptability of industrial
enterprise by responding to emerging risks in advance
by maneuvering its resources.
2 MATERIALS AND METHODS
In the range of natural-scientific and economic views
on the stability of motion of dynamic systems, the
achievement of study goal is achieved by attracting
the ideas of systems analysis, cybernetics, nonlinear
dynamics, catastrophe theory and information theory.
Thanks to application in the complex of these
concepts and methodological principles, it becomes
possible to perform an information analysis of
metamorphosis of nonlinear activity of an industrial
enterprise, the bizarre combinations of stable and
unstable phases of its functioning.
3 RESULTS AND DISCUSSION
Conceptually, it became undeniable that with the
“jump into the market” on the transformation of
domestic enterprises was extremely powerful
pressure of overwhelming economic dynamics,
coming from the reformers' plan of rapid
denationalization and privatization of the property of
economic complexes. Obviously, the orthodoxy of
monetarism left no other levers to manage the
transition processes except free pricing and money
supply regulation, which against the background of
radicalization of institutional change caused an
unprecedented steepness of the processes caused by
them.
Chaotization of the economic space has become
an inevitable consequence not only of structural
discontinuities, among which the network irregularity
of input and output commodity flows and interactions
with counterparties, but also of the confusion with the
economic activity rules.
Meanwhile, it is theoretically argued and
practically confirmed that in a highly disturbed
environment, replete with critical overloads and
burdened by the lack of effective government
support, the work of industrial enterprises was
shackled by fading or arrhythmia of supply of
consumed resources (raw materials, materials,
energy, products, etc.), a shortage of their own
financial funds, uncertainty of partnerships, demand
for manufactured products and their supply. The
undermined reproduction of the enterprises' resources
resulted in the containment, or even the damping of
business activity, a sharp drop in output and sales, the
exorbitant growth of debts and the risk of bankruptcy.
The commodity-money imbalance and turbulence
of the transitive Russian economy gave rise to critical
transition processes and, with the liberalization of
pricing, inflationary waves running over each other
and the entrenchment of depressive tendencies.
Shocks of supply and demand, as a reaction to the
shocks of the country's deformed economic complex,
rocked its financial and economic mechanism and
condemned enterprises to exhaustion and depletion of
resources. Within the framework of monetarism
postulates, which ignored the methods of state
regulation, there was no need to rely on the damping
and repayment of the prohibitive “bursts” of inflation
(Chuprov, 2017).
The dynamic picture of the enterprise functioning
is undergoing restructuring, closing the slow and fast,
smooth and “explosive” phases of behavior. In
particular, during the evolution of enterprise, its state
of stable equilibrium may merge with an unstable
equilibrium, after which the equilibrium disappears
and the enterprise economic system radically changes
mode, making a leap (a “catastrophe” occurs).
Phenomena of this kind are studied and described
by catastrophe theory, in which a dynamic system
loses stability of an equilibrium state due to both
bifurcation of this state and a spontaneous process
(Arnold, 1990). Moreover, with the loss of
equilibrium state, the system either moves to another
equilibrium, or two such states appear: stable and
unstable equilibrium.
It would appear that this scenario of industrial
enterprise's transformation is inherent in the first
stage of its slide into crisis, when under the influence
of perturbations, the enterprise is gradually
“squeezed” out of a stable equilibrium and over time
it weakens and disappears. After that, the perturbed
mode of enterprise's functioning evolves to another
equilibrium state, different from the previous
equilibrium. The enterprise is drawn into the process
of disintegration and deterioration of resource
SES 2021 - INTERNATIONAL SCIENTIFIC-PRACTICAL CONFERENCE "ENSURING THE STABILITY AND SECURITY OF
SOCIO - ECONOMIC SYSTEMS: OVERCOMING THE THREATS OF THE CRISIS SPACE"
282
balance, and because of decline in the efficiency of
their use, the enterprise's business activity falls. With
acquisition of new state of equilibrium, it can become
stable, if it is unshakeable to the perturbations
rendered, or unstable, easily disturbed by them in the
chaotic activities of the enterprise.
Meanwhile, another scenario is real, in which a
stable state of equilibrium in an industrial enterprise
dies out, in which it degenerates into a limit cycle, and
then the equilibrium becomes unstable. With the
emergence of an oscillating periodic regime, the
transition process reflects the unfolding of crisis in
passing, which unfolds as the cyclical reproduction of
enterprise resources suffers. In fact, this refers to the
unstable operation of the enterprise, which is
characteristic in a disturbed environment, which
proceeds in an excited mode, which differs little from
the equilibrium one with a slight deviation of mode
from the point of loss of stable equilibrium (Chuprov,
2016).
Quite a typical case is when the loss of stable
equilibrium of an industrial enterprise passes quickly
enough and the loss in the equilibrium position of
limit cycle is accompanied by disappearance of the
latter, after which the equilibrium becomes unstable.
Before that, the random disturbances acting on the
enterprise's activity force the enterprise system to
leave the attraction area of the previously established
regime, the intensity of its financial and economic
activity changes dramatically and the enterprise
jumps into a qualitatively different regime. After such
a violent metamorphosis, the enterprise, by
catastrophe theory, is drawn to a new stable stationary
mode or submits to a stable fluctuation or even more
complex motion (Arnold, 1990).
Meanwhile, restructuring in a chaotic economic
system is characterized by change in the orderliness
of its behavior, organically related to the amount of
information contained in the system. In the process of
non-ordinary transformations, it is distinguished in
the process of evolution by value of entropy as a
measure of energy dissipation in terms of
thermodynamics and statistical physics. In
information analysis, V. Trapeznikov's concept Is
valuable, according to which there is an exponential
dependence of the effect of system functioning on the
disorder of its behavior and the amount of control
information in it (Trapeznikov, 1983):
,
I
I
eBE=E ]1[
0
0
max
(1)
where
E
– the effect of functioning complex;
max
E
– the effect of perfectly
functioning complex (maximum possible effect);
0
B
– complex disorder in an initial state;
0
I
– the amount of information that is specific
to this control object;
I
- the amount of control information.
Simple mathematical operations allow us to
modify equality (1) and obtain the following
expression regarding the amount of information in the
economic system:
.
)
E
E
B
(I=I
max
1
ln
0
0
(2)
Ratio
maxE
E
B. Trapeznikov called the level
of management excellence. Its value is determined by
the amount of information input into the system and
its usefulness, depending on perfection of devices and
software for collecting, processing and influencing
the control information on the system. From the
equations (1) - (2) for information analysis, find the
basis for the statement: with a given disordered
behavior of the system and its saturation with useful
information, the effect of system functioning
increases, but with the approach to its maximum
value, the increase in the effect exponentially
decreases.
From the perspective of information paradigm,
the stability management system of industrial
enterprises relies on a wide application of
professional knowledge, algorithms for finding and
maintaining a sustainable mode of the enterprise in a
highly perturbed environment and the scarcity of
available information about it. The technology
structure of such adaptive management includes the
blocks of forecasting changes in the external
environment, adapting the management system,
forming the production plan and simulating its
implementation, assessment and analysis of
enterprise stability on the forecasted background,
their diagnosis, correction of planning conditions and
ensuring the implementation of industrial production
plan.
The use of heuristic models built on the basis of
algorithms of fuzzy sets theory makes it possible to
enter and process both quantitative and poorly
formalized qualitative information, which better
meets the peculiarities of analysts' thinking and
tradition to operate with fuzzy categories. Innovative
support for adaptive management and sustainability
Nonlinearity and Stability of an Industrial Enterprise in the Information Analysis of Management
283
management of industrial enterprises is carried out
through analytical functions and intellectualization of
participants in computer dialogue, and, above all,
their ability to perceive poorly structured problems
and exchange heuristic information, which facilitates
the generation of new knowledge about the properties
of enterprise sustainability.
Thus, the objectivization of picture of its behavior
logically leads to the need to develop information
analysis of the industrial enterprises' functioning,
which corresponds to the condition of their innovative
development. At the same time, the use of ideas about
bifurcations and catastrophes in nonlinear processes
brings us closer to understanding the essence of
abrupt changes in the economy, when the measured
course of the process under influence of small
perturbations is replaced by rapid and loses its
previous stability. It seems that the transfer of
knowledge with its embodiment in technology,
means and products of labor can both strengthen the
stable mode of enterprises' operation, and under
certain conditions lead it into the area of future
bifurcations.
In the current highly indignant and uncertain
economic situation, it is advisable to talk not only
about the development of adaptive management
technology for the sustainability of industrial
enterprises, but also about the fact that it has an
“innate” ability to innovative modernization and
build up “skills” action of permissible external and
internal interference. It should have the property of
active self-learning with the priority on extraction and
mastering of new knowledge in the professional skill
of enterprise personnel, production and computer
technology management.
In short, saturation in such a “foggy” risk
environment of enterprise operation with knowledge-
intensive information and its materialization in
management and production activities will (at least
partially) weaken the emerging chaotic processes in
its functioning and make up for its lack for effective
development. Otherwise, the non-equilibrium
behavior of the enterprise may become stable, but not
due to the innovative type of progressive
transformation, but under the influence of the
dominance of degradation tendencies. And then,
when the bifurcation points are reached, the trajectory
of the enterprise will be poorly predictable and will
be determined by the conditions of transition process.
Therefore, in the course of computer experiments, it
is necessary to assess the enterprise's adaptability and
the effectiveness of implemented solutions, which
deepens the knowledge of nature and patterns of crisis
processes, and therefore contributes to the acquisition
of personnel skills in diagnosing and managing the
stability of an industrial enterprise.
4 CONCLUSIONS
In conclusion we summarize that the development of
methodology, technology and tools of modern
management of industrial enterprise allows not only
to comprehend the metamorphosis of its nonlinear
behavior, economic evolution and anti-crisis
management of the enterprise, but also to achieve in
practice to maintain its stability, through the design
and implementation of information and algorithmic
developed management system.
Achieving and maintaining sustainable operations
of an industrial enterprise in a highly perturbed
environment is supported by the development of
intellectualization tools that open up the possibility of
applying poorly structured qualitative information in
management models, making up for its
incompleteness in a dynamic and poorly defined
environment.
The prospects for further research on the
discussed problems are associated with the functional
development of adaptive management technology,
which will ensure the strengthening of the
competitive position of industrial enterprises in the
globalization of world economic relations, the
establishment and expansion of innovation economy
sectors.
REFERENCES
Alekseeva, N., Babkin, A., Makhmudova, G., Yung, A.,
2020. Research and Assessment of Innovatively-Active
Industrial Cluster Development. Proceedings of Peter
the Great St. Petersburg Polytechnic University
International Scientific Conference on innovations in
digital economy. 38. pp. 1-6.
Arnold, V., 1990. Catastrophe theory, 3rd ed., ext.,
Moscow, Nauka Publishing.
Belyakova, G., Belyakov, S., Fokina, D., Shpak, A., 2020.
Formation of a model of information technology
platform for the development of foreign trade potential
as the basis for the technological development of
engineering enterprises. IOP Conference Series:
Materials Science and Engineering. 862(4).
Chuprov, S., 2016. Nonlinear dynamics and sustainable
development of industrial enterprises within the
framework of synergetic paradigm. RPTSS 2015 –
International Conference on Research Paradigms
Transformation in Social Sciences 2015. SHS Web of
Conferences. 28. 01022.
SES 2021 - INTERNATIONAL SCIENTIFIC-PRACTICAL CONFERENCE "ENSURING THE STABILITY AND SECURITY OF
SOCIO - ECONOMIC SYSTEMS: OVERCOMING THE THREATS OF THE CRISIS SPACE"
284
Chuprov, S., 2017. Management of sustainability and
development of systems in the context of the synergetic
paradigm. Proceedings of 2017 IEEE 2nd International
Conference on Control in Technical Systems, CTS
2017. 2. pp. 318 – 321.
Gribanov, Yu., Bezrukova, T., 2018. Methodological
aspects of assessment of economic efficiency of tools
of branch digitalization. Business Economics. 53. pp.
587-597.
Khudyakova, T., Shmidt, A., 2018. Methodical approaches
to managing the sustainability of enterprises in a
variable economy. Espacios. 39(13).
Trapeznikov, V., 1983. Management and scientific and
technological progress. Moscow, Nauka Publ.
Veretyokhin, A., Yachmeneva, V., Sevastyanova, O.,
Osmanova, Z., Yachmenev, E., 2020. Veretyokhin, A.,
Yachmeneva, V., Sevastyanova, O., Osmanova, Z.,
Yachmenev, E., 2020. Veretyokhin, A., Yachmeneva,
V., Sevastyanova, O., Osmanova, Z., Yachmenev, E.,
2020. http://etss2021.tmweb.ru/
Nonlinearity and Stability of an Industrial Enterprise in the Information Analysis of Management
285
