Practice of organizing defense enterprises’ production subsystems

Abstract

Maintaining the current business model in the military-industrial complex (MIC) does not allow concentrating the resources of finalists (integrators) – enterprises producing final products – on key competencies: R & D, assembly, sales and service. That is, at the main stages of the product complete life cycle, which forms the basis for a modern understanding of the category of “value” required by the modern consumer. In addition, the long-term orientation towards a limited number of customers (Russian Defense Ministry and/or law enforcement agencies), as well as the peculiarities of economic legislation in the field of defense industry resulted in a shortage of market competencies among personnel of the defense enterprises. There is also a lack of the work experience in the competitive environment in the non-defense products market, and expe- rience in building a set of actions to promote the non-defense products. Those circumstances limit the competitiveness of products, both the non-defense and military. Thus, there is a contradiction between the objective need to mobilize resources for maintaining the potential of the defense industry by conducting forced diversification of the military-industrial complex’s, increasing the products com- petitiveness and the state of the enterprises’ production subsystems, what hinders the solution of those tasks. Given the scale and importance of the defense industry to ensure the country’s security from external threats, it is necessary to solve the current scientific task – theoretical justification and methodological development of the organizational and managerial complex of decisions. The complex covering the field of reforming the composition, structure and methods of organizing the defense enterprises’ production subsystems to diversify and increase their competitiveness in the markets of military and non-military products.