on Thursday, December 20, 2012 |

The present research is concerned with the vital problem of system simulation for social and economic management in local government authorities. The problem is rather important as the level of social and economical development depends on quality and management efficiency of administrations of municipal level. And functional modeling and simulation models support officials in making optimal managerial decisions within organization.

Certainly, data processing in governmental organizations is computerized. Practically each executing officer has computer workstation, but nevertheless the problem is that integrated workflow and paperwork system does not exist. Such system can help to facilitate performance of routine operations and decision-making process.
Current necessity for upgrading information management systems in local government authorities is related to build-up of information flows and legislation, regulatory framework in this sphere.

Methods of management analysis on municipal level vary widely as they involve both theoretical and practical aspects. It is suggested to use indexing system - economic, social, ecological, and policy indexes - in order to reach better economic climate and living standards. Municipal and regional development programs are formed by top-managers. These programs are performed by executing officers according with their position obligations. Particular divisions and departments of organizational structure are responsible for specific functional areas of local government authorities and parameters in the indexing system.

Organization is a complex system involving many business processes. Generally three management levels are recognized - hierarchy of management activity: strategic level, tactical level, and operating level. Administrative pyramid indicates scope of authority, responsibility of an official and dynamics of decision-making.
The primary objective of management within local government authorities lies in positive influence on indexing system of development.

Also it is necessary to say about simulation techniques for business processes in administrations of all levels. First of all line and staff organization and staff list are researched. Functional modeling methodology is used to improve coordination of organization activities. The methodology involves analysis of the organization's information channels and business processes. It helps to define weaknesses and doubling of functions, etc.

The business processes model could be plotted using different methodologies:
-    functional modeling (IDEF0, IDEF3, DFD diagrams);
-    object-oriented programming (UML - Unified Modeling Language);
-    structured modeling (block diagrams).

Functional modeling is implemented by CASE-technologies.
Using of modern functional modeling in combination with CASE-technology - BPWin - is an optimal variant for analysis of business processes in organization.
Utilization of functional modeling results in engineering or just reengineering of business processes. Engineering or reengineering processes are necessary for obtaining competitive advantages and improvement of quality of organization activities.

It is very difficult to estimate management efficiency, as there are practically no criteria for evaluation of functioning of government bodies. So, international practice includes a number of criteria types for management efficiency: Impact index, Outcome index, Output index, Process index, Input index.

Nowadays we can't rely only upon intuition and experience of an official. Business Intelligence is used for taking optimal managerial decisions. Business Intelligence processes primary information of organization and than generalize, aggregate data, find cause-and-effect relations, forecast development, find associative sequences with the help of Data Mining, fuzzy logic, genetically algorithms, neural networks.
In modern turbulent environment Business Intelligence allows local government authorities to coordinate administration activities in a better way and to take optimal decisions allowing to gain competitive advantages in future.

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