An Interaction Model Development between the University and the

Related Markets Elements

Natalia L. Ketoeva

, Meri T. Zargaryan

and Ksenia S. Volodina

Engineering and Economics Institute National Research University "Moscow Power Engineering Institute",

Krasnokazarmennaya street 14, Moscow, Russia

Keywords: The Market of Educational Services, Labor Market, Scientific and Technical Products Market, Educational

Programs, Provision of Educational Services, Educational Institution Business Unit, University

Competitiveness.

Abstract: The article is devoted to relevant issues of the effectiveness between the departments of the research

university, with the educational services market subjects and the elements of the related markets. The

awareness of education as a service and its entry into the market implies the inclusion of market levers,

including the financial relations between the educational services market subjects and related markets. The

department, as a business unit of the university, interacts with such markets as the educational services market,

the labor market, the consumer market, the intellectual property market, the financial market, etc. Taking as

a basis domestic and foreign experience, the authors, within the framework of the proposed model, developed

a number of measures, the implementation of which will increase the prestige and competitiveness of

departments as independent business units. A distinctive feature of this model is a comprehensive assessment

of the university activities and the integration of the university activities not only with the market of

educational services, but also with other related markets.

1 INTRODUCTION

On the background of the modern international

openness of economies and the subsequent

globalization of economic relations, there is

practically no state that would not declare increasing

the level of competitiveness of the education system

one of the most basic tasks of economic policy. In

turn, it is worth noting that the economic development

of modern states largely depends on the availability

of educated and qualified personnel. Higher

education is now becoming a productive factor in the

development of the economy, becoming increasingly

important as countries move to the post-industrial

stage of development.

The main purpose of the research is to develop a

model of interaction between university departments,

as a business unit, with all objects of the educational

services market, as well as related markets.

https://orcid.org/0000-0002-8859-5293

https://orcid.org/0000-0002-4651-765X

https://orcid.org/0000-0002-3210-6649

To achieve this goal, the following tasks were set

and solved:

 The review of modern scientific literature on

the problems of research;

 Evaluation of university departments as

business units, the consideration of

departments interaction features with other

university departments, as well as with related

markets;

 the analysis and classification of global trends

in the development of the educational services

market and related markets;

 The formation of an interaction model of the

university with the market of educational

services and with related markets, main

interaction problems identification.

Ketoeva, N., Zargaryan, M. and Volodina, K.

An Interaction Model Development between the University and the Related Markets Elements.

DOI: 10.5220/0010596307070712

In Proceedings of the International Scientiﬁc and Practical Conference on Sustainable Development of Regional Infrastructure (ISSDRI 2021), pages 707-712

ISBN: 978-989-758-519-7

707

2 RESEARCH METHODOLOGY

The research is based on the following methods:

dialectical scientific cognition and private scientific

methods (analysis, synthesis, comparison, logical and

system-structural analysis, formalization, analysis of

normative legal documents), modeling.

3 RESULTS OF RESEARCH

As part of the review of the research literature, the

works of the following authors were analyzed: A.E.

Vorobyov, N.I. Lobanova, N.A. Lukasheva, I.V.

Khamalinsky, M.A. Yurieva, B. Berman, M. Bitner,

J.R. Evans, and others.

The analysis of these works helped identify the

features of the department interaction with related

markets and, focusing on the development of key

factors, to propose a new model that meets the present

day requirements.

At the present stage, the educational policy issues

are of particular importance in the development of the

state. The development of civilized market relations

is inextricably linked with the formation and

development of the educational services market. It is

obvious that at the present stage of society

development, the education is increasingly referred to

as a service sector, therefore, an educational

institution, in this regard, is considered as an

enterprise that provides educational services. Thus,

an enterprise that seeks to survive or improve its

competitive position in the market must constantly

improve the way it organizes and manages its

business processes.

Thus, it can be argued that a new paradigm is

being formed, a new model of higher education,

which is significantly different from the classical,

traditional model. In this model, the central place is

occupied by educational business processes, business

development processes and supporting business

processes. The identification and optimization of

which will allow to effectively implement the process

approach in the activities of educational institutions.

4 RESULTS AND DISCUSSION

The process approach allows you to focus the

university activities on business processes; the

university management system on the management of

each business process individually, and all business

processes as a whole; the university quality system on

ensuring the quality of technologies for performing

business processes.

The authors define a business process as a system

of various interrelated and regulated activities, in

which, under the control of certain resources, the

input processes are transformed into outputs, the

results that are valuable for the consumers of the

process (both external and internal).

Business processes are divided into main,

supporting, management and development processes

(Figure 1)

Figure 1: The relationship of business processes in an

educational organization.

The optimal interconnection of all business

processes within an organization forms the system

level, or business system. At the university, you can

distinguish educational, research activities that

include different functions, different sets of business

processes aimed at achieving different goals.

Thus, all business processes can be classified by

management levels. The strategic level includes the

business processes of development and management

(rector's office, Vice-rector for Academic Affairs,

Vice-rector for Research, Vice-Rector for

Economics). It is here that a new quality of business

processes arises, which is absent at other level. That

is the strategic plan, including the organization

mission, the main strategic goal. Strategic decisions

made at the highest level set the target orientation, the

orientation of the organization ventire set of business

processes, forming the priorities and basic

requirements for the results they receive.

The level of tactical management can include

supporting business processes (training management,

training department, institute directors). And the

tactical level is the main business processes, i.e. the

direct activity of the departments (head of the

department, faculty).

Based on the above, it is possible to define the

department as part of the university system, a kind of

strategic business unit in the market of educational

services. The department is the main structural unit of

the university, carrying out educational,

methodological and research activities in one or more

ISSDRI 2021 - International Scientiﬁc and Practical Conference on Sustainable Development of Regional Infrastructure

708

areas, while realizing its main task, that is the training

of highly qualified personnel.

Considering the department as a business unit of

the university, the following main areas of activity

can be distinguished (Figure 2).

Figure 2: Department main activities.

Each of the above mentioned areas of activity

ultimately creates a single management strategy, the

result of which is the formation of the overall

department rating.

Consequently, the department interacts with the

various departments presented in Figure 3 in order to

ensure the educational process, the research

organization and training activities, as well as the

development of the material and technical base.

Figure 3: The scheme of the department interaction with the

other university departments.

The department as a university structural unit, in

addition to interacting with the university

departments, also interacts with the market of

educational services and related markets (Figure 4).

Figure 4: The university scheme of interaction in the

educational services market and in related markets.

The awareness of education as a service and its

entry into the market implies the inclusion of market

levers, including the financial relations between the

educational services market subjects and related

markets.

It is an effectively functioning system of mutually

beneficial, constructive, long-term interaction of

these markets subjects that can become the

mechanism that will allow us to develop common

rules for mutually beneficial activities aimed at

meeting the needs of all interested parties.

Thus, the modern model of education should be

aimed at improving the efficiency of interaction

between the university structural divisions with the

educational services market and other related

markets. To form an effective model of interaction, it

is necessary to take into account global changes that

occur under the influence of global megatrends of the

future.

There are three groups of megatrends:

technological, socio-economic and cultural. They are

shown in Figure 5.

Figure 5: Global megatrends of the future.

The first group includes the automation processes

and the technological innovations development, the

widespread digitalization of all the economy sectors.

The second group of megatrends is associated

with demographic and geopolitical changes, the

formation of regional and industry clusters.

Finally, the last group of megatrends refers to

changes in the values and the population culture. As

a result, there is an increase in public demand for

ensuring diversity and inclusiveness in the labor

market, which in turn implies an increase in the

requirements of potential employees for the

employer's corporate social responsibility and an

increase in the demand for mobility opportunities.

The conducted research allows us to draw the

following conclusions: the current education system

An Interaction Model Development between the University and the Related Markets Elements

709

is not fully capable of being rebuilt under the

influence of global megatrends, which confirms the

need to develop an interaction model of the university

with the market of educational services and related

markets. Figure 6 shows the interaction model of the

university with the market of educational services and

related markets, compiled by the authors.

Figure 6: The interaction model of the university with

adjacent markets.

The department, as a business unit of the

university, interacts with such markets as the

educational services market, the labor market, the

consumer market, the intellectual property market,

the financial market, etc. This requires the integration

of the departments activities with the subjects of the

educational services market and other related

markets.

Analyzing the foreign experience, the interaction

of universities with related markets, we can conclude

that most foreign universities have evolved into large

research centers that unite industrial and research

organizations. For example, in such countries as the

United States, Sweden, and Germany, large business

incubators (Technopol, Innovation Bridge,

Stockholm Innovation and Growth, Karolinska

Development, UU Innovation) have been established.

Their activities are aimed at promoting and

commercializing research and development sphere,

for the integration of science, education, and

business.

At the Berlin University of Applied Technical and

Economic Sciences (Hochschule für Technik und

Wirtschaft Berlin), the Science-Practice cooperation

Center has been established and it is successfully

operating. Thanks to the close cooperation of the

university with small and medium-sized businesses,

with the support of this center, the technologies

introduction created by university students is

implemented. Consequently, enterprises support

innovative developments, as well as provide jobs for

graduate students.

Taking as a basis domestic and foreign

experience, the authors, within the proposed model

framework, developed a number of measures, the

implementation of which will provide the individual

departments competitiveness and increase the

university competitive position as a whole.

The first is the MIP creation on the basis of or with

the support of universities, that will ensure the

integration with real capital market. This is an

opportunity to apply in practice the knowledge that

was obtained by students in the theoretical training

framework, as well as the opportunity to update the

educational programs content in accordance with

modern market requirements. The creation of MIP

can solve another important issue related to the

medium and small businesses development.

Universities can successfully act as intermediaries

between investors and business ideas carriers, while

acting as a guarantor for all interested parties.

Within the framework of interaction in the

consumer market and the intellectual property

market, the proposed activities are closely

interrelated. Scientific and technical products are

usually based on the results of scientific research and

development (R&D), scientific and technical

documentation on the results of completed

fundamental and applied research and development,

new equipment experimental samples, scientific and

technical services, and other scientific, engineering

and information activities results intended for use in

production, management and planning (Saginova and

Maksimova, 2017).

The Russian Federation already has experience in

integrating the activities of educational institutions,

scientific organizations and industrial enterprises on

a contractual basis in order to carry out scientific

developments, introduce them into production and

attract students and postgraduates to research,

scientific, technical and production activities.

However, a number of barriers, such as the high

degree of production monopolization, the immunity

of many manufacturing enterprises to the use of

scientific and technological progress, the

shortcomings of the organization existing models in

the scientific field, slowed the scientific and

technological progress achievements

implementation. It led to the scientific, technical and

innovative sphere underdevelopment (Gudkova and

Ketoeva, 2017).

Therefore, in order to strengthen the role of

universities in the innovation sphere, it is necessary

to create innovation centers on the basis of

universities with state support. The Center can bring

together laboratories and research groups of

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universities and industrial companies specializing in

high-tech industries, as well as individual researchers

and entrepreneurs. The creation of such centers will

have a positive impact on the activities and prestige

of the university, as well as help to make a significant

contribution to the interaction of the department with

the intellectual property market and, as a result, with

the consumer market.

The interaction of the university with the financial

market can be manifested in the form of the securities

issue, namely, educational vouchers. The voucher

system is still practiced only in a few countries (for

example, in Denmark and in the United Kingdom).

The basic idea of a voucher is that successfully

enrolled students receive a voucher for a certain

amount to be used at the university or higher

education institution of their choice. Vouchers alone

do not create additional money for education and thus

are not an additional source of funding. When using

vouchers, government funding is distributed not

through an educational institution (as is usually the

case), but through individuals.

An unused voucher can retain its real value for the

entire life of its owner. Thus, the voucher-based

funding scheme is quite consistent with the current

trend of "continuing education", i.e., lifelong

learning.

Due to the fact that over the past 5 years, the

qualification gap level has been growing for a long

time, i.e. the university graduates competencies do

not meet the modern labor market requirements. One

of the most important issues is integrating the

university activities with the labor market. The root

of the problem lies in the knowledge and competence

of graduates who get a job, their experience and skills

do not meet the companies needs. Skills in the labor

market are rapidly becoming obsolete and irrelevant,

and the education system is not able to fully

compensate them.

To solve this problem, the authors propose

voluntary or mandatory certification of university

graduates to confirm their competence, as well as

cooperation with employers in the formation of the

studied disciplines practical part.

The implementation of the proposed measures

will increase the prestige and competitiveness of the

departments as independent business units. The

developed system of indicators is presented in Table

Table 1: System of indicators for evaluating the

effectiveness of the university's interaction model with

related markets.

Type of

activity/market

Indicators

Educational

(educational services

market)

Number of implemented EP;

Number of students, all forms

of education;

Number of Bachelor's and

Master's degrees;

Educational

(financial market)

Number of students on a fee

basis and on a budget basis.

Income from educational

activities, etc.

Educational

(labor market)

Demand for graduates;

Number of employed graduates

Number of bases for practical

trainin

, etc.

Scientific (consumer

market)

Number of publications

indexed in the WAC; WOS.

Scopus.

Students involvement in

scientific activities; etc.

Research

(intellectual property

market)

Number of R&D projects;

Number of filed grant

applications

Number of

rants won, etc.

Innovative

(intellectual property

market and

consumer market)

Number of patents

Number of developed

technologies and products, etc.

Enterprising

(real capital market)

Number of households

contracts;

Number of products developed

in the interests of the customer,

etc.

The proposed system for evaluating the

effectiveness of this model should reflect the

indicators of educational, scientific, innovative and

enterprising activities of the university, reflecting the

university internal and external effectiveness. This

will let the university management analyze the

departments integrated activities effectiveness, as

well as to make operational management decisions

aimed at improving the departments efficiency, which

will also have a positive impact on the activities of the

university as a whole.

5 CONCLUSIONS

Thus, the proposed model of interaction of the

university with the educational services market and

related markets is characterized as an adaptive,

dynamic model that can be applied in any higher

An Interaction Model Development between the University and the Related Markets Elements

711

education institution. A distinctive feature of this

model is a comprehensive assessment of the

university activities and the integration of the

university activities not only with the educational

services market, but also with other related markets.

Based on the aforesaid, the purpose of the study has

been achieved.

ACKNOWLEDGEMENTS

The article was prepared at the expense of the grant

of the Federal State Budgetary Educational Institution

National Research University Moscow Power

Engineering Institute within the framework of the PSI

"Industry 4.0 Technologies for Industry and

Robotics".

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