The IfU is a widely dispersed networked institute, composed of members from exceedingly differentiated disciplines. As an affiliated institute of the RWTH Aachen University since 2003, the IfU is in constant contact with numerous other institutes associated with the university. Moreover, the IfU is a member association of the AiF, representing the 'management cybernetics' sector, and is therefore a contact partner for many interdisciplinary research projects. As an application orientated research institute, the IfU has been developing methods and tools specifically designed to fit the needs of small and medium-sized enterprises since 1988. In doing so it pursues the principal ‘out of the practice for the practice’ with an inductive research paradigm:
Entrepreneurial Cybernetics
Introducing the institute, IfU focuses on the interaction between people, technology and organisations taking place within small to medium-sized enterprises. The Institute for Management of Cybernetics regards businesses as living systems, which convert information and resources into products or services through a series of compound processes. As a practice orientated and interdisciplinary science, the IfU aims to optimize these business processes by means of development and publishing of scientifically proven methods. The procedures implemented are always based on cybernetic principles- and in particular on the idea of a control loop, or feedback. This means that internal business processes are not straightforward input-output relationships but are constantly being influenced and changed by their own outcomes, i.e. they are recursive. Such a principal can have both aiding and debilitating effects but the IfU aims to help businesses implement and use it profitably. Being able to recognise enterprises as open, socio-technological, economic, multifaceted and networked systems, the IfU helps to describe and explain the complex phenomena which occur within these contexts.
Cooperation
The Institute for Management Cybernetics e.V. forms an institute cluster with the Center for Learning and Knowledge Management and the Department of Information Management in Mechanical Engineering at the RWTH Aachen University.
The IfU carried out projects in several areas of expertise; these cover cost-effectiveness, micro and start-up enterprises, co-operations processes and change management and are explained below in more detail.
Cost Effectiveness
When estimating cost-effectiveness, the IfU places emphasis on both hard factors and soft factors in its approach to economic appraisal. Following this initiative, an extensive overview of a business can be achieved. The NOWS technique is one of the main software tools developed by IfU, as a means of helping enterprises make a profitability analysis. Because falsely estimated investments can steer companies towards crisis situations, it is very important that every decision maker considers all factors before making an investment. The software tool creates a graph based on all the factors integrated into the system, and as a result presents the enterprises with the best possible option of investment. Diverse aspects are considered in the analysis, leaving little to no room for insecurities; a stable investment scenario is presented. Consequently, several projects profited from this method; NowBITs - investments in computing services were valued and a code of practice was compiled. AutoPreforms - the efficient manufacture of fibre reinforced composites in the car industry.
Micro and start-up enterprises
For over ten years, the IfU has been aiming to find solutions in helping micro and start-up enterprises with the management of resources. Once the start-up incentives have phased-out, many young businesses reach a critical stage which is marked by a high number of bankruptcies. The reasons for failure of young businesses are multifaceted but are often associated with lack of experience. An exemplary undertaking is the Jungunternehmen Project - a method map was developed to provide the enterprises that reach this critical stage with the necessary support.
Co-operation Processes
Additionally, with the intent to help enterprises use limited resources more efficiently by converting relevant information into applicable knowledge, the IfU researches success factors in co-operations processes and co-ordinates corresponding joint projects. To illustrate the work carried out in this field, in project SENEKA the IfU has co-ordinated the cross-sectional task of innovation management.
Change Management
As stipulated previously, the IfU carried out several projects in the field of change management to help organisations adapt to the fluctuating market conditions. CuBa Change is one of the newer developments. The project’s objective is to develop a practical and easy process of quality-orientated safeguard and adoption of Changes Processes for SMEs, whilst abiding by the more fundamental features of corporate culture. In this way a management-specific situational analysis of Change-Proposals will be enabled, increasing the likelihood of success and the ability to cope with the constant need to adapt to change.
