Innovation

The search for affordable housing is becoming increasingly difficult with a rapidly growing population. Therefore, the "Young Family" project was implemented by Niskom. The residential complex provides half of 487 apartments to young families at cost. This unique offer allows families to use their money for other purposes to improve their quality of life, such as arranging family trips, holidays, or leisure activities instead of investing their money on mortgages.

Another innovative idea is to sell the other 50% of the apartments at market price to form the basis for investments into social infrastructure such as schools, kindergartens, or a church. "Young Family " is a “unique project for the Russian market,” said Emil Martirosyan, company development director, because it is a highly beneficial commercial social project for the families and population of Krasnoznamensk.

Inspiration

Inspiration is a basis for business where internally, the corporate culture can motivate the team to develop ideas, and externally, the business gets feedback from customers and society. Societal support is needed to understand how the public positively evaluates the result of the work. When implementing a project, it is done so everyone can participate. Social support helps avoid negative attacks from society on the company’s value. Instead of just providing cash flow to the market, the company shows its focus on social responsibility which creates inspiration.

"Internal inspiration definitely motivates people. It can be commercial motivation when we pay bonuses for the work, and non-commercial, when the people, working in the company, have a positive and welcome atmosphere and know that the company is a ‘good citizen.’ That is very important for the employees when they realize the type of organization they work for, and whether they want to stay with the company for a long period of time,” Martirosyan explained.

Overall impact

The general approach is that people work in a company that is creating this building where cash flow provides security for the company and its employees. Business model innovations are definitely new phenomena for the market. That means they generate cash flow differently. The short-term effect of a business model innovation is confidence and positive awareness that a company has prospects, as it creates a model, which depicts a plan of development. For the staff, it is crucial to feel the sustainability of the company and their jobs.

The long-term effect is expressed in better financial results for the company. That means more cash flow, profitability, and, finally, an increase in the company value. A profitable business provides a good opportunity for people to invest their capital in the company’s shares. As for the employees, they would be motivated to achieve results and invest their time in productive work for the company.

Business benefit

Thanks to the launching of such programs as "Young family" and "Space Harbour,” there are three major business benefits for Niskom.

Firstly, the revenue has raised and the retention has increased after the implementation of the innovations. Secondly, new employees were hired and their well-being has improved and therefore, the outcome is that the company has received positive support from society and the stakeholders. Thirdly, new investment opportunities have been opened, when the company started to sell its shares on the stock market. After the beginning of the socially responsible projects, the potential investors started to value the company for more than its financial results.

Social and environmental benefit

Regarding the environmental benefits, Niskom is responsible for the environmental consequences of its construction work. For example, if they cut out 100 trees, they cultivate 300 or more. Moreover, they don’t just cultivate forest trees. They plant apple and cherry trees as well which create green zones, parks, and gardens.

When it comes to social benefits, Niskom participates in several social programs, which Martirosyan divides into two categories: sponsorship and donations. He also points out that in the long run, donations are preferable for the company. This happens because sponsorship is a kind of advertising, and people get tired of seeing a company’s logo everywhere. However, when a company provides donations, for example, it helps families raise children, and these families become the promoters of the positive image of the company. “They create a positive image of the company and positive attitude to the company in the community,” he said.

Interview

Emil Martirosyan, Director of Development of NISKOM