158 10 3494 https://omeka.ibu.edu.ba/files/original/01e2f3b74c7e0e9257877c5944effe88.pdf 4f5e793db594dcd03ab53848a1547031 PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo Virtual banking: An Overview Muhammet Özcan Ataturk University, Erzurum, Turkey Murat Serçemeli Ataturk University, Erzurum, Turkey Ensar Ağırman Ataturk University, Erzurum, Turkey Reşat Karcıoğlu Ataturk University, Erzurum, Turkey rkarci@atauni.edu.tr M. Dursun Kaya Ataturk University, Erzurum, Turkey dursun@atauni.edu.tr Virtual banking can be defined as a bank without branch which offers its services by means of individual computers or electronic tools, ATM and telephone. As virtual banks can’t put up with the cost of branch opening, they offer the savings obtained from the costing to their customers as high saving interest. In the study, it will be mentioned from the definition of virtual banking to its advantages and disadvantages, and samples of virtual banks in the world, the superiority in costing per operation in comparison with traditional banking. In conclusion, thanks to virtual banking, situation of earn and earn will occur, and costing in banking system will reduce, and this will reflect to the customers positively. Keywords: Virtual Banking, Internet Banking, Traditional Banking. 210 � https://omeka.ibu.edu.ba/files/original/57e73fd1d6d1fe5311242d829373cd2e.docx eeb567702bd78538fe4611ffbdc58f22 https://omeka.ibu.edu.ba/files/original/25e3371f426c01616dcaebdeff685026.pdf c80912da97ed2ff4bd83264e01cef2bb PDF Text Text International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Virtual Banking: An Overview Muhammet Özcan Atatürk University, Erzurum, Turkey Murat Serçemeli Atatürk University, Erzurum, Turkey Ensar Ağırman Atatürk University, Erzurum, Turkey Reşat Karcıoğlu Atatürk University, Erzurum, Turkey rkarci@atauni.edu.tr M. Dursun Kaya Atatürk University, Erzurum, Turkey dursun@atauni.edu.tr Abstract Virtual banking can be defined as a bank without branch which offers its services by means of individual computers or electronic tools, ATM and telephone. As virtual banks can’t put up with the cost of branch opening, they offer the savings obtained from the costing to their customers as high saving interest. In the study, it will be mentioned from the definition of virtual banking to its advantages and disadvantages, and samples of virtual banks in the world, the superiority in costing per operation in comparison with traditional banking. In conclusion, thanks to virtual banking, situation of earn and earn will occur, and costing in banking system will reduce, and this will reflect to the customers positively. Keywords: Virtual banking, internet banking, traditional banking Introduction Today is called “Technology Time.” The developments in technology offer many different possibilities to business world. Banking sector as one of the world’s largest sectors is one of the sectors using technology more. The majority today’s banking operations are made through the Internet rather than branches. Internet banking have emerged at the last 12 years, but a research about consumer’s payments shows that there is an increase of 50% in using internet banking of internet surfers. Dream a bank that can be reached easily from your house, office or anywhere you have a smartphone. Virtual bank which offer their banking services by the electronically appliance as ATM, phone, PC or Internet can be defined as a bank without branch. Virtual banks remedy to customer’s problems about security, learning and using easily, functionality, credibility. Virtual banking becomes a focus that makes an effort in order to gain traction of customers and make them glad. This is clear that virtual banking has an important place in future of banking sectors. 1 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Traditional banks reflect to their customer’s cost of opening branches as cost and interest rate. However Virtual Bank’s costs are lower than traditional banks, because Virtual Bank doesn’t need to branch network. It provides operational cost effectiveness, so that we higher lend to interest for your deposits. Just because of this banks are fort his, aren’t they? Advantages of Virtual Banking 1) Provide a useful way for banking operation: Virtual banks provide to their customers lower cost than traditional banks, useful and flexible scope. 2) Flexible virtual banking system: Customer can check his bank account entering username and password in bank’s web site. 3) Security: These banks have got state guarantee so far as a certain amount as in our country. 4) Time factor: One of the reasons of customers prefer to virtual banking is saving time. 5) Access to information on time: Virtual banking provides information as interest rate, checking account, calculating of credit eligibility on time. 6) Saving operation cost: Virtual banking is in terms of the most appropriate than banking system. 7) Digital sign for security: Digital sign is a precaution for preventing bribery and being theft of information. 8) Faster transfer: Basic advantage of virtual banking is being able to reach all operation about money every time and everywhere. 9) Easy occupation and user-friendliness: One of the reasons that customers prefer virtual banking is being useful at his research; Cooper (1997) determined that being useful is one of the three important factors according to customers for evaluating product and service. 10) Cheaper charge of operation: There are two costs at virtual banking. The first one is charge of connection to the Internet; the latter is charge of banking. Customer’s ideas are determined by these two costs. 11) Being able to check data about operations at current and retrospective: It is possible that at current and retrospective information of credit card and customers account can be reached easily. 12) Sensitivity to environment: Virtual banking is also sensitive to environment. There isn’t waste of paper in electronic operations. Vehicle traffic is reduced, as 2 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo a result of this environment pollution is reduced requirement of building and office requisites are also reduced. Disadvantage of Virtual Banking 1) Access cost: Internet banking is an investment that access cost is high. 2) Difficulty of learning: Firstly surfing on the banking web sites can be difficult. 3) Mobility of banking web sites: The biggest banks also have to update their online programs by adding some features them. So customers have to update their information about this again. 4) The bank relations: Traditional banking provides possibility to establish one to one relationship with bank to customers when customer’s financial situation changes, a manager of bank can restructure customer’s payment with his/her discretional power. In virtual banking, there isn’t one to one relationship with customers, so it’s impossible. 5) Possibility about the operations: Traditional banks can solve problems with special meeting for special situations by experts. What is the Difference between the Virtual Banking with the Internet Banking? In fact, service of Internet banking is the same logic as service of virtual banking. In virtual banking, there isn’t branch as physical. Traditional banks offer service of Internet banking. Because there aren’t branches as physical, there isn’t outlay as rent, electric, paper, tea, staff etc. Virtual banks offer them as high deposit interest to their customers. Table 1:Changing the number of operations and active customers in Turkey Internet banking Year Number of Active Customers 2006 2834223 2012 12075545 Changing (%) Number of Operations Changing (%) 38033000 426,06 104871000 Source: Banking Operation Costs (June, 2012) 3 275,73 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Table 2: Comparing with traditional banking’s and virtual banking’s interest rate The Deposit Size Less than 10000$ 10000$ - 24999$ 25000$ - 49999$ 50000$ - 99999$ More than 100000$ Bank of America (%) 0,10 0,15 0,18 0,20 0,20 Virtual Bank.com 0,70 0,70 0,73 0,78 0,83 System being done operation Branch Costing per number of operation 1,07$ The total amount 112211970 Phone ATM The Internet 0,52$ 0,27$ 0,01$ 54532920 28315170 1048710 Results In the world becoming global, using virtual banking become unavoidable to be different and permanent as a result of technological developments. Number of Internet users in Turkey is about 35 millions. Turkey is the 12th country in the world and the 4th country in Europe with this number. The institutions and people trade on the Internet during 7/24 and they want to do their banking operations too. At a last research about Internet users in our country, although there is an increase of 50% in rate of using Internet banking, there isn’t a business as a virtual bank. There is an increase of 426% in number of customers doing online operation between the years of 2006-2012. This shows us the potential of virtual banking in our country. Neither customer nor banking system can benefit from advantage of virtual banking for online banking in our country offering with traditional banking to customers. With using virtual banking in our country, situation of earn and earn will occur. And cost will be reduced in banking system and this will be positive for bank customers, too. Developing and growing in banking sector will affect the entire finance sector. Virtual banking will accelerate the growth of Turkish banking sector. In conclusion, thanks to virtual banking, decline of banking operation cost will affect all real sector positively. References The Adoption Of Virtual Banking: An Empirical Study Shaoyi Liao! Yuan Pu Shao!, Huaiqing Wang!, Ada Chen" Safya 1,2 1999 The Pros And Cons Of Internet Bankıng: A Short Revıew Ioannis Koskosas 54.55.56 2011 https://www.virtualbank.com/Banking/MoneyMarket.html 4 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo http://www.tbb.org.tr/tr/Banka_ve_Sektor_Bilgileri/Tum_Raporlar.aspx https://www.bankofinternet.com/bofi/about/why_bank_of_internet.aspx 5 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1679 Title A name given to the resource Virtual banking: An Overview Author Author OZCAN, Muhammet SERCEMELI, Murat AGIRMAN, Ensar KARCIOĞLU, Reşat M. DURSUN, Kaya Abstract A summary of the resource. Virtual banking can be defined as a bank without branch which offers its services by means of individual computers or electronic tools, ATM and telephone. As virtual banks can’t put up with the cost of branch opening, they offer the savings obtained from the costing to their customers as high saving interest. In the study, it will be mentioned from the definition of virtual banking to its advantages and disadvantages, and samples of virtual banks in the world, the superiority in costing per operation in comparison with traditional banking. In conclusion, thanks to virtual banking, situation of earn and earn will occur, and costing in banking system will reduce, and this will reflect to the customers positively. Keywords: Virtual Banking, Internet Banking, Traditional Banking. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 978-9958-834-23-3 https://omeka.ibu.edu.ba/files/original/087ac32234d94d31aa48e0e2f7147b53.pdf 11b9b7f343a71224fc601dec422cdb24 PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo The Working Condition Quality Comparison of The Bank Staff: The Case of Turkey Ahmet Özkan Okan University, Tuzla, Turkey ahmet.ozkan@okan.edu.tr Purpose: The bank staff represents the bank to the customers. The working conditions of the bank employees play a great role on the success. The main aim of this study is measuring the quality of the working environment of the banks by using three factors, which are knowledge, consistency and trust, and comparing the working environment of the agents to the managers. Design/methodology/approach: 100 questionnaires are used to evaluate the quality of the working condition quality of the banks. Semi-structured interviews and snowball sampling is used to reach various departments of the banks. Findings: The working condition quality of the managers is better than the working condition quality of the agents. But there is no significant difference on the consistency of the conditions. Duration has a significant effect on the working conditions which create trust on the employees to the company. Originality/value: This paper is a proof of that the managers do not have good conditions as expected. The managers can be disturbed by the managers which are above them. Keywords: Bank Staff, Working Condition Quality, Agents and Managers. 19 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1478 Title A name given to the resource The Working Condition Quality Comparison of The Bank Staff: The Case of Turkey Author Author OZKAN, Ahmet Abstract A summary of the resource. Purpose: The bank staff represents the bank to the customers. The working conditions of the bank employees play a great role on the success. The main aim of this study is measuring the quality of the working environment of the banks by using three factors, which are knowledge, consistency and trust, and comparing the working environment of the agents to the managers. Design/methodology/approach: 100 questionnaires are used to evaluate the quality of the working condition quality of the banks. Semi-structured interviews and snowball sampling is used to reach various departments of the banks. Findings: The working condition quality of the managers is better than the working condition quality of the agents. But there is no significant difference on the consistency of the conditions. Duration has a significant effect on the working conditions which create trust on the employees to the company. Originality/value: This paper is a proof of that the managers do not have good conditions as expected. The managers can be disturbed by the managers which are above them. Keywords: Bank Staff, Working Condition Quality, Agents and Managers. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2303-4564 https://omeka.ibu.edu.ba/files/original/b07ae2e7cdb426af0bd5e81602a845d8.pdf 8976d157caa358b3dffa6711cd6f743d PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo Turkey and EU Relations on Realistic Theory Perspective Metin Özkan Dumlupınar University, Kütahya, Turkey camulog43@gmail.com Fevzi Kaya Dumlupınar University, Kütahya, Turkey kaya_fevzi@hotmail.com In this study, critique of realist approach, which has shaped the discipline of İnternational Relations, has been argued. The discipline that mentioned above, emerged mostly as a result of Realist Theory contribution has been critiqued to explain today’s complex World is one of the basic theses defended in this case study. Realist Theory is concentrated on power emphasis only on the nation-state as an actor, and being very simple and such features have been explained and critiqued in details. Relations with the EU have always been very important for Turkey, and referred to be tough process. Although from the signing of the Ankara agreement and continuing in different stages to the present day, developments in various stages have caused different expectations for the both parties, neither Turkey has given up to the neither membership decision, nor European Union has completely rejected Turkey’s membership process. At Luxembourg Summit in December 1997 the country’s name among the candidates for full membership was not included, and as a result of this, Turkey’s response was very threating in cutting the political dialogue with the EU. Turkey’s candidacy was confirmed by the Helsinki European Council in December 1999, preparing a pre-accession strategy and accession partnership document showed some easygoing in the attitude of the EU Council against the country. Finally as a result of these changes, once more the relations of mutual obligations and expectations come to the fore period. Keywords: International Relations, Realist Theory, the Balance of Power, EU, Turkey-EU Relations. 207 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1675 Title A name given to the resource Turkey and EU Relations on Realistic Theory Perspective Author Author OZKAN, Metin KAYA, Favzi Abstract A summary of the resource. In this study, critique of realist approach, which has shaped the discipline of İnternational Relations, has been argued. The discipline that mentioned above, emerged mostly as a result of Realist Theory contribution has been critiqued to explain today’s complex World is one of the basic theses defended in this case study. Realist Theory is concentrated on power emphasis only on the nation-state as an actor, and being very simple and such features have been explained and critiqued in details. Relations with the EU have always been very important for Turkey, and referred to be tough process. Although from the signing of the Ankara agreement and continuing in different stages to the present day, developments in various stages have caused different expectations for the both parties, neither Turkey has given up to the neither membership decision, nor European Union has completely rejected Turkey’s membership process. At Luxembourg Summit in December 1997 the country’s name among the candidates for full membership was not included, and as a result of this, Turkey’s response was very threating in cutting the political dialogue with the EU. Turkey’s candidacy was confirmed by the Helsinki European Council in December 1999, preparing a pre-accession strategy and accession partnership document showed some easygoing in the attitude of the EU Council against the country. Finally as a result of these changes, once more the relations of mutual obligations and expectations come to the fore period. Keywords: International Relations, Realist Theory, the Balance of Power, EU, Turkey-EU Relations. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2303-4564 https://omeka.ibu.edu.ba/files/original/8be5b3bf154ed34e20aec978ddb4c129.pdf 4638dae39d94e51f3693550552b319e3 PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo An Analysis in Banking Sector with Knowledge Management Assessment Tool Özlem Yaşar Uğurlu University of Gaziantep, Gaziantep, Turkey yasar@gantep.edu.tr Mustafa Uğurlu University of Gaziantep, Gaziantep, Turkey ugurlu@gantep.edu.tr Duygu Kızıldağ University of Afyon Kocatepe, Afyon, Turkey dkizildag@aku.edu.tr The main problem of today's enterprises is to sustain their development and growth, because of the changing environmental conditions and the global competitiveness. Therefore, the concept of knowledge, especially after 1990s’, has begun to be seen as one of the most valuable strategic resource of businesses. Additionally, the concept of knowledge management has been discussed frequently in management research and applications. Knowledge management is defined as the process of creating, storing, transferring, applying and saving organizational knowledge (Schultze and Stabell, 2004); discovering the sources of required information (SabherwalandSabherwal, 2005); the process of gathering, transferring and effective use of information (Davenport, 2001); developing informal knowledge flow among individuals; codifying knowledge in organizations and building systems for sharing (Birkinshaw, 2001). It has been suggested that knowledge management practices has provided many positive outcomes for businesses. In the literature, there is a number of empirical studies about knowledge management, revealing organizational learning, developing new product/service by creating a more suitable environment for innovation (Corso and etc, 2001; Lester, 2001; Sherman etc, 2005), increasing employee performance by improving core competencies (Sabherwal and Sabherwal, 2005), providing competitive advantage (Roth, 2003) and sustainable organizational performance (Bogner and Bansal, 2007). 237 �International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo In this context, the aim of this research is to examine the level of organizational knowledge management skill and practices in banking sector and also whether there is a difference between public and private banks in terms of knowledge management skills. The reason for selecting banking sector as sample is because customer satisfaction, creativity and innovation are so important and the sector is so sensitive to technological development. Therefore knowledge management practices are being used intensively in this sector. The scale used for data collection is “Knowledge Management Assessment Tool” which was developed by American Productivity and Quality Center (APQC) and Arthur Andersen in 1995. It is aimed to analyze the dimensions of knowledge management which are leadership, technology, process, and culture. There are a few studies in this field in literature. So based on the framework and the insights generated by the investigation, the study will lead scholars to new research areas and contribute to business world. Keywords: Knowledge, Knowledge Management, Banking Sector, KMAT. 238 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1581 Title A name given to the resource An Analysis in Banking Sector with Knowledge Management Assessment Tool Author Author OZLEM UGURLU, Yasar UGURLU, Mustafa KIZILDAG, Duygu Abstract A summary of the resource. The main problem of today's enterprises is to sustain their development and growth, because of the changing environmental conditions and the global competitiveness. Therefore, the concept of knowledge, especially after 1990s’, has begun to be seen as one of the most valuable strategic resource of businesses. Additionally, the concept of knowledge management has been discussed frequently in management research and applications. Knowledge management is defined as the process of creating, storing, transferring, applying and saving organizational knowledge (Schultze and Stabell, 2004); discovering the sources of required information (SabherwalandSabherwal, 2005); the process of gathering, transferring and effective use of information (Davenport, 2001); developing informal knowledge flow among individuals; codifying knowledge in organizations and building systems for sharing (Birkinshaw, 2001). It has been suggested that knowledge management practices has provided many positive outcomes for businesses. In the literature, there is a number of empirical studies about knowledge management, revealing organizational learning, developing new product/service by creating a more suitable environment for innovation (Corso and etc, 2001; Lester, 2001; Sherman etc, 2005), increasing employee performance by improving core competencies (Sabherwal and Sabherwal, 2005), providing competitive advantage (Roth, 2003) and sustainable organizational performance (Bogner and Bansal, 2007). In this context, the aim of this research is to examine the level of organizational knowledge management skill and practices in banking sector and also whether there is a difference between public and private banks in terms of knowledge management skills. The reason for selecting banking sector as sample is because customer satisfaction, creativity and innovation are so important and the sector is so sensitive to technological development. Therefore knowledge management practices are being used intensively in this sector. The scale used for data collection is “Knowledge Management Assessment Tool” which was developed by American Productivity and Quality Center (APQC) and Arthur Andersen in 1995. It is aimed to analyze the dimensions of knowledge management which are leadership, technology, process, and culture. There are a few studies in this field in literature. So based on the framework and the insights generated by the investigation, the study will lead scholars to new research areas and contribute to business world. Keywords: Knowledge, Knowledge Management, Banking Sector, KMAT. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2303-4564 https://omeka.ibu.edu.ba/files/original/02934beccb9ffbd4d3c666553d3bd2e0.pdf 26ae380e10d7885b013a1e0866469836 PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo Narratives of Graduate Women on Unemployment in Turkey: Great Expectations, Better Realities Aylin Özman TED University, Ankara, Turkey aylin.ozman@tedu.edu.tr Zuhal Yesilyurt Gündüz TED University, Ankara, Turkey zuhal.gunduz@tedu.edu.tr Turkey ranks among the countries that have the largest gender gap in terms of economic participation and opportunity for women. The progress made in the status of women, has largely been confined to the legal level with limited practical consequences. Limitations are much visible regarding the position of woman in the labor market. Even though women’s access to employment and equal pay are guaranteed under the Constitution and regulated by Laws, women’s participation in the labor market is still much lower than men. Women with a university degree are no exception in this respect. In fact, although university graduate woman are more likely to be employed than women without university degrees, their unemployment rate is much higher as compared to men having the same qualifications. While displaying the signs regarding the dissipation of human capital in the country, the (long-term) unemployment of university graduate women involve clues on the socio-political and cultural context, referring mainly to the influence of patriarchal ideology and its continuous reproduction with the ever rising tide of conservatism. The aim of this study is to delineate the dynamics of (long-term) unemployment of university graduate women in Turkey, with reference to their experiences both in the labor market and in the private domain. Departing from women’s own narratives, the study revolves around two interrelated dimensions each describing woman’s venture through the labyrinth of patriarchal restrictions: One concerns with the gender based discriminations in the process of job searching, referring to the subordinate position of woman in the market and the other pertaining to her life experience in the private sphere, touching on her squeezed position between her (professional) expectations and traditional gender roles. Keywords: Women’s unemployment, narratives of women, women in Turkey, graduate unemployment. 44 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1485 Title A name given to the resource Narratives of Graduate Women on Unemployment in Turkey: Great Expectations, Better Realities Author Author OZMAN, Aylin GUNDUZ YESILYURT, Zuhal Abstract A summary of the resource. Turkey ranks among the countries that have the largest gender gap in terms of economic participation and opportunity for women. The progress made in the status of women, has largely been confined to the legal level with limited practical consequences. Limitations are much visible regarding the position of woman in the labor market. Even though women’s access to employment and equal pay are guaranteed under the Constitution and regulated by Laws, women’s participation in the labor market is still much lower than men. Women with a university degree are no exception in this respect. In fact, although university graduate woman are more likely to be employed than women without university degrees, their unemployment rate is much higher as compared to men having the same qualifications. While displaying the signs regarding the dissipation of human capital in the country, the (long-term) unemployment of university graduate women involve clues on the socio-political and cultural context, referring mainly to the influence of patriarchal ideology and its continuous reproduction with the ever rising tide of conservatism. The aim of this study is to delineate the dynamics of (long-term) unemployment of university graduate women in Turkey, with reference to their experiences both in the labor market and in the private domain. Departing from women’s own narratives, the study revolves around two interrelated dimensions each describing woman’s venture through the labyrinth of patriarchal restrictions: One concerns with the gender based discriminations in the process of job searching, referring to the subordinate position of woman in the market and the other pertaining to her life experience in the private sphere, touching on her squeezed position between her (professional) expectations and traditional gender roles. Keywords: Women’s unemployment, narratives of women, women in Turkey, graduate unemployment. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2303-4564 https://omeka.ibu.edu.ba/files/original/690b4ca6d244235f2343f9887d0a40fb.pdf ddcf23aa881074eb12a6a30dc36133c3 PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo Suggestions to Financial Crises İsmail Özsoy Fatih University, İstanbul, Turkey iozsoy@fatih.edu.tr 2008 Global Financial Crisis is considered by many as one of the most serious crises ever seen in the world finance history. Yet, thanks to the quick response of policy-makers in contrast to the Great Depression of 1929, the crisis did not hit as destructive as expected. However, we have not seen any fundamental suggestion to avoid the future crises of the same kind or even more devastating ones though the vital suggestion of the Vatican about Islamic finance as solution to financial crises. This paper is intended to draw the attention of economists and finance experts to the Islamic finance as an alternative system of crisis preventive nature. After giving the highly important saying of the Prophet Muhammad -so-called Six Items Hadith-, we will try to extract some basic principles that can be taken into consideration in financial transactions. This two sentences Prophetic saying or hadith is so comprehensive that it expresses exactly 80 kinds of exchanges. According to that hadith, out of these 80 kinds of exchanges, 46 sales include a religiously forbidden “interest”. Interest is a value transfer from one party to another in loans or exchanges, particularly in the finance sector without any corresponding real value in the underlying assets, resulting in financial or economic crises. Keywords: Financial Crisis, Interest, Islamic Finance, Six Items Hadith. 175 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1641 Title A name given to the resource Suggestions to Financial Crises Author Author OZSOY, Ismail Abstract A summary of the resource. 2008 Global Financial Crisis is considered by many as one of the most serious crises ever seen in the world finance history. Yet, thanks to the quick response of policy-makers in contrast to the Great Depression of 1929, the crisis did not hit as destructive as expected. However, we have not seen any fundamental suggestion to avoid the future crises of the same kind or even more devastating ones though the vital suggestion of the Vatican about Islamic finance as solution to financial crises. This paper is intended to draw the attention of economists and finance experts to the Islamic finance as an alternative system of crisis preventive nature. After giving the highly important saying of the Prophet Muhammad -so-called Six Items Hadith-, we will try to extract some basic principles that can be taken into consideration in financial transactions. This two sentences Prophetic saying or hadith is so comprehensive that it expresses exactly 80 kinds of exchanges. According to that hadith, out of these 80 kinds of exchanges, 46 sales include a religiously forbidden “interest”. Interest is a value transfer from one party to another in loans or exchanges, particularly in the finance sector without any corresponding real value in the underlying assets, resulting in financial or economic crises. Keywords: Financial Crisis, Interest, Islamic Finance, Six Items Hadith. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2303-4564 https://omeka.ibu.edu.ba/files/original/a8620081790f50fee11efa49be3464f7.pdf 917d05df213f2f79afa830736f4d966d PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo The specificities of interpersonal communication Bahra Plojovid International University in Novi Pazar, Novi Pazar, Serbia b.plojovic@uninp.edu.rs The specificities of interpersonal communication are actually the specificities of social inclusion and the functioning in different social relations. These specificities (skills) provide an effective and a satisfactory communication with other people. Mainly, it consists of recognizing the feedback and an articulation of positive response, the empathy with others, ability to listen to others, the delicacy of self-presentation, precise observation of him/her and others, as well as controlling the use of verbal and non-verbal cues. Listening skills relies on non-verbal communication. Meanwhile, it includes the knowledge on the issue, acceptance of the other person as a partner in communication, regardless of a potential agreement or disagreement in terms of attitudes, beliefs and value systems. Perception skills are identified as three levels of perception: recognition, reflection and action. Practically, this means making appropriate observations about the other person, as well as avoiding hasty conclusions, and making a careful assessment of the formation of a proper response to the perception of other people. Keywords: Interpersonal Communication, Pedagogical Communication, Empathy 53 � https://omeka.ibu.edu.ba/files/original/4295e88568233559e990c3eaac935691.docx c529d0cd977f8d6382b6d95347bec7f9 https://omeka.ibu.edu.ba/files/original/6cf738dc09bf74610613c2fadb5e643c.pdf db76564a38a216919dc8143703c4e58f PDF Text Text International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Peculiarity of interpersonal communication BahraPlojović International University in Novi Pazar, Novi Pazar, Serbia b.plojovic@uninp.edu.rs Abstract The specificities of interpersonal communication are actually the specificities of social inclusion and the functioning in different social relations. These specificities (skills) provide an effective and a satisfactory communication with other people. Mainly, it consists of recognizing the feedback and an articulation of positive response, the empathy with others, ability to listen to others, the delicacy of self-presentation, precise observation of him/her and others, as well as controlling the use of verbal and non-verbal cues. Listening skills relies on non-verbal communication. Meanwhile, it includes the knowledge on the issue, acceptance of the other person as a partner in communication, regardless of a potential agreement or disagreement in terms of attitudes, beliefs and value systems. Perception skills are identified as three levels of perception: recognition, reflection and action. Practically, this means making appropriate observations about the other person, as well as avoiding hasty conclusions, and making a careful assessment of the formation of a proper response to the perception of other people. Keywords: Interpersonal Communication, Pedagogical Communication, Empathy Introduction Conditioned by predominant philosophical conception and the social, cultural, and historical context, the pedagogy as a scientific theory of education and upbringing as well as the educational activities and their practical realization, today faces a more emphasized need to set up a new foundation that will contribute to the development of better and more efficient educational action in the pedagogical practice and thus achieve the set goal of education - developing the full potential of every child. The educational system with a range of existing deficiencies is becoming increasingly obsolete, losing its breath and rhythm to follow the changes in the 21 century. At the macro level, the educational systems are very much outdated, based on the poor tradition of low level of scientific knowledge, preserve the defined past of outdated content from the onslaught of chaotic, open and non-defined hypothetical future. In addition, the dominant social, economic and educational standards in the center of attention put the results neglecting the process. Although in the context of teaching and the teaching quality, personal satisfaction of teachers and students is as important as the results achieved; these norms are reflected as in a mirror in both our schools and the entire education system. As a result, there is alienation of students and teachers from the educational content as well as from each other, and even from themselves, from their own origin and identity. Difficulties of personal development, interpersonal communication, and the difficulty in solving 1 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo specific problems often occur as a result of it. The phenomenon of social pathology among children and adolescents records a progressive growth. A number of relevant researches and the progress in various fields of scientific work, particularly in those important for the education of psychology, pedagogy, sociology, neurology, as well as educational requirements of futurology, complement the current educational context. A logical question is asked, how the educational or teaching process can catch up with the modern world and respond to the challenges that lie ahead. What is the role of the teacher as the main inspiration of the children's comprehensive development: cognitive, conative, affective, psychometric, in all the changes that are happening? What teachers as equal partners and not the solely responsible in the entire process of education need to make the teaching process an adequate response sent to this world of constant change? A school that does not regard the pupil as a person, the school whose aim exclusively is adoption of academic knowledge, which is not characterized by modern and creative thinking and communication activity, and which does not have time to engage with social and emotional development of students, the school where in the classrooms "rules emotional desert", in the words of Flanders, is not the 21st century school. All these are arguments that together with our daily experience we are all witnessing in the upbringing and education practice are the main reason we have chosen to study a topic that is related to the interdependence of interpersonal communication between students and teachers and the quality of the teaching process, in order that its content and message illuminate the importance of this segment of educational work and as such to make it a subject of daily questioning. Interpersonal Communıcatıon Interpersonal communication functions in such a manner that the sender sends message to the recipient, the recipient receives the message at the moment of sending, and can immediately come up with an answer and send it back to the sender. This model of communication does not lag, but is concerned about the symmetrical communication, which means that the messages, receiving and reaction occur almost simultaneously. In this way, both sides in the communication are able to follow the progress of understanding and eliminate any misunderstandings. Active listening, in addition to a clear speech, is one of the two basic skills of interpersonal communication. It is necessary to emphasize the importance of listening in detection of learners' needs, as well as the importance of language skills in the process of clear and consistent messages, and the need to develop training programs that will develop just these two communication skills. Clear addressing the student beside the verbal also has a non-verbal aspect. Unlike verbal communication in which information is transmitted, the nonverbal communication confirms or questions the things it communicates. Communication is effective only when the participants understand each other, or when the sent and the received message have the same meaning. Understanding can be achieved if the sender knows exactly what he wants to impart and to really convey the intended 2 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo meaning and what is communicated is corresponding to the recipient's communicative style, so that he receives a message that is consistent with the meaning the sender wanted to convey. Effectively conveyed message is only the one which the recipient understood the way the sender intended to. All this requires extreme precision in the speech and understanding of the basic techniques of oral expression. Communication is the process of transferring messages between two or more individuals, and is achieved only when the message is received by the recipient. In order for the communication to be effective, it is essential that the recipient understands the message and acknowledges this to the sender. Communication involves elements of different nature (Osmić, I., 2001:51):  Cognitive: reflected in the ability of perception, interpretation of messages, causing emotions and reactions,  Semantic: reflected in the use of spoken and written language, terms and jargon,  Symbolic: the use of gestures, grimaces, body movements, dress style, etc. Any situation in which two or more people are involved in the exchange of messages through any kind of characters is called transaction. Some experiences are typical for members of a particular culture, and can be understood only if are engaged and interpreted within previously stated general experiences. The more the participants in this cultural communication are alike, their perceptions and experiences of some phenomena are more similar. The more they are culturally diverse, their perceptions and experiences are more different. Regulation of contacts with another person is at the same time dependent of both conscious and unconscious symbols, but also of the context, code, situation or purpose of the communication understood as feedback. In interpersonal communication the concept of feedback has two aspects. In the first sense the feedback assumes sending certain message through verbal or non-verbal channels, in order to receive a response to given data from the recipient. Another feedback aspect indicates that the response is set in accordance with the content, style and purpose of communication (N. Havelka, 2000). The skill of communication between two people depends on the knowledge and the proper use of verbal and non-verbal symbols. The interpersonal communication skill is actually the skill of social inclusion and functioning in different social relations. This skill yields effective and satisfactory communication with other people. It consists primarily of identifying feedback and articulating a positive response, but also of the ability of empathy with others, the ability to listen to others, the delicacy of self-presentation, careful observation of oneself and others, as well as controlled use of verbal and non-verbal symbols. Listening skills rely on non-verbal communication, and include knowledge about the individual talking to, as well as the acceptance of the other person as a partner in communication, regardless of the potential agreement or disagreement in terms of attitudes, beliefs and value systems. Perception skills are identified in three levels of perception: recognition, reflection and action. This means the creation of adequate observations about the other person. Avoiding hasty conclusions, making careful assessments and forming a proper response on the perception of the other individual. Active listening Active listening is one of the basic communication skills, upon which other more complex professional skills reside. Active listening is listener’s effort to assist itself, but also the 3 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo interlocutor, in clarifying the messages, because the speaker may often not have a clear message which he wants to convey or he does not transmit it accurately enough. Active listening in interpersonal communication is listening with a reason, when one is trying as much as possible to understand the person speaking and what it is saying. Active listening requires the person listening to really understand the message and confirm its understanding giving the person who sent the message the appropriate feedback on it. In order for the listening to be called active it is necessary that the listener uses paraphrasing, reflecting, asking questions and summarizing skills. Using these techniques one reflects the cognitive and emotional content and clarifies ourselves and the interlocutor the facts the interlocutor has pronounced and his emotional state related to the content. Paraphrasing the uttered is used during the conversation in order to clarify the uttered, and consists of the fact that the listener can repeat his words, what he heard from the speakers and how it sounded to him. Asking questions - active listening discusses issues and questions as asked for clarification of what is being said. The question is posed to the interlocutor for the sole purpose of the conversation topic. Summarizing refers to brief retelling of what the interlocutor said, and is commonly used at the end part of the conversation or at the end of the whole conversation. The aim is to paraphrase and summarize the content of the conversation which we have heard, and the purpose is to clarify the issues and highlight the most important points (Osmić, I., 2001: 32). Interpersonal communication could be defined in a way when it would be compared with other forms of communication. It largely depends on the number of people, how much are they physically close to each other during the course of communication, how many channels were used and whether there is a feedback. Dynamic factors of interpersonal communication As for the dynamic factors in interpersonal communication, feedback should be emphasized in the first place. Among other dynamic factors the following should be noted:     communicating entities, interaction terms of achieving reciprocity roles, goals and message exchanges, communicative competence of the communication participants. We must not forget the objectives of exchanging messages because interpersonal communication is very purposeful, personified by a rationally set goal, but we should not drop out of sight the motivation and dynamic aspect of interpersonal communication that is designated by the mental and physical structure of the personality. Therefore, we can talk about the undetectable process of interpersonal communication known as persuasive process. Its essence is in an effort through message exchange influence the thinking, feeling and hearing interlocutors, but also oneself. Persuasive process seeks, in particular, to act upon their attitudes in terms of their: 1. ratification, 4 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo 2. correction or 3. changing. Communicative competence is determined by a number of individual capabilities such as: feedback recognition and articulation of a positive response, the ability of empathy with others, the ability to listen to the others, self-representation, careful observation of oneself and the others as well as the use of verbal and non-verbal symbols. Forms of interpersonal communication Interpersonal communication can develop towards the situation in which it takes place. ZoricaTomić (2003, 64) identifies five types of interpersonal communication, such as: 1. Formal or informal, the difference between calculated on one side and spontaneous use of communication skills on the other side. 2. Public or private, the difference in terms of using the communication context, for example when communicating in a public place one should avoid the use of nonverbal cues and expressing emotions. 3. Distant or intimate, the difference in the relationships’ quality between the parties in the communication; distant communication means, as a rule, higher degree of formalism in speech or appearance, while intimate communication testifies about closer ties between people. 4. Ritual or open, the difference in being able to predict the use of the communication code. The typical way of using feedback is questioning "whether you understand what I have told you," and the answer not consisting of only one word would normally be regarded as good feedback. Many people are poor listeners because the average man can utter between125-200 words per minute and can understand up to 400 words a minute and this difference leaves plenty of time for mind wandering. One of the ways to improve active listening is to put yourself in the position of the sender, and there are of course active looking into the eyes of the speaker, asking questions, not too frequent interruptions of the speaker, confirming nods and appropriate facial expression, paraphrasing etc. Concluding Remarks The time in which we live is characterized by rapid development of science and technology as well as the rapid increasing knowledge. The explosion and the expansion of scientific knowledge is becoming larger and stronger. Many results of scientific researchers are increasingly being applied in manufacturing, engineering, technology ... And that contributes to the struggle for scientific and technical progress made in the field of education, which means that education cannot be acquired by obtaining a diploma, but continuing education is necessary. The education is a prerequisite for productivity and quality of production. "Hence, the objectives and principles of the concept of modern education imply a complete reconstruction of the traditional educational system, updating of its objectives and content, between its methodological bases and restructuring the institutional and organizational forms." (Parlić, 1977, p. 744). Therefore, modern education requires changes in the traditional educational systems, methods, forms, principles. Activity is essential for the development and progression of personality as the new school 5 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo affirms students as an active subject in the classroom. Therefore, in order to encourage development, it is a necessary to prepare the conditions for the participation of young people - students and even teachers. In the modern school, the teacher does not only "hold" classes and is not only the main source of information, but a person who observes, organizes, stimulates, values, favoring different processes of learning and knows how to apply, when necessary, certain strategies of compensation"(Djordjevic, 1997, p. 9:10). This requires changes into the role of trainees and teachers because it is expected that modern techniques and technologies will enable faster and better knowledge acquisition, which means that the current role of the teacher lecturer and assessors is outdated and replaced with new roles. "Engagement in teaching is the basic and most important segment of the teachers' role. This sphere of its role incorporates: a) the obligations and expectations of the education system to be defined through the objectives, tasks and content of the curriculum and b) direct communication with students as individuals and the class as a group. The teacher's role includes certain activities in relation to the creation of a teaching situation, treatment of the curriculum, selection and application of forms and methods of work, the students as individuals and the class as a group. The teacher is the creator of special, highly complex types of situations in which occur numerous and very diverse processes on a personal and interpersonal level"(Havelka, 2000, p 124.). Consequently, the teacher is very important participant in the classroom. Given its many crucial roles, it is up to him that the quality of education depends on. In order for this quality to be as high as possible - better teacher must adjust his work to the other factors of the course primarily disciples, their intellectual abilities, prior knowledge, interests, motivation. In this sense, the interpersonal relationships of teachers and students as well as the educational facilities are also an important factor of teaching. They must be appropriate to the age of the students. Based on everything that was said, the following conclusions can be drawn: - The exercise of effective pedagogical communication in the classroom makes a number of objective and subjective factors. These are the most common: inattention and lack of concentration, confusion over requirements, stress, fatigue and anxiety; previously formed prejudices and assumptions about the subject or the people with whom the communication is done, labeling, trial and analyzing others and ourselves; slight personality, denial of personal responsibility, ordering and criticism, attacks, imposing one's opinion or will; vague expression, excessive criticism, diversity of experiences and cultural origin, not knowing the language of the interlocutor, noise and other interfering environmental factors. - The following factors are important in creating an atmosphere of effective communication in the classroom are: mutual respect, equality of the interlocutors, unconditional acceptance without criticism and judgments, honesty and respect, appreciation of one's own and others' needs. - The efficient educational communication in the classroom should aim towards: encouraging reviews, development of speech, making choices, providing new knowledge, exchanging ideas and feelings, encouraging the process of solving problems, etc. 6 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo - - Effective pedagogical communication in teaching is achieved by using: active listening, establishing and maintaining a good relationship with the interlocutor; honesty; using clear and short sentences and familiar words; respect the feedback on understanding the message of communication, alignment of verbal and nonverbal messages, responding to the needs and feelings of all participants in the communication; expressing feelings, attitudes and needs, a clear expression of the request; commenting behavior, not the person, providing stimulating instruction, encouragement to ask questions, etc. The conditions for the efficient organization of communication stated as compliance of communication with unique humanistic principles, taking into account the specific characteristics and capabilities of the protégés, honest, humane and democratic attitude, development and strengthening of the personality of the protégés. Effective pedagogical communication in teaching is the necessity of modern education and the study of this issue is given more attention in the modern pedagogy science. According to its characteristics it is nothing unattainable or unrealizable, and forms the basis of humanization of educational processes, the creative learning and interactive teaching. The characteristics of effective communication that are listed, as well as pointing to the necessity of change in the field of teaching communication constitute a starting point of all efforts turned towards improving and encouraging this process. The interdependence with other segments of the foundation of the teaching process, the communication continues to be significantly affective to its efficiency. With its positive characteristics and its quality, the educational communication creates conditions that on its foundations is built a complex construct of an efficient and high-quality teaching process. Positive characteristics and quality of communication in the classroom, such as: orientation on personality development, encouraging creativity, developing skills and students' independence, largely contribute to increasing its efficiency. By providing interaction, democratic relations, equality, humanity and confidence, motivation, the educational communication develops a positive attitude towards the educational process and a willingness to make a greater effort in the implementation of educational tasks and goals. If participants evaluate teaching communication and regard it as positive, stimulating and high-quality, if they are satisfied with it, then they much easier and with more will and loving approach to all the teaching activities and achieve better results in them. Conversely, if students regard the teaching communication and assess as unpleasant, poor, disadvantaged, if they are not satisfied with it, the efficiency of the teaching process will be lesser. With its negative qualities such as being unidirectional, passive, inequal, authoritarian, disrespectful, etc, communication in the classroom affects the entire educational process and thus its efficiency. References 7 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Bakovljev, M. (2001).Navikavanjeučenikanauljudnudiskusijukaodoprinosvaspitanjuzademokratij u, ZbornikInstitutazapedagoškaistraživanja, br. 33 (256-259). Beograd: Institutzapedagoškaistraživanja. Beck, L.I. et al. (1996).Questioningtheauthor: a yearlongclassroomimplementationtoengagestudentswithtext, Elementary School Journal, Vol. 96, No. 4, 467-474. Banđur, V. (1985).Učenik u nastavnomprocesu, VeselinMasleša, Sarajevo. Babić, V., (1983).Međuljudskiodnosi u školi, Svjetlost, Sarajevo. 8 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1502 Title A name given to the resource The specificities of interpersonal communication Author Author PLOJOVIĆ, Bahra Abstract A summary of the resource. The specificities of interpersonal communication are actually the specificities of social inclusion and the functioning in different social relations. These specificities (skills) provide an effective and a satisfactory communication with other people. Mainly, it consists of recognizing the feedback and an articulation of positive response, the empathy with others, ability to listen to others, the delicacy of self-presentation, precise observation of him/her and others, as well as controlling the use of verbal and non-verbal cues. Listening skills relies on non-verbal communication. Meanwhile, it includes the knowledge on the issue, acceptance of the other person as a partner in communication, regardless of a potential agreement or disagreement in terms of attitudes, beliefs and value systems. Perception skills are identified as three levels of perception: recognition, reflection and action. Practically, this means making appropriate observations about the other person, as well as avoiding hasty conclusions, and making a careful assessment of the formation of a proper response to the perception of other people. Keywords: Interpersonal Communication, Pedagogical Communication, Empathy Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 978-9958-834-23-3 https://omeka.ibu.edu.ba/files/original/03794c154e558bd2ad1b46fb897632e0.pdf 81afed05dc0c3387d37a11811d30b90a PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo Implementation of Transportation Problem by Using the Method of Meta-Heuristics Approach Šemsudin Plojovid International University of Novi Pazar, Novi Pazar, Serbia s.plojovic@uninp.edu.rs In this paper authors will present analysis and implementation of possible solutions of vehicle routing problem that is based on simulated annealing method, which belongs to the category of meta-heuristic problem solving approaches. The described problem is rather complex linear programming problem from the field of operation research. Testing of developed applications in software package MATHEMATICA will be described. This application provides great possibilities when it comes to working with numerical algorithms, as well as in the field of symbolic and algebraic calculations. Keywords: Transportation Problem, Linear Optimization, Vehicle Routing Problem, Met Heuristics Solving Approach, Simulated Annealing. 253 � https://omeka.ibu.edu.ba/files/original/677e83caab327d47479333d784d922c0.docx 93f4b0fcc682713bdad900d4fb6015c1 https://omeka.ibu.edu.ba/files/original/62166183147733585188f2495ff2c86b.pdf 74888b837a9b2d1dc1a3d33882ed663a PDF Text Text International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Implementation of Transportation Problem by Using the Method of MetaHeuristics Approach MuzaferSaračević Novi Pazar University, Novi Pazar, Srbija muzafers@uninp.edu.rs ŠemsudinPlojović Novi Pazar University, Novi Pazar, Srbija s.plojovic@uninp.edu.rs , e.ujkanovic@uninp.edu.rs EnisUjkanović Novi Pazar University, Novi Pazar, Srbija SenadBušatlić International University of Sarajevo, Sarajevo, Bosnia and Herzegovina s.busatlic@ius.edu.ba Abstract In this paper authors will present analysis and implementationof possiblesolutions ofvehicle routingproblem that is based onsimulated annealingmethod, which belongs to the category of meta-heuristic problem solving approaches.The described problemisrather complex linear programmingproblem from the field of operation research. Testing of developed applications in software package MATHEMATICA will be described. This application providesgreat possibilitieswhenit comes to workingwith numericalalgorithms,as well as inthe fieldof symbolicand algebraiccalculations. Keywords: Transportation problem, linear optimization, Vehicle routing problem, met heuristics solving approach, simulated annealing Introduction In business economy mostly used methods arelinearoptimizationmethodsthat allowfindingthe most appropriate(optimal) solution to the problemin whichboth theobjective of a function(profit) andspending resources are linearlyproportional tothe values of independent variables. Transportation problemis one of theproblems in the fieldof operations research. The task is toprovide an arrayofbuyersandsuppliersof a commodityorganizetransportsothatpricesareoptimal. One of thetransportation problemswhichbelong toa linear programming problemis theproblem ofdetermining thebesttimesandthe vehiclerouting problemVRP(VehicleRoutingProblem). Inthe occasion that there is onlyone vehicle, and if there are noadditional restrictionsthen theVRP becomes a well-known traveling salesman problemTSP(Traveling SalesmanProblem) in that case you needa vehicleto reach everypoint ofthe graphwith theminimum cost (time). Todefine theVRPfor distribution orcollectionof goods, it is necessary toprovide basicconstraints of the problem. Ata given time, a set of vehiclesservesset of users. Solving the problemis presented as a set ofroutes(roads). Each routehas astarting pointand an ending pointinwarehouse of all vehicles that usethe route.There is awarehouses andthe 1 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo distancebetween consumers. Alluser requirementsmust be met,and allthe restrictions imposedrespected. The aim isthat the totaltransportation costis minimized.It is possible toimposedifferentconstraints andobjectivesthat may affect theconstruction ofroutesduringthe optimizationprocess.Information neededfor a gooddescription of theuserin solvingVRPis: a) b) c) d) e) a startingpoint thatrepresents warehouse, quantity of goodsthatneed to be collectedordelivered, period(time frame) inwhich it is necessaryto servethe user, timerequired to completedeliveryor collectionof goods at users, time of unloadingorloading, which depends on the type ofvehicle andapplied technology, f) subset ofthe availablevehicles thatcould be used byindividualusersdepending onpossibility toaccessfor loading and unloading. The objectivein solvingthe problemis to findthe shortestroute thatstartsat a givennode,going through all theother nodesin the startingand endingnode.Variables to be optimizedmust not be onlydistances.Itmay betravel costs, travel timeor othervariables.Determining thebestroutes, that will be used by group of vehiclesserving set of customers will represent a generalvehiclerouting problem. For theconcrete implementationof this problem a software Mathematica has been applied, which hasmany applicationsin the fieldof symbolicand algebraiccalculations.Mathematica includes a great collectionof numerical algorithms, as well as a big number of constantsandfunction approximation. Approaches for Routing Problem Solving The first approachto solvingproblems issearchforexact solutions of theproblem.The practicalapplicationof this approachis very limitedbecause theoptimalsolutioncan befound onlyina small numberof users.The number of possibleroutesfor the generalcase ofroutingvehiclesis growingquickly,so it is notpossible to expectthat this approachin the general casegeneratesusablesolutionsin real-timethat arerequired inpractice. Heuristic approachrepresents a useof experience,intuition andyour ownestimationwhen solvinga problem.Unlikeexactmethods,heuristicmethods do notrepresentknowledgeabout the structureandrelationshipswithin the modeltosolvethe problem. Some methodsof heuristicapproaches to solving theproblem ofroutingvehicles are: methods of insertingthe nearestneighbors,addingthe farthestandnearestneighboradded two-pass sweepmethod, theClark-Wright method, etc. Heuristic methodsrepresent rule of choice; filtering and rejectingsolutions, and also help to reducethe number ofpossible waysin solvingproblems.Heuristicalgorithms areoften basedon the construction ofrouteswhere theconstruction andimprovement ofrouteswith respectto the targetfunction performediteratively. 2 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Picture 1. Existing VRP algorithms Metaheuristicsin practiceis a setof algorithms thatare usedin solvinga variety ofoptimization problemswhere thealgorithm itselfis very littlechanged depending on theproblembeing solved. Metaheuristicsapproach ofsolving the problem ofrouting of vehicles is oftenbasedon localsearchguidedprocesses that aretaken fromnature, such as simulated annealing, genetic algorithms andant colony. Picture 2. The main approaches tosolving problems In solving problems by Metaheuristicsapproachfollowing methods are used: •Iterativelocalsearch (ILS) •simulated annealing(SA) •deterministichardening(YES ) •tabusearch (TS) •Genetic Algorithms(GA) •ant colonies(AC) and •NeuralNetworks (NN). 3 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Picture 3. Classification of VRPheuristicsfor solving problems Metaheuristic Approach and Simulated Annealing Classicaloptimizationprocedurestarts froman initialsolution,until the currentsolutionreplacesthe better from theimmediate surroundingsand alwaysfinds the closestlocal optimum. Method of simulatedannealingis in the fieldof stochasticoptimization algorithms. Withthis method we start withone initialsolution,replacingthe existingsolutionbetter,butitcan be replaced also by the worse, with a certain probability ofacceptance.Probabilityof acceptingworsesolutionsdecreases asthe algorithmprogresses.Unlikeclassicaloptimizationprocedure with thesimulated annealingmethodglobal optimum is achieved. Implementedalgorithm, used in this method,contains one parameter; the temperature, and the function that determines theglobal optimumcan be seen as: energygrid(ifwe determineminimum)ornegative energy of a grid, if we determine themaximum.The algorithmstarts by choosingthe initial solution, and the initial temperature has arelatively largevalue(1step).Determining the initialc:    determinethe initialacceptanceprobability(>50%) - p0 determinethe average increaseoffunctionsfor several neighboringsolutionsΔC+ c0is calculatedas:c0=ΔC+/ln(1/ p0) The currentsolutionis replaced bya better one,butit can be replacedwithworsewith a certainprobabilityof acceptance(step2).Thisprobabilityis determinedby selectingarandom numberfrom the interval[0,1], and the condition thata is less than: exp(E(old) – E(new)/T, where E(x) is a function for which itseeksa globalminimum, andT is the temperature. 4 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Ifthe expression is truethe new solutionis accepted. The probability that worsesolution has been chosenis greaterwhen thehigher temperature. This meansthat in thebeginning of thesearchspace for obtaining solutions is big, and it will be smaller with temperature drop, and by the endof the process isnarrowlylocalized.The behavior ofthe function isspecified with its initialvalue ofthe temperature andspeed ofitsdrop. Algoritham: Metaheuristics – Simulated annealing Step 1. - initial solution, and objective function i:=i0; c:=c0; Ci:=C(i); Repetition Step 2 - acceptance of the neighboring solution j:=the neighboring solution(i); Cj:=C(j); C:=Cj-Ci; accepti:=FALSE; Step 2.1 if C<0 than accept:=TRUE; Step 2.2 if exp(-C/c)>random[0,1] than accept:=TRUE; if accept=TRUE then i:=j; Ci:=Cj; till thermal equilibrium Step 2.3. Decrease parameter c; Till freezing end. The finalvalue ofcFusuallywill not be presented, but the process is repeateda number oftimes.Cooling functionis usuallyimplemented bymultiplyingc witha number less than1, while the number of repetitions ofthe innerloop(thermalequilibrium) is usually specified as anumericalvaluedepending onthe size (complexity) of the problem. Testing of software design The application that was implementedin software package Mathematicacan bedownloaded fromthe link:http://muzafers.uninp.edu.rs/ Example 1. Test exampledeveloped applicationsfor thesimplerproblem, namelythetraveling salesmanproblem(TSP), using the describedmetaheuristics(simulated annealing). Procedure TSP(N,S,p0,α,KTL); Input parameters:  N – number of cities (100)  S – number of repetition at external loop (10-100)  p0 – initial probabilityof acceptingbadsolutions (0.7-0.8)  α – reduction factor of 'temperature' (0.5-0.99)  KTL – coefficient ofthermal equilibrium (repeating cycles, range 0.1-0.5) 5 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Picture 4. Testing the TSPproblemswith parameters [12,0.04,900,82] Example 2. Test exampledeveloped applications forcomplex problem(VRP-vehiclerouting problem), using the describedmetaheuristics(simulated annealing). Numberofusers =8; Coordinates={{145,215},{151,264},{159,261},{130,254},{128,252},{163,247},{146,246 },{161,242}}; demand={0,10,7,8,14,20,40,8}; Capacityofvehicles=150; P=VRP[Coordinates,demand,Capacityofvehicles] TestVRP[Coordinates,demand,Capacityofvehicles,P] Example 3. It is possibleto introduce a capacity constraints.Inthis example itwill decrease thecapacity (eg.Capacityofvehicles= 60).One type ofrestriction benefits is the requirement thatone useris used in a routethat containsa subsetof other users, and to servethecustomerbefore (or after) a subsetofusers. Limitation ofthis type is theproblemof collectingand shipping, where the goods that arecollectedata single usermustprovidethe same vehicleto another user.A commonrequirementisonewheretherouteservesseveral groupsof users,and it is knownthata group of userstobeserved. Picture 5.TestingVRPproblemwith parameters, forexample2 (left) and forexample3 (right) 6 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo 1 1 2 2 8.544 8.544 3 3 23.2594 0.9 4 2.82843 5 14.5602 0.9 18.6815 4 2.82843 5 18.9737 6 7 6 7 5.38516 5.38516 8 8 0.8 0.8 48.0833 41.7852 40.7185 31.0161 36.7151 31.0161 31.3847 31.3847 0.7 0.7 1 1 0.6 0.6 0 0.05 0.1 0.15 0.2 0.25 0.3 7 0 0.05 0.1 0.15 0.2 0.25 0.3 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Conclusion Presentedmetaheuristicscan be considered asan effectivenaturalsupplement tomathematicalanalysis.The above methodmay beusefulwhen the system(business) or process is relativelycomplex (for example, when we do not disposeanalytical methodsforsolution of amathematical model). Also, themethod canbe usefulwhen it is notpossible toanalyze in detail thesystem ina real environment. The above presented implementation ofsimulated annealingprovides manybenefitsto the givenproceduresof experimentation: 1. to a largeextent,can reduce the risk, depending on the reality thatis observed(eg, economic risk, the risk of attack anddefense), 2. time saving, 3. obtaininga clearerpicture of theprocesses, structure andfunction of the systemto be analyzed, 4. correctanalyses of complexindustrial andother systems. References C. Nilsson (2003). Heuristicsforthetravelingsalesman LinköpingUniversity, Sweden. problem. Tech. Report, C. White, G. Yen (2004). A HybridEvolutionaryAlgorithmforTravelingSalesman Problem, EvolutionaryComputation, 2004. CEC2004. Congress on, Vol.2, pp. 1473 – 1478. D. Johnson, L. McGeoch (1995). Thetravelingsalesman problem: a casestudy in localoptimization. I.Salajic, J. J.Nikolic, M. Ţoljom (2001). TSP – Problem trgovackogpunikanapotpunomgrafu, primjenomgenetskog algoritma (GA) i algoritma simuliranogkaljenja (SA). Kratica (2000). Paralelizacijagenetskihalgoritamazarešavanjenekih kompletnihproblema, Doktorskadisertacija, Beograd. NP - J. Little, K. Murty, D. Sweeney, C. Karel (1963). An algorithmforthetravelingsalesman problem. Operations research, 11 (6), pp. 972-989. K. Binder, ed. (1986). "Monte Carlo Methods in Statistical Physics", second ed., SpringerVerlag. M. Garey, D. Johnson (1979). “ComputersandIntractability: A Guide totheTheory of NPCompleteness”. W.H. Freeman. M. Pilat, T. White (2002). Using geneticalgorithmsto optimize ACS-TSP, LectureNotes in ComputerScience, v. 2463, pp. 282-287. 8 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo P. Borovska (2006). SolvingtheTravellingSalesman Problem in ParallelbyGeneticAlgorithm on Multicomputer Cluster, International Conference on ComputerSystems. R.Thamilselvan, P. Balasubramanie (2009). A GeneticAlgorithmwith a Tabu SearchforTravellingSalesman Problem. Int. Journal of R.T. in Engineering, Vol. 1, pp. 607-610. Richard J. Gaylord, Samuel N. Kaminand Paul Wellin, (1993). "Introductionto Programming withMathematica", TELOS/Springer-VerlagPublishers. S. Eberle (2008). A PolynomialAlgorithmfor a NP-hard toSolveOptimization Problem, Dissertation der FakultätfürPhysik der Ludwig-Maximilians-UniversitätMünchen. S. Kirkpatrick, C. D. Gellatand M. P. "Optimizationbysimulatedannealing", Science 220, 671. Vecchi, (1983). S. Lin, B. Kernighan (1973). An effectiveheuristicalgorithmforthetraveling-salesman problem. Operations research, 21(2), pp. 498-516. Saračević M., Mašović S., Međedović E. (2010). Application of objectorientedanalysisanddesign in navigationsystemsand transport networks, 10th International Conference "Researchand Development in MechanicalIndustry", RaDMI 2010, ISBN: 978-86-6075-017-6, pp. 656-664. Saračević M., Mašović S., Plojović Š. (2012). UML modelingfortravelingsalesman problem based on geneticalgorithms, SouteastEuropeanJournal of Soft Computing, ISSN: 2223 -1859, Vol.1, No 2, pp.72-79, electedtoIUSSCRG 2012. T. Cormen, C. Leiserson, R. Rivest, C. Stein, (2001)."IntroductiontoAlgorithms", MIT PressandMcGraw-Hill, secondedition,. 9 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1619 Title A name given to the resource Implementation of Transportation Problem by Using the Method of Meta-Heuristics Approach Author Author PLOJOVIĆ, Šemsudin Abstract A summary of the resource. In this paper authors will present analysis and implementation of possible solutions of vehicle routing problem that is based on simulated annealing method, which belongs to the category of meta-heuristic problem solving approaches. The described problem is rather complex linear programming problem from the field of operation research. Testing of developed applications in software package MATHEMATICA will be described. This application provides great possibilities when it comes to working with numerical algorithms, as well as in the field of symbolic and algebraic calculations. Keywords: Transportation Problem, Linear Optimization, Vehicle Routing Problem, Met Heuristics Solving Approach, Simulated Annealing. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 978-9958-834-23-3 https://omeka.ibu.edu.ba/files/original/87fdacc2c1b8746ca7dba1a47c22deb7.pdf 33fb6c244f2dcb13c546375f1329aacc PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo Foreign Direct Investment in Bosnia and Herzegovina from 2001 to 2012 Dino Rahimic International Burch University, Sarajevo, Bosnia and Herzegovina noname9053@hotmail.com Uğur Ergün International Burch University, Sarajevo, Bosnia and Herzegovina uergun@ibu.edu.ba This study examines the role and impact of the Foreign Direct investment in the economic development of Bosnia and Herzegovina. Quarterly quantitative historical data such as, Foreign Direct Investment , GDP, inflation and unemployment are used together with qualitative data obtained through face to face interviews and surveys. Empirical findings from non-linear regression analysis imply that Foreign Direct Investment has growing significant positive impact on the economy after the war. Among the sectors, agriculture and food are the most attractive and advantageous sectors for the foreign investors. Keywords: Foreign Direct Investment, Bosnia and Herzegovina, War. 86 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1529 Title A name given to the resource Foreign Direct Investment in Bosnia and Herzegovina from 2001 to 2012 Author Author RAHIMIĆ, Dino ERGÜN, Uğur Abstract A summary of the resource. This study examines the role and impact of the Foreign Direct investment in the economic development of Bosnia and Herzegovina. Quarterly quantitative historical data such as, Foreign Direct Investment , GDP, inflation and unemployment are used together with qualitative data obtained through face to face interviews and surveys. Empirical findings from non-linear regression analysis imply that Foreign Direct Investment has growing significant positive impact on the economy after the war. Among the sectors, agriculture and food are the most attractive and advantageous sectors for the foreign investors. Keywords: Foreign Direct Investment, Bosnia and Herzegovina, War. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2303-4564 https://omeka.ibu.edu.ba/files/original/b0e58251748718c65f8bf36612c244bd.pdf 43e9dd3183c98a7e6f09da3d1d5af0f4 PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo Innovation – the Answer to the Economic Crisis Ognjen Ridic University of Zenica, Zenica, Bosnia and Herzegovina oggi.ridic@gmail.com Goran Ridic Sarajevo School of Science and Technology, Ilidza, Bosnia and Herzegovina goran.ridic@ssst.edu.ba The Western Balkan countries are in agreement about one thing: they all want to become members of the European Union (EU). Accession to the EU has become a national priority for Croatia, Serbia, Montenegro, Macedonia, Albania, Kosovo and Bosnia and Herzegovina (B&H). The first decade of the EU accession of some EU countries meant progress. Years of economic growth and prosperity are behind us. In 2013, EU is overindebted, with millions unemployed and unable to address the present economic crisis. It is losing its share of global market for goods and services and aging population threatens to collapse the "welfare state." The inability of the EU to resolve the accumulated economic problems undermined the credibility of the European integration, opening the hazardous speculations on the nature and necessity of the union. Certain states, such as Great Britain, are openly announcing a referendum to remain in the EU. Some countries are partially affected by the economic crisis and achieved outstanding economic results. Along with some Asian countries, Turkey is an example of how, even without EU membership, a country can efficiently solve present economic problems. Small and underdeveloped countries, such as B&H, can learn a lot from Turkey. The essence of success is the open competition, simplified registration procedures and operations, the attraction of investors, innovations and management of innovations. The introduction of innovations is important in all aspects of the B&H society, but it is particularly interesting in health care. B&H annually allocates 11.0% of its GDP to health care. The study, which we had conducted, showed that there are different views regarding the quality of health care services, between service recipients (citizens and patients - clients) and service providers (nurses and doctors). Nurses and doctors believe that the current quality of health care is good, while patients and citizens argue the opposite. If we put the patients at the center of our attention, then we have to respect their opinions and all our measures and actions must be subordinated to their satisfaction. Innovative approaches and innovation management do not need 233 �International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo additional funding. The use of the best techniques and practices, which already exist at our hospitals and clinics raise quality of health care while reducing costs. It should be kept in mind that the process of quality improvement must be continuous. A survey that we carried out on 313 patients in the Federation of B&H shows that the managers of health institutions are not satisfied with the quality of health care and believe that this situation needs to be improved. For innovation in health care it is necessary to create a critical mass of qualified managers - innovators who will be supported by the key decision makers. To this end it is necessary for health care institutions, as in all other areas of B&H society, to create a climate conducive to innovation as the part of national policy. Keywords: Management, Innovation, Economic Crisis, Health Care, Quality, Innovation Management, EU Accession. 234 � https://omeka.ibu.edu.ba/files/original/00dfff60cdcd1e13810f34d88316d526.docx d9e5b2cff520323e3b2402ab5ee12d11 https://omeka.ibu.edu.ba/files/original/a27e9906e0e120e732c1bc20b19ccf8b.pdf bd93672a144c91de52277898739534ec PDF Text Text International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Innovation – the answer to the economic crisis Ognjen Ridic University of Zenica, Zenica, Bosnia and Herzegovina oggi.ridic@gmail.com Goran Ridic Sarajevo School of Science and Technology (SSST), Sarajevo, Bosnia and Herzegovina goran.ridic@ssst.edu.ba Abstract The Western Balkan countries are in agreement about one thing: they all want to become members of the European Union (EU). Accession to the EU has become a national priority for Croatia, Serbia, Montenegro, Macedonia, Albania, Kosovo and Bosnia and Herzegovina (B&H). The first decade of the EU accession of some EU countries meant progress. Years of economic growth and prosperity are behind us. In 2013, EU is over-indebted, with millions of unemployed and unable to address the present economic crisis. It is losing its share of global market for goods and services and aging population threatens to collapse the "welfare state." The inability of the EU to resolve the accumulated economic problems undermined the credibility of the European integration, opening the hazardous speculations on the nature and necessity of the union. Certain states, such as Great Britain, are openly announcing a referendum to remain in the EU. Some countries are partially affected by the economic crisis and achieved outstanding economic results. Along with some Asian countries, Turkey is an example of how, even without EU membership, a country can efficiently solve present economic problems. Small and underdeveloped countries, such as B&H, can learn a lot from Turkey. The essence of success is the open competition, simplified registration procedures and operations, the attraction of investors, innovations and management of innovations. The introduction of innovations is important in all aspects of the B&H society, but it is particularly interesting in health care. B&H annually allocates 11.0% of its GDP to health care. The study, which we had conducted, showed that there are different views regarding the quality of health care services, between service recipients (citizens and patients - clients) and service providers (nurses and doctors). Nurses and doctors believe that the current quality of health care is good, while patients and citizens argue the opposite. If we put the patients at the center of our attention, then we have to respect their opinions and all our measures and actions must be subordinated to their satisfaction. Innovative approaches and innovation management do not need additional funding. The use of the best techniques and practices, which already exist at our hospitals and clinics raise quality of health care while reducing costs. It should be kept in mind that the process of quality improvement must be continuous. A survey that we carried out on 313 patients in the Federation of B&H shows that the managers of health institutions are not satisfied with the quality of health care and believe that this situation needs to be improved. For innovation in health care it is necessary to create a critical mass of qualified managers - innovators who will be supported by the key decision makers. To this end, it is necessary for health care institutions, as in all other areas of B&H society, to create a climate conducive to innovation, as the part of national policy. Keywords: economic crisis, management, innovation, health care, quality, innovation management, EU accession. 1 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Introduction Improving health care through innovation and management of innovation in F.B&H is one of the most important tasks facing healthcare providers and other institutions and individuals whose activities are related to health. Innovating is an ongoing process that does not tolerate delay. Innovation should be approached systematically taking into account the specificities of F.B&H. Since this is a very broad field we must define priorities taking into account the limited financial resources available for this area. The future of health care in F.B&H will go parallel with the improvement of quality. As in all other countries and our society will strive to reduce the cost of health services, thereby enabling access to quality health care. Cost reduction will be achieved by reducing the differences that exist in the delivery of services. The need for fast and high-quality information will necessarily propel health care institutions in automatic data collection and storage, which will make the industry more efficient and effective. The need for monitoring organizational performance (quality) system and measurement of processes and outcomes will advance the science of measuring performance in health care industry. The need for accountability through a system would improve the health care industry on the things that are important to patients. In short, the effects of health management will come through cost reductions, in the short term, but will be implemented through new innovative approaches that will be needed for healthcare industry to achieve these goals. Of special importance will be monitoring of the quality of health services in relation to the formally established set of standards. Quality of work in health care can be improved by improving the quality of internal systems or external examination, on the basis of clearly defined standards of quality. External review shall be performed by an independent body, thus, taking into account previously set norms and standards. Some of them are: Accreditation, ISO certification, EFQM (European Federation for Quality Management), Malcolm Baldridge Award, etc. Thanks to the results of accreditation, health care organizations can create short and long-term plans for improving the work and for the rational use of resources, which will be used more effectively in order to meet organizational needs. Every health care organization and its management has a reason for the introduction of the process of quality improvement. This may be due to reduced costs, increased profits, greater market share, patient satisfaction, promotion of health institutions in general, moral satisfaction of the business, etc. Scientific and technological advances, modern procedures and diagnostic tests, new drugs, increased demands and organization of health care increasingly pose financial strain on the health care options in F.B&H. Managers of health institutions, ministries and others will need quality information related to the acquisition of new technologies, procedures and the organization of new systems. In recent decades, the important reform activities have been undertaken in the field of primary health care (PHC), in which significant domestic and foreign assets were invested. The reform has replaced general family medicine with family medicine and its principles are applied in all aspects of medical care. In this regard, it will be extremely important to monitor whether the introduction of family medicine will lead to improvement of PHC, in terms of better effectiveness, efficiency, economic utilization, greater therapeutic response and the like. 2 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Today, there is generally a global consensus regarding public, political and professional dissatisfaction with health care services. Problems are specifically related to access and continuity of care, clinical effectiveness, patient safety, value for money, customer satisfaction and public accountability. Developed world began to focus on preventive medicine, primary care, service users’ involvement, as well as more explicit government regulation of financiers of care through managed care and health networks. Continuous assurance and quality improvement of health care, at all levels ensure the development and implementation of quality improvement systems. Quality health care is a fundamental right of every individual and every community. Today, there is no universal model for a national policy on quality, but there are common elements of intent, organization and activities, which the governments intend to implement. These elements include:     National values and priorities of quality; National organization and structure of quality; Methods, techniques and tools for quality development and Resources to improve the quality Materials and Methods Data Sources To test the research hypothesis, a survey was conducted at the level of management innovation activities and innovation capacity, in order to improve the organizational performance in health care organizations in Federation of Bosnia and Herzegovina. The primary sources of data were used, in order to conduct the empirical research. Sources of data for statistical sample were records of the Statistics agency of Bosnia and Herzegovina, the Federal and Cantonal health insurance funds, the Federal Bureau of Statistics, Federal and Cantonal Public Health departments, Federal Ministry of Health and the Federal Institute for Insurance and Reinsurance. As secondary data sources, the monographs, books, studies, journals and scientific papers were used. Additionally, the internet was utilized as a data source. In the first part of the empirical research we surveyed 313 respondents, with the aim to find out to what extent they were satisfied with the quality and quantity of health services, and how to evaluate the work of institutions and health care employees. Area of our empirical study was Federation of Bosnia and Herzegovina (F.B&H), an entity that is part of the Republic of Bosnia and Herzegovina. Out of ten cantons in F.B&H, the focus of our survey has focused on three: Sarajevo, Tuzla and Zenica - Doboj Canton. In these three cantons reside 1,337,834 inhabitants, or 57%, compared to the total F.B&H population of 2,866,157. Percentage of physicians in these cantons comprise almost 70 percent of the total number of doctors in F. B&H. Costs for health care in these cantons, comprise almost 50 percent of total expenditures on health care in F.B&H. In course of this research we have given emphasis to medical facilities, which are, in some ways, leaders in healthcare in B&H, including the F.B&H. These are the Clinical Center of Sarajevo University (CCSU), University - Clinical Center Tuzla and the Cantonal Hospital in Zenica. 3 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Research Methodology This research project was designed to be a combination of retrospective-prospective study. In dealing with the problem set and presentation of research results, a number of scientific methods were used. Within the theoretical part of the research, historical and descriptive methods that describe the essence of innovation and development and innovation were utilized; in combination with the compilation of associated knowledge, attitudes, conclusions and the results of other authors. In the empirical part the methods of induction and deduction for setting the general statement of research, quantitative methods for proving the hypotheses, survey-based methods for data collection and analysis and synthesis methods were used. For presentation and statistical analysis of the data collected to investigate the influence of different variables, we used modern statistical methods for the analysis of health care, such as, methods of statistical analysis of variance (ANOVA) and Post Hoc Tukey – Kramer (multiple comparison) HSD Test. A comparative analysis of the research results for health care organizations and number of conclusions relevant to other business areas F.B&H were performed. The planned study was conducted in two phases: During the first phase we analyzed the available literature in the field of innovation and invention, with a special emphasis on innovative activity in the service sector, where health care organizations belong. We analyzed numerous secondary data sources, such as books in the field of innovation, strategic and entrepreneurial management statistical reports on innovation in the EU, U.S., Canada, Japan, etc. In addition, we explored numerous books, monographs, expert articles, brochures, manuals, dissertations and masters’ theses on the topic of innovation. We also analyzed innovation policy, the structure of health care and business performance of organizations in light of the implementation of management innovation in health care. As a source of secondary data we also used the Internet. In the second phase we conducted the empirical research using modern research methodology, adapted to the conditions and level of development of innovation in F.B&H. Modern research methodology implemented, in OECD countries in the domain of measuring innovation of national economies, were utilized. The aim of the empirical part of this research was to gather information about the level of innovative activity in the health care system, check the hypothesis of work and identify the most important variables that affect the innovation and business performance of health care organizations. Data collection was conducted in the period September - December 2011 through a questionnaires, which were sent to postal and electronic mail addresses of health care organizations in F.B&H. Sources of data for the sample comprised from the records of the Central Bureau of Statistics, the Federal Bureau of Statistics, Cantonal and Federal Ministry of Health, Federal and Cantonal Public Health departments, Federal and Cantonal health insurance departments and professional association database (i.e. Medical Academy of Bosnia and Herzegovina) and Federal Institute for insurance and reinsurance. From these databases we selected organizations by three criteria: the size of the organization, regional and geographical origin and classification activities. In order to ensure a sufficient number of responses, and thus the relevance of the sample, the organizations to which we sent the questionnaires were contacted by phone, mail or e-mail to respond to it in due time. The activities related to implementation of the survey 4 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo included: primary, secondary and tertiary levels of health care, in addition to: Federal and Cantonal Ministry of Health, Federal and Cantonal Public Health, Federal and Cantonal Health Insurance, Federal Insurance and Reinsurance Funds, State and Federal Bureau of Statistics, Cantonal Hospital in Zenica, Clinical Center University of Sarajevo (CCUS), University Clinical Center in Tuzla and other health care organizations in F.B&H. Results and Discussion Table 1. Statistical data for all surveyed. Group f Percentage % (Frequency) Valid Citizen 110 35,1 Patient- client 110 35,1 Medical 25 8,0 Physician 16 5,1 Manager of Health 52 16,6 313 100,0 technician/nurse Care institutions Total: For statistical survey conducted we used the sample of 313 respondents. Out of total, 35.1% (N = 110) were citizens, 35.1% (N = 110) patients-clients and 8%, or (N = 25) were nurses.Physicians comprised 5.1% or (N = 16) and the managers of health care institutions 16.6% or (N = 52) (see Table 1). All responses with processed statistically significant differences are summarized in the appropriate tables. Figure 1. Structure of surveyed as percentage of a total sample (f=52) 16,60% (f=16) 5,10% (f=110) 35,10% (f=25) 8% (f=110) 35,10% Citizen Patient- client Medical technician/nurse Physician Manager of Health Care institutions 5 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Theoretical and empirical studies clearly indicate that the innovation and management of innovation are the key factors of competitiveness and the survival in today's increasingly competitive market. Today, developed countries are doing significant efforts to making innovation a national priority, with a special emphasis placed on measuring innovation performances. Empirical studies clearly show that the innovation process is complex and multidimensional. The process never developed in a straight line, and some of the stages of human history recorded accelerated growth or stagnation of innovation processes. It is interesting to consider the reasons that have contributed to this rather interesting dynamics. Going back, for a short period of time, we can see that for our ancestors, who existed thousands of years before us, the life expectancy was 20 to 25 years. In 1800s the life expectancy has increased tooapproximately 35 years and in 1900s was 48 years. In the year 2000 the average life expectancy has reached 78 years, an increase of 66% or an additional 30 years of life, compared to 1900s. From 1900 to 1950 life expectancy is constantly extended, but since mid-50's to mid-60 of the last century this trend has been stopped. After that, the life expectancy begins to grow again, and this tendency continues in the 21st century. The reason for this increase was that in the first half of the last century the medical scientists were able to conquer infectious diseases, together with provision of cleaner household water, better sanitation and healthier eating habits. At the same time, for the first time in history, mankind has managed to conquer infectious disease due to the development of exceptional medications including penicillin, streptomycin and others. In mid-century, after the fight against infectious diseases was complete, medicine has not had adequate means to address new diseases, such as heart disease, autoimmune and malignant diseases. Since the mid 50's to mid-60 of the last century, the medicine had little to offer for the prevention or treatment of chronic and degenerative diseases, which have dominated the pathological picture of the society. Medical innovations have had a significant impact on cardiovascular diseases and malignant neoplasms, which in those years took the largest number of lives. Many techniques, such as bypass surgery, stents, heart transplantation, new drugs to control blood pressure, lowering cholesterol and better clot-busting procedures had, as a result, since 1975 that death from cardiovascular diseases was reduced by 60%. Reduction in mortality due to malignant neoplasms was less dramatic, but it showed a constant decline. In 1975, five-year survival period for all types of malignant diseases was 50%. Today, the five year survival period is almost 70%. Before 1950, children diagnosed with leukemia had a survival prognosis of three months. Today, children diagnosed with leukemia have a 85% chance to heal. With the help of medical innovation we have not only added extra decades of life and health, but the society also enjoyed additional years of productive work, economic value added, increased household spending and increased tax revenues. The study, which was conducted at Columbia University (New York City, USA) by researcher Frank Lichtenberg, showed that the use of new drugs increased life span by 40% between 1980 and 1990. In other words, for each year of life extension, five months was a result of the application of new drugs (Lichtenberg, 2007), (Lichtenberg, 2009), (Lichtenberg, 2010). If we succeed to thoroughly clarify a complex process of innovation in health care, it would allow practitioners and decision makers to better assess, adapt and perform services, 6 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo in such a way to give priority to innovation in health care, thus, representing a true value. It is evident that the prioritization also poses a serious challenge. This process should be approached with full consideration of the specificities of each community. In the modern world, innovation is considered a critical component of business productivity and condition of survival in the market. In the second half of the last century, medical science has progressed exponentially. Unfortunately, in many countries, including Bosnia and Herzegovina, the system of paper documents (i.e. medical records) still provides information vital to the delivery of health care. Patient information is routinely kept in the archives with the same mentality, which was used to store information about other goods and services. A paper record is always associated with the defects, which are very expensive in healthcare. From $ 600 billion that is spent on laboratory tests in the U.S each year, 70 percent is paid for paper records. Huge savings are possible by introducing an electronic medical record (EMR). This electronic record can easily detect and eliminate errors. Treatment of patients and exchange of information on their health, through the medical paper (non-electronic) records are very tedious and often an impossible task. Without insight in this document it is impossible to know the patients’ medical histories. Electronic recording of patients’ conditions allows the doctor to quickly exchange X-ray, CT, MRI, etc. pictures and test results with colleagues in the same hospital, other clinics around the countries and the continents (Mašić, 2007)(Reid, 2009). We estimate that the EMR will be one of the priorities of innovation in F.B&H. Unfortunately, for a number of employees in the health care sector; it is still a new fashion trend and not the essential need in changing for the better quality of health care. Empirical research shows that managers of health organizations recognize the importance of this document, but for its full application numerous barriers should be eliminated. Results of theoretical and empirical studies suggest, that, in the future, the treatment of the most serious and complex diseases of modern time, by applying effective innovation will get a completely new forms and outcomes (Mašić, 2007). Malignant neoplasms, with new, innovative treatment approaches will become a chronic disease. Cancer, although it will not be eradicated, will create less anxiety in patients, who will be better informed and more easily learn to live much longer with this chronic disease. How true this picture is going to be will depend on the number and quality of new technologies that will emerge with innovation. It is evident that the longer life of these patients, will increase many times over the cost of their treatment, thus, creating a tension between the requirements of patients and those who pay for services. With malignant neoplasms our primary goal is to turn malignant disease into a chronic illness. To achieve this ambitious and noble goal it is necessary to promote a healthy lifestyle and diet, to educate health care professionals and patients on the basis of general control and organize early effective answers to the first signs of the disease. Five oncology centers exist in Bosnia and Herzegovina. In the treatment of malignant diseases they apply modern principles of surgery, chemotherapy, radiotherapy, citotherapy and immunotherapy. Through education and prevention in its current phase, the goal is to reduce by 10 to 20 percent the number of patients who reported, too late to doctors for the life – saving check – ups (Porter, 2006). Innovations in the treatment of malignant diseases are inevitable because of the complexity of disease, morbidity and mortality. Innovation had primarily to be transformed into useful 7 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo therapies that will be directed to the true biological target that is appropriate to the patient and in a way that is acceptable to patients, healthcare professionals and society as a whole. Innovation must be successfully introduced to the market for the professionals, as well as patients and those who pay the costs. All of these stakeholders need to see the potential benefits of these activities. Today, we see an explosion of new therapies to treat cancer and their prices remain very high. It is estimated that the cost of drugs for the treatment of malignant neoplasms in 2005, globally totaled US $24 billion. Of this amount, $ 15 billion was spent in the United States. Technology will detect, which patients do not respond well to therapy. In this way, today known drugs, in the near future will become obsolete. Doctors will know very precisely, at which stage of the disease, the particular type of treatment is necessary. Ten years ago, the average cost to develop a new anti-cancer drug amounted to $400 million. Today, these costs amount to about $1 billion. If they continue to rise at this rate of growth, the cost of developing new drugs could soon reach $2 billion, which is the amount that for the existing market could be difficult to sustain (Shi & Singh, 2003), (Reid, 2009). Data from the U.S., from the year 2005 show that the costs of care for cancer patients, in the last six months patients’ life accounted for 70% of total costs, and that will grow four times in 2025, since that patients will live longer and new and costly therapies will emerge. This increase in cost will inevitably create tensions between those who provide funds and those who consume them. Such a rapid rise in cost will necessarily lead to the efforts to figure out how to better direct the costly therapies and to use fewer hospitals, home care and more. One of the dilemmas in the future will be the political effects of an aging population, which will expect better service than what is offered to the majority of elderly people today. A small number of elderly people will be able to be provided with all the necessary care. The vast majority of others will have to rely on state protection. It is estimated that on a global level there continues to be a lack of those who provide health care services. Cancer or malignant neoplasms, cardiovascular diseases and dementia in the future will be controlled and will join the list of chronic diseases, such as diabetes, asthma and high blood pressure. New ethical and moral dilemmas will occur, in parallel with the success that brings a lower incidence of disease. Living longer and dying more quickly, according to some scientists, will be one of the basic principles of Western medicine in the 21th century (Raffel, 1997). F.B&H, in all this, must determine its own path, so that the limited resources we have at our disposal for health care, ensure maximum for patients, their families and society as a whole (Mašić, 2007), (Mašić, Novo & Toromanović, 2009). Information technologies (IT) are becoming a key factor for innovation in health care. The modern world is increasingly using outsourcing in diagnostic services - especially medical examinations, such as mammograms, X-rays and consultation of specialists. Telemedicine is used in the U.S. and other developed countries, in order to provide the care to patients in remote and difficult to access locations. Most of today's health information systems are designed to function autonomously, with its own rules and formats. They often prevent information to be globally integrated and always readily available. In some cases, the patient's electronic ticket from one hospital is not readable in another. Not only different languages and measurements, but also the conflicts and different encryption software, are the reasons, as to why it is impossible for the system to electronically exchange data. By eliminating these barriers at local, regional and state levels, our ultimate goal should be the 8 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo creation of medical records, which can travel along with the patient throughout the world (Porter & Teisberg, 2006) (Mašić, 2007) (Mašić, Novo & Toromanović, 2009). A particular problem in the process of innovation is the production of drugs and their safety. Today's tendency is to produce drugs that are universally acceptable to all patients. Today’s drug manufacturers will have to replace currently used drugs with new ones that have been specifically selected for particular groups or even individuals in the future. Analysis carried out in developed countries show that (for 88% of chronic and complex diseases), medications are first choice for medical intervention. Americans with chronic and complex diseases, such as diabetes, heart disease, osteoporosis and cancer, contribute to 75% of the cost for medical treatment in the USA. Regardless of the significant side effects, drugs now represent a remarkable segment of health care. For example, we can consider just diabetes. If not controlled, diabetes can lead to a cascade of potential complications that result in increasing human, social and economic costs, including blindness, amputations, kidney disease, heart diseases and ultimately death. In patients who regularly take medicine for diabetes, medication costs increase, but the total cost of treating diabetes and complications that it produces is declining. For many diseases the situation is very similar (Porter & O'Grady, 2007). For all of these, innovative drugs are often, both medically and economically, most effective alternative. In developed countries, about 60% of patients with diabetes do not keep the disease under control in order to avoid serious complications. With innovation and appropriate management of innovation new modern medical science adjusted medication to individual needs of patients, providing them with the right medication, with the right dose at the right time. From the standpoint of value for money, drugs adapted to the needs of patients will also reduce the high costs associated with those who do not respond to them. This type of innovation is exactly what patients want today (Katz & Green, 1997), (Reid, 2009). Medications (prescription drugs) that come on the market today in F.B&H, are either new, patented or generic. For generic drugs, the patent protection has expired. New (i.e. brand name) drugs are significantly more expensive than the generic. For these reasons, generic drugs should be used whenever possible. B&H and its larger entity F.B&H, unfortunately have no coherent funding and procurement of medicines. Ten cantons comprising F.B&H, according to Dayton Peace Agreement are independent in making decisions on procurement of drugs. Experiences, as well as scientific works made on procurement and drug prices in F.B&H, show that rationalization, transparency and uniform procurement policy remedies can save significant funds for taxpayers (Sivić et all., 2009), (AKAZ, 2009), (Šahovic, 2012). A particular problem in F.B&H is how to provide the basic list of essential medicines for all of those who qualify. For this purpose, the creation of a special fund would certainly give good results. Further measures include the reduction of irrational consumption, ensuring that all patients have equal access to essential medicines and other lists, as well as annual audits of funds allocated to medications at Cantonal level and F.B&H. Establishment of a separate body within the Ministry of Health of F.B&H could create transparent procedures for determination of prices and negotiating platform with pharmaceutical companies. This body would have to establish close cooperation with the relevant authorities in the EU countries The need for an international database related to drug safety is constantly growing, especially since more and more people are traveling 9 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo around the world. Unfortunately, the literature that we have analyzed does not largely show that, in the world today, there are agencies that would mediate in the collection and display of information about medicines, between countries. Health care, today is abundant with basic innovations. Innovations that have been successfully applied in one location often spread very slowly, or are not at all spread to other locations. Diffusion of innovation today is an enormous challenge for all industries, including health care in F.B&H and B&H (Rogers, 1995), (AKAZ, 2009), (Šahović, 2012).. This process can be defined as "a clear, fact-based process, in which the identified needs of patients are clearly understood and supported processes that with the smallest possible variations lead to the most effective results achieved." The improvement is achieved by constant input, process and results analysis using a specific tool. It is clear that there are unlimited opportunities for improvement and innovation at every stage of the complex activity of ensuring quality and affordable health care. Unfortunately, today's medical practice is still dominated by processes, which from the perspective of patients are not clearing (explicit) and are rather vague (implicit). In addition, there are other operative procedures performed on patients who are not sufficiently familiar with the procedures that doctors intend to carry out, which create consequences on the quality of the final outcome. Being explicit, in medicine means, not only to clearly define the criteria for patients, but also the professional criteria and standards, so that they can be investigated and be subject to constant modifications and improvements (Rogers, 1995), (Stošić, 2007), (Prester, 2010). The process of continuous quality improvement is based on the basic fact that people want to do a good job, they are motivated and they want to work and to be consistent. They do not want to be responsible for the variations that occur in the process. To avoid variations in processes, they must be defined, analyzed and improved. People who participate in the process may be praised, rewarded, warned, reprimanded, disciplined or dismissed. By itself, it is clear which way is the most productive. Quality improvement in health care is not possible if it cannot be measured. Managing the process of continuous quality improvement does not differ in essence, if it was applied to industrial or medical processes. Essential elements to be used in both processes are the facts, data and measurements that measure all aspects of the process, starting from the patients’ needs and expectations. In health care today, we do not lack information, but we do lack correct data presented in the right way. Improving our performance in any sphere, be it, clinical, administrative or even field maintenance and cleaning facilities, is not possible without valid performance measurements (Lighter & Fair, 2000), (Kuratko & Hodgec, 2000), (AKAZ, 2009), (Mosadeghrad, 2012). The process of continuous quality improvement should be focused on differences or variations. The variations are an integral part of the process, and their number increases with the complexity of the process. Variations must be identified, and our efforts focused on trying to restrict them their removal is a priority in the process of innovation in health care. Quality can be described as the interaction between patients and those who care about their health. Many patients and their relatives, pay special attention to the attributes of interpersonal relationships, such as the ability to listen carefully to others, trust, respect, confidentiality, courtesy, sympathy, understanding, a desire to respond with right measures, willingness to help and show compassion, as well as to communicate effectively. High quality does not have to be expensive. Right competition is based on the results, leading to significant improvements and efficiency. What is important is to 10 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo understand that the quality of health care and costs often improve simultaneously. Opportunity for simultaneous improvement of the above mentioned two items stem from several reasons. Just by applying best practices almost all suppliers of health services can improve the quality to increase profits without price increases (Berwick, 1991), (Katz & Green, 1997), ((Mosadeghrad, 2012). Our research had shown that there are different views between patients, doctors and managers about the current status of quality of health care. Nurses and doctors believe that the current quality of health care is good, while patients and citizens argue the opposite. Different opinion between patients, doctors and managers regarding the current status of health care quality in F.B&H are shown in Table 2. We valued all opinions on a Likert's scale from 1 to 7, where 1 means – „I totally disagree“and 7 means „I totally agree“. Mean values for patients, doctors and managers are shown in the Table 2. below: Table 2. Means for different groups of population. Patients 3,4636 Doctors 5,6250 Managers 3,4423 3,3000 5,6250 4,0000 3,2455 5,7500 3,7885 Health care is effective 3,1636 5,5500 3,7115 Health care is efficient Health care shows adequate results Health care organizations provide total care to patients Health care organizations provide high level of care Health care safety is at the high level Health care is available at the appropriate time 2,9729 3,1909 5,2500 5,4375 3,9423 3,8269 2,9636 5,3125 3,1538 2,9182 5,3750 3,2500 2,8545 5,0625 3,7115 2,6273 5,1875 4,3269 Health care organizations provide care appropriate to patients’ needs Health care is accessible in legal and economic sense Health care is continuous From Table 2 it is visible that there are differing opinions between patients, doctors and managers. While doctors in most cases hold the opinion that the quality of health care services is relatively good, patients do not hold that view. The managers are somewhere in between. If we put the patients at the center of our attention, than we have to respect their opinions and all our measures and actions must subordinated to their satisfaction. Innovative 11 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo approaches and innovation management do not need additional funding. The use of best techniques and practices, which already exist at our hospitals and clinics raise quality of health care while reducing cost. It should be kept in mind that the process of quality improvement must be continuous. Conclusion On the basis of research and analysis of the available literature, we conclude that innovation and management of innovation processes become key to successful operation of health care organizations in the future. Empirical studies show that in regards to the quality of health services there are different views among three essential participants in health care: patients - consumers, health professionals and health service managers. Patients – users, largely expressed disagreement with the current situation and the level of quality of health care, and health professionals (doctors and nurses) believe that the level and quality of care is good. These two, completely opposite attitudes seek our further elaboration. The goal of all of our innovative activities in the health sector must be satisfied patient. If patient is not satisfied, it must be a clear signal that the expressed disagreement should be further analyzed and action taken to eliminate the problems. This is supported by the views of managers of health institutions which, although run by these institutions, believe that the current situation is not good and that it should be changed.Health care is facing serious challenges, and innovations in this field are an imperative of our society. At the same time innovating and managing innovation processes is necessary for several reasons. Financial resources that are at our disposal are limited and will be limited in the future. Increasing national debts that must be paid back by the future generations cannot be tolerated, nor can continue with this practice. It is naive to believe that the financial problems that we are facing are only a consequence of present economic depression and recession. Serious financial analysis clearly shows that we, as a society, cannot continue with the current trend of spending.The second part of the challenge that we are facing is an aging population. People are living longer, and to maintain health in the population over age 65 from year to year more and more resources must be spent. A particularly interesting part of the population is in the age of over 75 years. This group, which represents less than 5% of the total population, now consumes 25% of all patient-days in hospitals that treat acute cases of diseases. This happens despite the fact those in recent years, the length of stay in hospitals in for this age group has been reduced. Previous preliminary and in scope modest research in B&H and F.B&H shows relatively low levels of innovation, as a factor in improving the overall health care. Innovation, in most cases, is left to the individuals who conducted their own research or „borrowed“results of the developed countries, trying to innovate to change the existing situation and make it better. Unfortunately, the process of innovation in F.B&H is more the exception rather than the rule. For quality and comprehensive innovation in health care institutions and society as a whole, there is lack of critical mass of innovators, inventors and special task managers. Innovating in order to improve the quality of health services, reduce treatment time, increase the number of recovered patients, reduce the cost of treatment and medicines, to create a patient-observer active and satisfied partners who collaborate with healthcare professionals during treatment, are all tasks that lie ahead of health workers and that we must deal with today. Innovation and management of innovation must have access plans, 12 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo to coordinate and guide them in the right direction, continuing to analyze and correct all phases. This is basically the task of innovation management. Among the conclusions, in particular we want to emphasize the need for all relevant political, health and other factors that innovation policy becomes part of national policy. In this way, and society as a whole will be joined in the international competition. To achieve the goals we have to provide a critical mass of managers, particularly managers’ doctor. Their creation will be provided through educational processes so that managers will be able to share their knowledge and innovative energy transferred to their co-workers, and all relevant factors, the health process and future EU accession. References Agencija za kvalitet i akreditaciju u zdravstvu Federacije Bosne i Hercegovine . (AKAZ). (2009). Obuka iz oblasti poboljšanja kvaliteta i sigurnosti zdravstvene zaštite. Sarajevo. Berwick, D.M. (1991). Medical Care:Controlling Variation in Health Care. Lippincott, Williams & Wilkins. Katz, J.M., Green, E. (1997). Managing Quality: A Guide to System-Wide Performance Management in Health Care. (2nd ed.). Saint Louis: Mossby-Year Book Inc. Kuratko, D., Hodgec, R. (2000). Entrepreneurship – a Contemporary Approach. Orlando: Harcourt College Publishers. Lichtenberg, F. (2010). “Pharmaceutical Innovation and Mortality in the United States, 1960-2000. A commentary on Schnittker and Karandinos,” Social Science & Medicine 70 (2010), pp. 969-971. Lichtenberg, F. (2009). “Life-expectancy gains from pharmaceutical drugs: a critical appraisal of the literature,” Expert Review of Pharmacoeconomics & Outcomes Research 9 (6), 499-504. Lichtenberg, F. (2007).“The Impact of New Drugs on U.S. Longevity and Medical Expenditure, 1990-2003,”American Economic Review 97 (2), May 2007, 438-443. Lighter, D.E., Fair, C.D. (2000). Principles and Methods of Quality Management in Health Care. Gaithersburg: Aspen Publishers Inc. Mašić, I. (2007). Porodična/Obiteljska Medicina: Principi i praksa. Sarajevo:Avicena. Mašić, I., Novo, A.,Toromanović, S. (2009). Socijalna Medicina. Sarajevo:Avicena. Mosadeghrad, A.M. (2012). A Conceptual Framework for Quality of Care. Materia Socio Medica (MSM), 24: 451-461. Porter, M.E., Teisberg, E.O. (2006). Redefining Health Care: Creating value-based competition on results. Boston: Harvard Business School Publishing. 13 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Porter, T. – O' Grady, M.K. (2007). Quantum Leadership: A Resource for Health Care Innovation. (2nd ed.). Sudbury: Jones & Bartlett Publishing. Prester, J. (2010). Menadţment Inovacija. Zagreb: Sinergija-nakladništvo d.o.o. Raffel, M.W. (1997). Health Care and Reform in Industrialized Countries. University Park: The Pennsylvania State University Press. Reid, T.R. (2009). The Healing of America: A Global Quest for better, cheaper and fairer Health Care. New York: Penguin Press. Shi, L. & Singh, D.A. (2003). Delivering Health Care in America: A Systems Approach. (2nd ed). Sudbury: Jones and Bartlett Publishers. Sivić, S., Mašić, I., Petković, D., Huseinagić, S., Tandir, S., Ţunić, L. (2009). How to Rationally Use Information Diagnostic Technologies in Family and General Medicine Practice. Materia Socio Medica, 21, 1: 47-54. Stošić, B. (2007). Menadţment Inovacija. Beograd: Fakultet Organizacionih Nauka Beograd. Šahović, B. (2012). Purchasing of essential drugs in Federation of Bosnia and Herzegovina: Examination of revised pricing and reimbursement practice effects. Masters Thesis. Masters of Science Program in Economic Transition and European Integration. Sarajevo School of Science and Technology. Sarajevo. 14 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1621 Title A name given to the resource Innovation – the Answer to the Economic Crisis Author Author RIDIĆ, Ognjen RIDIĆ, Goran Abstract A summary of the resource. The Western Balkan countries are in agreement about one thing: they all want to become members of the European Union (EU). Accession to the EU has become a national priority for Croatia, Serbia, Montenegro, Macedonia, Albania, Kosovo and Bosnia and Herzegovina (B&H). The first decade of the EU accession of some EU countries meant progress. Years of economic growth and prosperity are behind us. In 2013, EU is overindebted, with millions unemployed and unable to address the present economic crisis. It is losing its share of global market for goods and services and aging population threatens to collapse the "welfare state." The inability of the EU to resolve the accumulated economic problems undermined the credibility of the European integration, opening the hazardous speculations on the nature and necessity of the union. Certain states, such as Great Britain, are openly announcing a referendum to remain in the EU. Some countries are partially affected by the economic crisis and achieved outstanding economic results. Along with some Asian countries, Turkey is an example of how, even without EU membership, a country can efficiently solve present economic problems. Small and underdeveloped countries, such as B&H, can learn a lot from Turkey. The essence of success is the open competition, simplified registration procedures and operations, the attraction of investors, innovations and management of innovations. The introduction of innovations is important in all aspects of the B&H society, but it is particularly interesting in health care. B&H annually allocates 11.0% of its GDP to health care. The study, which we had conducted, showed that there are different views regarding the quality of health care services, between service recipients (citizens and patients - clients) and service providers (nurses and doctors). Nurses and doctors believe that the current quality of health care is good, while patients and citizens argue the opposite. If we put the patients at the center of our attention, then we have to respect their opinions and all our measures and actions must be subordinated to their satisfaction. Innovative approaches and innovation management do not need additional funding. The use of the best techniques and practices, which already exist at our hospitals and clinics raise quality of health care while reducing costs. It should be kept in mind that the process of quality improvement must be continuous. A survey that we carried out on 313 patients in the Federation of B&H shows that the managers of health institutions are not satisfied with the quality of health care and believe that this situation needs to be improved. For innovation in health care it is necessary to create a critical mass of qualified managers - innovators who will be supported by the key decision makers. To this end it is necessary for health care institutions, as in all other areas of B&H society, to create a climate conducive to innovation as the part of national policy. Keywords: Management, Innovation, Economic Crisis, Health Care, Quality, Innovation Management, EU Accession. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 978-9958-834-23-3