Економические науки/16.Макроэкономика

Arakelova I., lecturer

Donetsk state university of managment, Ukraine

USAGE PECULIARITIES OF REENGINEERING IN SERVICE INDUSTRY.

Lately the organizational structure of enterprises changes drastically in the countries with developed economy owing to cardinal reconstruction of business processes in conditions of introduction of the leading-edge information technologies.

The necessity of reengineering is justified by high dynamism of present-day business world. Continuous and sufficiently essential changes in technologies, markets outlet and customer needs became everyday occurrence and companies trying to save their competitive ability have to reconstruct corporative strategy and tactics.

Reengineering of business-process is considered as the most effective conception among all management conceptions. Reengineering of business-process is necessary for any company, regardless of its activity status or it size. As to companies of service industry, they are certainly in need of establishment of process- orientate approach to reengineering organization more than others. Service industry deserves special attention due to the following reasons.

First of all service industry - sector of economy is on the upswing. In the great European countries, USA and Japan a greater number of employees, more than in all other branches taken together, are engaged in service industry. According to different estimates a private and state sectors of services provide from 60 to 70% of the national product. Besides, services industry – a sector of international trade developpes faster, that makes 20% volume of world export.

The second hand, management in service industry has certain specificity. The point is that the services are characterized by impalpability of proposals, inherence of production and consumption, complexity of their standardization and non-preservation, which conditions primary objectives of management and primary objectives of reengineering in this sphere: quality control, increase productiveness of labour and human resource management increase. Probably the primary objective of services management is dealing with a problem of low productiveness. A simple and obvious fact is that the productivity and production volumes grow much faster in material production than in the field of services. (It also confirms a shift in proportion of employment: people can be changed to machines more actively in production goods than services). Productiveness in service industry, as they represent relations between people and not intercommunion between a human and a machine, will be lower inevitably than in material production. It is practically true for all types of services .

About half of production expenditures relate to services purchasing (advertising, transportation, financial services). More and more employees of industrial firms deal with projecting, marketing, financial and aftersale servicing and not with production of commodities. Services management inside of the company requires solution the same problems as at enterprises of service industry.

And finally exactly present-day companies of service industry are the basis for creation of new models of effective management. In the past managerial idea found the greatest development in computer industry and more earlier – in automobile, but today just the companies of service industries provide economic development and new working places.

The main peculiarities of reengineering of business processes of the companies in service industry appear from services characteristics, such as: impalpability, inherency of service rendering from consumption, inconstancy, non-preserving, lack of title. First of all it concerns the peculiarities in goal setting of reengineering and choice of key sections for concentration of organizational resources and managerial efforts. On the assumption of these peculiarities we separate four basic functions of management of the companies in service industry, on the improvement of which the measures as for reengineering of Business-processes should be directed:

1. Services quality control

2. Productiveness management

3. Human resource management

4. Differentiation of proposed services management

But in the performance of reengineering in the service sector the errors are committed very often not only because ignoring peculiarities of services but also in process of its performance. The process for reconstruction is determined very often but when holding of reengineering only its fragment is considered:

1. A company of service business tries to improve a process rather than to re-project it.

2. Non-systemic approach to renewal.

3. Erroneous estimate of the level of the company’s corporative culture.

4. Incoherence of innovation mastering.

5. Irrational assignment of tasks in innovation mastering

6. Insufficient resources’ provision of innovations.

7. Personal problems of innovation.

At that introduction of engineering technologies of management can not solve problems completely in quickly changed conditions, for building of client-centered system the creation of inter-corporate and interindividual communications move to the forefront, the technical part of which really relies on a process approach and achievements in the sphere of information technologies but are not exhausted by it.

Consequently, carrying our of changes by the methods of reengineering of the companies of service industry can give meaningful result and presence, first of all, temporary and financial resources as well as interest in this management..

Introduction of reengineering business-processes at enterprises of service industry can also be on the basis of development of business-processes reengineering projects. Realization of business-process reengineering project is carried out in conditions of normal life of an enterprise with production, sale and management. The project can not be separated from ambient conditions and their development. So it means that it is necessary to take into account direct project beforehand (i.e. an enterprise) and distant project environment (i.e. enterprise environment). In length of time their changes can play a crucial part for success of business-process reengineering process.

Taking the special place among the approaches to management modelling which allow to optimize the system of business process of enterprises, reengineering is determined as aggregate of methods and means designed to cardinal, sharp and fundamental enhancement of basic indexes of economic activity - creature comforts, cost, quality, services, proportions and rate of development. When reengineering approach a basis of new principles of organization and management is shifted not on functions, but on the process generally, from use of modelling and information technologies. At that amplitudinous reorganization of reengineering type does not always lead to efficient results.

However, prior to proceed with direct reorganization of business-process it is necessary to form strategic aims and follow peculiarities and principles of quality control of rendered services.