UDK 338.24

Kramar. I. Iu.

Ternopil Ivan Pul’uij National Technical University

THE ESSENCE OF REENGENEERING AS INNOVATIVE METHOD OF THE UKRAINIAN SMALL ENTERPRISES’ DEVELOPMENT

The method of development of small enterprise is examined as an aggregate of measures, actions, procedures, receptions and rules (both formal and informal) which determine co-operation of workers of small enterprise to realize its transition from current stage to the other, that will be relevant with high-quality requirements of the next stage of life cycle.

One of innovative methods of development of small enterprises is reengineering.

Reengineering in Ukraine is used rarely, but its prospects of application in relation to small enterprises are considerable through the small size of such enterprises, a few workers and simplicity of processes which flow on such enterprises. On one hand, it is easier to put processes which are yield in reengineering at small enterprises, to automatize them and integrate; on the other hand, it should be known that it is necessary to take into account the personal internals of each worker, his psychological model of behavior, where automatization is impossible. Reengineering at small enterprises is not the threat of reduction of the staff and, accordingly, does not demoralize personnel. Demoralized personnel have negative attitude to the its job and to the enterprise in whole. Reengineering is necessary because there are business processes at small enterprises the same as there is a necessity of their permanent rethinking: technology, competition environment, legal field, changes.

Importance of introduction of reengineering technologies is caused by the necessity of adaptation to the dynamic business-environment. Continuous and substantial enough changes in technologies, markets of sale and necessities of clients became the ordinary phenomenon. Companies whose aim is to be still competitive, are forced continuously to reconstruct corporate strategy and tactics.

A consumer nowadays has a greater choice of not only commodities and services but also technologies substantially. A producer is forced continuously to adapt both to new technologies and to the constantly changeable queries of the clients in total. The change of business processes grows into practice of everyday life of companies, and the inertance of hierarchical structures becomes an obstacle on a way to their survival. The role and value of reengineering technologies grows.

Reengineering is an important direction of innovative activity of Ukrainian small enterprises, which provides radical reproject of business processes at enterprises and organizations by means of scientific-practical approach for the increase of competitiveness level namely receipt of substantial effects in the decline of cost, upgrading and increase of volumes sale of products and services. In this determination we emphasize attention on scientific-practical approach, in fact realization of such projects requires quite a lot of human efforts.

The basic changes of management process are evaluations of organization’s readiness to them and development of their introduction plan. There must be a clear role of employees who participate in the process of changes. Initiators of change are under an obligation to have plenary powers for making decision about changes and to implement them into life. It is necessary to create the command of specialists that includes: the head of organization, group that will plan each process which yields reengineering groups of introduction, which can intersect with the groups of planning, and also coordinative committee necessary for co-ordination of project which consists of authoritative representatives of organization and external consultants.

The necessity of using the possibilities of reengineering resulted in education in many firms of the special subdivisions, whose tasks related to development in this industry are fixed on.

Essence of work of the adopted organizational structures is to use innovative possibilities of management; to reorganize, to reconstruct business so that to survive at the market and prosper.

Reengineering provides the following:

- abandonment from out-of-date rules and approaches and beginning of business process "from a clean sheet". It allows to overcome negative influence of economic dogmas which were formed;

- ignoring the operating systems by structures and procedures of firm and radical change of methods of economic activity; if it is impossible to change the business environment, then it is possible to change the business;

- a coersion to the considerable changes of performance indicators which differ from previous on an order.

Thus reengineering has to be applied in such three basic cases:

1. In the conditions when a firm is in a crisis which can show up in the obvious noncompetitive (very high) level of charges, to mass abandonment of consumers from the product of the firm etc.

2. When current status of the firm can be confessed as satisfactory however prognoses of its activity are unhappy. A firm faces undesirable tendencies in part of competitiveness, profitability, value of service.

3. The prosperin, rapidly increasing and aggressive companies realize possibilities of reengineering. Their task consists of the acceleration of increasing the tearing away from the nearest competitors and creation the unique competitive edges. Application of reengineering in this situation is the best variant of doing business. Many companies consider that they have found the best model of business, in which it does not cost to change anything. After some time passed such an approach results in a competitors’ better performance and it’s more difficult for the companies to adapt themselves to demand and market state of affairs at the whole. It should be remembered that the aim of reengineering is an obtaining of additional competitive advantages, and, accordingly - the increase of competitiveness and profitability of the company. Therefore before its introduction it is needed to revise all "pro and con", and if already reengineering has been chosen company has to accumulate its patience and not spare neither financial nor human resources.