Reengineering as a method of innovative transformation of the enterprise management system: modern approaches and applied tools

Authors

  • OМ Khomenko Украина
  • OM Malykhina Украина

Abstract

The modern economy of Ukraine is characterized by a number of destructive factors affecting the activity of contracting enterprises. These include, first of all, high dependence on imports of domestic production subjects, significant loss of markets for construction products due to their lack of international quality standards, lack of working capital, and low level of innovation in production. Significant problems also arise due to the insufficient organizational level of implementation of transformational changes, namely due to the disadvantages of implementing and managing the choice of directions of their implementation in the construction industry. Therefore, in the conditions of an unstable market economy, it is advisable for the management of Ukrainian contractors to take pre-emptive transformational measures of a radical nature, which include business process reengineering (BPR). The latter provides a significant increase in the efficiency of doing business, significantly increases the level of competitiveness of construction products in both domestic and foreign markets. This makes it possible to increase the level of process-oriented activity of economic entities. Also, with the help of reengineering business processes, it is possible to increase the efficiency of production activity in a short time and to take the leading positions in the market of these products by increasing its added value. This is ensured by the correct choice of the direction of realization of BPR and interest in its carrying out by all participants - contractors, financial institutions, public administration, other participants. Despite the diversity of methodological and instrumental approaches, the scientific paradigm that considers reengineering as a way of radical or local transformation of the production-product, financial, economic, and administrative-structural subsystems of the enterprise, in order to ensure irreversible quality growth of its economic assets and resources achieving other strategic priorities (ensuring accelerated implementation of new competitive various production, administrative and information technologies). It should be noted that despite these developments, there is no proper justification for re-engineering as a targeted innovation project aimed at modernizing the contractor, taking into account its functional-product, economic and administrative-structural features as a stakeholder in construction. The analysis of the achievements of domestic and foreign scientists-economists allowed us to distinguish the following key attributes of business process reengineering (Business Process Reengineering): a) project format as a basis for the success of reengineering; b) the need to overcome or pre-empt crisis or destructive phenomena in the enterprise's strategy and day-to-day operations and target reengineering to upgrade the operating system and architecture of the enterprise, which will give a new level of flexibility, maneuverability, productivity to the use of qualified assets of the enterprise and ultimately lead to an increase competitiveness; c) a radical transformation and partial modernization of the enterprise's product-product and administrative-management subsystems. Advantages of the implemented approach include the fact that some of the economic characteristics of the re-engineering project are subject to evaluation using imitation-stochastic procedures, which gives grounds for a more reliable justification of the budget parameters and the BPR. The mentioned software complex integrated the scientific innovations of the theoretical models described above and the advantages of the software products "Project Expert", "Hyper-pillar", "Biz-planner", "BIM-technology". Modules of the software complex allow to reveal the final economic effect of the implementation of the RIPP project - it is obtained as a weighted average, taking into account the probabilities of possible fluctuations in the characteristics of the investment cycle of the contractor reengineering project. Thus, the urgency of the work is conditioned by the need - in the form of systematic and methodological foundations and holistic functional and applied tools - to provide the proper scientific substantiation to the processes of initiation, substantiation and implementation of re-engineering at the contracting enterprises as a special innovation-investment project. The urgency of solving the problems of reengineering is updated by the author due to the definition given in the work of the reengineering of the contractor enterprise as a “special innovation-investment project of transformation (modernization) of the contractor enterprise, the life cycle of which and the economic-managerial and functional-technological characteristics are subordinated to the conditions of the enterprise. contractors and services market. The need to adjust the content and characterization of the stages of the contractor reengineering (RIPP) project cycle as a specific innovation investment project.

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Published

2020-03-07

How to Cite

Khomenko, O., & Malykhina, O. (2020). Reengineering as a method of innovative transformation of the enterprise management system: modern approaches and applied tools. Pridneprovskiy Scientific Bulletin, 11(667). Retrieved from http://www.rusnauka.com/index.php/rusnauka/article/view/1422