Strategy of engineering enterprises’ business process management in reengineering and redesign

Economic Annals-ХХI: Volume 147, Issue 1-2(1), Pages: 57-61

Citation information:
Leshchuk, V., Polinkevych, O., & Ishchuk, L. (2015). Strategy of engineering enterprises’ business process management in reengineering and redesign. Economic Annals-XXI, 1-2(1), 57-61. https://ea21journal.world/index.php/ea-v147-14/

Viktor Leshchuk
D.Sc. (Economics),
Associate Professor,
Ternopil National Economic University
24 Vidrodzhennia Ave, Lutsk, 43024, Ukraine
vpleshchuk@ukr.net

Oksana Polinkevych
PhD (Economics),
Associate Professor,
Lutsk National Technical University
75 Lvivska Str., Lutsk, 43000, Ukraine
polinkevych@ukr.net

Lesia Ishchuk
PhD (Economics),
Associate Professor,
Lutsk National Technical University
75 Lvivska Str., Lutsk, 43000, Ukraine
liishchuk@ukr.net

Strategy of engineering enterprises’ business process management in reengineering and redesign

Abstract. Introduction. The choice of strategy is an important sphere of business management in conditions of new economy. Moreover, strategy should not only support financial results improvement, but also coordinate current and long-term policy of building enterprises and business processes. Purpose. Therefore, the aim of work is to develop and ground the strategy scripts for management of business processes in reengineering and redesigning, considering new economy. Results. It is indicated, that to choose a scenario for the strategy of business processes management in reengineering and redesigning, predicted values of changes in key parameters should be used, including recommendations of UNIDO (United Nations Industrial Development Organization). According to UNIDO methodology, the following limits of changes in parameters are recommended: investments, sales volume, production expenses – ± 10% or ± 20%. These recommendations form the basis of choosing a scenario. From own expert evaluation survey on business processes in reengineering and redesigning at the engineering enterprises, we found that the criterion of the scenario choice estimation is financial results from operating activities. Variable parameters of the results formation are also determined by expertise. Consistency of the experts’ opinions is proved by concordance rate at 66.88%. It is suggested to use the innovative scenario for management of business processes in reengineering and redesigning, which provides 15% increased sales, 5% reduced production costs, 10% reduced administrative costs and 5% reduced distribution expenses, 10% decreased other operating costs. That is, we offer using the innovative scenario to combine redesigning of the business processes, using outsourcing and out staffing in the cluster system. This scenario brings the highest financial result and is characterized by low risk. This combination is the best in the new economy conditions. Other scenarios are less effective, namely: «inertial» characterizes enterprises development without clustering, meaning without changes; «organizational» scenario uses out staffing and implies clustering, which provides consulting services in implementing innovation in enterprises; «structural» uses outsourcing and implies clustering, allowing to focus on core business processes. However, they can also be used. Inertial scenario is offered for continuous use in enterprises activities.

Conclusion. The proposed strategy implementation under four scenarios will provide economic effect, which help to reach corporate goals at the level of enterprises, and at regional level – increase the share of engineering products in GRP, employment in engineering, and upgrade living standards to European ones. The mechanism of business process management on the enterprises in the system of innovation development will contribute to achievement of the developed strategy calculated results.

Keywords: Scenario Management Strategy; Business Process; Reengineering; Redesign; Cluster; Outsourcing; Outstaffing

JEL Classification: D29; M21; O31

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Received 19.12.2014