Business processes reengineering in the digitally dependent sectors of economy (on the example of telecommunications companies)

Economic Annals-ХХI: Volume 180, Issue 11-12, Pages: 146-154

Citation information:
Plahotnikova, M. (2019). Business processes reengineering in the digitally dependent sectors of economy (on the example of telecommunications companies). Economic Annals-XXI, 180(11-12), 146-154. doi: https://doi.org/10.21003/ea.V180-16

Maria Plahotnikova
PhD (Economics),
Associate Professor,
Department of Regional Economics and Management,
Southwest State University
94, 50 Let Oktyabrya Str., Kursk, 305040, Russia
erelda@mail.ru
ORCID ID: https://orcid.org/0000-0002-6305-2006

Business processes reengineering in the digitally dependent sectors of economy (on the example of telecommunications companies)

Abstract. The methodology of business process reengineering (BPR) has now reached a certain level of demand in the world and domestic practice of business process optimization. However, classic reengineering schemes currently require adaptation, both to certain sectors of the economy and to the type of optimized business processes. These requirements are due to the need to find effective solutions in the field of organization management in the digital economy. The opportunities and threats created by the digital economy pose new challenges for companies in many industries, which determine their development and survival in the global market.

In this article, we provide data on the state of telecommunications industries in Russia and the world, and identify factors that affect the development of business processes of telecommunications companies, including management. The author’s method of reengineering for telecommunications companies in the digital economy takes into account the identified features and trends in the development of the telecommunications sector. The telecommunications companies under our practical study are those operating in Russia, namely: MTS; MegaFon; Rostelecom; VimpelCom; T2 mobile. An example of VimpleCom was investigated, and the KPIs before and after the reengineering of development were calculated for the company.

The author proposes to apply the concept of «digitally dependent» industries that includes industries for which the opportunities and threats provided by the digital economy directly affect, first of all, the management of business processes, in particular, in the telecommunications industry.

Based on the study of the world and domestic practice of BPR, the author concludes that for the successful application of the methodology of BPR in telecommunications companies, it is necessary to take into account certain specifics arising from the mutual influence of the digital economy and the enterprises of digitally dependent industries.

Keywords: Business Process Reengineering; BPR; Telecommunications Companies; Business Processes; Digital Economy; Company Management Efficiency; MTS; MegaFon; Rostelecom; VimpelCom; T2 mobile

JEL Classification: M20

Acknowledgements and Funding: The author received no direct funding for this research.

Contribution: The author contributed personally to this work.

DOI: https://doi.org/10.21003/ea.V180-16

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Received 14.11.2019
Received in revised form 29.11.2019
Accepted 3.12.2019
Available online 30.12.2019