MECHANISM FOR REENGINEERING MAIN BUSINESS PROCESSES WHEN IMPLEMENTING INNOVATIVE TECHNOLOGIES

Abstract

In today’s conditions of global competition and rapid technological development, effective management of the BP (hereinafter BP) is becoming a critical success factor for enterprises. Implementing innovative technologies requires not only their technical integration but also a fundamental rethinking and optimization of the main BPs. The article examines the mechanism of BP reengineering as a tool for increasing the efficiency of enterprises, in particular in the context of innovative transformations. The article provides an overview of different approaches to defining the concept of "BP". A generalized definition is proposed: BP is a set of interrelated actions that transform input resources into output results to create value for the consumer. The key elements of BP are considered: inputs, outputs, boundaries, process owner, etc. The author argues that traditional BP optimization methods are often insufficient to ensure a qualitative leap in productivity. The implementation of innovative technologies requires a radical redesign of processes since existing organizational structures may not be adapted to new requirements. Special attention is paid to metallurgical enterprises, where the integration of information systems in the BP is critical for increasing competitiveness. The stages of reengineering are analyzed in detail. A modular approach to structuring the BP is proposed, which includes organizational, managerial, innovative, production and technological, marketing, and financial modules. To assess the success of reengineering, a set of indicators is proposed, such as labor and equipment productivity, material and capital intensity, integral economic effect (IEE), internal rate of return (IRR), break-even point, and financial safety zone. The importance of simulation modeling for testing new BPs before their implementation is emphasized. BP reengineering is a key tool for enterprises that seek to achieve significant improvements in the context of innovative development. The proposed mechanism allows not only to optimization of existing processes but also to creation of a basis for continuous improvement. Of particular value is a systematic approach to assessing effectiveness, which allows management to make informed decisions regarding the transformation of the business model.