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30. Крикaвський G.B., Чорнописькa Н.В. Укрш'га в глобaльниx лaнцюгax
East European Scientific Journal #1(65), 2021 15 roCTa^^ Лонсти^: теорiя тa прaктикa. 2012. № 1(2). С. 92-100.
31. rpmropax М.Ю., KapnyHb О.В., Соколовa O.G. Системний n^x^ y логiстицi. Кшв: Логос, 2013.- 308 с.
32. TpmropaK М.Ю., KapnyHb О.В. Логiстичне обслyговyвaння. Кшв: НАУ, 2010.- 152с.
UDC 330.33
Киш Л. М.
кандидат економiчних наук, доцент кафедри комп 'ютерних наук та економiчноï юбернетики Втнщький нацюнальний аграрний yнiверситет
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Kysh L.M.
Сandidate of Economic Sciences, Associate Professor of the Department of computer sciences and economic cybernetics
Vinnytsia National Agrarian University
IMPROVING THE BUSINESS PROCESSES MANAGEMENT AT ENTERPRISES IN THE CONTEXT OF DIGITALIZATION
Abstract. The objective of the article is to study the role of business process management in the context of digitalization and digital transformation of the economy. Mentioned objective involved the implementation of a number of tasks: to analyze modern scientific developments in the field of research to improve the management of business processes in the context of digitalization; identify the basic conceptual principles and areas for improving business processes in enterprises in a digitalized economy; analysis of international experience of business support in the direction of digitalization of major business processes; identification of the most important business processes of enterprises that need improvement through the use of information technology. Despite the various advantages, the implementation of a business process management system in the context of digitalization can be a difficult task, as it simultaneously affects different organizational levels and requires time, finances and human resources. For a successful business process management mechanism, enterprises must take into account a variety of success factors, ranging from standardization and automation of processes, to the integration and involvement of stakeholders and proper training (development) of employees. The authors identified that the development of public-private partnership in the field of digitalization will provide enterprises with the following advantages: increased the competitiveness and ability to respond quickly to changes in the environment; minimize the dependence of research projects on organizational and administrative resources; use the experience of past developments and commercial proposals; increase the efficiency of the external and internal services of innovation infrastructure; reduce administrative costs.
Keywords: digitalization, business process management, IT, framework, digital transformation, digital economy
The problem statement. Technological advances have made the Internet accessible, and customers have developed the benefits of consistent information across multiple communication channels, innovative combinations of products and services, and direct interaction with businesses. Companies rely on holistic strategies that streamline processes, digitalize products and services, and innovate businesses and revenue models to meet these needs. However, numerous studies show that especially small and medium-sized enterprises haven't begun the digital transformation yet and haven't begun the process of digitalization of their business yet. Lots of SMEs operate in globally competitive markets, it can pose significant risks to their long-term business success.
Digitalization expands the scope of traditional digitalization focusing mainly on the conversion of
similar information into digital representation. Digitalization has led to the development of various approaches to business and IT alignment, including technology adoption concepts, software selection procedures, or the integration of data and information through information systems. However, companies rely on new perspectives to cope with digitalization allowing businesses to fully harmonize all their strategies, processes, operations and IT systems. Despite the growing interest and frequent practical problems the research hasn't got any practical recommendations for formulating, implementing and evaluating appropriate strategies.
Enterprise business process management is a set of methods, techniques and systems for identifying, prioritizing, analyzing, improving and monitoring the business processes of the organization. Management
16 East European Scientific Journal #1(65), 2021 relies on a process-oriented paradigm replacing the traditional functional perspective with organizational structures in order to address growing market dynamics, growing competitive pressures and technological progress. The potential benefits of business process management range from increased flexibility, agility and responsiveness to improved innovation and customer focus. The implementation of a business process management system can be a difficult task, as it simultaneously affects different organizational levels and requires time, finances and human resources. Companies must take into account a variety of success factors, ranging from standardization and automation of processes, to the integration and involvement of stakeholders and proper training (development) of employees.
The digitalization of business processes at enterprises is especially important to introduce or complete in the context of counteracting the spread of coronavirus disease. All of the above-mentioned determines the relevance of this research.
Analysis of recent research and publications. Business process management is a set of scientific issues researched and implemented by many scholars all over the world [10, 4]. Business processes are the basis of every organization, and therefore their management is of great importance in practice. However, changes in the global market affect changes in organizations, which must adapt as quickly as possible to new conditions in order to thrive in the market. To make changes to their business processes is one way they can follow.
Thus, the aim of the article is to research the role of business process management in the context of
The representation level of digitalization and busi
Lots of scientists and practitioners have recognized the importance of business process management for digital transformation and digitalization. For example, S. Araujo [1], J. Francis [3] (2018) and T. Sandle [8] consider that the role of business process management in the digital transformation is a central one.
Researcher T. Sandle explains how business process management can help in the process of digital transformation, highlighting five ways:
digitalization and digital transformation of the economy.
The tasks of the research are
- to analyze modern scientific achievements to improve the management of business processes in the digitalization context;
- to identify the basic conceptual principles and directions of business process improvement at enterprises in the conditions of digitalization of the economy;
- to analyze international experience of business support in the direction of digitalization of major business processes;
- to identify the most important business processes of enterprises needing improvement through the information technology application.
The main part.. Business process management has been researched for many years. However, business processes play a key role in every organization forming the basis of each organization, they are not goods or services. It corresponds to the generally accepted definition of business processes given by A.V. Scheer and M. Nüttgens [9]. According to them, business process management is procedure for creating net added value of the organization. According to this definition, it is very important for an organization to control and manage its processes effectively. In addition, business process management tools and methods, as well as process models are considered the most valuable organizational assets.
The analysis of publications presented in international scientometric databases (Web of Science, Scopus) is given in table 1.
Table 1
s process management categories in international
- use of processor mechanisms;
- effective use of business intelligence;
- effective use of content management;
- use of cooperation tools;
- automation application to become a flexible organization [8].
We explore the impact and examples of each element digitalization (Fig. 1) considering the main six elements of business process management at the enterprise, identified by M. Rosemann and J. Van Brocke [7].
scientometric databases publications
Database Total number of publications Articles Conference proceedings Date of publication
Web of Science 24 9 15 2001-2018
Scopus 75 11 53 2010-2019
AIS Electronic Library 4 2 2 2007-2018
Source: systematized according to [11].
Strategy Management Methods Information technologies Staff Culture Factors
The process of improving planning Management and decisionmaking process Activity modeling Activity modeling Professional skills Adaptability to the external environment s p h e o
Strategy Distribution of duties Activity performance Activity performance Knowledge management Values n* ee
The organizational structure Measuring performance Monitoring and control Monitoring and control Education and advanced training Behavior n c e
Process evaluation Activity standards Innovations Innovations Cooperation Leadership
Interaction with customers and stakeholders Management of legal requirements compliance Process management Process management Leadership Management of social networks
Fig. 1. The concept of business process management system at the enterprise Source: compiled by the author according to [7].
Let's take a closer look at each of the elements of the business process management system concept.
Strategy. Business process management needs to be aligned with the overall strategy of the organization. Strategic coordination (or synchronization) is defined as the close connection between organizational priorities and corporate processes, which enables continuous and effective action to improve business efficiency. Processes must be designed, implemented, managed and measured in accordance with strategic priorities and specific strategic situations. Specific process capabilities (for example, competitive advantage in terms of time to complete or change the process) may offer opportunities to inform about the development of a strategy, leading to strategies with process support [7, p. 112-113].
Management. BPM (business process management) establishes appropriate and transparent accountability in terms of roles and responsibilities for different levels of BPM (portfolio, program, project and operations). Further emphasis is placed on the development of decision-making processes and rewards for the management of activities related to the process [7, p. 113].
Methods. Methods of business process management are a set of tools and methods supporting and ensuring activity throughout the process life cycle and within general organizational initiatives. The examples are methods facilitating process modeling or process analysis, and methods of process improvement [7, p. 113]. Different methods can be applied to the main, separate stages of the life cycle of each individual business process. This characteristic has led to the opportunity reflecting the life cycle stages of the process. The advantage is that the method can be evaluated against a specific goal. For example, you can evaluate the specific methods used to design processes, as opposed to those used to improve processes.
Thus, the choice of methods focuses on the specific needs of each process lifecycle and considers elements such as the integration of process lifecycle methods with each other and with other management methods, support for information technology methods, and the sophistication, suitability, and actual use of methods on each stage.
Information Technology. IT solutions are important for business process improvement initiatives. IT solutions are increasingly manifested in the form of information systems due to the traditional focus on process analysis and business process modeling. Awareness of processes means that the software clearly understands the stages and procedures of business processes. Such awareness of the process may be the result of data entry in the form of process models or may be more implicitly embedded in the form of hard-coded processes (for example, in traditional banking or insurance applications) [7, p. 113].
Staff. Human capital as a key element of the business process management system at the enterprise is a set of individuals and groups who are constantly improving and applying their skills and knowledge to improve business efficiency. Thus, this factor takes into account the ability to manage business processes reflected in the human capital of the organization and its internal ecosystem [7, p. 113].
Culture. The culture for business process management includes collective values and beliefs about the process-oriented organization. However, cultural aspects are usually considered a soft factor, the current global situation demonstrates the strong influence of culture on the enterprise success. Culture is the creation of a favorable environment for complementing and improving of business process management. However, it should be noted that the cultural activities impact has a much longer period of visible impact than the activities associated with other five factors listed above [7, p. 113].
The relationship between the effectiveness of business process management, their improvement and digitalization are clear. The companies can manage aspects of digitalisation primarily by using information
systems, they need to rely on holistic approaches dealing with digital transformation. We'll consider the basic requirements for the transformation of business processes in the context of digitalization (table 2).
Table 2
Requirement Description of requirement
Digitalization strategy Companies need to formulate a digitalization strategy through the goals and key measures determining, taking into account the need to control them.
Flexibility The organizational structure must be adapted and sensitive to changes in the company dynamic environment.
Digital expertise All complex business processes of companies must consider new information technologies and accelerate their specialization.
IT innovations Coordinating the business structure with new technologies, it will standardize and automate most business processes.
Cooperation Companies need to prepare organizational processes for the technologies application to communicate with internal and external stakeholders.
Openness Guaranteeing transformational sustainability requires reliance on openness, which requires the use of creative approaches and a risk-oriented approach.
Source: summarized by the author according to [2].
The digital economy is characterized by the interdependence of businesses and IT aspects of their activities. Business strategy is considered to be the most important driver of the traditional economy changes. The emergence of new technologies opens up prospects for business, it can be a driver for digital economy.
The development of social networks, the Internet, cloud computing, mobile computers and devices allowing these technologies to work creates conditions for intensive expansion of the digital environment. It is defined as a set of digital information, digital processes, digital infrastructure (digital devices and platforms), and actions related to the management of digital economic processes.
Modern companies use digital environment to create and develop their own digital business ecosystems, networks of sustainable interactions between the company, its suppliers, partners and customers (organizations and individuals) to provide maximum value for all its participants.
The boundaries between the company and the environment merge as a result of development, it leads to the implementation of digital strategies based on the transition to innovative business process management.
The business model ensures the competitiveness of the company by describing the most important factors of success; therefore, it is a more important element of the business architecture than the company's mission, strategy and cash flow plan.
The principles of doing business considering such aspects as the availability of a digital platform, digital content, digital interaction with customers and partners are key for the business process management system. However, in the digital economy the business model is an element of business planning and a mechanism for managing the enterprise and its digitalization processes.
A radical change in the paradigm of digitalization of enterprises should be noted: while at the initial stage of the digital age, research based on the information
model was the main approach to the development of information systems with subsequent automation of business processes. When improving the business process management system should take into account the dynamic features of the organization of the enterprise, which include the following:
- short life of the business model because of rapid changes in technology;
- the need to not focus on resources but on dynamic business opportunities;
- turbulence of business ecosystems caused by complex interaction of their participants;
- the possibility of intra-industrial diversification and synchronized business behavior of its stakeholders.
Thus, the key elements of the analysis of business process management at the enterprise are digital platforms, social trends, practices, and business opportunities of companies.
It is important to study the digitalization of business processes, to find a balance of interests of stakeholders' different types on the basis of mutual coordination of values.
There are many ways to look at an organization. So, there are lots of ways how to transform and optimize its various components. To consider organizations as groups of people working together to achieve one or more common goals is the first among approaches to optimizing business processes.
The second approach is to look at organizations as ecosystems of people, according to this approach, the goals and mission of the organization go beyond the causal dimension of people working to achieve the goal.
The third approach is to consider business processes as a system of information networks.
According to the literature analyses, these approaches reflect optimization opportunities, i.e. business process optimization (business processes relate to stages and tasks for serving people and achieving goals), workflow optimization,
organizational optimization, collaboration optimization, and optimization of information management etc.
There is another way to look at an organization. We can consider it as a set of highly interconnected business processes, people, and information helping business processes focus on results that are primarily customer-focused, but also potentially result in the next related business process.
Nowadays, business process management is often reduced to its one part, i.e. business process optimization. Business process optimization is often used as a synonym for business process management including many parts need to be considered and improved.
It applies to both functional and tactical forms of optimization. We should consider several components of business process transformation. When we add business transformation and digital transformation to the equation, there is much more detail to map, refine and link, and create more holistic bridges at the business process level.
Nowadays, advanced technologies are leading to so-called fourth industrial revolution with transforming industries of EU enterprises and significant social, economic and environmental consequences. This digital transformation of EU business and society represents a huge growth potential for Europe.
Digital platforms provide the technological basis for the provision or aggregation of services / content and mediation between service / content providers and end users. They integrate components of industrial
value chains into a continuous relationship between interacting business processes (e.g., design, production, sales, logistics, and service).
According to EU program documents, Europe should encourage the development of competitive digital business development platforms, establishing appropriate conditions for their creation and creating the right framework conditions for their growth [12, p. 4].
Data-driven innovation opens up new opportunities for Europe to develop its economy and address pressing social issues. Digital platforms have already become an indispensable tool for using data. Digital platform vendors are playing an increasing role in the value chain and its creation. In the future, all EU sectors should focus on value creation through digital platforms.
For example, 30-40 % of the automotive value chain may pass through digital platforms in the automotive industry in the near future. Digital players have access to driver data produced by people using the services offered in connected cars (such as insurance, entertainment, social media, health and well-being data). Car manufacturers and digital players work together to use contextual data to offer new services, but also compete to control that data. The sensors are enabling the emergence of new innovative business models that redesign healthcare management.
The main business processes that need improvement in information technology concerning digitalization are shown in Fig. 2.
Ensuring the efficiency of internal processes
Integration of new information technologies
I >. i tain a se m anagem ■ ■ n I Internal management needs
Attracting new customers
Custom er c om m unication m anagem ent
Agreement management Invoice management Business model changing Marketing operations
57%
3 8°ó
29° o
25°ó
25%
22%
78° b
74° o
% respondents
Fig. 2. Ranking of business processes need improvement. Source: [12].
The lack of theoretical basis for digitalization assessing at both micro and macro levels is an important separate methodological issue of improving business processes at enterprises.
The European economy has been characterized by industry for ages. Nowadays, its importance cannot be exaggerated. According to the European Commission, industry accounts for 80% of European exports and
20 East European Scientific Journal #1(65), 2021 private innovation. European players are world leaders in such industries as the automotive, building and luxury goods.
However, the world has changed, and the current COVID-19 crisis is a terrible reminder that the level of firms' digitalisation coincides both with their resilience to such unexpected events and with their competitiveness focused on digital technologies. For example, this crisis underscores how improved robotics can enable companies to continue to operate standalone plants, despite containment measures, how machine learning and data analysis can detect early signs of change in consumer preferences and how supply chain management increases.
Assessing the level of European digitalisation must start from the sources and the technological sector, where Europe is clearly lagging behind. All tech giants are based in the US and China, and these countries have also acquired the most promising European startups (such as Skype and DeepMind) in recent years, leaving very few so-called unicorns in Europe today (only 11% of the world's total) [12].
Digital technologies and data are changing the way people, companies and governments live, interact and work. As digital technology evolves, these changes are accelerating rapidly. The complex and interconnected effects of the digital transformation in the economy and society make rigid boundaries between policy areas less relevant and trade-offs between public policy objectives more difficult to navigate. As a result, clearer coordination and cooperation between all policy elements is needed. An integrated framework sets the way forward, helping governments, individuals, firms and stakeholders to shape policies for an inclusive and prosperous digital future.
The integrated approach considers technologies, data and business models the driving forces, it is based on a thorough analysis of digital transformation vectors in many different policy areas [6].
The structure includes seven interrelated elements, i.e. access; application; innovation; working places; social prosperity; trust; market openness.
The growing digital technology activation is observed both in the economy and society; it is reflected in the automation expansion of processes related to the management of the organization. It also extends to all subsystems, including human resources management. According to the McKinsey Global Institute, up to 50% of world workflows will be automated by 2036 [5]. It will lead to significant layoffs, reducing the number of jobs for middle-skilled staff.
The application of software products unifies and standardizes labor practices and actions; it will also increase the pay gap. Then it will gradually increase differentiation and discrimination at the labor market. The introduction of information technology will significantly change the content of management functions at the organization, it requires a rethinking of management strategies and tactics, requires the study of new approaches to managing all types of resources. The
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BUSM
staff is the most valuable one. The social and labor relations sphere needs special attention because transformations concern conscious people who need adaptation to new work conditions.
Nowadays it is important to integrate management theory and practice. That's why, it is necessary to enrich management decisions with scientific and methodological recommendations that allow a systematic and integrated approach to management digital organizational environment. It will promote integration research resources and practical results into a single system that will effectively carry out business processes in new conditions with the greatest efficiency.
Thus, the spread of digitalization has got the obvious benefits. However, it is also associated with risks and negative consequences including the inevitable transformation of relations and processes at the labor market, possible mass layoffs, which may not cope with increasing demands on their personal and professional competencies for working in the digital environment, the emergence of new professions associated with the need to teach people the knowledge, skills and abilities needed to work successfully to prevent shortages in skilled labor, etc.
Human resources (HR) management is a separate business process at the enterprise. The computer technologies application helps to synchronize business processes, ensures unity in the implementation of management and control functions. It should be noted that automation is also carried out in HR management, which allows us to involve more and more employees in the organization, increasing their awareness and active application of software products for the staff adaptation, training, development and evaluation.
The introduction of information and communication technologies allows us to increase the efficiency and quality of management decisions for HR management. It also increases employee involvement in the organization ensuring coherence, coordination and high efficiency of cooperation. An integrated approach to the automation processes management by creating a single automated information system includes the operation of various modules and subsystems, their implementation is a subject to a single strategy for the introduction of HR technologies.
In conclusion, we can say it is necessary to carry out large-scale transformations at all levels of government and society to ensure the effective implementation of digitalization programs. To use the public-private partnership tools is the most appropriate. The public-private partnership is a set of medium- and long-term interaction between government and business to solve socially significant problems on mutually beneficial terms. Nowadays, it should be associated with the creation of a single knowledge base for educational organizations and high-tech enterprises, as well as the accumulation and dissemination of best practices in the research organizational support.
Thus, it will be possible to combine the intellectual potential of public higher education institutions and various business structures participating in public-
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1HSJB
private partnership programs as co-founders of hightech enterprises, customers and consumers of innovative products, as well as educational services and research. The development of public-private partnership will provide enterprises with such advantages as:
- increase competitiveness and ability to respond quickly to changes in the environment;
- minimize the dependence of research projects on organizational and administrative resources;
- use the experience of past developments and commercial proposals;
- increase the efficiency of external and internal services of innovation infrastructure;
- reduce administrative costs.
The wide spread of digital technologies in economic sectors and social spheres makes the research of the degree of readiness and susceptibility to change relevant. It involves monitoring and identifying problems and difficulties in the way of innovative transformations related to automation.
Labor market transformations are associated with job losses, new professions emergence and changes of staff competencies require the development and adoption of comprehensive measures to study the possible consequences of automation, the adoption of programs to train people in new skills on this basis, and curricula should be improved. The business structures position should be active, because the organizational environment may face difficulties as it will not be provided in a timely manner with qualified staff meeting modern requirements.
Conclusions. The following conclusions and results were obtained during our research.
The development of social networks technologies, the Internet, cloud computing, mobile computers and big data, the emergence of devices that allow these technologies to work, creates conditions for the intensive expansion of the digital environment. We define digital environment as a set of digital information, digital processes and digital infrastructure (digital devices and platforms), and actions related to the management of digital processes towards the development of the digital economy.
The key elements of the business process management analysis are digital platforms, social trends, practices, and business opportunities of companies.
It is important to learn how to digitalize business processes, and to find a interests balance of different types of stakeholders through coordination and mutual coordination of values.
The introduction of public-private partnership should strengthen the medium- and long-term interaction between the state and business to solve socially significant problems. Nowadays, it is especially important to create a single knowledge base for educational organizations and high-tech organizations promoting the accumulation and dissemination of best practices and providing technical and economic support for the introduction of new forms of business and staff.
Modern organizations should develop a progressive staff policy. It would include a system of measures to support employees during organizational changes related to digitalization and aimed at implementing adaptation practices, training, motivation and establishing objective criteria for evaluation and areas of staff development. It will allow you to get the best results in the shortest possible time through the new technologies application.
Economy digitalization and its influence on economic activities is associated with the problems arising in transformation and change period. It should be seen as challenges to the existing system of governance, the readiness of organizations to prevent the emergence of possible risks will ensure its sustainable development and increase the expected efficiency and effectiveness in connection with digitalization, which provides undeniable advantages and increases the competitiveness of enterprises.
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УДК 65.014.1 ГРНТИ: 06.81.12
Козак Катерина Богдатвна
кандидат економ1чних наук, доцент, Одеська нацюнальна академiя харчових технологш, кафедра менеджменту та логiстики ОКСЮ Ю: orcid.org/0000-0002-8099-6607
TEOPM СТЕЙКХОЛДЕPIВ В КОНТЕКСТ УЗГОДЖЕННЯ IHTEPECIB СУБ'СКТАМИ
АГPОПPОМИСЛОВОÏ ГАЛУЗ1
Kateryna Kozak
PhD in Economics, Associate Professor, Associate Professor of Management and Logistics Department in Odessa National Academy of Food Technologies, Department of Management and Logistics
STAKEHOLDER THEORY IN THE CONTEXT OF AGREEMENT OF INTERESTS BY
AGRICULTURAL INDUSTRIES
Анотащя. Представлено авторську класифжацш груп стейкхолдерiв в сферi агропромислового виробництва. На базi моделi Мендлоу розраховано прюритетшсть защкавлених сторiн за параметрами влади i штересу.
Результатом дослiдження стало виявлення наступних особливостей функцiонування механiзму узгодження iнтересiв зацiкавлених сторiн в нащональному агропромисловому виробництвi: ключовими групами защкавлених сторш е логiстичнi компанii, власники пiдприeмства, менеджери, персонал, загальнодержавнi органи влади i управлшня; агропромислова сфера в УкраМ недостатньо включена у концепщю сталого розвитку, оскшьки у перел^ прiоритетних стейкхолдерiв вiдсутнi групи пiд умовною назвою «майбутш поколшня», а також сфери науки та освгги; зберiгаеться традицiйне для iндустрiальноi' епохи розумiння прiоритетностi параметрiв економiчноi стiйкостi у порiвняннi з параметрами стшкосп як розширеноi категорп, що включае екологiчну i соцiальну складову, i розвиваеться на основi впровадження наукових розробок у виробничу дгяльшсть; групами стейкхолдерiв, чи! iнтереси задовольняються найповнiше е власники аграрного шдприемства.
Abstract. The author's classification of stakeholder groups in the field of agro-industrial production is presented. Based on the Mendlow model, the priority of stakeholders in terms of power and interest is calculated.
The result of the study was to identify the following features of the mechanism of coordination of stakeholders in national agro-industrial production: key stakeholder groups are logistics companies, business owners, managers, staff, national authorities and management; the agro-industrial sphere in Ukraine is insufficiently included in the concept of sustainable development, as the list of priority stakeholders does not include groups under the conditional name "future generations", as well as the sphere of science and education; the traditional for the industrial era understanding of priority of parameters of economic stability in comparison with parameters of stability as the expanded category including ecological and social component remains, and develops on the basis of introduction of scientific developments in industrial activity; groups of stakeholders whose interests are most fully satisfied are the owners of the agricultural enterprise.
