Improving the quality of business processes of enterprises based on digitization

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National technical university of Ukraine «Igor Sikorsky Kyiv polytechnic institute»

Improving the quality of business processes of enterprises based on digitization

Zhanna M. Zhygalkevych

Ruslan O. Zalutskyi



Abstract

business digitization service

The article reveals the theoretical foundations and develops practical recommendations for improving the quality of business processes of enterprises based on digitization. During the research, the following methods were used: abstraction, observation, comparison, analysis and generalization. The theoretical basis of the research is the work of leading foreign and domestic scientists devoted to issues of digitalization and digitalization tools of business processes. The work reveals the importance of business processes as the core essence of companies that manage business, providing good results, products and services. It has been established that the application of digital technologies to business processes is a step that will help to increase the probability of achieving the specified goals by increasing the efficiency of the processes being performed. Digitalization is proposed to mean transformation, penetration of digital technologies for optimization and automation of business processes, productivity improvement and improvement of communication interaction with consumers. A key feature of such transformations is significant improvement in the quality of business processes, reduction of monetary and time costs for their support. The stages of digitization of enterprises are proposed, in particular the stages: business as usual, real and active, formalized, strategic, ascent, innovative and adaptive. Various business process digitization tools were also characterized, including: CRM system, ERP system, loyalty programs, business programs, planning programs, office productivity programs, time management software products such as Runrun.it. In the process of researching the business processes of industrial enterprises, it was found that the process of controlling the availability of production materials is burdensome. To improve the quality of the specified business process, industrial enterprises are offered the implementation of OneBox, which combines CRM, ERP and BPM systems. A detailed disclosure of the functionality of the specified system gave grounds to claim that enterprises will increase sales volumes, sales profitability, profits, speed of processing requests and reduce time for performing routine tasks, increase labor productivity, and reduce industrial and operational costs.

Keywords: business processes; quality; enterprise; digitization; development.



Анотація

Жанна М. Жигалкевич, Руслан О. Залуцький

Національний технічний університет України «Київський політехнічний інститут імені Ігоря Сікорського», Україна

Удосконалення якості бізнес-процесів підприємств на основі діджиталізації

У статті розкрито теоретичні засади та розроблено практичні рекомендації щодо удосконалення якості бізнес-процесів підприємств на основі діджиталізації. Під час виконання дослідження використовувалися методи: абстрагування, спостереження, порівняння, аналізу та узагальнення. Теоретичною основою дослідження є роботи провідних зарубіжних та вітчизняних вчених, що присвячені питанням діджиталізації та інструментів цифровізації бізнес-процесів. У роботі розкривається значення бізнес-процесів як основної суті компанії, які керують бізнесом, забезпечуючи хороші результати, продукти та послуги. Встановлено, що застосування цифрових технологій до бізнес-процесів є кроком, який допоможе збільшити вірогідність досягнення визначених цілей шляхом збільшення ефективності виконуваних процесів. Під діджиталізацією запропоновано розуміти трансформацію, проникнення цифрових технологій щодо оптимізації та автоматизації бізнес-процесів, підвищення продуктивності та покращення комунікаційної взаємодії зі споживачами. Ключовою ознакою подібних трансформацій є значні покращення якості бізнес-процесів, скорочення грошових і часових витрат на їх підтримку. Запропоновано етапність діджиталізації підприємств, зокрема етапи: бізнес як зазвичай, справжній та активний, формалізований, стратегічний, сходження, інноваційний та адаптивний. Також було надано характеристику різним інструментам діджиталізації бізнес-процесів, серед таких: CRM-система, ERP-система, програми лояльності, програми для бізнесу, програми планування, програми для офісної продуктивності, програмні продукти управління часом, такі як Runrun.it. У процесі дослідження бізнес-процесів промислових підприємств було виявлено, що обтяжним є процес контролю наявності виробничих матеріалів. Для удосконалення якості зазначеного бізнес-процесу промислових підприємствам запропоновано впровадження OneBox, який об'єднує в собі CRM, ERP та BPM системи. Детальне розкриття функціоналу зазначеної системи дало підстави стверджувати, що підприємства збільшать обсяги продажів, рентабельність продажів, прибутки, швидкість обробки звернень та зменшать час на виконання рутинних справ, підвищать продуктивність праці, знизять промислові й операційні витрати.

Ключові слова: бізнес-процеси; якість; підприємство; діджиталізація; розвиток



Main part

Formulation of the problem. The development of economic entities largely depends on the efficiency of their activities. In conditions of uncertainty, those enterprises that quickly adapt to the challenges of the external environment are more stable. Today, profound changes are taking place in the conduct of business due to the use of digital technologies. The rapid penetration of information technologies requires the transformation of enterprises into technological digital - oriented systems. It is important for domestic companies to learn how to work with large volumes of information and turn them into goods and values that the market requires. Therefore, the problem arises of improving business processes based on the introduction of digital technologies, which will allow enterprises to maintain and increase their competitive positions on the market.

Analysis of recent publications on the issue. A significant amount of domestic and foreign research is devoted to the problem of digitalization of business processes of enterprises. For example, in work [1] it is stated that the traditional economy feels the influence of the digital component of business relations, which generates progressive forms of modernization of business processes, under the influence of which not only the structure of market subjects changes, but also the technology of their management. The study [2] states that the internal goal of digital business transformation is to increase the efficiency of business processes based on the implementation of digital technologies. In view of expectations [3] for business, digitalization is a rather evolutionary and organic process: new game conditions are already being formed on the market and players, losing the required level, will either withdraw from the distance or start a new round of their development. And more, strong players will always bring new technologies and approaches, stimulating others to catch up. As the wide network of more traditional companies may not be able to satisfy the demands of consumers, this allows more innovative organizations to successfully compete in the market and provide exceptional digital products and services [4]. But, taking into account that the digitalization of business processes at Ukrainian enterprises is not active enough, there is a need for in-depth research into this problem.

The purpose of the research. The purpose of this article is to research the theoretical basis and develop practical recommendations for improving the quality of business processes of enterprises based on digitalization.

Research results. Business processes are the essence of the company. They manage the business and ensure that everything works as it should, delivering good results, products and services. The application of digital technologies to business processes is a step that will help to achieve goals faster and achieve much higher efficiency [4].

By implementing internal and external business processes, the company should achieve greater success, such as greater customer satisfaction and a faster ability to respond to changes in a specific market. This type of organization in the company will also allow divisions to work more efficiently with each other.

There are three types of business processes - operational processes, management processes and support processes. Operational processes include the essence of the company's goals and the development of the value stream. Management processes consist of methods designed to oversee such things as personnel and budget factors and corporate governance. Support processes are part of managing core operational practices and include things like technical support, security training, and hiring.

Today the consumers want a fast and simple digital experience, including a seamless user experience. Companies like Amazon and Apple have set the bar high for customer base reach, and most people now expect the same digital experience when receiving products or services from every business [5].

The introduction of the latest equipment, programs, platforms and IT tools forms the foundation of the company's competitive advantages due to the improvement and optimization of business processes, and digital technologies allow companies to maintain competitive positions on the market [2].

Digitalization encompasses the transformative integration of digital technologies into business processes, resulting in optimized operations, increased productivity, and enhanced communication with consumers [6]. This paradigm shift is driven by several factors, including the emergence of cutting-edge digital technologies, evolving consumer needs (such as time-saving measures and personalized search and purchase experiences), the creation of new value propositions, and the evolving competitive landscape [7].

At its core, digitization represents a profound transformation that significantly improves the quality of business processes, reducing both monetary and time investments required for their sustenance. This holistic approach ensures a unique blend of operational efficiency and enhanced customer interactions, laying the foundation for a thriving digital ecosystem [2].

Digitizing information-based business processes has significant benefits, such as reducing costs by 90% and accelerating order fulfillment times. Additionally, by removing manual processes and paperwork in favor of software, companies can automatically collect data that can then be mined to find better performance, company cost drivers, and potential causes of risk.

There are many opinions regarding the stages of enterprise digitalization. The version about six stages of digitalization is the most common [8].

Stage 1: Business as Asual.

A status quo. Businesses continue to operate as usual without understanding the perspectives and desires of their customers. A very common example of this is Blockbuster and Netflix. Blockbuster refused to move to an «as a service» model even as Netflix's popularity became apparent, eventually rendering the organization obsolete and irrelevant.

Stage 2: Real and Active.

In the second stage, the business has recognized the need for transformation and may have even experimented with different technologies to move forward. But the effort is disorganized, and different departments approach the problem from many different angles. If the business doesn't find a way to move from chaos to a more organized approach, transformation efforts are unlikely to yield positive results.

3 stage: Formalized.

As the business moves into the formalized stage, there is deliberate experimentation with new technologies with key visionaries and change agents in the business seeking executive buy-in. It is at this stage that the business is most likely to encounter obstacles caused by the company's culture. For a company to move beyond this, it needs to make changes in the company culture to be successful.

Stage 4: Strategic.

As soon as the business has reached strategic importance, it is possible to break through the obstacles that arose due to the corporate work culture and move towards creating a strategic development plan. Individual groups and divisions have recognized the power and strength of digital collaboration and are moving to invest in technology that will transform the business.

Stage 5: Ascent.

During ascent, a pair of lines meet at a point. Companies that have taken the step of digital transformation have developed a special task force of innovators that guides the business on a strategic path to transformation. These businesses have overcome the cultural barriers traditionally seen when a business embarks on a journey of transformation and is on the path to success.

Stage 6: Flexible and innovative.

Businesses that have reached this stage have achieved true digital transformation. Embracing technology as a way of life, organizations are adeptly poised to navigate novel technological avenues and effortlessly adapt to the dynamic landscape of the business world.

It is worth noting that digital transformation is a project that requires a systematic and serious approach in the long term. Therefore, even after obtaining positive results from the implementation of such a complex process, the company cannot stop, it must constantly develop taking into account new developments, innovations and technologies. Due to the complexity of this process, for its successful implementation, the company needs a clear strategy and a vision of how digitalization will help the organization move in the right direction and achieve its goals.

The success of digitalization largely depends on the team's understanding of the importance of this process. After all, digitization today is not an option, but a requirement of today to keep up with the world. Therefore, the entire staff must understand the purpose of the changes, adopt the idea of digitalization, and competence top management plays the main role in motivating this.

Digitization does not end with the implementation of technologies, because the company's personnel still need to adapt to updated business processes. Therefore, business owners and those responsible for change need to take a number of measures so that people can learn new processes and technologies. Such events are trainings and master classes, at which the staff receives the necessary skills to work in updated conditions. In addition, it should be noted that modern technologies actually become adaptation assistants. For example, UX design enhances program interfaces, while artificial intelligence processes data faster for optimal decision-making.

An effective strategy, a competent team, and well-motivated and aware employees are a large but incomplete part of the elements required for a successful company transformation. Qualitative changes are also achieved with the help of special tools. The software is based on the principles of modern concepts such as Business Process Management (BPM) and Customer Relationship Management (CRM). One such program is Creatio, which offers a large list of functionality for effective digitalization of enterprises, for example, automation of actions, Agile approach to task execution, and predictive functions.

Digital technologies provide an opportunity to provide the interaction most demanded by customers, namely the one in which the main vector is the personalization of interaction with the counterparty. Our daily lives are permeated by an array of remarkable advancements, including digital communication channels, omnichannel experiences, artificial intelligence, and robotics. These cutting-edge elements have seamlessly integrated themselves into our routines, revolutionizing the way we interact and conduct various activities. In the realm of banking, the digital transformation journey has been greatly augmented by the integration of intelligent chatbots, becoming an indispensable component of customer service. Meanwhile, the pharmaceutical industry has adeptly harnessed the power of modern mobile devices, leveraging their capabilities to optimize and streamline operations. These dynamic advancements have created a paradigm shift, enabling banks to offer personalized and efficient customer support, while empowering pharmaceutical professionals with mobile tools that enhance their productivity and effectiveness. As these innovative technologies continue to evolve, they undoubtedly play an integral role in reshaping our daily experiences and facilitating seamless interactions in both professional and personal realms.

Customer experience should be understood not only as interaction with external customers, but also with internal customers. Digitization of business processes makes it possible to optimize the work of the company's employees, thanks to which their labor productivity increases. Employees will be able to spend more time on complex and more important tasks if their simple, routine tasks are automated [9].

The digital transformation of the enterprise's business processes is designed to increase the efficiency of decision-making and the ability to meet customer needs. It is the digitalization of business that provides a chance to use certain innovative methods of enterprise development. So, for example, cloud technologies allow several teams to work on the same project at the same time and efficiently use the company's resources. And when using the Mobile First strategy, enterprises have the opportunity to receive and monetize mobile traffic [9].

There are various tools for digitizing business processes. Below is a description of some of them.

The CRM system is the management of customer relations. The purpose of CRM is to automate the process of interaction with customers by storing information about the client, the history of interactions with him, analyzing and increasing the efficiency and quality of business processes[10].

ERP system - enterprise resource planning. The goal of any ERP system is to optimize costs and resources of the organization to help the company avoid delays and downtime [10].

Loyalty programs act as a consistent element of the sales strategy across all channels and improve communication, along with increasing customer spend. Loyalty systems as a concept allow you to conveniently manage all the various special offers for a specific target audience. These applications collect large amounts of relevant customer data, including demographic or geographic data, as well as customer behavior patterns, purchasing interests and preferences, and transaction data generated during the purchase process [11].

Business applications include industry-specific applications designed for specific business needs. Be it an application for a travel company or an insurance provider, they all advertise the services and offers of a particular company to their users. In most cases, these are specially created programs with perfectly designed convenience and necessary functionality, instant interaction with the provider, and focused on the provider's array of services.

Planning programs are a necessity for many users today. They help manage online bookings and appointments and very often include online payment options. This includes a number of vital features such as automatic dashboards, booking confirmation, availability calculation, reminders and more to help stay connected and up-to-date. They often sync with 3D participant apps, making it very user-friendly to manage everything on all devices.

Programs for office productivity. These are programs that support round-the-clock information about the efficiency of work in the office. It is a documentation workflow focused on employee performance management KPIs, metrics and effective internal performance measurement, accounting and everything related to internal business operations. Some companies practice using gamification elements in their programs to better inspire and motivate employees. The overall goal of office productivity programs is to increase business productivity, employee engagement and performance [11].

Time management software products like Runrun.it offer numerous benefits to enhance user experience and automate various business processes that were previously handled manually. For instance, Runrun.it's time management platform seamlessly tracks employees' time spent on specific tasks and projects throughout the day, ensuring deadlines are met. Furthermore, the software provides personalized dashboards and reports that effectively highlight project performance metrics. These metrics can be used to gauge the frequency of document revisions, simplifying business processes and generating valuable feedback from managers and team members [5].

Pre-built solutions also help save time by streamlining task resolution, while a wide range of programs, extensions, and connectors optimize company operations with minimal implementation and adaptation efforts.

The advent of digital transformation technologies has significantly lowered the barriers to entry in various fields, facilitating easier establishment and development of businesses through the vast array of digital tools available [9].

Deepening the topic of improving business processes, the authors of the article chose to study business processes at industrial enterprises. In particular, it was established that the process of controlling the availability of production materials is one of the most complex in terms of the number of participants and time-consuming processes of industrial enterprises, therefore this particular business process was chosen for study.

The business process technology for supplying materials to the enterprise consists of several business processes:

1) preparation and execution of an application for material, which includes the following stages: determination of material needs; registration of the application for the material; approval of the application for the material;

2) selection of suppliers, which includes the following stages: preparation of a list of possible suppliers; sending a request, according to the application for the material; receiving commercial offers from possible suppliers, agreeing delivery terms; selection of the most suitable suppliers;

3) processing of orders, which includes the stages: registration and dispatch of the order; fulfillment of obligations to pay for the order;

4) control of the fulfillment of the terms of the contract, which includes the following stages: tracking the location of the cargo during the delivery process; registration of deviations from the control dates according to the terms of delivery;

5) reception of material, which includes stages: organization of reception of the cargo at the designated place; comparison of the characteristics and quality of the received material with those declared by the supplier; submitting claims based on the fact of deviation from the terms of the contract (occurs in case of inconsistency of the characteristics of the materials declared by the supplier with the real ones or in case of deviation from the terms of delivery of materials);

6) stocking of material;

7) account control.

To improve the quality of the business process of purchasing materials, we suggest using a CRM system.

The CRM system is an information platform that combines various business management tools. With the help of this platform, the company can sell its products and services more efficiently and in larger quantities. This system replaces the use of messengers and excel tables for accounting and reporting [12].

The CRM system will improve and speed up communication between different departments of the company. In particular, with the help of this system, it is easier to track the operations carried out by the sales department, which will facilitate the work of the planning department, which provides the production department with a production plan, and accordingly submits a request to the supply department for the purchase of production materials.

CRM system integration is useful not only for purchasing materials. This system has a positive impact on the vast majority of aspects of enterprises activity. One of these aspects is the improvement of the work of the employees of the commercial division. With the help of a digital platform, it is easier for employees to monitor the change in the price of the product, the amount of the product in the warehouse and manage the issue of payment. Also, the program allows you to more easily monitor the work of sales managers and collect relevant data. In this way, the program allows you to reduce the risks of selling at old prices and simplifies data analysis.

CRM helps to attract customers without investing large sums in the usual means of promotion - contextual advertising, SEO, marketing, etc. It offers functionality that helps convert site visitors into buyers [12].

With the help of the CRM system, you can automate routine actions related to placing orders with the supplier. The program includes a set of business process actions that will help simplify cooperation with enterprise suppliers:

- creating in the system a card of all suppliers with whom the company works;

- quick download of prices from suppliers;

- determination of the minimum reserve, and then the system automatically creates an order for the missing goods to the supplier;

- creation of an order manually or by the action of a business process;

- notifying the supplier by email or SMS if the company needs a new order;

- implementation of automatic markups on the price of suppliers according to the configured rules;

- setting the minimum retail price;

- updating the purchase prices of process products according to the supplier;

- automatic selection of the optimal supplier depending on the parameters;

- automatic transfer of non-selected products to the business process of interaction with another supplier, etc.

Among the most popular CRM/ERP systems that can be used to implement proposals for improving the quality of business processes based on digitalization at industrial enterprises are the following [10]:

- OneBox;

- Bitrix24;

- Sales Creatio;

- AmoCRM;

- SAP ariba;

The CRM systems listed above have a different set of functional tools.

SAP ariba focuses on purchasing and strategic selection of suppliers. The cloud-based solutions of this platform allow companies to effectively manage the supply chain and procurement process. This program allows the company to reduce costs, reduce liquidity risks thanks to a set of capabilities and tools of e-procurement.

All enterprises work in a changing environment, and even when choosing suppliers with whom companies maintain contacts for more than one year, one cannot be sure that nothing will change. Currently, the majority of enterprises operating in the conditions of military operations on the territory of Ukraine have experienced a negative impact on their supply chains. Certain digital tools exist to overcome such problems. For example, there is the SAP Ariba platform, which allows for real-time analysis of many risks associated with different suppliers. This allows companies to more accurately and quickly make decisions regarding the choice of a contractor, as well as the terms of the contract with him. Also, in critical cases, the program will allow you to quickly and efficiently find another supplier [13].

Bitrix24, Sales Creatio, AmoCRM are mostly aimed at automating the full cycle of product sales from lead to repeat orders. Also, these CRM systems have tools for more effective management of marketing, services and business processes of the enterprise. They make it possible to increase customer loyalty, effectively analyze the ways of attracting new customers (where the customer came from - the company's or dealer's website, magazine, advertising, social networks) and, accordingly, help to attract new customers more effectively, increasing the return on investment from advertising [10].

OneBox combines CRM, ERP and BPM. The number of possibilities provided by this platform is very large. It covers all business processes available in the company. With the help of OneBox, the enterprise can introduce new or improve existing processes, for example [10]:

1) robot for business and automation. OneBox is a program that can work independently in the background without requiring human attention. It is a robot on the guard of a business that helps to carry out routine or complex operations;

2) customers and leads (CRM). The enterprise will be able to manage its databases of contacts, customers, leads, suppliers, employees and partners in a single system;

3) business processes (BPM). This tool provides an opportunity to transfer all paper work to electronic business processes. Simplifies the tracking of all assignments and processes. Automates repetitive or simple operations to spend less time and do more;

4) document management, EDI, CLM. With the help of the CLM system, workers will be able to issue, edit and manage documents in one system, directly in orders and projects. You no longer need to use office packages and send documents by e-mail;

5) warehouse and inventory. Simplification of warehouse accounting in a modern system, management of product balances. Posting, writing off and selling from the company's warehouses in a few clicks;

6) KPI. Allows management to set key performance indicators, their calculation logic. Then manage results, create triggers for worker KPIs;

7) files and storage. Saving all files in one repository allows you to quickly find the necessary documents, wherever they are included: in letters, tasks or projects;

8) goods, services and production. A convenient base of goods and services, the ability to assemble and produce goods. The possibility of integrating the enterprise base with other sites, platforms and suppliers;

9) recruitment (HR). Automation of recruitment, questionnaires, interviews, intermediate tests;

10) projects, tasks and planning;

11) suppliers.

Given the multifunctionality of the OneBox system for improving the quality of business processes, it will be the most optimal for industrial enterprises.

Conclusions and prospects for further research. In the course of the study, it was found that the traditional economy is undergoing strong changes associated with digitalization processes. The main factors in the development of digitalization processes are the emergence of the latest digital technologies, the formation of new needs and requests of consumers, the creation of new values, properties of goods, and changes in the conditions of the competitive environment.

The issues of digitalization, changes in management models related to digitalization processes, and modernization of business processes for basic digitalization were considered. The main stages and tools of digitalization of business processes of the enterprise are analyzed. The main point of reference for the authors was the study of problematic business processes at industrial enterprises. It has been established that one of the rather cumbersome strategically important business processes is the control of the availability of production materials of the enterprise. In order to improve the specified business process, the implementation of the CRM system was proposed. The advantages of using this software are listed not only in the aspect of the mentioned business process, but also in the activities of enterprises as a whole. Among the most popular CRM/ERP systems that can be used to implement proposals for improving the quality of business processes based on digitization at industrial enterprises, OneBox is suggested. This will allow enterprises to increase sales volume, sales profitability, profits, processing speed of requests and reduce time for performing routine tasks, increase labor productivity, reduce receivables, reduce industrial and operational costs.

Currently, there are already many modern technologies related to digitalization of business processes, however, not all Ukrainian companies are ready for them. There is a problem of adaptability to them of personnel, technical equipment and material capabilities, so the topic remains open for discussions and further qualitative research.



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16. Stages of Digital Transformation. URL: https://www.dincloud.com/blog/stages-of - digital-transformation.

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Література

1. Лазебник Л.Л.Діджиталізація економічних відносин як фактор удосконаленнябізнес-процесів підприємства. Економічний вісник. Серія: фінанси, облік, оподаткування. 2018. №2. С. 69-74.

2. Устенко М.О., Руських А.О. Діджиталізація:основа конкурентоспроможності підприємства в реаліях цифрової економіки. Вісник економіки транспорту і промисловості. 2019. №68. С. 181-192.

3. Длігач А. Цифрова трансформація як ліфт у майбутнє. URL: https://tqm.com.ua/ ua/likbez/ua-articles/cyfrova-transforma ciya-yak-lift-u-majbutnye.

4. Талавиря О.М. Особливості формування стратегії розвитку підприємств. Науковий вісник НУБІП України. 2017. №260. С. 339-347.

5. Лісова Р.М. Вплив діджиталізації на бізнес-моделі: етапи та інструменти цифрової трансформації. Науковий вісник Ужгородського національного університету. 2019. №24 (2). С. 114118.

6. Як цифрова трансформація допоможе розвитку вашої організації? URL: https://www.terrasoft.ua/page/digital - transformation.

7. Пархомчук Т. Дії бізнесу на шляху автоматизації. Ваш радник в хащах діджиталізаціі. URL: https://www.bdo. ua/uk-ua/news-2/2020/business-actions-on - the-path-to-automation.

8. Глущенко Н.Діджиталізація закупівель:скільки компаніяможе зекономитина оцифруванні

9. Топ-10 кращих CRM-систем для України. URL: https://www.livebusiness. com.ua/tools/crm/.OneBox. URL: https://crm-onebox. com/ua/

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