Organizational and managerial aspects of ensuring the business strutures efficiency in the conditions of growing socio-economic turbulence

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Organizational and managerial aspects of ensuring the business strutures efficiency in the conditions of growing socio-economic turbulence

Організаційно-управлінські аспекти забезпечення ефективності підприємницьких струткр в умовах зростання соціально-економічної турбулентності

Oleksandr Ye. Bavyko, DEcon, Associate Professor

Odesa Polytechnic State University, Odesa, Ukraine

Vitalii O. Lozovets

Odesa Polytechnic State University, Odesa, Ukraine

Andrii Ye. Tkachov

Odesa Polytechnic State University, Odesa, Ukraine



Abstract

The general decrease in the volume of business activity and revenues of business structures, the insufficient level of profitability of the economy necessitate organizational transformations in management that will increase economic efficiency.

The aim of the study is to determine the content and algorithms for applying the organizational and managerial methods to ensure the business structures efficiency in conditions of growing socio-economic turbulence.

The business structures effectiveness depends on the degree of adaptability of the organizational and managerial system to environmental conditions. Business structures management is carried out on a systematic basis. Relevant organizational models of management systems were changing in the development process of economic relations and passed the genesis from linear-functional, through design to process management systems. Process models are the most suitable for modern conditions of entrepreneurship, but the consequences of the planned economy of the Soviet period determine the predominant use of linear-functional management models. The process management model involves the business processes design of the business structure along the value chain at the beginning and end of which are the needs of consumers and parties concerned.

The constant acceleration of socio-economic and technological dynamics necessitates constant organizational transformation of business processes, which can be expressed in complex measures of varying degrees of organizational change: optimization, restructuring, reengineering. The fundamental changes in the business environment caused by the COVID-19 pandemic necessitate a thorough redesign of business processes by reengineering methods, which is a comprehensive management tool aimed at redesigning business processes of the business structure to improve the organization based on quality management, modern organizational management methods and digital technologies. The reengineering algorithm consists of successive stages of current efficiency analysis, changes identification, business processes modeling and identification of weak elements in their structure, updated business processes design, testing of their effectiveness and implementation in the organizational structure. The main areas of reengineering are methods of organizational optimization based on the principles of quality management and digital technologies implementation.



Науково-методична стаття Загальне зменшення обсягів ділової активності та доходів підприємницьких структур, недостатній рівень рентабельності господарювання в умовах зростання соціально-економічної турбулентності, вказують на необхідність організаційних трансформацій в управлінні, що забезпечать умови для підвищення економічної ефективності. Фундаментальні зміни умов ведення бізнесу, що були викликані пандемією COVID-19 обумовлюють необхідність ґрунтовного перепроектування бізнес-процесів методами реінжинірингу. Алгоритм реінжинірингу передбачає послідовну оцінку поточної ефективності, встановлення необхідності змін, проектування оновлених бізнес-процесів, тестування їх ефективності та впровадження в організаційну структуру. Основними напрямами реінжинірингу є організаційна трансформація на основі принципів процесного підходу, тотального управління якістю та впровадження цифрових технологій.

Ключові слова: ефективність управління, організаційна структура, організація управління, організаційна трансформація, реінжиніринг, бізнес-процеси



General decrease in business activity and revenues of business structures, insufficient level of profitability in the conditions of growing socio-economic turbulence, indicate the need for organizational transformations in management that will provide conditions for improving economic efficiency. The fundamental changes in the business environment caused by the COVID-19 pandemic necessitate a thorough redesign of business processes using reengineering methods. The reengineering algorithm involves consistent assessment of current efficiency, identification of the need for change, design of updated business processes, testing their effectiveness and implementation in the organizational structure. The main areas of reengineering are organizational transformation based on the principles of process approach, total quality management and implementation of digital technologies. Keywords: management efficiency, organizational structure, management organization, organizational transformation, reengineering, business processes

. management organizational business



Entrepreneurial activity, which forms the basis of the economic system of the country and the world, is always aimed at obtaining a claim, which is expressed in indicators of economic efficiency. Creating business structures of their owners and managers primarily reflect on how to ensure their profitability, which is the main indicator of efficiency. The dialectics of socio-economic relations, which result from the unconditional relationship of social actors, determines the dependence of business structures efficiency on the surrounding of social, economic, legal, ecological, geopolitical environment and vice versa, all the above mentioned elements of the society depend on the entrepreneurs' economic behaviour. In the current growth of socio-economic turbulence, the main task of the management is to ensure the sustainable functioning of the subjects of socio-economic relations, which forms the basis for their economic efficiency.

The problems urgency for ensuring the efficiency of business structures management in the conditions of global technical and ecological transformation, caused by the fact that under the appropriate conditions of the degree growth of socio-economic processes enthusiasm, to maintain the efficiency level is becoming more and more difficult, and the process of its provision, which depends on a large number of factors provides for technological transformation of organizational and administrative systems in the direction of applying the reengineering methods.

Analysis of recent researches and publications O.A. Bilovodska [1], I.Ye. Melnyk [2], I.V. Kononova [3], V.S. Barsukova, T.V. Koturanova [4], N.V. Voloshaniuk [5] substantiate in their research the necessity to modernize organizational and managerial systems based on the reengineering methods of business processes of business structures. Modern scientists have made a very substantial contribution to solving the problems of ensuring the efficiency of business structures management on the basis of applying various methods. At the same time, in the conditions of constant change of factors of influence in the external environment of business structures functioning, the necessity of constant development for theoretical knowledge and practical experience of business structures activity on organizational and managerial aspects of ensuring their effectiveness is objective.

The aim of the article is to determine the content and algorithms for applying the organizational and managerial methods to ensure the business structures efficiency in conditions of growing socio-economic turbulence.

The main part

In 2021 Ukraine's economy developed under the influence of the restoration of world economic dynamics against the adaptation background of socio-economic relations to the negative effects of the COVID-19 pandemic. Positive predictions about the rapid recovery of the world economy have come true. Most centres for economic activity, despite the continued spread of the coronavirus, have restored pre-crisis levels of business activity. It is already clear that the COVID-19 pandemic is a story of at least a few more years, and the world and business need to accept this fact and re-organize organizational systems in accordance with new living conditions.

As it has already been mentioned, the major factor in the growth of socio-economic turbulence was the COVID-19 pandemic. Its negative impact on its destructive effects in the economy is compared with the major depression of the late 1930s, social and economic activity limitation within the framework of the quarantine measures led to a reduction of the global GDP by 4% in 2020, Ukraine's GDP by 4.3% [6]. The business activity resumption in 2021, according to the IMF forecasts, will ensure the global GDP growth by 5.9%. Ukraine's GDP growth is estimated by the IMF at 3.5% [7].

The business structures efficiency depends on the volume of production and is determined by profitability. Analysing the relevant statistical information, we are able to form a generalized assessment of the entrepreneurship efficiency.

The dynamics of revenues of business structures changed to positive in 2021. The indicators of revenue volumes increased in comparison with 2020 for all types of economic activity, Figure 1.

Figure 1. Business Activity Dynamics in Ukraine by Types of Economic Activity in Months of 2021 Compared

to the Corresponding Period of 2020

Source: compiled by authors on materials [8].

The Figure 1 information gives grounds to state that Ukrainian enterprises by majority of types of economic activity did not return to the level of indicators of 2019. Thus, the growth of industrial production at the end of 2021 was only 1%. Given its 2020 decline in 5.2% it is clear that the industry has not recovered its pre-crisis output. Industrial-related types of economic activity are also losing their volume. Freight transport increased by 1.5% in 2021, and in 2020 the decrease was 14.3%. Logistics increased by 1.8% in 2021 and decreased by 16.2% in 2020.

The spheres of economic activity which activity exceeded 2019 are traditionally for the agro-industrial economy of Ukraine are: agricultural economy (+ 1.9%), trade (+ 12.6%), export (+ 38.2%), import (+31.9%).

The business activity dynamics in industry at the enterprises of the Odesa region reflects the state of turbulence, Figure 2.

Figure 2. Turbulence in Production Volumes of Industrial Products by Enterprises of the Odesa Region in the

Months of 2021 Compared to the Corresponding Period of 2020

Source: compiled by authors on materials [9].

Production volumes are constantly changing with the corresponding state. The first four months of 2021, the industrial production volumes did not exceed the 2020 indicators. The next four months were characterized by the excess of the 2020 indicators due to the growth of volumes in the processing industry. In the autumn of 2021 the overall level of industrial production fell again below the previous year. The volumes of engineering industry products during 2021 also had wave-like dynamics. The growth of production in the spring of 2021 was replaced by a decrease in summer. In autumn we observed the resumption of production volumes in engineering industry.

According to the information of Main Department of Statistics in the Odesa region in January-October 2021 compared to January-October 2020, the industrial production index was 109.9%, including in the mining industry and quarrying were 50.8%, processing industry was 112.4%, electricity, gas, steam and air conditioning were 95.6% [11].

In our opinion, the overall profitability of business structures most comprehensively reflects the degree of the enterprise management efficiency. Studying the dynamics of the relevant indicators provides information on the degree of management efficiency and the level of predominance of enterprise revenues over their expenses, Table 1.

Table 1. The Overall Profitability of Business Structures by Type of Economic Activity

The type of economic activity	The profitability level (loss), %
	2016	2017	2018	2019	2020
1	2	3	4	5	6
Total	0.6	3.0	4.5	7.6	0.9
Agriculture, forestry and fisheries	24.7	16.0	13.7	16.1	13.6
Industry	-1.0	1.9	3.3	3.9	-1.3
Processing industry	-2.2	0.4	1.4	2.8	-0.5
Engineering industry	-0.4	3.0	3.2	8.0	-3.8
Construction	-5.0	-2.0	1.3	3.4	-1.0
Wholesale and retail trade; repair of motor vehicles and motorcycles	-1.0	5.0	11.4	16.4	3.6
Transport, warehousing, postal and courier activities	1.8	-3.5	-4.3	1.4	1.6
Temporary accommodation and catering organization	-15.2	9.5	13.0	13.0	-26.6
Information and telecommunications	1.3	8.3	8.6	10.5	6.5
Activities in the field of wireless communication	4.8	17.5	18.5	28.3	25.8
Financial and insurance activities	-0.5	14.3	13.9	8.3	13.0
Real estate transactions	-23.4	-10.1	-0.8	24.5	-17.0
Professional, scientific and technical activities	8.9	9.4	5.9	18.0	-3.3
Activities in the field of administrative and support services	-6.3	-4.0	-0.5	7.9	-0.1
Education	2.9	3.2	3.3	5.8	1.5
Health care and social assistance	1.3	0.8	2.6	1.9	12.4
Art, sport, entertainment and recreation	-10.7	-16.4	-3.7	0.0	-11.5
Provision of other types of services	4.5	-0.5	2.0	6.0	1.3

Source: compiled by authors on materials [10].

The information analysis on the overall level of business structures profitability gives grounds to assert its insufficient level in the majority of types of economic activity. The highest profitability is in the field of wireless (mobile) communications, where its indicator was 25.8% in 2020.

The value of the business structures profitability in the following activities is also positive:

agriculture 13.6%;

financial and insurance activities 13%;

health care and social assistance 12.4%.

The most negative are the profitability values of business structures by type of activity:

temporary accommodation and catering organization -26.6%;

real estate transactions - 17%;

art, sport, entertainment and recreation -11.5%.

In the field of industrial production was a decline in the overall level of profitability to a negative value of 1.3% in 2020.

The level of business structures profitability in the Odesa region, according to the Main Department of Statistics for most economic activities was positive, Figure 3.

Figure 3. The Enterprises Profitability of the Odesa region by the Types of Economic Activity in 2020

Source: compiled by authors on materials [11].

Based on the analysis results of information on the profitability level of enterprises of different types of economic activity, it can be concluded that the profitability level of enterprises in trade and transport is relatively sufficient. All other types of economic activities are characterized by insufficient profitability.

It should be noted the high number of economic activities in which the results are negative:

agriculture - 6.7%;

temporary accommodation - 6.3%;

information and telecommunications - 5.6%;

real estate transactions - 9.7%.

The industrial production profitability in the Odesa region comprised 2.5% in 2020, which was insufficient for the financial reserves formation that will ensure the enterprises ability to technological renewal and development.

The general decrease in the volumes of business activity and revenues of business structures, the insufficient level of profitability indicates the need for organizational transformations in management that will provide conditions for improving economic efficiency.

Business structures management is a complex mechanism for purposeful integration of organizational resources in the process of creating added value. The multifaceted nature of the process of creating added value determines the complexity of management activities and the constant search for measures in order to improve its efficiency.

Business structures management is carried out on a systematic basis. Relevant organizational models of management systems have changed in the process of economic relations development. The industrial period of economic development in which the foundations of modern technological development were laid and the era of mass production of consumer goods began is characterized by the use of linear-functional management models.

They have a hierarchical structure and ensure all the functional units subordination to the management of the organization. The corresponding organizational structure remains quite common, as it is simple from an organizational and functional view point. But the concentration of power and responsibility in the hands of one or more managers in the face of constant complexity of doing business at the present stage leads to a loss of economic efficiency.

Scientific and technical progress constantly accelerates the entrepreneurship development, creates the basis for producing new types of products, organizing large and complex projects. In the second half of the 20th century under the appropriate conditions a more modern approach to the management organization was formed, which was named "project". Its essence is to create cross-functional teams for solving individual production tasks-projects. The appropriate type of organization has management superstructure and project groups.

In the conditions of post-industrial development of economy which is characterized by constant change of conditions for functioning and digitalization of economic activity, on the basis of introducing the automated control systems the so-called process approach to the organization of functioning of enterprise structures was formed. Process - (from Latin "processus" is progress, advancement) is considered as a certain sequence of operations performed to achieve the desired result.

Based on the definition analysis of the concept of "business process" provided by researchers of the relevant issues, a list of the main semantic characteristics of the concept was determined, Figure 4.

Figure 4. The Main Semantic Features of the Concept of "Business Process"

Source: authors ' own development



Thus, on the basis of the definition of the main substantive features of the concept "business process", the following deflation is proposed. Business processes of business structures are formalized by the standards of organization the sequence of actions or operations within which resources of organization transform into results.

The business processes classification is carried out according to various criteria. M. Porter developed the most widespread business processes classification by their place in the chain of value added, which included: basic, supportive development business processes.

The organizational basis for monitoring the business processes effectiveness of the business structure is a system of relevant indicators of KPI (Key Performance Indicators), i.e., numerical performance indicators that help to determine the degree of achievement or optimality of the process, namely: effectiveness and efficiency [12].

It should be noted that in the management of modern business structures KPIs are defined within the current strategy and are considered as a tool that allows to monitor and evaluate the work of individual employees, groups, departments and companies, as well as to assess the strategies implementation [13].

Organizational implementation of the process organization of management of business structures is a system of interrelated actions in which the enterprise resources are transformed into the results of its activities, aimed at meeting certain segments of effective demand. Summarizing all the known characteristics of the process organization, it can be represented in the form of the following structural and logical scheme, Figure 5.

The fluctuation of the external environment causes changes in the operating conditions and the need to transform the organizational system of business structures in accordance with the trends of socio-economic relations. Taking into account the Soviet past of a large number of functioning business entities, as well as the relevant economic education of modern enterprises managers, we have in Ukraine the spread of linear-functional models of organizational system of business structures in which all the managerial powers are concentrated in the hands of the head. Under the conditions of post-industrial development and multifactorial influence of the external environment on the business structures activities, one person or group of functional managers is not able to take into account all the circumstances for effective managerial decisions. The corresponding state of affairs causes a large number of managerial deficiencies, and hence financial and other resource losses, which make it impossible to effectively develop business structures.

Figure 5. Process Organization of the Business Structures Functioning

Source: authors ' own development

It was due to the acceleration of socio-economic and technological dynamics that the need for constant organizational transformation of business processes was formed, which can be expressed in complex measures of varying degrees of organizational change. Based on the analysis of the theory and practice of optimizational transformation of business processes, we consider it is possible to identify three levels of relevant management activities:

optimization;

restructurization;

re-engineering.

It should be noted that taking into account the organizational and economic specifics of business structures, other levels of business process transformation can be determined.

Business processes optimization involves introducing minor constructive or structural changes in the enterprise structure activity with the purpose of its adjustment to external conditions of functioning of the organization. Optimization examples can be the introducing the remote work for some office workers in the lockdown conditions.

Restructuring as a concept comes from the English "to restructure" which means "to change the structure". According to the Code of Ukraine on bankruptcy procedures "the process of enterprise restructuring is the realization of organizational and economic, financial and economic, legal and technical measures aimed at the enterprise reorganization" [14].

Analysis of the research of the relevant subject area indicates the presence of different points of view as to the essence of this concept and a clear definition of the content of the process of restructuring of business structures. The most widely recognized was A. Podderogin's definition which defines the enterprise restructuring process "as fundamental, complex changes, which are based on transformation of business structure and way of functioning, which covers practically all aspects of its activity, the ultimate goal of which is prevention of crisis phenomena, increase of efficiency of work and competitiveness, increase of profitability" [15].

Similar is O. Tereshchenko's definition, who defines the restructuring of industrial enterprises and financial companies "as a process aimed at creating conditions for the efficient use of all factors of production in order to increase financial stability and increase competitiveness" [16].

Reengineering should be considered as a modern method of business process transformation. The novelty of this managerial approach determines the existence of different points of view on its specific content. According to the results of the analysis of the definitions of the concept of "business process reengineering" based on the separation of the main semantic characteristics, it is possible to form the following author's definition: comprehensive management tool aimed at redesigning business processes of the enterprise structure with the purpose of general improving the work of the organization on the basis of using the principles of quality management, modern organizational methods of management and digital technologies.

The main conditions for business process reengineering include strategic goals of the business structure which provide for strengthening the competitive position and exit or maintenance of leading positions in the market.

The condition of successful business process reengineering is effective personnel management, measures implementation that are not contrary to change, effective planning and adequate distribution of responsibilities and powers.

The reengineering implementation should be accompanied by a wide internal communication for which all the enterprise employees receive the necessary information about the goals and contents of changes taking place at the enterprise.

Modern experience of managerial transformation of business structures indicates necessity of methodical and instrumental support, which is usually provided by consulting companies.

A factor of success in carrying out the reengineering is the management readiness to radical changes and awareness of their necessity and cost. Under the appropriate conditions, confidence in the decision correctness to conduct the reengineering is broadcast to the whole team, which triggers the effect of organizational synergy.

The mechanism of conducting the business process reengineering provides for a certain sequence aimed at ensuring the effectiveness of the actions organization which implementation involves constant monitoring of its condition, taking into account the impact of the external environment and all the stakeholders' interests.

The direct content of business processes reengineering depends on the industry affiliation and the specifics of the organizational and managerial structure of the enterprise. At the same time, it is considered possible, using the general principles of management and the specific content of the re-engineering process, to build a general algorithm for its implementation in business structures.

The condition for the business structure success in modern market conditions is not only the products improvement but also systematic activities to improve the organizational structure. Thus, the first stage of reengineering involves determining the current level of efficiency of the enterprise organizational structure. Relevant activities based on traditional strategic methods of SNW and GAP analysis. Based on the results of determining the degree of current efficiency, in the second stage, a decision is made on the need for full or partial re-engineering, Figure 6.

Figure 6. The Algorithm for Business Processes Reengineering Source: authors ' own development



The third stage is the development of reengineering goals and measures to be taken in order to achieve the set goals. The fourth stage is the simulation of the current state of business processes in order to identify weaknesses. At the fifth stage the formation of new or redesign of existing business processes and the entire organizational structure of the enterprise is conducted. At the sixth stage updated business processes are tested and their effectiveness is monitored. At the seventh stage a decision is made on introducing a new organizational structure or the need for additional changes. The reengineering algorithm becomes permanent under the conditions of constant communication between top management and production units, which performs the task of constant monitoring of the business processes of the business structure.

The main features of reengineering include its implementation on the basis of modern organizational principles of quality management system and business processes digitalization.

Management systems of modern business structures in developed countries are based on the principles specified in the international quality standards of the ISO 9001 series. These standards are based on the content of the Total Quality Management (TQM) concept in Ukrainian, and are often translated as "general (comprehensive, total) quality management" or "general quality management".

One of the main content elements of the TQM concept is the direction of management activities for continuous quality improvement, substantiated by the American scientist Joseph Juran. The content of this area of management activity is to determine the overall logic of building business processes and activities for continuous monitoring and improvement.

The corresponding logic of construction or sequence of business processes is clearly presented in the model called "Juran's Spiral" which shows the sequence of business processes from determining unmet market demand, design, development, implementation and production of necessary products, entering the market and continuous monitoring of consumers' satisfaction in order to make timely adjustments to production.

It is within the framework of the TQM concept and continuous improvement of quality that modern principles of business processes reengineering were formed, which are set out in ISO 9001:2015.

Customer orientation is a principle that involves directing the main efforts of the enterprise to determine the content and meet the needs of customers.

Responsible leadership - leaders at all levels ensure the unity of activities and areas of development and create conditions for personnel involvement to achieve the goals of the organization.

Involving personnel, delegating authority is competent, eligible and involved personnel at all levels in the organization, is essential to improve the ability of the organization to create added value.

Process approach - coordinated and predictable results are achieved more efficiently and effectively if the activity is understood and managed as interrelated processes that function as an entire system.

Continuous improvement accounts for establishing a feedback connection with stakeholders to determine the degree of satisfaction with the performance of the business structure and to adjust the business processes content if necessary.

Decision-making on the basis of actual data - managerial decisions are made on the basis of results of permanent monitoring of business processes efficiency under the system of relevant indicators (KPI).

Establishing relationships with parties concerned - the enterprise is able to function effectively only if the opportunities and limitations associated with each stakeholder are taken into account.

Taking into account the post-Soviet character of the economic and managerial mentality of a large part of Ukraine's population, the priority direction of reengineering is transformation of linear-functional models of business structures management in the process ones.

Within the framework of the presented research, the diagnostics of management efficiency of the Ukrainian instrument-making enterprises was carried out. According to the study results, it was found that in this segment there were large manufacturing enterprises with a linear-functional type of organizational structure that needed modernization based on the principles of TQM and ISO 9001: 2015.

The linear-functional organizational structure of instrument-making enterprises is subordinated to the production needs and is based on a hierarchical, authoritarian management system, complex and multi-level control system, which nullifies personnel motivation and prevents rapid response to changes in market environment. That is, the main shortcomings that need to be addressed in the process of reengineering a linear- functional organization include: the difficulty of adapting to changes in the environment; the complexity of maintaining the quality needed by the consumer; functions duplication by different divisions of the enterprise, which leads to an increase in overhead costs and protracted decision-making.

For example, in the studied enterprises the procedure of adjusting the selling price of products involves several stages. Based on the results of direct communication with customers, the sales department, not having the authority to make independent decisions, forms a request for this issue consideration by the director. In order to make an informed decision, the director sends instructions to the planning and economic department to assess the possible reduction in price, whose specialists operate with product cost indicators. At the same time, market factors are not taken into account in pricing (including elasticity of demand and market situation). Thus, the protracted and differentiated between different management departments decision-making process leads to a loss of efficiency. Under the relevant organization, the enterprise loses revenue because the buyer does not wait for the results or buys similar products from competitors, or seeks dumping prices. Information about dumping is disseminated instantly, and potential buyers no longer agree to buy products at a favourable price for the manufacturer. Thus, the company, having the opportunity to compete in the market for the price does not realize this competitive advantage. Of course, under such conditions, it is not necessary to talk about the growth of financial stability and efficiency.

Reengineering of the linear-functional system of the organization in the process one involves the delegation of authority to the level of functional units. This principle reduces the time of managerial decisions and improves their efficiency. The basis of the linear-functional organization reengineering of the business structure functioning in the process one is the implementation of the chain of creation of consumer (added) value of goods. There must be the consumer at the beginning and end of this chain. It is on this methodological basis that the organizational structure should be reengineered, which will support the processes functioning in the organization. This approach is reflected in ISO 9001: 2015, which defines that the organization operates in accordance with customer requirements and expectations of parties concerned.

The linear-functional control system reengineering of the instrument-making enterprise involves introducing the process organization of operation based on the ISO 9001: 2015 principles. Under the appropriate organizational framework, the enterprise management structure acquires the features of horizontally oriented, Figure 7.

Figure 7. The Proposed Process Organizational Structure of the Enterprise

Source: authors ' own development

Organizational methods of business process reengineering are traditionally combined with introducing the information and communication technology achievements into the management system.

The process of introducing the information and communication technologies in the organization of business structures activity began in the second half of the 1990s of the past century with the spread of computers and automated accounting programmes [17]. At the beginning of the XXI century new innovation has appeared, i.e., Internet banking. According to the State Statistics Service of Ukraine, 84.3% of Ukrainian enterprises used Internet banking in 2019 [18].

Since about 2004-2005s enterprises in Ukraine have been actively creating websites that contain information about the enterprise and the products it produces. Approximately since 2010 CRM technologies of automated customer relationship management have been introduced into the practice of organizing the of business structures functioning. There are no statistics on the using the CRM technologies by business entities in Ukraine. At the same time, it should be noted that the relevant technology has been implemented in the studied instrument-making enterprises, but is more often used as a convenient database of enterprise customers than as a tool for business process management.

The current stage of digitalization development of business process management of business structures is characterized by the integrated business process management systems development of the enterprise, which is named after the abbreviation - ERP (Enterprise Resource Planning). Appropriate technology combines finance, supply chain, operations, trade, reporting, production, human resources and allows to manage them ensuring the balance of quality and profitability.

A separate area of business processes reorganization of the business structure is to ensure its presence on the Internet and obtain information through using the artificial intelligence tools.

The presence of business structures on the Internet is ensured by means of websites and accounts on social media networks Facebook and Instagram. However, according to Ukrstat, the share of enterprises that had an account on social networks is 25.7% [18]. This is one of the areas of business process reengineering related to customer interaction. Optimizing the business structure on the Internet requires using modern SEO technologies for content optimization and advertising targeting. In the conditions of the COVID-19 pandemic and lockdown, enterprises began to use cloud services more actively, with the help of which they can store databases, manage



Conclusions

The general decrease in the volume of business activity and revenues of business structures, the insufficient level of profitability of the economy necessitates organizational transformations in management that will ensure the increase of economic efficiency.

The business structures effectiveness depends on the degree of adaptability of the organizational and managerial system to environmental conditions. Business structures management is carried out on a systematic basis. Relevant organizational models of management systems were changing in the process of economic relations development and passed the genesis from linear-functional, through design to process management systems. Process models are the most suitable for modern conditions of entrepreneurship, but the consequences of the planned economy of the Soviet period determine the predominant use of linear-functional management models. The process management model involves the design of business processes of the business structure along the value chain at the beginning and end of which are the needs of consumers and parties concerned.

The permanent acceleration of socio-economic and technological dynamics necessitates constant organizational transformation of business processes, which can be expressed in complex measures of varying degrees of organizational change: optimization, restructuring, reengineering. The fundamental changes in the business environment caused by the COVID-19 pandemic necessitate a thorough redesign of business processes by reengineering methods, which is a comprehensive management tool aimed at redesigning business processes of the business structure in order to improve the organization based on quality management, modern organizational management methods and digital technologies. The reengineering algorithm consists of successive stages of analysis of current efficiency, changes identification, business processes modeling and weak elements identification in their structure, design of updated business processes, testing their effectiveness and implementation in the organizational structure. The main areas of reengineering are the organizational optimization methods based on the principles of quality management and digital technologies implementation.



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