48. Business processes reengineering as a tool of increasing company market value
Oksana Lysenko, Olga Nikitenko
National University o f Food Technologies
Introduction. Development of market transformation processes in Ukraine creates 
preconditions for the development of an open stock market acting as a regulator of capital 
transfer from low production sectors to those providing high efficiency of business 
processes. However, the low profitability of domestic manufacturing companies do not 
promote the increase of their market value and, thus, makes it impossible to use stock 
market instruments (for instance, equity issue) to realize development objectives. Due to 
this fact business owners and managers become interested in management tools and 
teclmiques for increasing business market value.
Resources and methods. Internet sources -  online library catalogues, publications, 
books, manuals, guides related to the topic.
Results. Management of the vast majority of domestic manufacturing enterprises, 
established in the Soviet time, is based on the structural and functional approach in which 
responsibility for certain functions performance is clearly structured and assigned to 
relevant functional departments. The main shortcomings of this approach are [3]: division
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of work performance techniques into separate, usually unrelated, fragments that are 
performed by different structural units of the organization; the lack of a holistic description 
work performance techniques; lack of focus on an external customer, as well as internal 
parameters of intermediate results.
Business processes reengineering concept is based on organization business processes 
optimization. In general, a business process is defined as a structured set of actions 
designed to manufacture a certain product (service) for a particular customer or market [2]. 
Within any business process, resources are used at the input and the product is created as a 
result of activity. Therefore, business processes reengineering is aimed at singling out and 
substantial improvement of key business units which can provide competitive advantage for 
the organization. It can be a rational organization of the manufacturing process allowing to 
obtain high quality products and maintain leadership regarding costs (costs minimizing). It 
can be personnel management which effectively channels staff activities in the right 
direction, thus making it possible to achieve organizational goals [1]. Basically, this is the 
concept of reengineering.
Reengineering is different from other ways of business improving primarily in terms of 
its methods and techniques. In the first place it is meant to determine what the company 
should really do and only then -  how it should do it. Therefore, it provides an engineering 
approach to development of the company and processes implemented in it, i.e. the company 
is regarded as an object which can be built, designed or redesigned according to 
engineering principles.
Conclusions. Thus, the top-priority task of business processes reengineering at 
manufacturing enterprises is to single out the links where the greatest added value is formed 
and, hence, to significantly improve their performance in order to enter outsourcing 
networks as a key player who reserves the largest share of profits. This will increase the 
market value of the company and create new opportunities for its future development.
References
1. Яковенко C.I. Реінжиніринг бізнес-процесів шляхом інформатизації 
управління на підприємствах України // Актуальні проблеми економіки. -  2004. -  №9 
(39).-С . 118-127.
2. Рубцов С.В. Уточнение понятия бизнес-процесс // Менеджмент в России и за 
рубежом, 2001. -  № 6. -  С.26-33.
3. Реинжиниринг: не автоматизируйте — уничтожайте // Office. -  2010. -  № 7-8. -  
С.10-14.