CONCEPTUAL APPROACHES TO REENGINEERING AND IMPROVEMENT OF BUSINESS PROCESSES OF THE ENTERPRISE
Abstract
The article examines the fundamental differences between business process improvement (BPI) and business process reengineering (BPR) in the context of a dynamic and unpredictable business environment, highlighting the importance of strategic vision to ensure effective company operations and avoid ineffective changes due to misunderstanding BPI and BPR. The topic’s relevance is underscored by the fact that organizations often invest significant resources in changes that may not be relevant, leading to inefficiencies, errors, and cost overruns. The paper argues that a clear strategic vision is essential for aligning business processes with long-term goals that ensure efficiency and sustainable development. To analyze these issues, the article applies methods: literature analysis, comparative analysis to determine differences between BPI and BPR, case studies to provide practical examples of BPI and BPR implementation in enterprises, and financial analysis to evaluate the impact of changes on enterprise efficiency and competitiveness. BPI involves the gradual improvement of existing processes, focusing on efficiency and minimal use of resources, suitable for the sustainable development phase. BPR requires radical rethinking of processes to achieve significant improvements during crises or when strategic changes are needed, involving substantial resources and fundamental organizational changes. Examples from the business world illustrate the practical application and results of BPI and BPR. Starbucks successfully used BPI during the COVID-19 pandemic to improve digital channels and streamline processes, ensuring sustainable growth. Conversely, BlackBerry’s BPR attempt to regain competitiveness backfired, demonstrating the challenges and risks associated with radical change. In conclusion, the paper highlights the importance of leadership competencies and strategic vision for the successful implementation of BPI or BPR. Effective communication, data-driven decision-making, and encouraging innovation are critical to long-term success. The choice between improvement and reengineering depends on the specific conditions and challenges faced by the company, with BPI suitable for incremental improvements and BPR necessary in case of significant problems or strategic shifts.
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