THE MANAGERIAL DECISION-MAKING MODEL FOR THE MODERNIZATION OF TECHNOLOGIES FOR BUSINESS PROCESSES AT A LARGE INDUSTRIAL ENTERPRISE

Abstract

Existing technologies for substantiating the modernization of basic business processes make it relatively easy to calculate the economic effect of its implementation (by saving resources, reducing labor intensity, increasing both labor productivity and production volumes) because all calculations are based primarily on linear relationships. The rationale for the modernization of auxiliary business processes is more problematic since their specific features significantly complicate the calculation of the economic effect. Firstly, there is a lack of information about the technologies for supporting auxiliary business processes. Secondly, the existing management tools do not consider the complex and closed nature of economic relations between supporting business processes. Thirdly, the complexity of assessing the quality of products of auxiliary business processes and their impact on the main business processes. In order to provide an opportunity to justify business process modernization projects, the author has developed a model that evaluates the effectiveness of a managerial decision on modernization based on changes in the total profit of the enterprise, which differs from the existing ones taking into account the cyclical nature of economic relationships between auxiliary business processes. The developed model for managerial decision-making for the modernization of business process technologies at a large industrial enterprise is based on the author’s method of calculating the cost of production of a large machine-building enterprise, taking into account the principle of multi-cyclical distribution of the cost of auxiliary business processes