Business Process Change Research Articles

SMEs in a Digital Era: The Role of Management

This article aims to explore the role of management in translating the external factors’ and internal barriers’ impacts on the level of adoption of digital technologies as a lever for change in business operations and processes in small- and medium-sized enterprises (SMEs). SMEs face a distinct set of challenges when adopting digital technologies, often lacking resources and knowledge. On the other hand, they have certain characteristics, such as simpler organisational structures and processes, that make them more flexible than larger firms in leveraging technologies into new business models. Data for this study are obtained from 989 SMEs in Bulgaria in the manufacturing and services sectors. A PLS–SEM analysis confirms eight hypotheses raised on the relationships between environmental factors and government support and internal factors (management support, organisational flexibility, and risk-tolerant culture) that impact digital business intensity. Environmental factors’ impact is stronger than government support, while internal barriers are found to have no statistically significant relationship. The research findings highlight the important role of management support in guiding digital transformation through supporting organisational flexibility and promoting a risk-tolerant culture.

Transformation of e-commerce business models in the digital economy

Purpose. Research on the transformation of e-commerce business models in the conditions of the digital economy, analysis of the main directions of changes in business processes, as well as the determination of key differences between Internet commerce, e-commerce and online commerce, substantiation of the difference in the sources of generation of added value and identification of the factors that facilitate the transition from traditional e-commerce business models to digital ones. Methodology. When conducting the research, the trends of the development of electronic commerce and the factors contributing to their transformation in the conditions of the digital economy were revealed by the method of formal analysis. Findings. This study presents an analysis of trends and factors affecting the development of digital commerce and the transformation of digital commerce business models. The directions of integration of digital technologies into business processes and strategic aspects of the implementation of digital solutions into business practice are substantiated. The key factors that contribute to the transformation of e-commerce business models into digital commerce business models are identified, in particular, in the creation and implementation of new business models that allow for effective adaptation to the conditions of the digital economy. It is found that the economic basis of transformations of business models is the sources of creation of added value. It has been proven that digital technologies, which form the basis of e-business, are carriers and main sources of added value creation, which is reflected in business monetization models. The impact of artificial intelligence on the prospects and further development of digital commerce business models is analyzed. Originality. The scientific novelty obtained as a result of this research consists in the definition and substantiation of a new factor – added value, which is the main factor influencing the transformation of e-commerce business models into a digital commerce business model, which takes place under the influence of the digital economy. The novelty of the obtained research results in terms of substantiation of added value as a factor of transformation is proven by confirming the hypothesis that the formation of e-commerce business models and their transformation into digital commerce models take place under the influence of digital sources of added value creation.

Проблематика оценки финансового результата проектов цифровой трансформации

The purpose of digital transformation is to increase the efficiency of their work through the introduction of new technologies, both in management and technological processes. Assessing the financial result of digital transformation projects is a complex task that requires taking into account many factors that are not always amenable to quantitative analysis. The problem lies in the variety of aspects that need to be taken into account when evaluating, starting from direct financial investments and ending with the long-term effect on the competitiveness of the organization. These projects involve significant investments in technology, staff training and business process changes, but the end result is not always obvious at the initial stages. The purpose of this study is to identify and analyze the problems of evaluating the financial result of digital transformation projects.

Investigating business process changes: a framework for identifying outdated process models

Investigating business process changes: a framework for identifying outdated process models

Are innovative firms more circular when women hold upper positions?

The circular economy paradigm demands immediate and significant adjustments and changes in management and production business processes to maintain adequate to good ecosystem conditions for the use and development of human life. In this context, we analysed the impact of female leadership in the business environment and its relationship with the conservation of planetary health. This empowers women in the transition toward circular business model within the planet's capacity.For a panel data sample of the world's largest companies, we find that active female participation in high business positions leads to significant changes toward a model that protects the natural and endemic wealth of different ecosystems around de world. Additionally, we found that the active presence of women in the decision-making process concerning the protection of the environment, human development, and economic prosperity is strongly associated with the prospective knowledge that female independent directors possess, and to a greater extent, with the knowledge spillover that the presence of female executive directors entails.

Standardization of the Modeling System for Choosing the Reengineering Form to Change Business Processes at Critical Energy Infrastructure Enterprises: Challenges for Human Capital Security

The topic of standardizing the modeling system for choosing the reengineering form to change business processes at critical energy infrastructure enterprises presents a complex interplay between technological advancements, process optimization, and the safeguarding of human capital. This discussion spans over several facets of organizational management, highlighting both the opportunities and challenges inherent in such transformative endeavors. The purpose of the article is to model the choice of the reengineering form to change business processes at critical energy infrastructure enterprises. The object of the study is a critical energy infrastructure enterprise. The methodology of the study involves the use of the IDEF0 method. As a result of the modeling, a model for choosing the reengineering form to change business processes at critical energy infrastructure enterprises is presented.

Building the Processes Behind the Product: How Digital Ventures Create Business Processes That Support Their Growth

Business process management (BPM) is changing in the digital age. As a result, organizations are confronted with new logics that their business processes adhere to: processes are designed to allow for easy adaptability, infrastructure becomes progressively more flexible, and process participants make their own decisions in ambiguous situations. In this context, business process change becomes increasingly important. Digital ventures – key phenomena in the digital age – heavily rely on digital technology and, hence, have the potential to change quickly. Consequently, their business processes need to change at the same speed. While the literature on BPM proposes different types of business process change and acknowledges that digital technology can enable such developments, it remains to be explored which specific characteristics of digital technology facilitate business process change. The study investigates this by drawing on a multiple case study with seven digital ventures. It finds four patterns of business process changes in digital ventures, illustrating digital technology’s impact on business processes. The study compares the patterns with existing types of business process change from the literature and discusses differences and similarities, trying to advance the understanding of business process dynamics in the digital age.

Optimizing company performance with a web-based office administration system at PT. Perkebunan Nusantara

In the era of globalization as it is today, the development of industry has entered the era of industrial revolution 4.0, meaning 4.0 itself is the industrial revolution has reached the 4th wave of the development of the previous industrial revolution. After the Covid 19 pandemic VUCA phenomenon (Volatility, Uncertainty, Complexity, Ambiguity) became a scourge for companies that are not ready in the face of business dynamics at this time, the industrial revolution 4.0 itself triggered the occurrence of Quantum Leap where almost all companies are forced to change business processes from initially information technology systems / manuals to be spurred to develop IOT (Internet Of Thing) (Sheridan, 2005).based information technology systems PT. Perkebunan Nusantara as one of the State-Owned Enterprises (SOEs) optimizing their Company Value Chain by developed information systems on web-based Office administration through the OA Application (Office Automation). The design of OA itself aims to make the company's performance in this case office administration more efficient, agile and flexible because it makes more easier to be accessed by all users of the application, made it easier to convey Information both top down in the form of company policy instructions and bottom up such as licensing process etc. This Information System design replaces the archive system and administration of the correspondence that is still done manually, as well as an effort in improving the Company's Competitive Advantages. Keywords: Industrial revolution 4.0, company value chain, information technology systems, competitive advantage, web based.

Investigating the synergy of Blockchain and AI: enhancing security, efficiency, and transparency

ABSTRACT Integrating Blockchain and Artificial Intelligence can change business processes, promising improvements in Security, efficiency, and transparency. This proposed research investigates the synergy between these two technologies, investigating how their convergence can change business operations. AI’s data analysis and decision-making ability, coupled with Blockchain’s Security and transparent data sharing, sets the stage for innovative solutions across diverse sectors. The study aims to explore this integration’s potential benefits and challenges, emphasizing the need for further exploration and development. By conducting a systematic literature review, this research will analyze current findings to provide comprehensive insights into how Blockchain and AI can work together to improve business processes. This investigation uses AI to enhance Blockchain’s capabilities through smart contract automation, data analysis, and decision-making, while Blockchain offers a secure and transparent framework for AI operations. The research seeks to answer critical questions about improving Blockchain networks’ Security and privacy using AI, using Blockchain to enhance AI systems’ transparency and accountability, and using AI to improve Blockchain network performance and scalability. Beyond this research, the Author aims to contribute to the Blockchain and AI integration literature, offering a base for future research.

The Alienating Effect of Technology: Does Technological Innovation Cause Work Alienation

This article basically analyzes how technological innovation affects employees' alienation from their jobs. Detailed purpose of the article; It also aims to analyze the impact of technological innovation on employee alienation from their jobs and strategies to reduce the negative impact of technological innovation on employee alienation. These research studies prepared by the literature review method are named as "compilation article" method. The article tries to explain what technological innovation means and how it is implemented, the definition and determinants of alienation and work alienation, the impact of technological innovation on employee alienation from work and the factors contributing to this effect, and strategies that can be used to reduce the negative impact of technological innovation on employee alienation. Based on the results obtained; Technological innovation is the process of developing new ideas, products, services or processes or significantly improving existing ones. Technological innovation can drive changes in business processes, consumer experiences, or the products themselves. However, it can also trigger work alienation, a condition in which employees perceive their jobs as meaningless, unimportant, or worthless. It is hoped that the article, which is a theoretical analysis, will contribute to the ongoing discussions of technology, artificial intelligence and organizational behaviour

Business digitalization: international experience

At the current stage of the development of the world economy, the relevance of digital transformation under the conditions of increased international competition both at the level of individual businesses and at the level of entire sectors of the economy forms a growing interest in the problems and prospects that become possible within the framework of the digital economy. The world is gradually moving to a digital format in the development of information and communication technologies. The penetration of digitalization in different countries differs in the degree of influence on economic development and the variety of business schemes. Digitization allows not only the improvement of existing business models and changes in business processes but also the significant boost of business and new competitive advantages. The digital transformation of international business significantly contributes to sustainable economic growth, increasing the competitiveness of primary industries and innovative sectors of the economy. Digital technologies allow business entities to automate simpler processes and eliminate intermediate stages in more complex processes, thanks to which the flexibility of companies is significantly increased, and they can now use their resources much more efficiently. Digital technologies are even becoming mandatory for many businesses operating in today's competitive environment, significantly saving time and avoiding unnecessary costs. Digital transformation is becoming integral to modern business, growing from a concept to an essential strategic component. This process covers implementing modern digital technologies and changing the organization's business processes and cultural aspects to improve the company's efficiency, innovation, and competitiveness. However, digital transformation also presents its challenges. The need for changes in organizational culture, training employees in new technologies, implementing data privacy, the impact and politics of social inequalities, accounting for changes in the labor market, and cyber security risks require attention and resources. Digital transformation is not only the introduction of technologies but also a change in thinking and approaches to business. It allows companies to become more efficient, innovative, and adaptive, a critical factor for successful competition today. Keywords: digitization, security, technology, business, transformation.

ОЦІНЮВАННЯ РЕЗУЛЬТАТІВ НАВЧАННЯ ЦИФРОВОГО ПІДПРИЄМНИЦТВА В ЕПОХУ ВИСОКИХ ТА ГЛИБОКИХ ТЕХНОЛОГІЙ

Digital transformation and the rise of Industry 4.0 in times of turbulence are changing the way organizations operate and interact with the people they serve. The massive penetration of network software applications and cloud services forces businesses to digitize their processes and provide innovative products and services. Such mass penetration is changing production and business processes, the labour market, and the basic portrait of the workforce, regardless of industry or role. In addition, we are seeing a shift in the basic skills needed in science, research and development, engineering, IT, management, entrepreneurship, and more. These skills are transformed in accordance with the technological restructuring of productive forces, at the same time, educational activity is characterized by some lag in its development. It is important to realize that the nature and speed of progress dictates the need for an advanced workforce with a multidisciplinary educational background (especially given the number of predictions promising full automation in the next few decades), regardless of industry or function, especially when it comes to deep tech start-ups and high-tech enterprises. It was concluded that in the framework of modern technical evolution, in the conditions of high-tech, and especially deep tech structures, competencies in digital entrepreneurship are, if not key, then very important. The education market is also undergoing changes, but university education is very slow to respond to digital processes. The article proposes a method of assessing the level of competences of students of economic specialties in the field of learning digital entrepreneurship based on soft computing, and also formulates the key basic competencies that arise during the online course of digital entrepreneurship, which are based on the latest development trends in the field of IT. Special considerations for using the model for higher education institutions are discussed. The proposed mathematical model has the property of universality and can be applied to obtain basic statistical samples of the level of competence acquisition based on online courses in various areas of the real sector of the economy.

Information Systems Strategy for Multi-National Corporations: Towards an Operational Model and Action List

The development and implementation of information systems strategy in multi-national corporations (MNCs) faces particular challenges—cultural differences and variations in work values and practices across different countries, numerous technology landscapes and legacy issues, language and accounting particularities, and differing business models. This article builds upon the existing literature and in-depth interviews with eighteen industry practitioners employed in six MNCs to construct an operational model to address these challenges. The research design is based on an inductive, qualitative approach that develops an initial conceptual framework—derived from the literature—into an operational model, which is then applied and refined in a case study company. The final model consists of change components and process phases. Six change components are identified that drive and underpin IS strategy—business strategy, systems projects, technology infrastructure, process change, skills and competencies, and costs and benefits. Five core process phases are recognized—review, align, engage, execute, and control. The model is based on the interaction between these two dimensions—change components and process phases—and an action list is also developed to support the application of the model, which contributes to the theory and practice of information systems deployment in MNCs.

Budget performance evaluation before and during the COVID-19 pandemic

The 2020 crisis was caused by a disease outbreak that had an impact on global health and the economy, including Indonesia. As a quick response the government has refocused and reallocated on spending in handling and overcoming the impact of COVID-19, so that Ministries/Institutions must readjust their programs and budgets which affect the organization's performance targets has been established. Previous research where government agencies experienced a decline in performance during the pandemic. However, based on the Performance Report published by LIPI, shows an increase in average performance achievements. This research aims to examine the results of the evaluation analysis of budget performance variables, namely output achievement, budget realization, efficiency and consistency of fund withdrawals for planning for the 2019 and 2020 period with an exploratory approach use case study method. Data was obtained through documentation studies and in-depth interviews through open questions with the program and budget team, financial and budget at the DIPA unit level, and others. LIPI's performance can be achieved due to the policy of shifting the focus of research activities related to handling the coronavirus, changes in research patterns carried out by researchers, changes in business patterns and processes, and changes in the budget management scheme.

The effect of font boldness, noise disturbance and time pressure on human error in the context of cloud change operation

This study investigated the number of operator errors, task completion time, and workload of subjects at different levels by imposing conditions such as focused text boldness, noise disturbance, and time pressure to simulate a realistic cloud change business process in the laboratory. Results of the study showed that the text bolding of important content reduced the number of errors, whereas noise interference increased the number of errors. Text boldness only reduced the number of corrected errors, and noise interference only increased the number of uncorrected errors. Moreover, bolding was found to have different effects on the number of errors under different noise levels and time pressure levels, with text boldness significantly reducing the number of total errors only in quiet or low time pressure states. Time pressure had no effect on cloud change task error counts, but high time pressure resulted in higher subjective workload.

Triggers of Changes in Business Processes and Applications: A Systematic Review

Organizations must constantly adapt due to the rapid rate of technological development, market conditions, and customer expectations. The multidimensional world of catalysts that drive changes in corporate processes and applications is explored in this systematic review. Every business must adopt the changes if it wants to compete in the market and outlast its rivals. A wide range of factors, including internal and external forces, can cause applications and business processes to change. These changes are frequently necessary to stay current with the shifting demands of the market, technology advancements, organizational requirements, competitive pressures, legal compliance, environmental and sustainability programs, market trends, and consumer insights. Taking this into account, this chapter attempts to concentrate on the causes of changes in business processes and applications by analyzing the perspective.

Цифрова трансформація промисловості: сучасні реалії та пріоритети розвитку

The article examines the digital transformation of industry key priorities and the impact of its processes on ensuring progress towards achieving sustainable development goals. It is proved that changes in the technological modality lead to changes in socio-economic systems, in particular in institutional, social and economic components, as well as in socio-economic relations between the actors involved in the processes of the digital environment. There is a strong accent for the need and importance of promoting digital transformation, which has proven to be a force that opens up new opportunities for the development of industrial enterprises. The focus is on the essence of changes in business processes, features and industry specifics of digital transformation. The author's definition of the category “digital transformation” is given. The greatest demands of the industrial sector are characterized by advanced digital technologies. The European experience of providing digital services is studied. It is reasoned that digital transformation makes it possible to reduce the digital divide in terms of the level of digital technology adoption. Specific barriers and the main factors inhibiting the digital transformation of the domestic industrial sector are identified. Recommendations are developed in the context of priorities for the development of industry digital transformation. The results obtained deepen the theoretical and methodological foundations for managing the processes of Industry 4.0 formation and development in Ukraine in terms of identifying priority areas for the introduction of digital technologies at domestic industrial enterprises.

THE DEVELOPMENT OF INDUSTRY 4.0 AS THE BASIS FOR ADAPTIVE MANAGEMENT OF THE FORMATION OF THE FINANCIAL AND ECONOMIC POTENTIAL OF AN INDUSTRIAL ENTERPRISE IN UKRAINE

The processes of digital transformation today are driving forces of change in almost all spheres and industries, and also open up opportunities for the introduction of new technologies and the construction of digital business models. The aim of the article is to characterize the digital transformation of enterprise management and digital decision-making processes taking into account the development of Industry 4.0 in Ukraine. Digital transformation of business is a very necessary and relevant process, which serves as a driver for changes in the company, changing the needs of customers, the actions of competitors, and promotes the emergence of new technologies and services. The gap between Ukraine and most European states is significant, and, according to experts, it will take 3 to 5 years to overcome it, provided the economic situation is stable, as well as the inflow of investments. Instead, Ukraine has a fairly large potential and a developed IT sector, which is the driving force in the implementation of Industry 4.0 technologies. The synergistic digital transformation of domestic governance, business, and industry, that involves the transition to European business standards in the context of the development of the information economy, digitalization, industrialization, digital transformations, informatization of society, and globalization of the economy, should become a challenge for Ukraine. These processes require improvement of competitiveness, income and infrastructure of enterprises; acceleration of digitization of the most promising sectors; wider use of IT products and services by domestic companies; strengthening the country's defense sector. As a result of business adherence to the leading principles of digital transformation, there is a gradual change in business processes and the transition to digitization using Industry 4.0 tools and models. Based on the project of the national development strategy 4.0, the article presents a SWOT analysis of the digital transformation of enterprise management and digital decision-making processes, taking into account the development of Industry 4.0 in Ukraine.

ИНСТИТУЦИОНАЛЬНЫЕ ТРАНСФОРМАЦИИ НАУКОЕМКОГО СЕКТОРА В АСПЕКТЕ ИННОВАЦИОННОГО РАЗВИТИЯ

He modern economy is developing at a very active pace, becoming more and more global and technologically advanced. In this regard, approaches to business management in various industries are inevitably changing. Of course, this also affects the industry, which has seen a serious transformation of established business processes in recent years. This is due to a clear understanding that without changing business processes according to the current trends in the development of the global economy, it is impossible to achieve maximum efficiency, high competitiveness, and stable, sustainable growth in the long term. Scientific and technological innovations have an impact on institutions, spheres and branches of the economy, social classes, politics, science, culture, and management.

ПІДХОДИ ДО РЕАЛІЗАЦІЇ ЦИФРОВОЇ ТРАНСФОРМАЦІЇ БІЗНЕС-ПРОЦЕСІВ ПІДПРИЄМСТВА: УПРАВЛІНСЬКИЙ АСПЕКТ

The article is devoted to the study of approaches to managing the digital transformation of business entities. It presents differences in the interpretation of the essence of the concepts of digitalization, digitization, and digital transformation. Three main areas of the enterprise affected by digital transformation have been identified: work with clients, operational business processes, and business models of the enterprise. Digitalization of enterprise business processes will influence changes in value formation and structural changes, and will also depend on them. It is substantiated that the level of use of digital technologies will be greatly influenced by the financial capabilities of the enterprise. An algorithm for the digital transformation of an enterprise has been developed, which makes it possible to choose priority areas for optimizing business processes through varying degrees of digitalization. This algorithm provides a preparatory stage at which it is recommended to carry out a detailed diagnosis of the external environment and assess the degree of penetration of digital technologies into the industry in which the activity is carried out. It provides for diagnostics of the enterprise taking into account available resources and identification of business processes that require innovative changes and solutions. The developed algorithm provides for partial optimization of individual business processes (installation of ERP-, CRM-, HRM- and other resource management systems, document management, logistics, etc.) and significant changes in several business processes using AI, BigData, IoT, cloud technologies, etc. The algorithm ends with the implementation stage, at which the necessary software and technological solutions are implemented. Transformation of operational processes through automation will provide economies of scale and increase productivity. The elements of digitalization of business processes of the enterprise are characterized. Three variable blocks in the transformation of business models are considered: digital modifications of individual processes, the introduction of new digital business models, and digital globalization. Conclusions about the main advantages of enterprises that have carried out digital transformation are drawn.