Organizational and economic background for business process reengineering on the market of municipal heating in Ukraine
Journal Title: Visnyk Ternopilskoho natsionalnoho ekonomichnoho universytetu - Year 2016, Vol 2, Issue
Abstract
The article explores organizational, economic and institutional prerequisites for starting reengineering business processes on the enterprises of the Ukrainian central heating market in the context of Ukrainian social-economic conditions. The paper shows that Ukraine sticks to European power market model functioning and that stimulates to form market relations in natural monopoly sphere. There are discussed theoretical foundations of development and implementation of business process reengineering and are defined the aim, reason and purpose of its introduction in the market of municipal power system of Ukraine. Main categories of reengineering of market municipal power system of Ukraine, namely business procedure, business process and business system are adapted. It is established that at the current stage the features of municipal heating enterprises are distributed between licensed activities in production, transportation, heat energy supply and other economic activities that are organizationally and technically qualified as business processes, i.e. enterprise as business system. On the other hand, the directives of the European Union, which govern common rules for the internal energy market, highlight the basic requirements for building thermal energy market, in particular the formation of competitive environment on it. There is determined that a competitive environment is created during generation and during supply of thermal energy, while its transportation is made by market players engaged in supplying through pipeline networks that remain in communal ownership of local communities, with the payment of economically justified tariffs. It is proven that such positive changes in the system of economic and institutional relations require the development of such valid management technique as reengineering of the business processes. There is shown that such business processes aiming to develop the better enterprise functioning are to be reengineered in the present market model that allows to make some changes to the wholesale energy markets as the part of the business processes that are possible to be changed.
Authors and Affiliations
Vasyl Brych, Mikhail Fedirko, Ivan Yanik
Keywords
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Organizational and economic background for business process reengineering on the market of municipal heating in Ukraine
The article explores organizational, economic and institutional prerequisites for starting reengineering business processes on the enterprises of the Ukrainian central heating market in the context of Ukrainian social-ec...