THE NATURE AND ESSENTIAL CHARACTERISTICS OF PROCESS-BASED MANAGEMENT OF ENTERPRISE ECONOMIC POTENTIAL

Abstract

The article explores the nature and essential characteristics of process-based management of enterprise economic potential in the frameworks of system analysis of the current approaches and critical thinking to the development of modern economic theory. A retrospective analysis of the research studies over the past two decades has provided insights into the nature of an ‘economic potential’ concept and has revealed a shift of focus in understanding and interpretation of the given category. It is emphasized that modern scholarly publications demonstrate evidence of extensive research on various aspects of the economic potential concept and fundamental differences in the above term interpretations, however, the application of structural analysis would greatly enlarge the research scope, in particular, will enable to identify the four basic dimensions: the level and functionality of resources, their value-based perspective, along with the focus to production outcome or a transformation process. Through the realization of such approach, a company will get an opportunity to build an up-to-date action plan trajectory; accumulate the necessary range of resources, skills and capabilities, where company business processes of sustainable operation and development are designed to ensure their close interaction, clear manner and consistency. An in-depth literature review to summarize numerous academic viewpoints has provided for identifying a business process as a set of interrelated activities that have their entry and exit points, specific interfaces, and organizational structure. Through a number of functions, they effectively design a range of actions and perform tasks to ensure well-ordered operation, thus producing results (production outcomes) that have value to a customer. A thorough study on modern companies’ economic potential provides argument that it is the business process that creates opportunities to shape its capacity to manufacture competitive products to meet customers’ needs. These companies understand the vast potential sustainable development provides that translates into the growing need to design their own strategic indicators to ensure common and effective structure and organizational pattern of business processes. In this context, such factors as the company size, price or other indicators are becoming paramount. Companies always strive for attaining better performance, thus it is critical to develop a reasonable ranking methodology to manage fundamental and auxiliary business processes, as well as the company internal efficiency. This study has deployed commonly accepted indicators of quality assurance affected by economic potential factors through active interaction between company business processes, technology, human resources, management, information, knowledge, etc. The research findings have revealed the specifics of a certain shift in business management associated with the transition from functional management approach to process-based management. Accordingly, the economic potential is viewed as a network of interconnected decisions and processes. Since the main characteristics of the economic potential are the structure of business processes and the relationships between them at different levels which accommodate the important phases of business planning, control and adjustment to changing environment, the ultimate benefit a company obtains is the relevant toolkit to ensure effective business development.