Modern concepts, principles and perspectives of business process management in real estate enterprises

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Modern concepts, principles and perspectives of business process management in real estate enterprises

Сучасні поняття, принципи та перспективи управління бізнес процесами на підприємствах нерухомості

Xiao Wanxin

PhD Student,

Sumy National Agrarian University

Lyshenko Marharyta

Doctor of Economic Sciences, Professor,

Sumy National Agrarian University

Лишенко Маргарита Олександрівна, Xiao Wanxin

Сумський національний аграрний університет

This article studies the development, concept and principle of business process management, and combines the development background and trend of real estate enterprises, discusses the specific characteristics of real estate enterprise business processes, key elements of project development, and then analyzes common problems in real estate enterprise business processes, and give corresponding measures and suggestions, hoping to provide some references for the development of real estate enterprises. International business process research is developing along with the growth of the total quality management movement. Process management is a management practice that increases management efficiency, improves the quality of products and services, and is achieved by focusing on management methods and people. Process management can help businesses create value. At the stage of de¬velopment of a real estate enterprise, it is necessary to study and formulate the enterprise development strategy and the concept of change management. Businesses need to shift from focusing only on managing people and capital to focusing on strategy and management processes. Excellent processes distinguish the company from competitors. Therefore, at the stage of development, one of the important tasks of the enterprise is the creation of an effective system of business processes and high-quality process management.

Keywords: real estate enterprise, business process, marketing, management, marketing tools, managing business processes.

Ця стаття вивчає розвиток, концепцію та принцип управління бізнес-процесами та об'єднує передумови та тенденції розвитку підприємств нерухомості, обговорює специфічні характеристики бізнес-процесів під¬приємств нерухомості, ключові елементи розробки проекту, а потім аналізує загальні проблеми в реально¬му житті. Бізнес-процеси підприємств нерухомості та надають відповідні заходи та пропозиції, сподіваючись надати деякі посилання для розвитку підприємств нерухомості. Міжнародні дослідження бізнес-процесів розвиваються разом із зростанням руху тотального управління якістю. Управління процесами - це практика управління, яка покращує ефективність управління, покращує якість продукції та послуг і досягається шля¬хом зосередження на методах управління та людях. Управління процесами може допомогти підприємствам створити вартість. На стадії розвитку підприємства з нерухомості повинні вивчити та сформулювати стратегії розвитку підприємства та концепції управління змінами. Підприємствам необхідно перейти від зосереджен¬ня лише на управлінні людьми та капіталом до зосередження на стратегії та управлінні процесами. Відмінні процеси відрізнятимуть компанію від конкурентів. Тому на етапі розвитку одним із важливих завдань під¬приємства є створення ефективної системи бізнес-процесів і якісне управління процесами. Бізнес-процес підприємств нерухомості включає багато професійних сфер, включаючи придбання землі, погодження пла¬нування, архітектурне проектування, інженерне будівництво та управління продажами тощо, тому складність бізнес-процесу є відносно високою. У сфері нерухомості ефективні заходи управління бізнес-процесами є вирішальними для розвитку підприємств. Підприємства з нерухомості повинні приділяти велике значення управлінню бізнес-процесами, повною мірою використовувати інформаційні технології, вживати ефективних заходів для покращення продуктивності процесів і посилювати оптимізацію спільного бізнесу для сприяння розвитку підприємств. Завдяки оптимізації процесів підприємства можуть ефективніше керувати проектами, ресурсами та потребами клієнтів, покращувати ефективність і якість роботи, а також зменшувати витрати та ризики. У той же час оптимізація спільного бізнесу може сприяти співпраці та комунікації між різними відді¬лами, а також покращити здатність координації всієї команди. Завдяки ефективному управлінню бізнес-про¬цесами компанії з нерухомості можуть краще реагувати на зміни ринку, підвищувати конкурентоспроможність і досягати сталого розвитку.

Ключові слова: підприємство нерухомості, бізнес-процес, маркетинг, менеджмент, інструменти маркетингу, управління бізнес-процесами.

Problem statement

management business process real estate enterprise

International business process research is developed with the rise of total quality management movement. Dean [4] study business processes by comparing overall quality and management theory at the global and specific topic levels, and believe that process management is a management practice that improves management efficiency, improves product and service quality, and achieves by focusing on management methods and people. Process management can help enterprises create value. Melville [5] further analyzed and found that process management is mainly embedded in IT, so the ERP model is adopted, which is an overall solution and the best embodiment of process management ideas. Nkomo [6] proposed a business reorganization framework based on the current business situation, taking into account factors such as time management, project planning and effective communication, and verified that business process reengineering (BPR) can better help companies execute projects. Vishvakarma [7] verified the impact of organizational strategy on business process reengineering, and his research results show that organizational strategy has an impact on the scale, efficiency and bottom-up communication of BPR.

Analysis of recent research and publications. With the increasingly fierce competition in the real estate market, real estate companies are facing more and more pressure for survival and development. Traditional extensive management is no longer suitable for the development needs of enterprises. In particular, a series of regulatory policies for the real estate industry promulgated by the state have also had a certain impact on the performance of real estate companies. In order to survive in the fierce market competition and gain a long-term competitive advantage, real estate companies must focus on improving their own competitiveness, explore more reasonable business processes, and continuously carry out reforms and innovations to achieve sustainable development. The development history of China's real estate industry in the past 20 years shows that with the progress and development of society, the industry has gradually entered a state of market saturation and entered a stage of reshuffle and integration. In order to achieve greater development, enterprises need to optimize systems and processes as soon as possible, improve management levels, form core competitiveness, and be at the forefront of the industry. Real estate development is an industry that integrates resources and requires a lot of coordination and processing. In order to efficiently meet the requirements of operation management, enterprises must optimize business processes according to actual conditions. The workflow runs through the entire development process of the project, involving various aspects, and there are many factors to be considered. The real estate industry requires a high capital turnover rate. Through scientific process management, the project development cycle can be shortened, and funds can be quickly invested in the next project, thereby greatly reducing the company's financial costs. At present, domestic real estate companies are adjusting their organizational structure and implementing workflow optimization to meet the company's development needs. Through the adjustment of the existing organizational structure, optimize and integrate all businesses, redefine the functions of all positions, and enable the company to achieve efficient management.

In the development stage, real estate enterprises need to study and formulate enterprise development strategies and change management concepts. Enterprises need to shift from focusing only on people and capital management to focusing on strategy and process management. Michael Hammer [8] once pointed out that for enterprises in the 21st century, process is very critical. Excellent processes will differentiate a business from its competitors. Therefore, in the development stage, one of the important tasks of the enterprise is to establish an efficient business process system and perform excellent process management. The significance of studying the business process management of real estate enterprises is to find a business process solution suitable for their daily operations for real estate enterprises, so as to optimize their operating and management benefits. Through in-depth research and analysis of the existing processes of the enterprise, potential problems and bottlenecks can be found, and improvement plans can be proposed to improve work efficiency and production benefits. Optimized process management can reduce redundant and repetitive work, allocate resources reasonably, and coordinate all links, thereby reducing costs [2]. At the same time, good process management can ensure that every link is operated in accordance with the prescribed standards and procedures, reduce errors and mistakes, and improve the quality of products and services. In addition, process management can also strengthen the management and monitoring capabilities of enterprises. By setting indicators and monitoring the status of achievement, problems and risks can be discovered in a timely manner, and corresponding measures can be taken to adjust and correct them. By studying the business process management of real estate enterprises, enterprises can stimulate employees' innovation consciousness and initiative, and promote continuous innovation and development. All in all, the significance of studying the business process management of real estate enterprises is to provide enterprises with optimized process solutions to improve operating and management efficiency, enhance competitiveness, and achieve sustainable development.

Concepts and principles of business process management

Adam Smith [9] described the concept of "division of labor". The basic principle of business process management is to divide complex and cumbersome processes into a series of well-organized operations, and each operation is assigned to a specific role for execution. This principle was first formulated by the Scottish philosopher and economist Adam Smith in the 18th century. A process is an ordered set of interrelated or interacting activities that transform inputs into outputs to achieve some desired outcome. Enterprise process is a series of coherent and orderly logic-related activities to achieve enterprise goals or tasks.

These activities can transcend time and space constraints and meet the needs of enterprises at different stages in the development process. The business process of an enterprise is crucial to the overall operation of the enterprise. It is the core of the enterprise and determines the position of the enterprise in the market competition. Enterprise business process management is the foundation of enterprise management, which provides necessary support for the healthy development of enterprises and ensures that enterprises can efficiently complete various business tasks. Business Process Management (BPM) is a management methodology and practice aimed at optimizing and improving an enterprise's business processes to increase efficiency, reduce costs, enhance flexibility and provide better quality services. It involves the analysis, design, implementation, monitoring and optimization of the internal processes of an enterprise. The main goal of business process management is to enable enterprises to better adapt to market demands and changes, provide high-quality products and services, increase customer satisfaction, and maintain a competitive advantage in a highly competitive market through comprehensive management of processes. Business process management is a necessary condition for improving the competitiveness and innovation ability of an enterprise, and it has a direct impact on the production process, service process and management process. Therefore, business process management helps enterprises respond quickly and flexibly to changing customer needs and market development trends. In the construction of enterprise informationization, the process-oriented method of implementing information system plays an important role in the successful operation of enterprises. It can not only improve business and system processes, but also monitor the effectiveness of business processes through various key performance indicators to ensure the return on investment of information system implementation.

Business process optimization (BPI) starts from the performance of the enterprise, and conducts research, analysis, sorting, improvement and improvement on the existing work process. It breaks the barriers between departments, enhances horizontal collaboration, improves the operating efficiency of the enterprise, reduces the overall operating cost, and thus maintains a competitive advantage. Through business process optimization, enterprises can adapt to changes in the external environment and the requirements of internal standardized management, improve their competitiveness, and achieve rapid, stable and sustainable development. The connotation of business process optimization is to conduct research, analysis, sorting, improvement and improvement on the basis of solving the existing business process problems of the enterprise. Utilize IT technology and other support means to break down barriers between departments, operate enterprise business processes in the simplest and most direct way, and improve enterprise agility and ability to adapt to environmental changes. At the same time, it is also necessary to minimize ineffective or non-value-added activities, reduce waiting time, coordination workload and duplication of work, etc.

Characteristics of Business Process of Real Estate Enterprises. Relying on the special attributes of the real estate business itself, the business processes of real estate companies exhibit the following notable features:

(1)Involving a wide range: The business process of real estate enterprises involves many aspects, including land collection, acquisition of land use rights, planning and design, project financing, project management, marketing, property entrustment, etc. It is necessary to cooperate and communicate with relevant government departments, construction units, supervision units, advertising companies, plan¬ning companies and financial institutions [1].

(2)Constrained by the development cycle: The cycle of real estate development projects is long, and multiple processes need to go through from land selection to construction completion and property management. During the entire development process, factors such as the market, macro policies, and natural conditions will change. Therefore, the business processes of real estate companies need to have strong adaptability to keep up with environmental changes in a timely manner.

(3)Restricted by national policies: the business process of real estate companies is restricted by national policies. Relevant government departments will supervise and manage land transfer, planning and design, project approval and other links, and enterprises need to follow relevant policies and regulations to operate.

(4)Multiple links: The business process of real estate companies usually involves multiple links such as project development, market research, planning and design, construction, sales promotion and after-sales service. This requires coordinating the work of multiple sectors and actors. (5)

(6)High complexity: The business pro¬cesses of real estate companies involve multiple professional fields, including land acquisition, planning approval, architectural design, engi¬neering construction and sales management. Therefore, it is necessary to coordinate the interests and technical requirements of all parties, which increases the complexity of the business process.

(7)Long cycle: The business process of real estate companies usually takes a long time and covers multiple stages, including preliminary preparations, development and construction, and sales cycles. This is due to the time-consuming aspects of project planning, design, construction and sales.

Key elements of real estate project development process. Real estate involves the development, construction and operation of real estate projects from land acquisition to final real estate sales. This process involves the coordination and cooperation of several key elements and participants. First of all, real estate companies need to conduct market research and land acquisition to find land suitable for development. After the land is determined, planning and design are required, including project positioning, architectural design, landscape design, etc. Next, real estate companies need to carry out project financing, including bank loans, equity financing, etc., to ensure the source of funds for the project. At the same time, government approval and related procedures are also required to ensure compliance with regulations and policy requirements [3]. After obtaining funding and approvals, the real estate business begins construction and project management. This includes bidding, selecting contractors, monitoring construction quality, managing project progress, etc. At the same time, it is also necessary to plan and organize property management to ensure that the project can be effectively maintained and managed after completion. Finally, real estate businesses need to conduct sales and marketing to bring properties to market and attract homebuyers to purchase. This includes formulating sales strategies, carrying out publicity and promotion, and signing house purchase contracts. At the same time, after-sales service is also required to solve the problems and needs of home buyers. The essence of the business process of a real estate enterprise is to develop land into real estate with commercial value and sell it to buyers through a series of links such as market research, land acquisition, planning and design, project financing, construction management, property entrustment, sales and marketing, etc. . This process needs to coordinate the interests of all parties, abide by policies and regulations, ensure project quality and project operation, so as to achieve a win-win situation for the commercial interests and social value of real estate enterprises.

Common problems in business process management of real estate enterprises. For real estate companies, the implementation of their business processes has the following problems:

(1)Organizational model: Many real estate companies adopt a functional organizational structure, and multiple independent departments are responsible for partial stages of the project in parallel. The advantage of this structure is specialization and the discovery of expertise. However, this model lacks service awareness, cross-departmental coordination and control are difficult, and it is prone to information lag and reduces work efficiency. Horizontal processes lack unified management, internal division of labor lacks coherence, involves many cross- departmental management matters, coordination and control are difficult, and information flow between departments is not smooth. Boundaries between functions can lead to the existence of ineffective work, that is, many business activities only meet internal needs of the company without actually creating additional value. In addition, under this model, each department is too focused on its own work, ignoring the awareness of providing services to end customers. Therefore, real estate enterprises should optimize the organizational structure, improve the service awareness of end customers, strengthen the unified management of horizontal processes, and the coherence of internal division of labor, so as to reduce ineffective work, improve work efficiency, and promote enterprise development.

(2)Research and decision-making: The investment decision-making process in the real estate market is composed of two key links: market research and investment decision¬making. However, due to the insufficiency and asymmetry of information, the risk of uncertainty always exists, especially the vague gray information. When making decisions, some enterprises ignore the key preliminary research, rely on the subjective feelings of the leadership, and lack scientific and accurate decision-making analysis methods, which leads to blindness and increases risks. This phenomenon exists widely in enterprises, and requires enterprises to fully

(3)understand the importance of market research and investment decision-making, analyze data scientifically and rigorously, and maintain the consistency of process goals and enterprise strategies. For example, the customer complaint handling process in the real estate market requires multiple departments to work together, and the repair time is not uniform, resulting in lower customer satisfaction and affecting the company's market reputation. Therefore, enterprises should pay attention to market research and investment decisions, analyze data scientifically and rigorously, avoid process goals from deviating from strategy, reduce risks, and enhance competitiveness.

(4)Planning and design process: The planning and design stage of real estate projects plays a key role in the entire development process. At present, many real estate developers choose to hand over the design work through bidding or directly to the design contractor. The design contractor becomes the executive body of the design plan, and the developer sets up a management department to be responsible for information transmission and coordination. However, this process has the following problems: first, it ignores the core competitiveness of the planning link, which hinders the development of real estate industrialization; second, customer needs cannot be directly transmitted to product design, resulting in stagnant sales; finally, the lack of design management methods Variation adds cost. In addition, the complexity and variability of the process makes the process difficult to adapt. The design change process needs to design the work items of each link according to the specific situation, and involves the communication and approval of the development department and the planning bureau, as well as the cooperation with the sales department and legal counsel.

(5)Building construction process: In the process of building construction, information asymmetry and opaque operation have become the main problems hindering construction efficiency and quality. Due to information asymmetry and poor communication in the bidding and material procurement process, it is difficult for construction companies to accurately understand project needs and requirements, and they are troubled by high procurement costs. In addition, due to the lack of coordination and cooperation, it is difficult to connect smoothly among various disciplines, which affects the construction progress and quality. Business process integration is difficult, which leads to poor process coordination and further reduces (6)construction efficiency. In addition, the lack of supervision and management makes it difficult to control the construction quality. At the same time, there are problems in the supervision of material procurement, which can easily lead to illegal activities. Project cost control is difficult, information asymmetry and opaque operation make it difficult to effectively control costs. Therefore, in order to solve the above problems, it is necessary to strengthen information sharing and communication, improve the effect of coordination and cooperation, strengthen supervision and management, so as to ensure the smooth progress of the construction process and improve the construction quality and efficiency.

Process management measures of real estate enterprises. As an important economic field, the real estate industry's management is of great significance to the development of enterprises and the stability of the industry. In order to improve the competitiveness of enterprises and adapt to market changes, real estate enterprises need to take a series of management measures.

(1)Establish customer value orientation. Real estate owners should establish the core position of customer interests and give a detailed description of business variables. On the basis of evaluating the benefits, improvement risks, and implementation difficulties of each business process, the business processes with large benefits, low risks, and low difficulties are classified as the most critical business processes to ensure that they receive sufficient management support.

(2)Fully apply informatization. Improving the internal control system and institutional process system of the enterprise is the core task of enterprise management, and its focus is on strengthening enterprise risk management, information management, enterprise culture construction and talent team construction. The use of information system management process can effectively avoid risks caused by differences in human understanding ability, and promote the company's data accumulation and knowledge precipitation. Information systems should be fully utilized for management of frequently occurring trivial businesses with fixed logical thinking, as well as information processing tasks such as data collection, statistics, analysis, and data transmission.

(3)Clear rights and responsibilities and strengthen collaborative business. To implement process construction, it is necessary to ensure that the organizational structure is clear and the (4) rights and responsibilities are clear. We need to use the company organization manual and rights and responsibilities manual to clarify and reach a consensus on the responsibilities and responsibilities of each department. In the process system, we need to clarify the input and output content of each key link, as well as the person in charge of each key link. By ensuring that all key business processes are assigned to people, we can achieve effective synergy between business processes. Business processes are actually cross-departmental collaboration projects, and each business process is also interdependent. Clear rights and responsibilities help relevant responsible departments to communicate effectively in advance, thereby strengthening the synergy effect.

(5)Combined with performance appraisal. Establish quantifiable key process performance indicators:faster, better, cheaper, and more stable. Link process performance metrics to responsible persons. The key point performance evaluation indicators of the process include five dimensional performance indicators. First of all, time, as the core indicator to measure the speed of process operation, complements other dimensions to jointly present process performance. Secondly, cost control is a key factor in process execution, which directly affects financial indicators, and it plays an important role in the process. Thirdly, quantitative indicators measure the results of process operation in terms of quantity, and at the same time reflect the influence of process on quantity. Subsequently, quality indicators reflect the results of process operation from the quality level, further highlighting the process's focus on quality. Finally, the risk control indicators focus on the possible errors and harms caused by process execution, laying the foundation for the continuous improvement of the company's process system [1].

Conclusion

The business processes of real estate companies involve a wide range of areas, and they need to cooperate and communicate with government departments, construction units, supervision units, advertising companies, planning companies, and financial institutions. The business process of real estate enterprises involves many professional fields, including land acquisition, planning approval, architectural design, engineering construction and sales management, etc., so the complexity of the business process is relatively high. In the real estate industry, effective business process management measures are crucial to the development of enterprises. Real estate enterprises should attach great importance to business process management, make full use of information technology, take effective measures to improve process performance, and strengthen the optimization of collaborative business to promote the development of enterprises. By optimizing processes, enterprises can more efficiently manage projects, resources and customer needs, improve work efficiency and quality, and reduce costs and risks. At the same time, the optimization of collaborative business can promote cooperation and communication between different departments, and improve the coordination ability of the overall team. Through effective business process management, real estate companies can better respond to market changes, enhance competitiveness, and achieve sustainable development.

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