Marketing convergence of the modern business processes

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Marketing convergence of the modern business processes

L. Zaburanna, Doctor of Economic Sciences, Professor, Professor of the Department of International Economic Relations and European Integration, V. Zinovchuk, Doctor of Economic Sciences, Professor, Professor of the Department, L. Tarasovych, PhD in Economics, Associate Professor, Head of the Department, O. Budnik, PhD in Economics, Associate Professor, Associate Professor of the Department of Management and Marketing, Polissia National University, Zhytomyr

The focus of this study is on the marketing convergence of business organizations while the outsourcing, the reengineering and the outstaffing realization. The article examines the degree of the enterprises flexibility to probable crisis situations due to their reserves potential strengthening, as well as innovation and investment sources searching. The need to develop a comprehensive concept for the recommended improvement introduction to the modern business processes, as well as the business structures adaptation not only to the external and the internal challenges, but to the possible crisis situations caused by market transformations is proved. The deep instability, uncertainty and riskiness of the modern market have been established. It was defined the role of the outsourcing as a complex of measures aimed at the individual processes and functions transfer by the enterprise to another organization, which professionally specializes in the appointed tasks realization. The main benefits have been clarified, that consist in the enterprise profitability increasing due to the costs reduction and the additional resources attraction.

The integral role of the reengineering, that is aimed at the company's organizational systems reconstruction, the functions replication avoidance and the production increasing, is outlined. It was determined that the reengineering can be considered as the most radical management approach, that could be applied in the crisis conditions. It has been established that, when the firm operations are successful, it is also effective and allows competitive preferences obtaining. The possibility of the reengineering implementing to the practice as a result of the company's operating philosophy rethinking and adapting it to the dynamic market condition is confirmed.

The outstaffing is considered as a key parameter, that introduction contributes the strong enterprises relations partnership formation through the resources, knowledge and pooling competence on the basis of common trust and regular communication. The mutual benefit of such cooperation will contribute to their image strengthening, company ratings increasing and investment attractiveness, is underscored. It is substantiated that the outstaffing is more native to the Western companies now. The domestic companies practically do not use such profits due to a number of objective and subjective reasons. It is highlighted that the outsourcing, the reengineering and the outstaffing expenditure should be considered as promising approaches in the domestic business space, that will contribute the market stability growing and the company's competitive significant adaptability.

Keywords: business-process, autsorsing, reengineering, autstaffing, innovation, marketing.

Маркетингова конвергентність сучасних бізнес-процесів

Л.В. Забуранна, д. е. н., професор, професор кафедри міжнародних економічних відносин та європейської інтеграції, В.В. Зіновчук, д. е. н., професор, професор кафедри, Л.В. Тарасович, к. е. н., доцент, завідувач кафедри, О.М. Буднік, к. е. н., доцент, доцент кафедри менеджменту та маркетингу, Поліський національний університет

В статті розглянуто ступінь адаптивності підприємств до ймовірних кризових ситуацій за рахунок пошуку резервів зміцнення їх потенціалу, джерел інновацій та інвестицій. Досліджено роль аутсорсингу як комплексу заходів, спрямованих на передачу підприємством окремих процесів і функцій іншій організації, яка професійно спеціалізується на виконанні поставлених завдань. Вивчено причини відсутності широкого розповсюдження даної практики у вітчизняному бізнесі. З'ясовано основні переваги застосування наведеного, що полягають у сприянні концентрації уваги менеджменту на пріоритетах підприємства; збільшенні прибутковості компаній за рахунок зниження витрат та залученні додаткових ресурсів.

Окреслено виняткову роль застосування реінжинірингу для підприємств, що сприяє реконструкції організаційних систем компанії та збільшенню пристосованості виробництва до ринкових умов. Визначено, що реінжиніринг можна вважати найбільш радикальним управлінським підходом та підкреслено значимість його використання в умовах кризи. Встановлено, що при успішній діяльності фірми його використання також є ефективним. Підкреслено вагомі переваги реінжинірингу та недоліки даного підходу. Доведено можливість реалізації реінжинірингу на практиці внаслідок переосмислення філософії функціонування компанії та адаптації її до динамічного ринкового середовища.

Аутстаффінг розглянуто як ключовий параметр, запровадження якого сприяє формуванню міцних партнерських відносин підприємств через об'єднання ресурсів, знань та компетенції на основі взаємної довіри та регулярної комунікації. Наголошено на обоюдовигідності зазначеної співпраці, адже її наслідком є зміцнення іміджу компаній, зростання їх рейтингів та інвестиційної привабливості. Обгрунтовано, що нині аутстаффінг більшою мірою притаманний західним компаніям. Вітчизняні підприємства практично не використовують його переваги внаслідок ряду об'єктивних та суб'єктивних причин. Підкреслено, що застосування аутсорсингу, реінжинірингу та аутстаффінгу слід вважати перспективними підходами для вітчизняного бізнесового простору.

Ключові слова: бізнес-процес, аутсорсинг, реінжиніринг, аутстаффінг, інновації, маркетинг.

marketing outsourcing reengineering business

Statement of the problem in a general form and its connection with the important scientific or practical tasks

Global world transformations encourage enterprises to outline their own guidelines, taking into account external, internal risks and economic fluctuations. Therefore, the enterprises innovative activity should be considered as the key condition of the country socio-economic development with the ultimate goal that is the priority methods and technologies introduction. In this regard, the formation of the strategic priorities of the business initiative development that is applied in aggressive competition conditions is determined by the degree of enterprises adaptability to probable crisis situations and serves as a basis for the long-term strategic decisions implementation. At the same time, the prerogative of the modern business units functioning is the possibility of marketing tools using for independent decisions making regarding to the consistent diagnosis of the surrounding situation and conjectural changes and the competitive behavior of the market relations participant's analyzation.

Analysis of the latest research and publications, in which the solution of this problem was initiated

Various aspects of the practice of the outsourcing, the reengineering and the outstaffing have been investigated by the domestic scientific community. This problem is studied by: Kyfyak V., Lopatynskyi Y. [1], Gadecka Z., Tobilevich Yu., Gubar O., Nazarenko S., Tonjuk M. [4-7], Shilova T. [10]. At the same time, in the conditions of rapid market trends changes, the issue of these methods effectiveness requires further in-depth study.

Table 1. The procedure of the managerial outsourcing decisions making

Table 2. The arguments against the outsourcing

The goals of the article formulation (statement of the task)

The purpose of this study is to justify the necessity of marketing tools expending for the outsourcing, the reengineering and the outstaffing implementation to the domestic business practice.

Presentation of the main study material with a full justification of the obtained scientific results

Khodakivska O., Hnatenko I., Dyachenko T., Sabiy I. note that the rate of the scientific data accumulation is ahead the rate of their comprehension and conceptual interpretation, that determines the vectorial flow of data from the representative empirically practical subsystem to its meaningful core and explains why the essential and meaningful cores formation, that are the foundation of the innovative economy development theory, is moving slowly. Therefore, the determinants of the marketing business processes transformation, according to the authors, in the context of the innovative changes introduction, require detailed and thorough study [8, 5--11].

In the conditions of the economic space constant changes, the radically necessary mechanism for the possible strategic priorities formation is the presence of clear guidelines for the strategic enterprises development, that requires the activities stabilization and the effective tools for adequate resistance to the external and internal threats searching. The domestic business instability leads to a significant decrease in its efficiency, and, therefore, the existing business structures direct their efforts towards finding reserves to their potential strengthening, as well as the innovation and investment sources through the individual operations convergention, that means convergence, confluence, stabilization of activity to achieve balance and cumulative effect of such interaction. The outsourcing, the reengineering and the outstaffing advantages usage play an important role in this process.

The outsourcing is a set of measures aimed at the certain processes transfer and functions by the enterprise to another organization that professionally specializes in the given tasks execution. Essentially, this is the temporary hiring of employers or teams with the necessary experience and competencies to perform specific business responsibilities. The sequence of the company's management decision-making according to the outsourcing implementation is shown in Table 1.

The following advantages of the outsourcing are distinguished: concentration: compactness of resources on the main production for solving strategic tasks; manufacturability: access to innovations; cost minimization: avoiding the need to recruit permanent staffand reducing transaction costs.

The outsourcing procedure is currently not widespread in the domestic business. The main reasons of such situation are: legislative gaps; unwillingness of the company management to delegate authority and give part of their business to another owner due to little experience; probability of direct control over individual operations losses and information outflow (failure in confidentiality saving). Table 2 presents the arguments against the outsourcing.

Along with this, the application of the given approach helps to focus the management's attention on the company's priorities; allows to increase its profitability by reducing costs and engaging additional resources; rises the attractiveness of the enterprise for investors and contributes to the strategic plans construction (Table 3).

Table 3. The arguments in favor the outsourcing

Outsourcing activities are especially important for small-sized enterprises, because they have the opportunity to transfer related functions to the service companies, such as the development of a marketing strategy, logistics services, consulting, jurisprudence and the IT-industry. Before making the decision about the outsourcing, the management of the company carefully analyzes the level of the firm current costs and profits, comparing them with the expected ones. In the case of a positive decision, key goals are outlined, tactics for their implementation are chosen, basic parameters of operations and the possibility of their adjustment are agreed upon. Therefore, the further choice in favor the outsourcing or in favor the independent the enterprises main functions realization depends on the specific situation and remains under the company's management.

The logical incompleteness of the modern business transformations requires the development of a holistic view of the directions and forms of enterprises marketing cooperation under the conditions of their convergence. In addition, modern management faces the urgent question of the effective management system creating for various spheres organizations with business activity directions, at the same time, market factors turbulence confirm the objective need to introduce the latest methods of management processes improving, in particular, reengineering, aimed at the enterprise organizational systems reconstruction in order to avoid the certain functions duplication and the production of the market conditions adaptability increasing.

The purpose of the reengineering is the company's business processes fundamental restructuring and the significant improvements of all components of the enterprise organizational and economic mechanism obtaining, it is not about the classic improvement of the quality of the company's functioning, but about its complete reconstruction. In essence, the reengineering involves reorienting management in the direction of the process approach, that is, rejection of the traditional management system in favor to the high-tech one based on the radically new business goals formation with the fundamentally new technologies use to achieve them and significantly increases the quality and speed of service. It should be emphasized that the business processes reengineering is one of the most radical management approach, however, it can be used both in crisis conditions and in case of successful company activity in order to obtain competitive advantages.

The reengineering can be applied in the following cases: companies are near the bankruptcy and need crucial changes in the systems of their own business processes; forecasting the probability of a crisis for the company due to increased competitive pressure or external influences changes; companies aim to maintain leadership in the promising markets by creating a new business model.

Among the significant advantages of the reengineering, the following are given: unproductive structural links elimination; the production processes, which stimulates the company's activity efficiency growth improvement; control over the resources strengthening usage; more perfect organizational structure creation; innovative management methods application; advanced approaches practice. The disadvantages of this approach include: the modern ways of conducting business finding and the necessity of the company's activity fundamentally new vectors, that means significant time, material and financial resources expenditure creation.

The reengineering implementation in practice allows the companies to rethink operating philosophy and to adapt it to the dynamics market condition. It is noted that the possibilities of the reengineering applying consist the business processes redesign, based on costs reduction, increased labor productivity, production procedures orderliness and the products and the services quality improvement, that leads to the company's consolidation and their product offering competitiveness. The practical application of the idea of the reengineering means: a number of operations to reduce the interfaces combining; multivariate works providing; vertical interactions minimization; the specialist training system significant improvement, that leads to decline the control and speeds up the deadlines in outlined tasks achievement. Therefore, the reengineering can be considered as a connecting link that unites different elements of the organizational structure and allows them to work in a coordinated and effective manner. In principle, the reengineering is not only the modern enterprise additional attribute, but also a critical factor of their competitiveness.

The outstaffing means the introduction of the customer's enterprise personnel to the provider company, where the employers save their jobs and executive functions. At the same time, the employer's responsibilities are transferred to the provider, which assumes full legal and administrative duty for the employees. Such activity allows the employer to reduce costs due to the minimization of personnel maintenance work, because there is no need to rent apartment and workplace equipment when the company's staff is reduced.

In addition, the distribution of responsibility, authority, financial reporting on the basis of the outstaffing resolves inter-functional conflicts, allowing to obtain optimal results, minimize costs and maximize profits. The advantage, in this case, is the improvement of the company's performance indicators and the image establishment, that will contribute to the company's ratings growth and the investment attractiveness. A key parameter for the outstaffing introduction should be considered strong partnership relations, that allows enterprises to combine resources, knowledge and competences to achieve common goals. The basis of such relationships is trust, regular communication, compromises finding and misunderstandings avoiding. At the same time, the stability of a longterm partnership is possible only if such cooperation is mutually beneficial.

It is worth to emphases that the modern company's reticence regarding the innovative activities application, it can be explained by internal reasons, in particular, the lack of the full-fledged resource provision. However, the problem of innovations establishment impossibility by one's own efforts can be overcome by choosing the outsourcing, the reengineering or the outstaffing. From a marketing point of view, such domestic company's integration into the global space will contribute to the formation of long-term relations with counterparties, that are enable their potential economic risks reduce. Therefore, in future, enterprises will be able not only diversify their activity and adapt it to changing consumer demand, but significantly their competitiveness strengthen.

Conclusions of this study and prospects for further research in this direction

Thus, the modern enterprises efficiency increasing requires the activation of their innovative initiative. At the same time, the introduction of such innovations is often associated with internal obstacles, such as the appropriate material, technical and financial enterprises resources absence. In addition, the large majority of companies are guided by proven conceptual approaches. At the same time, the adjustment of the traditional methods towards the latest technologies expending will contribute to their economic potential growth. The proposed is most relevant for the small-scale business entities that are subjected to the greatest market pressure. In the long term, business units operating on the basis of the combined efforts of management personnel, their own structural divisions, subsidiary companies and logistics partners will probably be much more successful. The result of such interaction will be the strengthening of the enterprises market positions and their access into fundamentally new levels of management to obtaining convincing competitive benefits.

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