PECULIARITIES OF FORMING THE INTERRELATIONSHIP BETWEEN BUSINESS PROCESS MANAGEMENT AND INCLUSIVE AND SMART DEVELOPMENT OF TERRITORIAL COMMUNITIES

Abstract

This study examines the specific features of the bidirectional interrelationship between business process management in business entities and the achievement of inclusive and smart development within territorial communities. The research substantiates that contemporary strategic priorities require abandoning outdated extensive management approaches and adopting innovative business process management methods grounded in process reconfiguration and digitalization. The universality of the business process concept is demonstrated for both enterprises and territorial communities, as both systems share key attributes such as goal orientation and client-centricity. The transfer of business process management approaches from the enterprise level to the territorial community level enhances its efficiency, as community business processes aim for optimal resource use, improved quality of life, and local economic development. The findings indicate that effective business process management serves as a catalyst for smart development, by fostering technological innovation, promoting the creation of high-tech smart enterprises, and for inclusive development – by promoting employment, upskilling, and corporate social responsibility. Key areas of influence include increasing the efficiency of production processes to ensure tax revenues, developing personnel through training, and incorporating corporate social responsibility elements to support social and environmental initiatives. Conversely, a high level of territorial community development, reflected in infrastructure and human capital, creates favorable conditions for optimizing business processes. The study concludes that the transition to modern business process management practices is essential for ensuring balanced, sustainable, and innovation-driven territorial development.