The purpose of the article. The aim of the article is to define new concepts of transformation and reengineering of business processes, their types, properties and research of significance in the development of territories. Methodology. The theoretical and methodological basis of the study are the scientific works of scientists in the study of business process management in the system of competitive development of territories. To achieve this goal, the following research methods were used: theoretical generalization – providing the basic characteristics of models of economic development in the conditions of transformational changes in national economies; methods of positive and normative analysis – to determine the strategy and priorities for the transformation of regional development. Results. It is proved that transformation is a permanent form of life, a movement in which old and new coexist, in certain conditions innovative spheres survive and develop, such as material and technical and social base of scientific and technological progress, reforms, social consequences and sometimes negative for society neoplasms and deformities. Reforms do not stop historical, evolutionary transformations, they give them new impulses, directions, limit or expand the scale of their impact on all aspects of society. It is substantiated that the strategy of “catching up” and the strategy of “advanced technologies” should be implemented simultaneously, not in turn, as their common goal is to achieve a new technological level of the Ukrainian economy. It is determined that the strategy of “catching up” can be used in the manufacture of household appliances, engines and in the automotive and chemical industries. It is proved that Ukraine can and should pursue a strategy of “advanced technologies” in the production of certain weapons, aerospace and shipbuilding industry, chemical, heavy and energy engineering, transport, information technology, participate in global cooperation in nanotechnology and biotechnology. Prospects for the transformation of territories are identified, including: transition from extensive to intensive management methods, implementation of programs to increase regional production of goods, priority of small farms, development of social reforms, priority of small farms, restructuring of the regional economy. Practical meaning. Models of economic development for transformational changes in national economies can be used by regional public authorities. Prospects for further research. Study of strategy and priorities for regional development transformation.