The author has analyzed the system and mechanism of managing domestic industrial enterprises. Most modern domestic companies suffer from using outdated management systems that are poorly adopted to current, dynamically changing economic conditions. The algorithm for reforming the system of managing an industrial enterprise by creating an innovative infrastructure has been considered in the article. Such an infrastructure will boost innovative activities and facilitate the production of up-to-date innovation products capable of making a good competition on the market. The author has also discussed the process approach to industrial enterprise management and the integration of innovation processes into the management structure, as well as relationship with other primary and secondary processes at an industrial enterprise.