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ERP market in Russia will continue to grow: that is why

November 19 at 18:50

Import substitution

The policy of import substitution can be treated as you please, but for the market of ERP systems this trend has significant positive moments. If private companies can choose any supplier, then state and local government institutions cannot ignore the course followed by the country. According to market experts, many customers have begun to admit the possibility of using Russian developments in their projects. The attitude has changed: whereas previously domestic software could have been abandoned due to the fact that “they have enough money to buy a foreign product, a priori of better quality,” now they are comparing functionality and convenience.

It is also notable that the trend of import substitution coincided with the active development of 1C product. Successful cases and good experience in complex projects made it possible to feature prominently among other Russian ERP systems. Product popularity was confirmed by IDC Russia research: in 2017, the company's sales growth was 30% in dollars and 13% in rubles. Due to the political situation, it is obvious that the trend of import substitution will continue to influence the decisions of businessmen when choosing suppliers in favor of domestic ones.

Business digitization

Digitization of the Russian economy, which the Russian president has been focusing on for the second year, is pushing businessmen to implement enterprise management software. The digitization program was developed until 2024, and 2.666 trillion rubles were allocated for implementation of planned projects. Targeted loans at reduced rates are provided for manufacturing businesses for technology upgrades. Businessmen themselves understand the benefits of mastering digital technology. Anyone who starts using new tools in solving operational problems earlier will have time to take a larger share of the market and will be able to establish new rules of the game. Development of other technologies also opens up new dimensions for development of ERP products. For example, recently popular chat bots will simplify the interaction of end users with the system. The Internet of things will provide possibility to automatically collect sensor data. Introduction of electronic signatures and document flow will change the view of accounting and reduce the level of business bureaucratization. Technologies that companies use in their work will later be merged on one platform. Performance indicators will become more transparent and more accessible for calculations.

Availability of solutions

Due to the active development of enterprise management systems, more affordable offers began to appear. Companies that could not afford an expensive foreign product are implementing technologies from Russian developers. Let us provide the figures for comparison: the cost of a user license of the German company SAP is on average 192 thousand rubles, and the Russian 1C is 5 thousand rubles. If you multiply these figures by the number of workplaces, add the sums from the bills for implementation and maintenance of the system, consulting services and user training. The final budget is weighed by the purchase of equipment to ensure operation of the systems. Integration of ERP in the cloud allowed reducing costs. Owing to license and equipment rental, it has become easier and cheaper to try on the automation and accounting system for a business. This opened the door to organizations for which low entry cost is important. The number of companies that prefer the model of ERP renting in the cloud has increased by 30% over the past year.

”ERP systems in the cloud can be tested in combat conditions without any extra expenses. If you take the path of on-premise, then you need to configure everything yourself: buy licenses for the server operating system, for the SQL server, for the ERP server itself. Plus, it may happen that you will have to upgrade equipment. All these expenses are not justified if you only need to evaluate performance of the ERP system. Another thing is a virtual server. The cost of the operating system is often included in its rental price. The SQL server can also be rented (like many other licenses), and then, when it is no longer needed, it can be refused. You cannot do it with purchased licenses, so they often fall dead when there is no more need for them. Flexibility of virtual servers allows companies to evaluate the ERP system without the cost of equipment and choose the one that is best suited to run the enterprise on an ongoing basis”, – explained the Head of the infrastructure rental service development department in 1cloud.

Customer Competence

Market experts say that customers themselves have begun to change. In companies there are more top-managers with modern education. They initially see the business processes built on the basis of data analytics: they trust their intuition and personal experience less, while trying to measure and calculate the company performance.

New wave managers understand the principles of work with data, they are not afraid of technologies, and therefore, they respect implementation of ERP systems. Most importantly, they perceive the enterprise management software as a tool to adjust business processes, rather than radically change them. Thanks to the initially correct approach, integrating the enterprise management system is faster and more economical.

What do we have?

Entrepreneurs are aware of the need to quickly adapt to the speed with which the business environment and technology are changing. Government programs are pushing for change even conservative companies in the country. Manufacturers have no time to waste in a favorable period for them -they have to improve their ERP-systems and more actively promote services in the market.

(original article - infostart.rujournal)

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