Top trends in the Russian CPM market

Main articles:

• Trends in the Russian IT market
• Corporate Performance Management, CPM (Russian market)

2021: Priority No. 1 was again planning based on forecasting

The pre-andemic trend is returning to the Russian CPM market - the demand for automation of business planning based on forecasted analytics. According to Intersoft Lab on January 21, 2022, the company's marketing service came to this conclusion by analyzing preliminary data on the CPM systems market (Corporate Performance Management) from open sources for 2021.

More than a third of CPM projects launched during this period (34.8%) were associated with solving problems from the BPF category - budget, planning and forecasting. The second position is the implementation of tasks related to operational management (30.4%) with the help of analytical reporting tools. In third place are regulatory projects (18.1%), and in fourth - profitability management (13.6%).

This trend was indicated on the eve of the pandemic. Then, according to Intersoft Lab, the Russian CPM market reached maturity: in 2019, its development was determined by world trends. But, as in previous crisis periods, in the first year of the pandemic, regulatory initiatives became the driver of the business intelligence market - 38% of projects were launched to meet supervisory requirements.

In 2021, the Russian business analytics market returned to the course of global trends. Applications for budgeting and forecasting for the second year in a row rank first among the most sought-after CPM functionality, according to the annual international survey BPM Pulse Survey. According to APQC, in 2021, 83% of foreign financiers - the main customer of CPM systems - put these applications in first place (for comparison: in 2020 - 73%).

Business analytics is still the most in demand in the domestic financial vertical - it accounts for almost half of the started projects (48.3%). More than half of the market is held by domestic developers, their total share exceeds 60%. The share of Intersoft Lab in the number of projects amounted to 45.4%.

"The return to the pre-andemic vector of development is natural. The digital transformation that accelerated during the pandemic has generated huge amounts of ready-to-use data. By powering them with modern forecasting tools that use the computing power of data warehouses and machine learning methods, it is possible to ensure a higher quality of planning. Their application makes it possible to increase the detail and validity of forecasts of the state of bank portfolios, which are the basis of plans, by hundreds of times reduce the time for their preparation. The time released can be used to prepare various versions of the plans in order to be ready for any changes in the market, which is especially valuable in an era of uncertainty, "said Julia Amiridi, Deputy General Director of Intersoft Lab.

2015-2016

In order to find out what trends are most noticeable and promising for the domestic CPM system market, TAdviser interviewed a number of Russian companies.

So, according to Sergey Safronov, director of the CPM department of KORUS Consulting Group of Companies, the main trends of the market are efficiency and flexibility, and this applies not only to the capabilities of the platforms, but also to the approach to project implementation.

Maxim Andreev, Director of Business Applications at Krok, refers to the main trends in the transition of solutions to clouds, closer integration of CPM with related business processes and more active participation of business consulting companies in automation projects.

"An important trend is the use of cloud solutions. And although the share of such projects is still low, this fact is very important, even a tipping point: companies trust the storage of their financial data to an external SaaS provider. And if the company's financiers are no longer afraid, then the use of cloud services will be the norm for other IT services, "Andreev said.

The INTALEV group believes that traditional financial applications designed for the control, completeness and reliability of information are being transformed into solutions aimed at managing the macro goals of companies. According to Elena Polyakova, General Director of INTALEV, the functionality of CPM systems will inevitably expand to include the development of methodology and automation of all stages of target management: Goals-Activities-Personnel-Budgets. Also, an important area of ​ ​ market development, according to her, will be the creation of the possibility of full-fledged work with data on mobile devices and support for cloud technologies.

Yulia Amiridi, the deputy CEO for development of business of the Intersoft Lab company specializing in the field of management of efficiency of banking business allocated 4 the dominating directions of development of SRM in the financial sector.

The first is the expansion of the composition of consumers. In addition to financial departments, which are traditional customers of CPM systems, business units, primarily the retail and corporate block, development and marketing services, which often have their own budgets for business analytics, are gradually becoming new consumers of efficiency management software. They are the main customers of analytical reporting and new consumers of functionality for assessing the financial performance of business areas, points of sale, products, customers, distribution channels, etc., which allows you to calculate the performance management system. The increase in the number of users, according to Julia Amiridi, makes CPM systems, on the one hand, more accessible by distributing the financial burden among the budgets of different departments, and on the other, ensures the production of consistent data and the adoption of agreed decisions by different consumers within the bank.

The second direction is self-service in analytics. The need for situational analysis, the desire to receive new analytical and management reports faster, without the involvement of IT specialists, helps to strengthen the banking segment for suppliers of modern high-performance Business Intelligence (BI) tools using in-memory computing. According to Julia Amiridi, it can be predicted that the experience gained by banks in using such funds in the near future will increase the need to solve the problem of financial consolidation based on data warehouses responsible for preparing data for analysis and having developed tools for monitoring and evaluating their quality.

Another dominant area of ​ ​ SRM development is the simplicity and accessibility of operation. According to the Deputy General Director of Intersoft Lab, the functionality of SRM systems is constantly becoming more complicated. At the same time, solutions that are "black boxes" from macros, second "added" by developers during implementation projects, are a thing of the past. Customers strive to choose ready-made print-out CPM platforms that have understandable "one-language" interfaces with the user, which allow financiers and business users to configure and reconfigure applications on their own and quickly, adapting the software to changing methodological requirements.

And the last, fourth direction is a component approach and the use of open software. According to Yulia Amiridi, in order to optimize costs, banks are actively considering the use of open-source software components in building CPM systems. Potential candidates "for replacement" - DBMS, ETL and BI. The use of open-source components allows you to reduce the cost of ownership of the management system due to savings in the acquisition and operation of licenses, the Intersoft Lab expert believes.

2013-2014

Growing interest in CPM

According to Roman Tkachev, head of BPM practice at Technoserv Consulting, the main trend in the CPM market in Russia is a steadily growing interest in CPM systems and ready-made solutions based on CPM platforms.

"This trend is the most important, it moves the market forward," the expert said.

Alexey Kuchin, head of practice development at CPM KORUS Consulting, explained to TAdviser that today professional investors have come to many companies that pay great attention to improving the level of corporate governance. These companies create a significant demand for services to improve budget management processes, prepare management and international reporting, and, as a result, for services to implement CPM systems.

Igor Shumakov, an expert at the NGO Computer, also believes that the market is beginning to perceive CPM systems as necessary tools for everyday work.

"Many companies have not yet begun implementation, but do not rule out this possibility in the future. The trend in Russia: an increase in the number of implementations and recognition, "he commented

. Vyacheslav Butyrkin, director of the department of the I-Teco Business Consulting branch, head of the BPM direction of I-Teco, notes the emergence of interest in BPM solutions not only in the financial sector, but also in enterprises of other industries, including transport, retail, telecom and, of course, the public sector.

"I also consider the" depth "of interest very positive: depending on the needs and capabilities, companies introduce both relatively expensive solutions from the largest suppliers and more affordable systems," Vyacheslav Butyrkin added.

Rapid development of solutions

The growing interest of Russian customers in CPM encourages domestic developers to create new software products and develop the functionality of existing ones. Anton Shmatalyuk, director of management and IT consulting at RDTECH, confirms this trend. Igor Shumakov added that at the same time, domestic systems are actively competing with Western systems. Moreover, according to him, they often benefit in terms of ease of setup, price and availability integration with our accounting systems. At the same time, Western systems look profitable in terms of stability and have wider functionality.

At the same time, more and more industry models appear, said Alexey Budin, head of ELMA. For example, for each industry, based on its characteristics, ELMA offers its own ready-made solution.

"We present our expert view on how to increase the efficiency of the company in one area or another," he said.

For example, it is possible to increase the efficiency of housing and communal services companies through a service-oriented approach and service catalog management. ELMA offers construction companies to apply the "design conveyor," and for production to the warehouse - attention to raising the level of maturity of supporting processes and so on.

Alexey Budin believes that in the future systems with new types of "consumption" of the process approach will begin to appear. The method of providing information to the user of the system, as far as it is clear and convenient to work with, comes to the fore. Developers create new tools that make working with the system intuitive, and all the necessary information - more accessible. Also, the possibilities of constantly improving the system and making changes on the fly, which do not require long interruptions in work, do not lose their value.

Decision Support

Yuli Amiridi, the deputy CEO for development of business of Intersoft Lab, increase in demand for the CPM functionality providing IT support of decision-making at the operational level of management considers one of key trends. This increase in demand is caused by the need for banks to continuously increase their operational efficiency amid ever-increasing competition. To support operational efficiency management, profitability management applications are designed that allow you to plan, model, monitor and analyze the bank's internal performance indicators, such as the profitability of banking products, customers and client groups, sales channels and bank managers.

In our country, the transition from the use of spreadsheets to ready-made CPM applications for planning and budgeting is quite active, but at a lower rate than abroad, Julia explains. The analytical company Gartner in one of its studies draws attention to the fact that in the developing economies of the BRICS countries, which include Russia, despite awareness of the possibilities of CPM automation, electronic tables are still more often preferred than in other countries.

Attention - on KPI

Aleksey Budin, Director of ELMA, noted that it is gradually becoming clear to customers that the electronic document management system alone does not fully solve the problems of formalizing the interaction of company employees. "There

is a trend in the market towards measuring and managing performance. Managers began to think not only about how to assess the state of affairs and determine the stages of implementing the strategy, but also how to improve the results of the company through motivation of employees, "the specialist said

.

Clouds and Mobility

Roman Tkachev also considers the release of CPM systems into the clouds and the provision of services implemented on them to be an important vector of the Russian market.

"Today we see the beginnings of this phenomenon, but in the future it may become more massive. Changes in the functionality of CPM systems cannot be ignored. In fact, BPM and ECM systems are spliced, mobile access and the social capabilities of modern BPM systems are more actively used, "Roman shared his opinion

.

The need for CPM mobile data access systems is also increasing. For example, for remote monitoring of the bank's activities, Russian customers are increasingly declaring the need to use mobile technologies. The Intersoft Lab company (Intersoft Lab) released for this purpose in 2013 a special application for iOS and Android which allows top managers of banks to use the tablet for implementation of functions of financial controlling, being worldwide.