Interview with the area development director of ECM of TerraLink company Alexander Bader

Alexander Bader, Area development director of ECM, TerraLink

TAdviser: How do you estimate present market situation of EDMS and the direction of its future development?

Alexander Bader: The term "EDMS" does not reflect today any more that functionality which customers at implementation of information systems for workflow automation want to receive. The reason is simple: actually accounting of documents does not allow to receive additional benefits for core business of the customer. Today it is important to reach qualitatively new level of work with business content – to begin to manage information which is contained in documents.

The TerraLink company aims to develop and implement such rule which becomes peculiar "machines for creation of additional value" for customers, i.e., revenue-producing, also, as machines or drilling rigs.

TerraLink actively uses the most modern tools for work with unstructured information. EIM technologies – Enterprise Information Management (Management of corporate information) are the cornerstone of our approach. These technologies also become the additional production capacity which allows them to increase the gained income for customers.

If to consider a present status of the Russian market of EDMS, then it, in general, follows a general economic trend of the country. The difference is only that at improvement of the general market situation the number of implementations of EDMS grows quicker, and at decrease – falls, and is more dynamic.

TAdviser: How do you estimate dynamics of the market of EDMS last and this year?

A. B.: In 2014-2015 the market of EDMS was in a stagnation status. Doing the forecast for 2015-2016, we have no bases to believe that the trend will change for the better.

If to speak about demand, then first of all solutions which have a direct impact on the main production processes of the customer will be demanded and help it to reduce costs.

It is also possible to expect increase in demand for solutions EDMS which with guarantee will provide compliance to requirements of the legislation and the industry regulators accepted at the customer of rules of business.

TAdviser: What impact on the market does the subject "import substitution" have?

A. B.: Import substitution is not a just fashionable word. It occurs in reality and affects the market of EDMS. However it occurs not as it is accepted to speak about it.

Import substitution is shown first of all that the ratio of the importance of the separate industries in a gross product of the country changes. A number of branches of the economy (if it is specific, retail, production and processing of mineral fertilizers, agricultural production and processing of agricultural products, convenience goods and others) show the noticeable growth of turnovers. Therefore in these industries also demand for information technologies inevitably grew, including ECM/EIM.

However to claim that import substitution is capable to lead to a total failure from the western products and systems only naive people can. Nobody will bring Lotus Notes out of plans of implementation only because it is a product of IBM company. But at the same time long ago it is time to think that this product is present at the market already too long ago, and its upgrade comes down only to improvement of the interface. But to many companies now not before.

So, the question of failure from DBMS Oracle is not necessary in principle. Most it is possible to tell also concerning industrial ECM/EIM of systems. As worked in state agencies IBM of FileNet, so it also continues to work. Or OpenText in oil industry. These products do not have an alternative, to replace them there is nothing. To develop something comparable with them, years of laborious work and considerable investments which we do not have will be required.

Also the opposite trend is noticeable. There is a number of systems, demand for which lately steadily fell for technical and other reasons. They began gradually to be washed away from application. As a result of import substitution they, of course, suffered first of all.

For example, if earlier in the organizations having special requirements to information security Documentum was applied, then gradually it was taken out of service with replacement by Alfresco. With transition to import substitution policy this process began to go more intensively.

At the same time it should be noted at once that where work with the classified information is conducted and passing of certification of products from FSTEC, import software, as a rule, is never necessary and was not. There are all bases to assume that it there also will not be in the future.

I personally do not know any case when the company passed from a foreign industrial ESM-system to the Russian development only because this system – Russian.

But there is a set of examples of transition from the western product on domestic because of inadequate expectations of the customer concerning opportunities of the western product, its misunderstanding of their actual total cost of ownership. It occurs everywhere and for a long time, however has no relation to import substitution. The reasons for transition are had only economic, but not political character when, of course, it is about real sectors of economy, but not about a public sector.

TAdviser: Your opinion on influence of the state initiatives on the market of EDMS recently?

A. B.: Development of the legislation in the field of the electronic signature very positively influences our business. The operable legislation concerning electronic documents can be very useful.

Now there was a situation that laws and determinations exist, but it is not possible to apply them in work yet. Without giving to the electronic document, including e-mails and the SMS, legal force, development of the Russian SED/EIM technologies will inevitably lag behind western.

TAdviser: Whether possibilities of deployment of EDMS in a cloud are demanded today?

A. B.: Many companies already consider this possibility seriously. However mass implementation is not observed yet. Perhaps, it is connected with concerns on security or lack of interesting options of applications. As demand and supply are closely connected among themselves, probably, time for promotion of this process is required.

TAdviser: What relation is shown by customers to development of mobile interfaces?

A. B.: Today there is no serious technological solution any more for ECM which would not have the mobile client. All largest suppliers, including the main vendors of TerraLink company – SAP and OpenText – offer very powerful and functional tools for creation of such applications. We intensively use them in our projects, and mobile applications are already closely integrated with the main ECM/ERP system.

By my estimates, the market is even a little overheated by mobile offers. Personally I am skeptical about mass mobile developments using own platforms and solutions. They should be integrated into a direct system, and then also to support.

What now happens to mobile applications something is similar to what occurred at early stages of automation. Then each solution had own DBMS. Then all passed to standard industrial solutions, and today we cannot even imagine other approach.

In this situation customers, probably, should think of lifecycle of the implemented mobile solutions in advance.

TAdviser: What perspectives of voice actuation in EDMS?

A. B.: It is attractive. You bring the tablet closer and you say: "My yesterday's order on irrational use of the allocated budgetary funds. I claim!". I think that such function will be demanded. But, most likely, it will occur not so quickly, obviously not in 2016.

TAdviser: What happens in EDMS to support of the electronic signature?

A. B.: I more than am complete of confidence and optimism that support of the EDS will be universal. Process went, it goes positively. I think that the legislation and application of the EDS will develop.

TAdviser: What perspectives of development of EDMS with the open code?

A. B.: The TerraLink company works with big customers of the real sector of economy, as a rule, with participation of the western capital and which, usually, are quoted on the western marketplaces. These customers do not state the need for use of products with opened codes.

But at us is as well customers from public sector who, by an example of the colleagues, consider the possibility of transition, for example, with EMC Documentum on Alfresco. Implementation of these projects is expected us not earlier than 2017.

What occurs when the customer selects a product with the open code? He, probably, wants to receive a "magic" system which:

• it is so convenient, functional, productive, reliable, safe, it is steady and scaled as its "the senior companions" from EMC, IBM and OpenText;
• has a set of necessary expansions which will allow to implement mass data entry, management of the records, lifecycle of content implemented by cases; it supports the built-in management of flows of works, the external BPM systems; around this solution the wide ecosystem, etc. already grew;
• differs in simpler user interface, it is open for completion, also the convenience at customization differs in flexibility;
• and, the main thing, – attention! – it costs three times cheaper!

It is hardly believed that such open code systems exist. It contradicts my experience. That was better, and cheaper – it meets only at flimflammers.

Probably, will be able to earn from naivety still any generation of sellers if our customers trust in such "magic" opportunities.

TAdviser: Your largest customers in 2013-2015?

A. B.: Some largest and interesting projects for the present are on implementation phase. From reference customers it is still possible to call, for example, MegaFon, Hilt, Evraz.

TAdviser: Whether regional demand for the EDMS systems changes?

A. B.: EDMS usually is understood, generally as a system for management of administrative documents. In difference from the ECM/EIM systems focused, first of all, on processing of business documents. Therefore the trunk way for development of the present systems is a centralization.

In other words, a system, preferably, should be established in central office of the company and service all its enterprises, located in regions. EDMS becomes one of the GSC (general service center) functions. At such architecture any differences in implementation of specific business processes which are found in regions should be eliminated.

Regional features, undoubtedly, exist. But it is normal does not belong to implementations on platforms of ECM/EIM.

TAdviser: What new opportunities in products of EOS Group attract the interest of customers now?

A. B.: If to consider EDMS as a system for automation of the organizational and administrative documentation (OAD), then at once it is necessary to recognize that functional development of such systems is almost complete. Such companies as EOS Group, Lanit, Company Media who is engaged in development and deployment of the systems of this class many years already implemented everything that perhaps and is impossible. Their developments are de facto the standard, one may say, a standard of such systems.

Today EDMS develop technology, but it is not functional. For example, EOS Group very purposefully transfers the solution to the Microsoft SharePoint platform. Suppliers of those solutions EDMS which are not ready to develop them in the technology direction today will be forced to be content only with the lowest echelons of the market in the future.

If to consider EDMS as a system for automation of work with business documents, then their high-quality development is now observed. It goes in the direction of ECM/EIM. It – essentially other set of functionality focused on absolutely other business needs. Their opportunities leave far beyond scenarios of work, ORD connected only with processing.

TAdviser: Whether there is in the market a pent-up demand when the companies postpone implementation of EDMS for the future for one reason or another?

A. B.: If customers think of optimization and increase in efficiency of the business, then usually they always find funds for implementation of automation systems, and it does not belong only to workflow systems.

Despite complexity of a current period, work does not stop. The branches of the economy focused on the end consumer and also those companies, whose products it is demanded in a current economic environment, find and now opportunities for investment of means into increase in efficiency of the business, decrease in cost value of business processes, ensuring compliance to requirements of regulators, search of ways of attraction and customer retention. Traditional EDMS cannot strongly be helped today with the solution of these tasks any more.

TAdviser: How does the activity of vendors of EDMS influence the choice by customers of this or that solution?

A. B.: Naturally, the activity of vendor is a guarantee of effective promotion of a new product on the market. However not only the frequency of flashing of vendor before customers or plays a role in reviews of media. It is important to build also correctly a partner network, to implement localization of a product, to develop a Russian-speaking support service, to have industry experience and understanding of business processes, communicating with the specific customer, to have the established relations with business, and many other things.

But also other examples meet. The mega-activity of some vendors and the false presentations of a product which are obviously exaggerating it opportunities is observed. Though it promotes sales growth, but does not lead to success of projects in general.

I can give a real example. The director of IT of one electrogeneration company, discussing with me technical specifications on system implementation of management of ORD, dropped a hint of doubt in the labor input of a task specified by me. "I do not understand", – he told, – Why such digits here? The representative of vendor of AAAA accurately told me that it is enough to draw the scheme of business process, and a system will begin to work. Why here still programming?!" It is not surprising that at such approach and at such position of vendor, it managed to implement the ORD system only from the third time.

TAdviser: As far as zrela today customers for implementation of EDMS?

A. B.: All customers are ready in a varying degree to implementation of EDMS, time they buy them. However the maturity of customers is different. It is shown in extent of typification of business processes, business culture and other.

The customer, unfortunately, seldom realizes importance of such concept as total cost of ownership a system. Very often it leads to the fact that the implemented system should be replaced with something else, more suitable for opportunities and requirements of its business.

Unfortunately, very often failure from further operation of the working system also meets. Though such cases are seldom made public public for obvious reasons.

Failure from use of already implemented system can be near is caused objective factors. Treat their number:

• unfair behavior of vendor during negotiations, formation of the overestimated expectations at the customer concerning opportunities of the platform offered for implementation;
• the termination of technology development of the platform, release of the competing offal, release of versions which are incompatible with the previous versions of the platform.

Alas, the similar phenomenon was observed at one known vendor in our market. It is not surprising that that it was absorbed by the competitor, more organized and more loyal to customers.

Are available as well subjective factors. For example, it can be dismissal from work of the initiator and the main ideologist of system implementation. If to it increases that EDMS is only indirectly involved in a chain of creation of added value of the customer or is insufficiently convenient in work, then users of a system with the great pleasure cease to fill actively a system with new data and under different pretexts stop work with it.

TAdviser: Whether it manages to customers to reach payback of systems?

A. B.: The payback of the project is calculated on a system conceptual phase. If the customer did not manage to reveal, calculate and compare correctly benefit and cost value of its operation, then his forecast of a payback period will be non-objective.

It is also necessary to take into account that without monitoring of dynamics of these indicators it is impossible to receive reliable assessment of economic effect of system implementation.

TAdviser: What changes in hardware equipment of EDMS are observed at stages of upgrade of these systems?

A. B.: Customers usually purchase additional storage systems.

TAdviser: What difficulties it is necessary to meet with upgrade of EDMS?

A. B.: During a system design, as a rule, underestimate need of its integration with ERP and/or other key technology systems of the company. Completions are executed already during operation. Usually it is expressed in significant expansion of structure of the issued reports, including an output of panels of business indicators to the head's computer and also in development of new methods of information exchange between systems that is most labor-consuming.

The greatest difficulties are usually caused by transition to new versions of the platform, especially, if the vendor does not pay due attention to questions of compatibility between versions or handled issues of future development of the platform at early stages of its development insufficiently.

Upgrade usually becomes a complex problem when in a system there are many completions which were executed without the recommendations of vendor. In this case transition to the new version can develop into separate and very expensive project.

TAdviser: What unique opportunities of your products are in demand for clients?

A. B.: The TerraLink company, is generally project-oriented. In difference, say, from IT, at us few own products. If to call those which are implemented on industrial platforms of OpenText and SAP, then their two:

First, it is TerraLink Extended Document Exchange (TerraLink xDE). The product provides integration of services of operators of electronic document management in the environment of the corporate financial accounting system. About the Product. Market positioning of TerraLink xDE is provided with its unique technical characteristics. A system supports work with a number of the accounting systems, has the special connector for SAP ERP, uses industrial archive servers of SAP and OpenText for archiving of content.

But the most important, this system supports simultaneous operation with services of nine (!) operators of e-document flow. It is very important function for the companies focused on the maximum market coverage. It is especially relevant in the conditions of lack of roaming between the main operators today and taking into account that it is difficult to expect emergence of similar roaming even in the medium term.

The TerraLink company intensively develops the direction of broad compatibility of the developments while competitors are limited to work with the only ERP system, support only one operator, use nonindustrial solutions for storage of content or in general wind down the similar work as, for example, IT.

Benefits. TerraLink xDE provides with customers a possibility of the maximum market coverage, guarantees stability of work and independence of the operator of e-document flow, broadens the sphere of use of earlier made investments into the corporate accounting system, excludes unproductive manual transactions during the work with standard interfaces of operators of e-document flow, and the most important – considerably reduces cost value of transactions of exchange of documents with partners.

One more the product, important for us, is TerraLink ECM Line. It provides management of main types of business documents: agreements, design documents, primary financial and economic and also administrative documents.

About the Product. Unique market positioning of TerraLink ECM Line is provided with its modular architecture and the put approach to unification of methods of work with main types of business documents. Work of each of modules is carried out with use of a uniform core.

The product is implemented using industrial OpenText technologies for management of business content. Other solutions of similar level based on complete approach and industrial technologies in the Russian market are absent now.

Benefits. TerraLink ECM Line provides to customers a possibility of the maximum cost reduction and time for system implementation, a possibility of its flexible configuring and development, guarantees unlimited scaling and high performance, and the most important, – considerably reduces total cost of ownership a system.

TAdviser: To what directions of examination do you pay paramount attention at a present stage of development of the company?

A. B.: TerraLink was formed and developed at first as purely technology company. It performed delivery of the software and its implementation, relying on the specifications received from the customer. For last years we managed to seize deeply certain types of software tools for workflow automation.

Today our company has the highest status of partnership with OpenText, we – the only owner of the status SAP Competence Partner in the CIS. At us – the biggest number of projects in the CIS on the OpenText Content Server and SAP Extended ECM by OpenText platforms. Besides, at us the biggest team of specialists in the CIS according to these software products.

We continue to increase examination in the field of product lines of OpenText. However the main task which we set for ourselves today is development of industry expertize in the industries, key for our company, – oil and gas, including production and processing, telecommunications, pharmaceutics, retail, etc.

Still nobody managed, being based only on profound knowledge of software, without deep understanding of features of business processes in specified (and others too) the industries to implement products which will be demanded by the customer. Solutions which do not consider specifics of the customer cannot provide significant increase in efficiency of its business. Therefore, in modern conditions they will not be in demand.