Interview with the CEO of ASCON Maxim Bogdanov

Maxim Bogdanov: Explain to the enterprises what needs to be implemented complex PLM, it is already not necessary

TAdviser: What extent of distribution of products of product lifecycle management (PLM) in the defense industry?

Maxim Bogdanov: Today CAD systems are widespread everywhere. The enterprises where draw by means of a drawing table, do not exist for a long time. If to speak about the complex PLM solutions covering all stages of lifecycle, different functional areas, then their units. Even at leading enterprises of defense industry (Ural Carriage-Building Plant, KAMAZ, Dry) end-to-end systems of management of lifecycle are in process of implementation and that only in head divisions. Solutions which would extend to all child structures would cover cooperation chains where several enterprises of different level from the head designer to suppliers of components are involved, in Russia is practically not present. The corresponding victorious reports about implementation of an end-to-end system in the press appear from time to time, but most often it is or about head enterprise, or about the engineering center, without production scope. It is the main problem: The PLM solution is well presented at the Russian market, but deeply did not get into the defense industry yet.

TAdviser: In what the reason of such situation – organizational problems, a lack of understanding of a PLM perspective by the management, absence of specialists?

Maxim Bogdanov: Problems — lots. Absence of specialists – the first of them. The representative of one large corporation in personal meeting was recognized that in all corporation which plants are located from Moscow to the Far Eastern Federal District there will be no more than ten specialists capable to direct implementation projects and operation of PLM systems. The second reason – high cost of such projects. The third factor – implementation duration. The fourth problem – the decentralization of management arising when implementing integrated management of lifecycle. And not always managers of different level can agree about separation of powers.

TAdviser: How you explain that despite all difficulties, it is necessary to implement integrated management of lifecycle after all?

Maxim Bogdanov: Explain to the enterprises what needs to be implemented complex PLM, it is already not necessary. Understanding was at least created what it is possible to save on. And overcoming obstacles in a way to integrated management is, so to say, a disease of growth. As the person in the childhood should have cold, a rubella, and the enterprises should pass certain stages on the way of implementation of PLM.

TAdviser: What it is possible to tell about the Russian market of PLM systems – in what measure it meets requirements, expectations of the customer? What share is occupied in the market by ASCON company?

Maxim Bogdanov: Owing to the historical reasons our market on the level of a maturity is considerably less developed, than in North America or Western Europe. If to compare solutions of the western vendors and domestic developers, then the western solutions are distinguished by high extent of study of functionality. It is not surprising as in the West the history of mass implementation and use of PLM systems much longer, than in Russia. But at the western solutions the weaknesses – remoteness of development centers of products from the customer that reduces flexibility of reaction to the consumer's requests, cost. The closeness of the western systems leads to problems with information security. Unconditional minus are restrictions on deliveries to certain industries and on specific telecommunications agencies with sanctions. Respectively, domestic solutions are won at the price, flexibility of reaction, information security, but degree of a covering of functional tasks is significantly lower.

In terms of improving competitiveness of domestic solutions an important role is played by consortia of the Russian developers which, having integrated, are capable to create the multifunction complete solution. An example of such partnership is recently announced partnership of ASCON with program developers "Eremex" (EDA/ECAD), "TESIS" (CAE), STC of CAE, ADEM (CAE) which result was a multivendor PLM product provided to public in September at a forum "Development. The Russian technologies for engineers".

As for a market share which we occupy, we have strategic calculations, but they are applied to internal estimates. It is connected with the fact that ASCON publishes the data, and most other market participants are not. Therefore our calculations are based on a large number of hypotheses and assumptions, especially – regarding the real situation of the western companies. At the same time, some analytical data on the market after all are published, and in all, since 2007th year, ASCON not only surely is present, but also enters into top three.

TAdviser: What competitive situation in what degree of the sanction and a foreign policy situation affected preferences of big Russian customers of PLM systems? They began to prefer the Russian software or still prefer industrial western solutions?

Maxim Bogdanov: The competitive situation exchanged, but not cardinally and not directly because of sanctions. The matter is that the scale of sanctions and even their orientation are very strongly limited. No restrictions concerned many child, affiliated structures though head enterprises and fell under sanctions. And changes of competitive environment are explained first of all by changes of mentality of representatives of the separate enterprises, the increased extent of understanding of PLM approaches to production and need of their use domestic base. Preferences of customers changed at those enterprises whose management analyzed the events which took place in the market and made the relevant decisions at the internal, corporate level. But it not mass phenomenon. Still regularly there are purchases of the PLM systems of the western production, including impressive – for millions of dollars.

TAdviser: Above the multivendor solution created with participation of ASCON was mentioned. Whether interested the proposal of customers?

Maxim Bogdanov: First of all it is necessary to explain the term "multivendor solution" in this context. There are two methods of implementation of the PLM concept at the enterprise – the product introduction of one vendor supported by special integration solutions, or based on support of standard data exchange protocols (geometrical, text and others). The solution presented on a recent action – the second option. Conceptual vision as products was worked out can work jointly that the customer did not need to think what formats to apply in what technology chains to use. Within the forum "Development. The Russian technologies for engineers" we with colleagues from consortium provided already working product. The purpose of submission of this multivendor solution on an action was to find out whether customers have interest in similar collaborations, and whether, respectively, vendors should take the following steps on increase in an integration scale of products and quality improvement of the complete solution in general.

TAdviser: How will existence of interest or its absence be defined?

Maxim Bogdanov: ASCON, as well as all our partners in the multivendor project, – the business companies long ago working in the field of CAD/PLM. If in the market there is interest in this product, also customers will appear. So far it is possible to tell that directly on an action interest was shown high. Now it is necessary to pass a preliminary cycle before the first sales of the presented solution and its implementation.

TAdviser: Whether there were new, specific requests from the enterprises for the last one or two years regarding functionality?

Maxim Bogdanov: Regarding functionality of new requests did not appear. As a trend of the last period it is possible to note interest in standard solutions. In the 2000th enterprises played enough with customization of PLM systems, their adjustment under the unique business processes. Today customers began to think more of return of investments, budget optimization, staff, tasks and business processes. Respectively, there was desire to implement the standard solution constructed on the basis of best practices which the developer purchased, cooperating with a set of the enterprises. It is easier to update standard solutions, more simply to support, they bear in themselves less risks connected with nonserviceability, routine of the personnel at the enterprise. Reaction of ASCON to this trend – emergence in a portfolio of the company of business solution "End-to-end 3D - technology", the application including a combination of methodology and the configurations of a PLM complex based on domestic standards and the best practices of application. Summarizing told, it is possible to note that projects of automation pass now from as is stage ("as is") to as must stage ("as should be"). And one more addition – before the enterprise imposed requirements to functionality of PLM regarding the organization of processes in the enterprise. Today they formulate requirements to a system regarding the organization of customer interaction of products of this enterprise and accounting of its requirements.

TAdviser: What products enter a PLM line of ASCON? What product is in the greatest demand from the defense industry for today?

Maxim Bogdanov: The basis of a software package of ASCON for the enterprises of mechanical engineering (including a MIC) is made by the following products:

• the system of the automated three-dimensional design of KOMPAS-3D constructed on own mathematical core of C3D;
• LOTSMAN:PLM product data management system;
• management system for the normative reference information, including reference books of materials and ranges, standard products, technology reference books (transactions, the equipment, professions, means of technology equipment);
• automated design engineering system of technology processes of VERTIKAL;
• schedule system and operational production management of GOLFSTRIM;
• management system for discrepancies "8D. Management of discrepancies".

Enjoys the greatest popularity flagman a product of ASCON — KOMPAS-3D, demand for LOTSMAN:PLM, a CAD of TP VERTIKAL, NSI gains steam.

TAdviser: A CAD system enters a PLM complex too?

Maxim Bogdanov: Yes, we consider a CAD system a part of a PLM complex because on level of training of production not less than a half of the data appearing then in product lifecycle is generated. And the most important — the systems of digital design actually are basis for a full-fledged PLM system. Any project begins with implementation of a CAD system, then integration with a technology part of production is performed, a common information space with the general source of qualitative data, the normative reference information is built. And only then the real need for creation and application of a PLM system appears.

TAdviser: Let's return to an industry PLM maturity question – what share of the enterprises which seriously thought of complex approach, but not fragmentary implementation?

Maxim Bogdanov: The ratio about one to ten, i.e. on ten enterprises which are at a stage of fragmentary automation, one enterprise thought of implementation actually of PLM. But their share grows.

TAdviser: What portrait of the customer of a standard PLM system – the production scale, qualifying standards?

Maxim Bogdanov: Our main target segment for a PLM system – the enterprises of large and medium engineering with a number engineering (design, technology) divisions from 70 people. More than 50% of our market of the PLM solutions are defense industry enterprises. Among them the share of the enterprises with job order mode of production and design grows.

TAdviser: The number of the implemented projects in the current year? What dynamics in comparison with previous years?

Maxim Bogdanov: ASCON in a year executes about 80-100 projects of complex automation of engineering activity. This year we expect similar results again taking into account that an essential part of projects traditionally comes to the end by the end of the year. Dynamics owing to the general difficult situation in economy did not change — was about the same implemented also in 2014. The market of a CAD, as well as IT market in general, fluctuates around indicators of last year.

TAdviser: What main problems it is necessary to face in the project progress?

Maxim Bogdanov: The first problem — lack of the involvement into the project of the top management, and is, as a rule, the main factor of risk, the reason of almost all other difficulties. The second traditional complexity — unwillingness of users to leave historically developed processes whatever ineffective they were. And the third — the low level of project management from the customer. I will explain, it both inefficient communications, and the incorrect choice of the project manager, and lack of motivation and some other problems.

TAdviser: What it is possible to tell about technical issues when implementing projects?

Maxim Bogdanov: Technical issues arise, but they almost all solvable. Only time and money are necessary. There are, of course, some tasks to which domestic software did not grow yet if to compare to the difficult western decisions. But it is an objective situation – we grow together with the market, with our customers.

TAdviser: Your assessment of perspectives of further distribution of PLM systems at the defense enterprises? Plans of ASCON company for the 2016th year?

Maxim Bogdanov: Reserves for increase in process performance of product lifecycle and implementation for this purpose a PLM complexes in the Russian defense industry very essential. A large number of the enterprises is at a stage of the choice of vendor and products. The enterprises which already implemented the similar systems think of expansion of functional areas of automation and change of business processes.

As for plans of ASCON, it is plans multi-level. The first level – solving of tasks within PLM consortium which participant is our company. The application was submitted in the Ministry of Telecom and Mass Communications in May of the current year. If the state decides to invest in the accelerated development of a domestic PLM segment of IT market and, respectively, in development of the defense industry, then it is one dynamics and the action program for us. If state support does not happen, and the economy will stagnate as now, is other scenario. The economy falls – the third option when most the companies just try to survive.

Respectively, the second level of our plans – development of products. ASCON in 2016 is going to release new versions of all line of a PLM products, to improve business solution "End-to-end 3D - technology". Of course, we will expand cooperation with our partners in consortium, providing closer integration at the methodological and technical levels.