Interview of TAdviser with the CEO of MiTek Ruslan Shakirov
Ruslan Shakirov, the CEO of MiTek company, in an interview of TAdviser told about the main trends of the Russian EDMS/ECM systems market, criteria of success of projects and also about factors which prevent the domestic companies to refuse completely paper in document flow.
A year ago, when the Russian Internet portal and the analytical agency TAdviser conducted survey about further trends of development of the Russian EDMS/ECM systems market, among answers such directions as import substitution, scaling and need of repeated, better implementation of systems, mobility and flexibility of solutions, analytical opportunities, clear interfaces, a cloud EDMS/ECM system and the solutions based on Open Source most often sounded. What, in your opinion, trends are most noticeable now, a year later?
Ruslan Shakirov: Today I would select 4 key directions, with a binding to the present and with forecasting of future development of ECM systems.
Let's begin with the present.
1. The emphasis will be placed on creation of a common information space based on one architecture of systems built on top where three levels will be the most important: strategic where decisions are made; methodological – responsible for a regulation of works; applied (technical) - the level which is responsible for replacement of "ill-matched" software with one corporate standard.
2. Transition to completely paperless document flow, especially regarding finance legally significant documents will continue.
This trend is actively supported at the legislative level. Many companies, having realized its efficiency, already apply this approach in the practice. As a matter of experience our company and also experience of our clients, it is possible to give a set of vital examples about advantages and convenience of work with legally significant documents (agreements, acts, invoices, etc.) in electronic form using the strengthened EDS. The obvious prize is millions of rubles a year which the enterprise saves on paper, printers, express and mail deliveries of letters.
3. Traditionally workflow automation at many is associated with processes of Office. However the far-sighted heads who in practice estimated effect of e-document flow independently reveal processes, new to e-document flow, which optimization will bring to business an essential economic benefit - it is purchase management, tender procedures, claims and the related quality management.
These trends received special popularity among the companies with a geographically distributed management structure and also the enterprises of the production sphere and the servicing farms. Search of alternative solutions for the purpose of reduction of production costs is promoted also by a current economic environment. Automation of additional processes during crisis will allow to lower finance costs and, as a result, to increase payback of sales and profitability of business. Thus, the innovative solutions which are implemented now become the strong base for creation of hi-tech business in the near future.
4. If to speak about the near-term outlook, then the future behind the "smart" systems capable to independently define a key part of the problem and to solve it for read seconds. Actually it is about artificial intelligence which on the basis of "experience" and the principle of self-learnability will help the head to make the correct management decisions.
Let's consider a situation with the incoming document. Classically letters get to the clerk or the secretary who browses them previously, registers and sends to the head for consideration. Further the head takes out the resolution and creates order to the contractor or contractors if it is several of them. As we see, several people and a lot of manual work are involved in work. "Smart" a part of links will allow to reduce EDMS, for example, to close a number of functions of secretaries and to accelerate conventionalism of the performed operations.
How will it work? When obtaining the e-mail "smart" EDMS itself analyzes the document, registers, creates the resolution and sends to the contractor. The head is connected only at a stage of pronouncement of resolutions, and work of secretaries is at all excluded.
Or other example – reconciliation procedure of the contractual document. In target model a system itself should carry out primary legal expertize of contents of the document, i.e. read and "understand" the text, intellectually process it and issue recommendations to the legal expert. The same with accounting examination, financial and so on. Such examples it is possible to give enormous quantity.
We understand that we behind such technologies the future, and already actively develop a new solution which will organically close all customers needs in "smart" EDMS.
If to speak about import substitution of systems, how often your company faces this process? Whether there are some reasons, in addition to political which push the companies to change foreign software?
Ruslan Shakirov: Now we face not replacement of the import systems more often, and overweight of preferences when choosing for benefit of the Russian ECM systems. In our practice there were cases when the companies which planned purchase of an import ECM system reviewed the position and stopped on domestic software. And here matter not so much in a political situation and the sanctions imposed against Russia and the followed import substitution trend. The market of ECM systems was widely provided by domestic goods earlier and not bad competed with foreign solutions, being selected with the attractive price for customers. And now, during financial crisis, natural demand for the Russian software products became more: why to spend 10 rubles for an import system when it is possible to purchase just the same domestic, but for 1?! Besides, the Russian systems it is more convenient and more clear and that it is important in the conditions of the political and information conflicts – they are safe in respect of preserving of confidential information.
How do you estimate a current status of the domestic market of EDMS?
Ruslan Shakirov: Despite an unstable economic situation the market develops. Both SMB, and large business find funds for increase in process performance. First of all those spheres where there are explicit "spaces" in management are exposed to optimization, often attention is paid not to "boxed" products, but the separate business solutions capable to solve specific objectives.
What do customers when choosing the system integrator pay attention to?
Ruslan Shakirov: Customers well understand today the requirements and choose the most competent commands for implementation of EDMS. Many look for already not just implementers who will be able "to sew" software in IT infrastructure of the enterprise, and experienced analysts, konsalter who in a complex and technologically approach solving of tasks automates processes not "as is", and at first optimize and regulate processes, only then automates "as it has to be correct". Besides, the bigger trust is caused by integrators whose competences and experience of the solution of specific applied business challenges are supported with real experience and a customer feedback. For example, the client could read on the website as we implemented this or that solution directly in the industry interesting him then addressed us.
Call the main drivers and barriers of the Russian market of EDMS?
Ruslan Shakirov: The driver is financial crisis today. When profitability of business falls, receivables grow and there are cash gaps, heads are forced to reduce costs and to manage more effectively internal processes. And here ECM systems receive new phases of development since they are one of key tools of process optimization and work of each division of the enterprise. At the correct use of EDMS it is possible to save the 10-ki of millions of rubles a year.
One more driver already traditional is a support of electronic document management at the level of public administration. The state motivates heads more and more to use EDMS. If initially work of EDMSs was estimated on personal experience generally by young people and IT advanced heads, then now even especially conservative managers began to use ECM products actively.
We do not see barriers. Society very technologically. All use smartphones and tablets: mobility in process management today in a trend.
According to your data in what industries the greatest demand for an EDMS/ECM is now observed?
Ruslan Shakirov: Now the greatest demand for ECM systems is observed in public sector and the industry, especially at the plants of defense industry. The enterprises of this industry are most demanded by the market, have a large number of steadily incoming orders. So it turned out that in the late nineties the beginning of the 2000th production passed the first wave of automation and remained "on paper". And it is necessary to optimize the processes and as soon as possible more qualitatively.
What dynamics of new projects among the SMB enterprises and large business?
Ruslan Shakirov: As our practice, number of the companies interested in automation of internal business processes shows, increased more than by 1.5 times. The most dynamic growth is observed among large domestic enterprises, it is connected with the range of the tasks solved by them and the requirements following from here.
On your observations what prevents the Russian companies to refuse paper and to pass to completely electronic document management?
Ruslan Shakirov: Requirements of the legislation and psychological unavailability of users.
All know, a number of legal acts completely prohibits to refuse paper carriers. For example, terms and rules of storage personnel, accounting and documents of title are strictly regulated. However regarding internal documentation are memos, minutes of meetings, internal agreements – paper can be excluded unconditionally. We also use it in the practice – in all our projects we first of all create the regulatory base of work with documents (including we fix by regulations use of the electronic signature) that allows clients to use most fully advantages of electronic information exchange and documentation. As a result, at the enterprise new "rules of etiquette" of work with documents are cultivated and take root.
If to consider interaction between the independent companies, here too there is a number of difficulties. First, the absence causes to conservative heads of practice of work with e-document flow concerns and mistrust to the electronic document and the EDS confirming it. Secondly, between the companies there can be contradictions in the choice of the uniform operator of e-document flow, and roaming between operators is not always available. Without having reached a compromise in this question, the organizations continue to use traditional communication channels for exchange of paper documents.
Among the other factors which are not relating to internal processes of the enterprise it is possible to call competences of integrators of ECM systems. Alas, not always integrators can render high-quality services in transfer of the company on paperless document flow. And the reasons can be a little here - from the shortage of knowledge to limitation of functionality implemented by EDMS.
In your opinion by what criteria it is possible to estimate success of the project?
Ruslan Shakirov: First, it is loyalty of users, understanding of advantages of work in EDMS and desire to develop its potential (and often there is it that the new solution is perceived "in bayonets"). Secondly, it is readiness of the customer to continue cooperation with the purpose of optimization of new business processes. Usually it is logical continuation of qualitatively executed project when system implementation was carried out not shablonno on in advance prepared sample, and with understanding of the main needs of the customer and rendering full consulting and technical support to it.
Call the most interesting project executed by your company in recent years. Tell in more detail about it.
Ruslan Shakirov: For lifetime, our company implements projects in different spheres of business: oil and gas, defense, bank, construction, trade, production, in insurance companies, research institutes and so forth, and each of them was in own way interesting. However special attention is deserved, in my opinion, by the project in the largest Russian holding "Locomotive Technologies".
The project is unique on the scales: to a functional and organizational framework. It integrates over 60,000 employees and involves more the 20th key business of processes. Heads of holding took active part and gave full support in its implementation.
By joint forces we could achieve impressive results both in organizational, and in the financial plan. Work in a common information space allowed distributed the company of holding repeatedly to accelerate intercorporate documentary interaction, in the 10-ki of times to reduce time for approval of contractual documents and more than to increase the level of performing discipline by 90%. We completely excluded loss of documents (they are stored in the uniform protected data archive) and for 100% protected them from unauthorized access due to differentiation of access rights to each object of a system and use of the EDS.
Exclusiveness of the project also in its continuous development. At the moment the next stage on transition to completely "paperless" document flow between the companies of holding is completed. Effect of the organization of work without use of paper carriers enormous – economy on printing, a mail and courier delivery only within process Contract management already makes millions of rubles a month. Whether it is worth saying that this digit will increase repeatedly when the concept of "work without paper" is implemented also in interaction with external partners.
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