Vasily Babintsev, Directum: In Russia even more than 6 million jobs can be automated using ECM
Vasily Babintsev, the marketing director of Directum company, in an interview of TAdviser told about the important changes which happened in the Russian EDMS/ECM systems market in 2016 - 2017, the tools and tasks, the most relevant for customers and also the strategy of Extra ECM within which products of vendor develop.
What, in your opinion, the most important changes happened in the Russian EDMS/ECM systems market for the last year? What events influenced the market?
Vasily Babintsev: In a year the sphere of regulation of legally significant e-document flow gained development: new formats, plans for transition to electronic service records and agreements with employees, the legal acts specifying practical aspects of electronic exchange. More actively the subject of electronic archives began to be discussed and studied.
There were requests of large customers on transition to completely paperless work in holdings and groups. For example, we already implement an implementation project of paperless document flow based on Directum in Lokotekh Group where business process automation reached 90%. The pilot project on the organization of intercorporate legally significant exchange between Transoil and Lokotekh-Promservice proceeds.
In the sector of SMB corporate cloud ECM solutions gain popularity. The demand of hybrid clouds will grow in the medium term. It is confirmed by the report of IDC according to most of which the organizations which use clouds now will be passed to model of a hybrid cloud already by the end of 2017.
In a public sector, at the expense of a general course towards import substitution, the share of foreign ECM platforms decreased.
Whether requests of customers changed? What tasks in the field of an EDMS/ECM are most relevant for them now?
Vasily Babintsev: Transition to new ECM platforms is still relevant for the large companies. The solutions set many years ago morally become outdated. Besides big customers develop, their requirements grow, there is a need of implementation of new tools (for example, mobile applications, automation of nonclassical business challenges outside office-work). There is essential a problem of transfer of historical data from the different ECM systems.
As for specific business challenges, a feedback about market requests we, including, receive using annual tender of the Directum Awards IT projects. Its participants are the most active representatives of customers ready to share the ideas.
By experience of 2016, development projects and automation of tasks outside classical functionality of EDMS were popular. For example, the non-standard solution on management of the registering documentation of the pharmaceutical quality system in Praksea Rus company was proposed.
Many requests were submitted by development projects from internal to intercorporate document flow, for example:
- Electronic evolution of financial and accounting document flow of Nokian Tyres,
- "TNS power Nizhny Novgorod": transition to work with suppliers in electronic form,
- "Dielectric cable systems". Implementation of intercorporate financial and accounting document flow.
Also there were projects connected with scaling of ECM solutions on all holding:
- Implementation of Directum in JSC Energosbyt Plus. The organization of end-to-end processes of the T Plus Group using services of interaction of DICS,
- New stage of development of document flow in Lokomotivnye tekhnologii Group,
- Complex business process automation of oil and gas holding Novatek.
The market shows practical interest and in implementation of mobility for work in ECM. The last two years the trend became really mass, the forecast about popularity corporate "mobility for all" was confirmed by real digits. If to speak about our products, then in 2016 we observed more than tenfold growth of interest in our Directum Solo applications (for heads) and Directum Jazz (for employees). In three quarters 2017 on implementation of licenses for mobile solutions we already outstripped an indicator for all 2016 by 15%, and growth is noticeable both in a segment of large customers, and in a segment of SMB and also among state bodies.
A year ago you said that the Russian EDMS/ECM market stood after recession. What movement is noticeable now?
Vasily Babintsev: Now we note a smooth exit of economy from crisis and recovery of ECM projects. The market of EDMS steadily grows the second year at the level of 9-10% a year. For comparison if to speak about dynamics of scope change of all IT market in the Russian Federation, in 2016 it increased by 7.5 - 10%, by different estimates. Falling concerned only saturated segments which are reduced around the world. The sector of an EDMS/ECM did not approach saturation yet and shows the expected growth at the level of IT market.
In what direction does development of the products Directum go? What innovations are implemented in 2017 what are going to be implemented in the near future?
Vasily Babintsev: Directum develops within the long-term strategy of Extra ECM. And we find the general vectors in the become fashionable subject of digital transformation of business. First, it is mobile solutions for all employee categories (Extra Access). The application for heads of Directum Solo provides remote control, an opportunity to consider and sign documents on the way, at meetings, in business trips. Directum Jazz provides to non-management employees the simple interface for fast viewing documents and task performance. For involvement of non-automated personnel pilot implementations of corporate chat-bots start.
Secondly, the convenience of work of users (Extra User) increases. Users expect that the principles of interaction with a corporate environment should be clear without additional training. Hints, the built-in videos, gamification elements help our clients to adapt to ECM quicker for a long time. The intelligent mechanisms facilitating accomplishment of routine tasks are added to it: document classifications, fillings of details, registration, etc.
Intercorporate document flow (Extra Corporation) – the separate large direction of development which mentions not only the Directum and DirectumRX systems, but also service of legally significant exchange of documents of Synerdocs. We propose the solution, ready to use, on intercorporate exchange which allows to build uniform process of internal document handling in ECM (creation, approval, signing, storage) and external interaction with partners through services of legally significant exchange, including through roaming. Such complete solution implements seamless work of SED+ of e-document flow service and is absolutely transparent for the employee.
In addition, we develop scalability, stability and high-speed performance of the ECM platform. The large companies have a request for creation of the managed distributed architecture, and we offer for this purpose special tools based on ECM. Quite recently within the version of Directum 5.5 we released new mechanisms of intersystem interaction which help the large companies to organize end-to-end processes between the different systems at the business logic layer.
In 2016 you noted serious increase in demand for DirectumRX. How the situation with demand in the current year is? May you call the largest customers of this service?
Vasily Babintsev: DirectumRX is focused first of all on the companies of medium and small business. In this segment the advancing dynamics of demand – height more than 10% remains.
Service has also large customers among whom it is possible to call[1]Setr of lubrikants, the general importer of the BP Castrol engine oils in Russia, the Groupe SEB company owning brands of Tefal, Moulinex, Rowenta, the Russian supplier of software solutions for the EAE-Consult energy industry enterprises who enters in top-50 the largest IT companies of Russia and also[2]SPSR-Express, Ticketland and others.
How you think in how many years the main part of the Russian organizations will be able to refuse completely paper in document flow? What main obstacles in this way could you call?
Vasily Babintsev: Disposal of paper in itself never was end in itself of ECM, it is important to overcome obvious shortcomings of bumagooriyentirovanny document flow. For example, banal errors at information input can be avoided due to elimination of a human factor and implementation of intellectual data processing. Thanks to services of intercorporate exchange terms of transfer of documents to partners are reduced and the risk of their loss is minimized. Here we continue to work on that transition to external document flow was the simplest. Forced duplication when signing documents (when electronic approval alternates with printout and signing of the original by the top manager) can be avoided using convenient mobile solutions in mastering with support of the EDS, and here it is important to close all questions of information security and to overcome the mistrust of users connected with it.
In the long term the next 5 years on what development of your company will be focused? Whether there is in plans of Directum an exit out of borders of Russia and the CIS?
Vasily Babintsev: We look at foreign markets, but we understand, as the market of the Russian Federation is still far from saturation. According to the statistics, automation penetration depth in the companies is no more than 25%: more than 6.25 million jobs can be automated using ECM. Remain not satisfied requests in this sphere with the companies of any scale.
The Directum system focused on large business will continue to develop towards increase in scalability and creation of end-to-end processes in groups and holdings. For DirectumRX the medium-sized and small companies which only the last began to pass few years to corporate ECM solutions actively remain the main direction of development.
Development of solutions on intercorporate document flow will be focused on ensuring paperless and mobile work and also on creation of corporate networks of exchange of documents through Synerdocs service.
In your opinion, in what fundamental difference of the Russian EDMS/ECM systems market from foreign, for example the markets of the EU and the USA?
Vasily Babintsev: The main difference of the domestic market – in historically developed and still cultivated tough hierarchy of management which finds the reflection in office-work with centralization of control functions. In the west of such concept is not present.
One more purely Russian phenomenon – long intercorporate document flow – is connected with the geographical extent of our country. In EU countries even use of traditional mail services is not an obstacle for fast exchange of documents. For the distributed Russian companies week transfer of official papers by mail directly affects business performance.
Recently there was one more feature – import substitution as the attention catalyst to domestic developments. To many Russian vendors it allowed to become more noticeable for big customers and to change alignment of forces in the market.
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