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The Russian market of ERP systems stagnates since 2015. Average annual growth fluctuates within 1-2% in dollar expression. In a ruble equivalent annual growth is in range of 8-10%. The first five of solution providers is invariable, and their market shares change slowly. A half of revenue is the share of SAP, further, from shares about 30-33% follow 1C. About 8-9% retain Microsoft, 4-5% - Oracle. Galaktika to which share about 2% of revenue annually fall closes the five.
Two of five leading companies are the Russian developers whose products are included in the unified register of domestic software. Sales returns of ERP at 1C, according to TAdviser, in 2016 made about 14 billion rubles, Galaktika has 1.4 billion. Both vendors showed growth at the level of 9-10%.
Historical information
Both companies are from the 1990th when demand for automation systems significantly exceeded the offer, and clients queued, loyally reacting to technical defects, the inconvenient interface or insufficient flexibility. Initially both Galaktika, and 1C were started as accounting programs, and the first product of 1C for sales management, by purchases and a warehouse - "1C: Trade 7.0" - it was released in 1996.
In the years ahead 1C relied on boxed solutions and development of a partner network, having completely covered a segment of small and medium business in Russia and also offered the products from "cloud". As of 2017 the company is practically a monopolist of the market of automation of accounting, surely is in the lead in segments of retail, logistics, transport and others. Knowledge of products of 1C is professional advantage and, very often, the mandatory requirement for accountants, personnel officers, warehouse workers, etc.
The Galaktika corporation, in turn, focused on automation of activity of industrial enterprises and geographically distributed holdings. The biggest anchor customer of Galaktika for many years is Transneft and its subsidiary companies. By estimates of TAdviser, the share of this client exceeds 30% in turnover of the company. Only for 2017 the volume of contracts between Galaktika and Transneft reached 1.5 billion rubles.
Partner network
The partner grid of 1C - one of the most powerful in Russia - integrates more than 7 thousand companies. All cycle of customer interaction is undertaken by the partner seller. Completions do not assume inclusion of head office (an exception - the largest projects where 1C offers service of designer's service, and technical support according to the platform and standard solutions which is centralized). Galaktika is implemented too according to the partner scheme which includes about 200 companies, taking into account representations in the CIS countries. But here the head office supports and controls all implementations, as necessary providing resources and competences.
Clients
1C declares that 90% of business in the country keep account on their products. It is less large projects, so at the end of 2016 the company declares 48 projects at the enterprises with quantity of jobs more than 500. Galaktika, in turn, does not open similar indicators. In total without Transneft about 400 clients work at Galaktika, as of 2017.
The Galaktika corporation aims to cover a segment of large and very large business. The trend of replacement of the western software by the Russian can open the companies the road on the most large-scale enterprises of the country, but so far it did not occur. First, process goes very slowly, and from the declaration of "transition" before start of the Russian analog to operation there can pass several years, secondly 1C actively develops the full-fledged ERP platform which is also aimed at a "rich" segment.
So, at the end of 2015 it became known of intention of the Russian Railway to replace SAP products in this connection the Russian suppliers Galaktika and 1C were considered. In 2017 it was announced the decision to implement two-level strategy in ERP. The small enterprises with standard processes will be transferred to 1C, and large the enterprises with difficult processes will still use SAP.
Work with integrators
Some of the first system integrators react to market changes. Without being the connected own products, they quickly rearrange solution portfolios depending on current demands. After 2014 which became rotary in development of a subject of import substitution, products of the Russian producers surely took the worthy place in lines of integrators.
Among 15 largest system integrators more than a half already included the Russian producers in the offers. So Softline, AT Consulting and Borlas build management of the enterprises based on Galaktika and 1C. Lanit, Technoserv, I-Teco and Croc work only with products of 1C so far. The western suppliers be not shared anywhere and the place in portfolios of integrators is saved.
Legislation and standards
Both ERP systems completely conform to requirements of the Russian legislation and standards of the reporting. In terms of industry accessory both Galaktika, and 1C can be used in any segments. Systems are comparable in terms of development of a product, the declared functionality and opportunities of thin setup.
Price policy also similar. It is considered to be 1C a cheap system that is fair for small and medium business. In segments of average and large and large business the total cost of the project will essentially not differ.
Technical specialists
In respect of selection of experts for system maintenance there are already important differences. Find the technical specialist with knowledge of 1C, including the programmer for completion or support of a system on client side – not a problem. In any region, with any level of examination and practically for any salary it is possible to pick up a command or to replace experts. Work with products of 1C, including skills of configuring, are included into training programs of universities and colleges.
To find the specialist for support of the Galaktika ERP system significantly more difficult as the enterprises working at a system, a little, training programs are absent. An essential part of system development is conducted in Minsk therefore technical expertize accumulates in the same place.
There are employees with knowledge of 1C and Galaktika equally – for October, 2017 40-60 thousand rubles a month in regions and 70-100 thousand rubles in Moscow.
There is also a reverse side in absence in the market of a large number of specialists in the software. Galaktika is implemented by the trained certified staff of the central office or partners. 1C is implemented by all, including yesterday's students without relevant experience that often can affect quality of the project. 1C created and develops network of highly skilled partners with the status "1C: The ERP center" also recommends to address for implementation of the systems of an ERP class them.
Implementation methodology
ERP system implementation process Galaktika has a methodological basis, and is declared by corporation as building of an effective management system of the enterprise using the automation equipment. Galaktika helps the clients with configuration of a specific information system and also can advise at the expert level on all managerial problems.
1C, in turn, developed technologies of project management and universal procedures, regulations and technologies implementing requirements of ISO 9001 in relation to implementation services and maintenance of the products. In practice it means that 1C offers function of management consulting not itself, and on partner model - through 1C: Consulting network.
Both ERP systems have practically no restrictions on quantity of jobs of users and at observance of requirements to the hardware show working effectiveness under high loads.
Implementation
In terms of complex approach to automation of activity of Galaktika enterprise/holding from the very beginning developed a uniform core – a full-fledged ERP system with classical functionality and very high extent of customization. By estimates of TAdviser, at least 50% of functionality are improved and configured during implementation. According to the results of work with clients from the different industries at the developer a number of industry templates collected. These templates are positioned as industry solutions, their replication in certain cases allows to reduce percent of completion of an initial core to 20-30%.
The building block system, also the developer delivers the integration bus providing data exchange with products of other producers, including with 1C that does not cause problems when embedding Galaktika in the existing landscape.
From start of the project before start in operation not less than 12 months of hard work as will be required from vendor, and the customer. In most cases for reaching acceptable power it will be required over a year. The majority of projects on implementation "Galaktika ERP" consist in thin setup of parameters under requirements and processes of the enterprise.
1C still adheres to the strategy of sale ready (boxed and cloud) solutions, at the same time products are constructed on a single technology platform and are completely compatible with each other. Integration into solutions of other producers requires intervention of programmers and writing of add-on units to a system or use of integration buses of other producers (1C says that intervention of programmers "is required precisely not to a large extent, than for other systems").
At implementation of 1C at the average and large and large-scale enterprise about 80% of customization of the standard solution can be required. Owing to narrow industry specifics and a huge number of profile features of any production, the strategy of shrink-wrapped software products of 1C loses the advantage during the work with large customers. Implementation of ERP happens on normal algorithms to inspection of processes and their further automation.
On project implementation on full-fledged system implementation of management 6-8 months will leave. On large enterprises year of work can be required. Some projects require additional development that is possible as by forces of the company conducting implementation and by forces of the customer in use of a system.
Technical support and updating
Implementation of such function, important for the client, as technical support at the leading Russian vendors differs. Galaktika has the centralized technical support. Housekeeping overheads depend on the cost and the number of the purchased licenses. The minimum cost of service, updating and information support will cost 20% of the annual value of licenses.
In 1C of the solution, developed and implemented by forces of partners, are also supported by them, without attraction of resources of the head company. Also for clients there is a closed forum, access to a resource with updates of standard configurations, the centralized technical support and maintenances. Price policy of technical support and final cost of service are also created by the partner. 1C determines only the prices of the centralized maintenance and is centralized supports the solutions issued by her.
Owing to high degree of a pererabotannost of an initial product some enterprises face problems upon transition to the new version of the program of 1C. The partners who are responsible for implementation not always provide succession of versions of software. Galaktika on a centralized basis transfers clients to new versions of a system, controls the arising problems and quickly eliminates them.
User training
Implementation of an end-to-end system of management is aimed at convenience of top management. To the top management it has to become more transparent, more clear, easier, etc. Seldom think of convenience of ordinary users of a system at a stage of its choice. And meanwhile, too a lot of things depend on the speed of their work.
In the training plan of personnel offers work with the system of 1C a huge number of the rates, methodical programs, seminars and other formats designed to provide effective use of software. Also regular trainings on legislation new products, changes in systems, etc. are provided.
Galaktika does not offer training in a mass order, but for large customers with a large number of users training can be organized according to the individual program. Also a number of methodical materials is offered.
Conclusion
In spite of the fact that the strategy of business at the largest domestic ERP vendors has significant differences, their technological capabilities and level of examination completely cover requirements of the Russian holdings and enterprises. In total with two technology platforms – Galaktika and 1C - about 5.5 thousand IT companies of different scale through the whole country offering to clients own competences which if necessary can quickly be increased are able to work.
The main reasons constraining development of both ERP systems consist in obviously negative perception from potential clients when comparing with world giants and unreasoned belittling of functionality. Meanwhile, foreign analogs often have excess functionality which is simply not necessary at the Russian enterprises. Their software is not so deeply adapted to the Russian laws and business realities. Let's add higher aggregate value of implementation and ownership here, than at Galaktika and 1C and also higher salaries of specialists for support of systems, and we will receive a formula of potential success for the Russian producers which should be implemented in the next years.
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