Top trends and forecasts of development of the Russian market of ERP systems for trade

"Our" and "not our" ERP systems

Stronger, than in Western Europe and North America, separation between players, external and internal for the market, is defined in Russia by a number of factors. It is necessary to carry "language barrier" between English-language foreign solutions, Russian-speaking users and the Russian regulations of office-work to them; serious distinction between national and international accounting standards; and also relative isolation of the domestic market (because of price unavailability of foreign solutions and "riskiness" of the Russian market) which remained practically all 90th years of the 20th century and provided development of a large number of original solutions for automation of a trading activity.

Thus, today one of the main features of the Russian market of "trade" ERP systems is opposition between the Russian and foreign developers. As well as in other segments of the market of complex automation, foreign solutions, as a rule, are more worked and functionally complete and also contain progressive managerial experience (Best practices) while the Russian systems are usually more flexible, available at the price and better "adapt" to specific requirements of the customer.

Compound systems

Other feature of the Russian market of solutions for trade is enough wide use of offers based on integration of the heterogeneous systems. In the market, there are specialized developments for automation of gas station, retail, mobile trade, work with accumulative cards, time keeping, prevention of thefts in trading floors, etc. These information systems exist absolutely independently; as a rule, they are constructed not on the basis of platforms of the known ERP systems, and using the system software of general purpose. On the other hand, there are no domestic solutions (and localized western, practically, too) the ERP level which would have that functionality that the specialized solutions stated above. As a result, for providing a complex scope of business of the customer projects of joint implementation and integration of solutions of different developers are implemented. Taking into account that the Russian solutions in the majority are implemented by developer companies, as a result of similar projects composite industry solutions which then can separately be offered customers are created. It is possible to give solutions based on systems as examples BEST and "OPTIMUM", JD Edwards and GESTORI, "FOLIO the Merchant" and "OPTIMUM", PARUS and an APCS "TS-G BEECH", Galaktika and Berlio of gas station, etc.

However, according to TAdviser, such hybrid systems should be forced out by monolithic solutions or solutions based on the uniform middleware eventually. Mechanisms of such replacement can be different. For example, merger of best-in-breed solution providers by ERP vendors (does not practice in Russia), completion of specialized solutions to the level of ERP systems (examples are, but, mostly, at the level of statements of developers), implementation of specialized functions based on ERP systems (the most probable option, actively is implemented based on solutions 1C and Microsoft Business Solutions). At the same time, it is possible that some of prisoners of alliances can become steady and long-term. Similar examples exist, for example, in the world market of HRM systems, but such practice was not widely adopted.

"Center" and regions

In general, today the Russian market of ERP systems for trade enterprises is strongly fragmented and in it very many players of the most different scale are provided. Besides, this market is rather accurately separated into two big sectors: "capital" market and market regional. Moscow, St. Petersburg and a number of the large cities of the Central and Northwest federal districts get to the first sector, the second sector occupies all other Russian market.

As for the "capital" market, it is possible to say that in it there was already enlargement of business and selection of the leading players most of which part is made by foreign suppliers. It is connected with the fact that large trade organizations created demand for the powerful full-function systems today, and demand solvent. At the same time put in the foreign solutions "best practices" are very useful to the domestic companies which in process of growth begin to feel in them the need. Besides, the foreign trading companies which came to Russia begin deployment of business with "two capitals", as with the region with the highest average level of income. These companies also work with foreign suppliers as foreign ERP systems are for them the corporate standard.

In the regional market today situation other. It only begins to develop, the level of revenues of the trading companies does not allow to work with expensive foreign ERP systems yet, need for use of progressive managerial experience is not obvious to customers yet and is not relevant. Besides, not a secret that in regions treat domestic goods more loyally, and many Russian developers do business only in "the" region, having strong positions, a large number of loyal clients there. Thus, here domestic solutions and suppliers prevail now.

Two exits

This situation can lead to two different outcomes. In the first case, domestic developers use the provision which developed today for development of the solutions of the class ERP for trade, consolidation of efforts and, perhaps, business, and their further output to the level sufficient for the competition to foreign solutions for small and medium business. Repetition of succession of events in the "capital" market where with development and enlargement of trade business most of domestic developers of ERP systems (except for 1C) was almost driven out of the market as the companies were incapable to invest sufficient means in development of the products can become an alternative to this scenario.

It is at the moment rather heavy to tell what of the sounded options of succession of events is more probable. A lot of things will depend on growth of business and, respectively, revenues of customer companies in the regional market. If he is rather sharp to exceed possibilities of domestic developers on development of the solutions proposed by them, the second of the described options will take effect and the Russian developments will remain only at the level of the specialized solutions close to "iron", but will not be presented at the market of business applications. If regional business smoothly grows and will remain is loyal to domestic suppliers, and they, in turn, will provide satisfaction of customers needs up to standard and also will review the market strategy towards bigger aggression, also the first option of development of market situation is possible.