Corporate Performance Management, CPM (Russian market)

The main trends of the Russian CPM market

Main article: The main trends of the Russian CPM market

2022: Russian CPM market sank 11% in the first six months

As in previous crisis periods, the main goals of business intelligence automation projects have again become the search for reserves to improve efficiency and comply with regulatory requirements. Such conclusions were made in Intersoft Lab based on the results of an express analysis of the CPM systems market (Corporate Performance Management) for the first six months of 2022. The company announced this on September 5, 2022.

According to data obtained by the marketing service Intersoft Lab from open sources, more than half of the projects that started during this period (51%) were related to management reporting and profitability management, and a quarter were related to the regulatory agenda.

Despite the economic shock and the departure of foreign vendors, the CPM market is characterized by a moderately recessive scenario - compared to the same period in 2021, the number of new projects decreased by only 11%.

The financial sector was in the most advantageous position in terms of import independence. Over the past 10 years, more than three quarters (77%) of business analytics projects have been implemented using domestic application software (for comparison, 51% throughout the market). As a result, at the beginning of September 2022, all applied CPM-tasks can be solved on the basis of domestic developments presented in the first working version of the Directory of interchangeable software for the banking sector.

The financial industry in the first half of 2022 accounted for more than half of the projects that started (62%). In almost all of them, domestic developments were involved in the automation of applied tasks. Intersoft Lab's share of the total number of projects in the banking sector was 60%.

{{quote 'author = said Julia Amiridi, Deputy CEO of Intersoft Lab. | According to previous years, after the events of 2014, the domestic business analytics market recovered approximately at the end of 2016. With a certain caution, you can expect it to recover in two to three years. The main task to be solved by developers and their customers in the near future is to launch projects for migrating data warehouses to import-independent platforms. We see an increase in interest among our customers in such projects and discuss with them options for their implementation, }}

2019: Intersoft Lab: Russian CPM market reaches maturity level

On January 30, 2020, Intersoft Lab announced that in 2019 the Russian market for business analytics tools, which includes Corporate Performance Management (CPM) software, developed in line with global trends. This is the conclusion reached by the marketing service of Intersoft Lab, analyzing data from open sources and comparing it with key trends characteristic of the global CPM market according to the analytical company The BPM Partners.

• Analytics becomes a standard component of CPM planning solutions. In Western companies, the use of CPM platforms in the budget process is a common practice. Improving the quality of planning requires the use of analytics tools that ensure the extraction of useful information from accounting, market, and other primary data.
  According to preliminary data for 2019, in Russian companies, automation of financial planning became the priority No. 1 among CPM tasks. The share of such projects exceeded 30%, displacing the leader of 2018 - support for regulatory requirements (26.3% of projects). Demand for detailed planning based on predictive analytics has increased, which has become an incentive to expand the capabilities of CPM systems of domestic vendors. The updated version of the Kontur platform, released in early 2019, has functionality for forecasting and scenario modeling.

• Strengthening industry specialization. The main criterion for choice in foreign companies is that the vendor has industry expertise.
  In the Russian market, there is a clear distinction between preferences in favor of foreign/domestic software, depending on the industry. So, in production companies over the past two years, over 80% of the started projects were carried out using foreign CPM products. Parity is observed in the fuel and energy complex and trade, domestic developers dominate the financial sector (86.7% of projects). Intersoft Lab ended 2019 with a market share equal to 78% of the total number of projects in the banking sector.

• Increased demand from medium-sized businesses. Despite the fact that such companies are potentially limited in resources, their expectations from the results of CPM implementations do not differ from the requirements of large businesses.
  In Russia, in 2019, the share of projects implemented in the largest companies (RAEX-600) decreased by 11 percentage points compared to 2018 and amounted to 46.7%. As with industry specialization, software developers have "adapted" their offerings. Although CPM functionality remains the most popular in "top" banks, Intersoft Lab has released the "Profitability Management. Fast start, "which is aimed at both large banks and credit institutions from the SME segment, as it allows automating the preparation of management reports with minimal investment.

{{quote 'author = said Julia Amiridi, Deputy CEO of Intersoft Lab' It was believed five years ago that the Russian CMP market was developing with some lag behind the global one. Now we are moving "nostril to nostril." This indicates the maturity of the market, on the one hand, and on the other, the high consumer quality and competitiveness of domestic developments, }}

2017

The growing importance of data analytics for business determined the direction of the CPM market in 2017. The main customers of applications for business analytics were the largest companies and banks (they account for over 63% of new projects), and the main consumers were top managers and employees of business divisions (46%). In the list of priorities of CPM automation, the preparation of analytical and management reporting is leading (42%).

The Russian market for business intelligence tools, which includes Corporate Performance Management (CPM) software, continued the recovery that began in 2016. According to updated data obtained by the marketing service of Intersoft Lab from open sources, the number of new CPM projects in the 1st half of 2017 has already exceeded the same indicator last year, and in the financial industry it has grown by a third. Preliminary results of the 2nd half of the outgoing year indicate that the demand for CPM systems in 2017 will be higher than last year.

The digital business transformation that has started in Russia in recent years increases the demand for data analytics and related software, primarily for "basic" CPM functionality - tools for preparing analytical, financial and management reporting. Compared to the previous year, the share of such projects went up sharply, rising from 33% to 42%. The need to optimize costs and strengthen regulatory oversight retain the popularity of applications for automating planning and budgeting, risk control and regulatory reporting, which occupy the second and third places with a share of 26% and 21%, respectively. Despite the increase in demand and on tools for managing profitability - their share has grown by only three percentage points since 2016 and amounted to 11% - they have not yet been able to rise from the last position in the list of priorities of CPM automation.

2016

Credit institutions remain the most active consumers of CPM systems, accounting for three quarters of the started projects. For comparison, in 2015 there were 53% of them. As last year, 67% of banks that have relied on performance management systems are in the top hundred credit institutions in terms of assets, according to the data Bankir.ru. The same share of banks - 11% each - is present in the second and third hundred of the Intersoft ^[1] in ^[2].

2016 remained favorable for domestic developers, their share turned out to be slightly less than 75%, and in the banking industry approached 90%.

As a year earlier, functionality for managing operational efficiency - tools for preparing analytical, financial and management reports (33%) - is leading in the list of demanded CPM technologies. The first place with them is shared by applications for automation of planning and budgeting - after the failed 2015, the total share of projects implementing this functionality was also 33%. Minimizing costs is still a high priority in credit institutions, which explains the increase in demand for these systems. With their help, you can carefully approach cost reduction - through optimization, and not total cutting.

In second place is the means for risk control and preparation of regulatory reporting (25%). This is explained, on the one hand, by the fact that in 2016 the Bank of Russia increased the pace of updates to the requirements for mandatory reporting - in 2015, 1 instruction on the preparation of reports was issued, in the outgoing year - more than 5. On the other hand, to maintain and improve the financial stability of the bank in the current conditions, competent risk management is required, which strengthens the need for IT tools for calculating, analyzing and predicting liquidity risk, credit and market risks based on standards and their components.

Closing the design experience of profitability management applications designed to control the current business performance. They scored a record low of 8%, which is associated with sequestration of IT spending by financial departments and a change in the composition of users of CPM systems. Their main consumers are representatives of business divisions and accounting, reduced IT budgets are sent to meet their needs, postponing the tasks of CFOs.

An important difference from 2015 is the growing demand for replacement products. If in the previous year these were isolated cases, in 2016 the number of projects using such software was equal to the number of CPM system implementations.

2015-2016: The number of new projects has decreased, the demand for domestic solutions has increased

What is CPM System

Corporate Performance Management () CPM is an enterprise performance management system. A complex that combines all the processes, methodologies and metrics necessary to measure the indicators of the organization's activities and manage these indicators. Synonyms such as Enterprise Performance Management (EPM), Strategic Enterprise Management (SEM), and Business Performance Management () can also be found. BPM

1. [1] History of the term |

CPM Description | 5_.D0.B3.D0.BB.D0.B0.D0.B2.D0.BD.D1.8B.D1.85_.D0.B1.D0.BB.D0.BE.D0.BA.D0.BE.D0.B2_.D1.84.D1.83.D0.BD.D0.BA.D1.86.D0.B8.D0.B9_CPM_.D0.BF.D0.BE_Gartner 5 Gartner CPM Main Function Blocks

Assessment of the Russian CPM systems market in 2015

Negative dynamics were observed in the Russian CPM systems market in 2015. The number of new projects was decreasing, foreign CPM vendors received a particularly sensitive blow, the share of which has significantly decreased over the past year.

According to Yulia Amiridi, Deputy General Director for Business Development at Intersoft Lab, the domestic CPM market continued to fall in 2015, which began in 2013.

"According to data from open sources, the number of new customers of SRM systems and projects initiated by them in all industries is reduced by half annually. In the banking segment, which has remained the industry leader in the consumption of SRM systems for the past three years, in 2015 demand fell below the level of the crisis in 2008 − 2009 for the first time, "says Amiridi.

Speaking about the unfavorable year for foreign developers of CPM systems, Julia Amiridi notes that on average in the market their share has almost halved - from 77.8% in 2014 to 40% at the end of 2015, and in the financial sector, foreign suppliers almost completely lost to the traditional 30% of the market solutions of domestic development, practically unable to attract new customers.

"The main consumers of SRM remain the largest and largest market players, in particular, in the banking segment of those 67%. Judging by the results of the first quarter of 2016, it is they who will "do the business" of SRM suppliers in 2016, which makes us expect a further market contraction of 25-30%, "adds a representative of Intersoft Lab.

Negative market dynamics are also noticed in AT Consulting. For example, AT Consulting CPM Director Yulia Zakharova notes that at the beginning of 2015 there was a serious decline in all areas, including CPM. Starting from the middle of the year, the situation has leveled off, but in general the market is significantly lower than 2014. "This is our common understanding of the market and the trends that we are seeing on it," says Zakharova.

A number of experts note that 2015 was the year of struggle for the effectiveness of CPM implementation projects. In particular, customers who launched projects to implement such systems in 2015 have become even more demanding of the performer.

"We see that everything is subjected to scrupulous analysis by the customer: the functionality of the proposed platform, the approach to the implementation of the project, the assessment of the timing and labor intensity of the project, of course, pricing. But special attention is paid to the experience and capabilities of the team, which the contractor is ready to allocate for the implementation of the project, as well as the developments that the contractor can offer to the customer, allowing them to use the accumulated successful industry experience, "says Sergey Safronov, Director of the CPM Department of KORUS Consulting Group of Companies.

Maxim Andreev, Director of Business Applications at CROC, believes that the CPM solutions market, like the automation market for basic corporate governance functions such as finance, logistics and personnel, is at the saturation stage and now there is mainly a slow development of already implemented systems or migration to new versions.

"There are many specialists on the market, the level of maturity of processes for customers is quite high, which leads to relatively low implementation risks. Increasingly, customers combine methodological setting of planning, budgeting, consolidation and subsequent automation processes in one contract, "says Andreev.

Julia Zakharova also speaks about the saturation of the market.

"There is a feeling of market saturation with CPM solutions in their classic version at large enterprises. According to my estimates, there are no implementations from scratch in a large corporate segment now and will not be in the near future. But when the conditions for doing business change and new tasks for the development of the company appear - you have to regularly "pre-automate" planning and management accounting, introduce new functionality, reconfigure the CPM system, and develop it. The market is moving towards medium and small businesses, "she believes.

According to Regina Kamaletdinova, head of the directorate for the implementation of information systems of the Kazan office "1C-Rarus," there is stagnation in the market, company leaders are increasingly trying to save on software and are trying to "squeeze" to the maximum from what they have already acquired in previous years.

Revenue of participants in the Russian CPM market

Among Russian companies that disclosed their revenue from CPM projects, the highest indicators were recorded at CROC - more than 570 million rubles in 2015. Companies located in the ranking next showed revenue in the range from 185 to 228 million rubles.

Revenue of IT companies from CPM projects in Russia

№	Company	Revenue from CPM projects for 2015, thousand rubles.	Revenue from CPM projects for 2014, thousand rubles.	Revenue dynamics 2015/2014,%
1	CROC	573,515	438,634	30,8
2	AT Consulting	228 276	163 430	39,7
3	Korus Consulting	188,000	n/a	n/a
4	Force	185 243	156 670	18.2

TAdviser 2016

The main trends of the Russian CPM market

In order to find out what trends are most noticeable and promising for the domestic CPM systems market, TAdviser interviewed a number of Russian companies in May 2016.

So, according to Sergei Safronov, director of the CPM department of KORUS Consulting Group, the main market trends are efficiency and flexibility, and this concerns not only the capabilities of platforms, but also the approach to project implementation.

Maxim Andreev, Director of Business Applications at CROC, refers to the main trends as the transition of solutions to the clouds, closer integration of CPM with related business processes and more active participation of business consulting companies in automation projects.

"An important trend is the use of cloud solutions. And although the share of such projects is still low, this fact is very important, even of crucial importance: companies trust the storage of their financial data to an external SaaS provider. And if the financiers of the company are no longer afraid, then the use of cloud services will be the norm for other IT services, "Andreev said.

The INTALEV group believes that traditional financial applications designed for the control, completeness and reliability of information are being transformed into solutions aimed at managing the macro goals of companies. According to Elena Polyakova, General Director of INTALEV, the functionality of CPM systems will inevitably expand to include the development of methodology and automation of all stages of targeted management: Goals-Events-Personnel-Budgets. Also an important area of ​ ​ market development, according to her, will be the creation of an opportunity to fully work with data on mobile devices and support for cloud technologies.

Julia Amiridi, Deputy General Director for Business Development of Intersoft Lab (Intersoft Lab), specializing in banking business performance management, identified 4 dominant areas of SRM development in the financial sector.

The first is the expansion of the composition of consumers. In addition to financial departments, which are traditional customers of CPM systems, business units, primarily the retail and corporate block, development and marketing services, which often have their own budgets for business analytics, are gradually becoming new consumers of performance management software. They are the main customers of analytical reporting and new consumers of functionality to assess the financial performance of business areas, points of sale, products, customers, distribution channels, etc., which allows you to calculate the efficiency management system. The expansion of the composition of users, according to Julia Amiridi, makes SRM systems, on the one hand, more accessible by distributing the financial burden between the budgets of different departments, and on the other, ensures the receipt of consistent data and the adoption of coordinated decisions by different consumers within the bank.

The second area is self-service in analytics. Created against the background of economic instability, the need for situational analysis, the desire to receive new analytical and management reports faster, without attracting IT specialists, helps to strengthen in the banking segment suppliers of modern high-performance Business Intelligence (BI) tools using in-memory computing. According to Julia Amiridi, it can be predicted that the experience gained by banks in using such funds in the near future will strengthen the need to solve the problem of financial consolidation on the basis of data warehouses that are responsible for preparing data for analysis and have developed tools for monitoring and assessing their quality.

Another dominant area of ​ ​ development of SRM is the simplicity and availability of operation. According to the Deputy CEO of Intersoft Lab, the functionality of SRM systems is constantly becoming more complicated. At the same time, solutions that are "black boxes" from macros that were "finished" by developers during implementation projects are a thing of the past. Customers strive to choose ready-made circulation SRM platforms with clear "speaking the same language" with the user interfaces, which allow financiers and business users to independently and quickly configure and reconfigure applications, adapting the software to changing methodological requirements.

And the last, fourth direction is a component approach and the use of open source software. As Julia Amiridi notes, in order to optimize expenses, banks are actively considering the use of open-source software components in building SRM systems. Potential "replacement" candidates are DBMS, ETL and BI. The use of open-source components can reduce the cost of ownership of the management system by saving on the acquisition and operation of licenses, an expert at Intersoft Lab believes.

Yulia Zakharova, director of CPM AT Consulting, notes a trend towards import substitution.

"Russian CPM products have been developing quite rapidly over the past two or three years, so many customers prefer to work with domestic developments. It is characteristic that our software is becoming widespread both in the SMB and in a large corporate segment. The reason is not only in the state policy of import substitution, but also in the fact that a number of Russian developments are already quite mature and have all the necessary functionality. It is this fact that is a key factor in the fact that complex and voluminous problems in various sectors of the economy are being successfully solved on their basis. In addition, Russian developments are cheaper than similar Western products in class, which is important. It is easier to find specialists to support and develop a domestic CPM system, which also reduces the cost of owning the system, "says Zakharova.

Changing the Needs of CPM Customers

In a difficult economic environment, many companies' IT budgets are shrinking, but the previous tasks remain, so customers now often demand better for less and focus on priorities, one of which is efficiency.

In particular, Elena Polyakova, General Director of the INTALEV Group of Companies, speaks about focusing on efficiency. According to her, first of all, customers are interested in methods and systems, the functionality of which allows to increase internal (operational) efficiency, and while reducing sales volumes, maintain the profitability rate.

Julia Amiridi, Deputy General Director for Business Development at Intersoft Lab, notes that the structure of the needs of SRM customers over the past three years has been characterized by enviable constancy, but in conditions of limited financial capabilities, priorities are focused.

"As a result, according to the results of 2015, for profitability management tasks, which in the most sensitive to changes in the financial sector in recent years have consistently closed the top three priority areas of SRM automation, an increase in demand was noted. And the overall decrease in consumption is due to a reduction in projects for introducing applications for preparing regulatory reports, as well as systems of operational analytical, management and financial reporting, which still occupy the second and first positions in the rating of the demand for SRM technologies in banks. Traditional outsiders of the financial sector - planning and economic budgeting applications - have also improved their positions compared to 2014, "says Amiridi.

All this, according to her, means that the focus of attention of SRM consumers is forced to shift from the operational level of management to tactical, from situational analysis and compliance with the regulator's norms to planning and measuring business margins, searching for profitability reserves, strengthening financial "rear."

Yulia Zakharova, CPM Director of AT Consulting, believes that the customer's needs have changed in terms of realizing the importance of the methodology, in wanting quick results and in the requirements for advanced functionality.

"The customer's needs have changed, firstly, in terms of realizing the importance of the methodology, which in Russian conditions always comes from the real business processes of the enterprise and is unique in almost every case. The business environment is changing - the methodology is changing. Any CPM project now begins with the development or revision of a methodology, which is then implemented in a specific system configuration, its settings. The second important feature of the current situation is that everyone wants to quickly get the results from the implementation, so a short time is allocated for the implementation of projects. And the third point is that projects are becoming more and more interesting, since in most cases the basic functionality has already been implemented, and now customers want to detail performance management models, "says an AT Consulting representative.

Sergei Safronov, director of the CPM department of KORUS Consulting Group, believes that customers in the current environment demand better for less money. Moreover, this applies not only to the implementation phase, but also to the entire life cycle of the system. "Competition among integrators and platforms forces us to look for and find opportunities to satisfy such requests," Safronov notes.

Maxim Andreev, Director of Business Applications at CROC, among the main new needs, notes the increased customer demand for terms and new requirements for the functionality of CPM systems.

According to him, customers now want projects to be shorter, results faster, deferred payment more, and the experience of the project team is more serious. On the other hand, he adds, there are new requirements for functionality - now customers are increasingly combining business processes of the "classic" CPM with related processes within the framework of one project.

"For example, the purchasing budget may not be a standalone object, but only a way out of the more complex logistics planning process of the entire production," Andreev says, adding that "the processes of planning the budget for cash flow and budget execution, which are usually divided in different systems, and the management of applications for payment, should be so strongly integrated that Russian solutions, for example, 1C: Holding Management, where such processes were initially implemented on a single platform."

Leonid Nodov, First Deputy Director for Corporate Clients of 1C-Rarus Kazan Office, notes that CPM customers have developed interest in budgeting systems and visualization systems for key indicators of various types:

"Customer needs are evolving systematically. For example, five years ago they only talked about budgeting systems, but no one introduced them. Recently, the largest enterprises have already switched to real implementations of these systems, but their potential is not fully used. The same can be said for key metrics visualization systems that help senior management make decisions. "

CPM Market Key Drivers and Barriers

The Russian CPM market is characterized by high competition, which stimulates the growth of the quality of products and services on the one hand and leads to a decrease in their cost on the other. In such conditions, according to market experts, the strongest survives, whose business is organized more efficiently, costs are lower, and product innovations are unique and allow you to effectively fight and win. In other words, the situation stimulates the qualitative development of supply in the CPM market, which is an unconditional plus.

So, according to Julia Amiridi, Deputy General Director for Business Development at Intersoft Lab, in the banking segment of the CPM market in a turbulent economy, the main driver of development remains the struggle for the client and sources of profitability.

"This produces consumer interest in CPM applications for planning, evaluating and analyzing the financial performance of the business, as well as administrative and business expenses. Their use helps to identify profitability reserves hidden in the product offer and pricing policy, sales channels and customer service organization, and the execution discipline of business processes. "

According to Maxim Andreev, director of business applications at CROC, the main driver of the CPM market is the new economic conditions in which the Russian economy found itself. "You need to carefully count money, do it more often and more accurately," he notes.

As for barriers, here market participants note such factors as uncertainty in economic policy, the possibilities of domestic CPM systems, as well as a reduction in IT budgets.

So, according to Yulia Amiridi, the main obstacles to the development of the financial sector of the SRM market, where Intersoft Lab operates, are a systematic reduction in the number of credit institutions and optimization of the IT budgets of potential customers against the background of economic instability and tightening of the regulator's requirements. In this regard, according to her, methods for assessing the economic effectiveness of management systems, which allow obtaining not only qualitative, but above all quantitative estimates of the benefits from the use of SRM systems, acquire particular relevance.

Leonid Nodov, First Deputy Director for Corporate Clients of the Kazan Office of 1C-Rarus, believes that the barriers are of an internal company nature and often this is an insufficiency in the development of managers and owners of companies.

According to Sergei Safronov, Director of the CPM Department of KORUS Consulting Group, a significant barrier now is the capabilities of domestic SRM systems, which are still inferior to world market leaders.

"At the same time, we see what efforts are being made by developers in order to bring the functional characteristics of platforms to global counterparts. And when this happens, it will become an important market driver, "the representative of KORUS Consulting believes.

Uncertainty in economic policy calls Maxim Andreev the main barrier to the market. In his opinion, a business can exist and be successful in almost any conditions - if only the degree of uncertainty would allow planning on the horizon enough time to implement the system and gain advantages from its use.

According to Yulia Zakharova, director of CPM AT Consulting, sometimes companies underestimate the importance of monitoring the effectiveness of activities based on modern software products with wide capabilities. Therefore, CPM systems are often not classified as business-critical IT solutions.

"Companies are sometimes focused on automating current activities and do not look into tomorrow. It is believed that financiers have enough Excel capabilities. But in fact, the organization can automate its business processes as much as it wants, but if the management does not have a detailed understanding of how effectively the company works, there is a high probability of erroneous investments in certain business areas, "Zakharova notes.

Regina Kamaletdinova, head of the directorate for the implementation of information systems of the Kazan office "1C-Rarus," names the 2 main barriers to the market. The first is the financial barrier, when a complex information system is not cheap and not all customers are ready to spend money on it. The second barrier, she said, is the implementation and further use of the system within the company at the expense of its own efforts. This includes personnel training, monitoring the timeliness of data entry, as well as the personal responsibility of each employee.

2012: The number of projects is growing, implementation in large companies is starting

See also: Criteria for selection and advantages of CPM systems (unique TAdviser data, comparison of CPM systems by available functionality)

According to TAdviser estimates, in 2012 the Russian market for corporate performance management systems CPM amounted to about 5 billion, rubles including sales of software licenses and implementation services provided by system integrators.

Since the 2012 market review was conducted by TAdviser for the first time, the market volume was not estimated over the previous years.

Participants in the domestic CPM market assess its volume in different ways. Thus, Roman Tkachev, head of the BPM practice of Technoserv Consulting, considers the lower bar for assessing the market for 2012 to be $50 million (about 1.6 billion rubles). Alexey Kuchin, Head of CPM Practice Development at KORUS Consulting, believes that in 2012 the market did not exceed the target of 4-6 billion rubles. Maxim Andreev, director of business applications at CROC, believes that we could talk about an amount in the range of $100-200 million, excluding the public sector (that is, from about 3.2 to 6.4 billion rubles).

Speaking about the market for CPM systems in Russia, you need to immediately make a reservation, which is understood by this term TAdviser. The center uses the classic definition of Gartner, which can be found here. In Russia, in addition to full-fledged CPM platforms, there are serious local solutions designed primarily to automate budgeting processes, which nevertheless are not CPM in the "Gartner" definition. We are talking about, for example, products such as solutions on the 1C platform ("1C:Enterprise 8. Corporate Finance Management, "" 1C: Consolidation "and the like), with hundreds of implementations. However, due to the large influence in the local market, the contribution of these solutions was also taken into account.

The Russian CPM market for January 2013, despite the growing number of implementation projects, is still a very narrow technological market, while quite immature.

"In the eyes of the IT and business community, the abbreviation CPM/BPM has not yet become synonymous with efficiency improvement," says Roman Tkachev.

Nevertheless, most vendors and integrators record an upward trend. Vyacheslav Butyrkin, head of BPM at I-Teco, says that projects will start in both very large and well-known companies and in medium-sized businesses. Julia Amiridi, Deputy General Director for Business Development at Intersoft Lab (Intersoft Lab), cites statistics on the banking sector, which is most active in mastering CPM technologies. According to her, in the banking sector, a little more than 10% of domestic credit institutions are CPM customers. Moreover, most of these banks ( about 67%) belong to the category of large. "The growth

rate of the CPM banking segment is constrained, first of all, by the insufficient methodological readiness of credit institutions. CPM is only an automation tool that can improve the current level of management technology, but not replace it. Therefore, today CPM consulting services are especially in demand, "she said.

As of January 2013, the TAdviser implementation database contained 329 CPM projects placed in the base over the entire history of observations. Of these, 111 projects were implemented in 2012. This is about 20% of the number of projects implemented per year in the field of CPM implementation in all industries, with the exception of the public sector. Since the project base gives only a certain slice of the market, it is impossible to judge the shares of vendors on its basis, but it is possible to single out the leading solutions. In the entire history of observation, the following systems are leading in terms of implementation frequency: 1C: Consolidation (including the PROOF version), Oracle Hyperion, Intersoft Lab (Intersoft Lab): Contour, IBM Cognos solution group.

The public sector is the subject of individual assessments, since there are needs of a certain kind in the field of financial performance management and a circle of integrators serving them. Here you can cite as an example the solution of the company "BFT-Holding, BFT (formerly Budget and Financial Technologies)," which is part of the IBS Group holding. The company's own systems, "ADC-Finance" and others, were used in 2.8 thousand projects in 2013 alone. In the field of financial efficiency automation, the company works primarily with state customers.

Interestingly, most integrators, which are considered large, are somehow involved in CPM automation, but sometimes implement only a few large projects a year on Western platforms from SAP or Oracle, while local developers can perform dozens and hundreds of projects based on their own developments. At the same time, since most market participants provide narrow solutions for certain customers, it is very difficult to identify someone as a leader due to the lack of horizontal market coverage. For reference, the table below shows the revenues of some integrators in the CPM system market.

Revenues of system integrators in the CPM market in Russia, 2012-2013, thousand rubles

№	Company	Project revenues in 2012	Project revenues in 2013	Revenue growth 2012-2013,%
1	CROC	375 986	-	-
2	KORUS Consulting	187 000	-	-
3	Ai-Teko	170 950*	263 764	54,3
4	Sitronics IT	120 000*	-	-
5 |ELMA	38 000	55 000	44,7
	Total	891 936	-	-

* TAdviser estimates
TAdviser, 2014

Most of the experts surveyed by TAdviser are confident that even a possible aggravation of the economic situation will not prevent the growth of the CPM systems market in Russia. Moreover, experts are confident that the crisis can even act as a catalyst for demand for CPM:

"Perhaps this will sound somewhat cynical, but I expect an increase in attention to CPM methodology and supportive technologies due to the general slowdown in economic growth: enterprises will be forced to seriously think about reducing the cost of their business processes, and CPM is exactly the tool that is currently most suitable for such tasks, "says Vyacheslav Butyrkin, Director of the I-Tec o Business Consulting Department, Head of BPM at I-Teco.

"We

believe that this direction will receive an additional impetus in development against the background of extremely disappointing forecasts of the economic situation in Russia, by analogy with 2008-2009," Maxim Andreev, director of business applications at CROC, agrees with him.

However, in the event of economic difficulties, the market vector may change. According to Yulia Amiridi, if under a conservative scenario for the development of the economic situation in Russia in 2014 it is possible to predict an increase in the number of automation projects for managing operational efficiency, the gradual replacement of spreadsheets with SRM applications, then in the event of an "economic storm" the tasks of IT support for budgeting economic expenses and financial planning will come to the fore.

2011 and earlier

CPM in the banking sector in 2011

At the end of 2011, the domestic banking sector again leads among other industries in the number of customers of data storage and software products of the BPM (Business Performance Management) class. Compared to 2010, their share increased almost 1.5 times. According to RBC's rating, the largest banks that are focused on building complex BPM systems using the best of breed approach have the greatest demand for IT products designed to manage business performance.

According to the results of 2011, financial and credit institutions remain the most active consumers of data storage and systems of the Business Performance Management class. As in 2010, the top three industries included the banking sector, trade and light industry. The demand for BPM technologies in banks continues to grow steadily. If in 2010, among organizations that became customers of relevant IT solutions, more than a third were banks, in 2011 their share exceeded 50%.

According to IDC analysts, there has been a steady trend towards faster growth of IT investments in the banking sector and other industries, for which 2011 has become a period of recovery. Last year, credit institutions showed positive dynamics in terms of asset growth rates and recorded record volumes of earned profits.

The largest banks in Russia remain the main consumers in the market of banking data warehouses and BPM systems. The vast majority of contracts concluded in 2011 fall on banks from the Top 100 in the RBC rating (82%), which is almost twice the same figure in 2010 (45%). Among such banks are the All-Russian Regional Development Bank (OJSC), Investbank JSCB (OJSC), OTP Bank OJSC, Bank Russian Standard CJSC, Transcapitalbank JSCB (CJSC), TransCreditBank OJSC, FONDSERVISBANK OJSC, etc., for which last year it was marked by projects based on the BPM-platform "Contour."

When designing a BPM system, domestic credit institutions are increasingly resorting to the best of breed approach, which involves the integration of best-in-class products from different vendors into a client solution. The BPM projects that Intersoft Lab implements in large financial structures use: Kontur data storage on, Informatica DBMS Oracle Power Center and Oracle Data Integrator industrial integration platforms, Kontur VM applications for profitability management, budgeting, reporting for the Bank of Russia, etc., Oracle Hyperion Planning and Oracle Hyperion Financial Management applications from the world leader of the VM industry of Oracle Corporation, Oracle reporting tools, BI Cognos BI, etc.

2008

Intersoft Lab (Intersoft Lab) conducted an analytical study of the Russian market for CPM systems for 2008, during which the indicators of the development of the market for systems based on data warehouses intended for the coordinated solution of a set of applied analytical and management tasks were determined. It should be noted that Intersoft Lab (Intersoft Lab) did not take into account data on substituting products for budgeting, planning, reporting and other CPM application areas - these tools are not based on data stores, so they do not meet world CPM standards. According to the results of the study, the number of new CPM implementation projects in 2008 increased by 31% compared to 2007, which indicates a record decrease in the number of new implementations since 2000.

The largest annual growth of the CPM market was recorded in 2003 - 283%. From 2004 to 2007, the market developed steadily: from 84 to 95% annually. The slowdown in 2008 was attributed to the impact of the financial crisis, which caused companies to cut IT budgets in the second half of 2008.

As a result, the lion's share of the planned CPM projects was previously transferred to the second half of 2009.

The three most common tasks that were solved in 2008 using CPM systems were financial consolidation, preparation of regulatory reports, planning and budgeting. Banks (33.5% of new projects), fuel and energy enterprises (18.8%), industry (17.6%), trading companies (9%), and the service sector (5.7%) introduced the most active BPM systems last year.

The three largest suppliers of CPM systems in terms of the number of contracts concluded, according to the study, are Intersoft Lab (Intersoft Lab) (25%), SAP (23%), Oracle (12% excluding Hyperion projects).

The Russian BPM market will recover in 2009 compared to 2008, but the growth rate will be far from even 2007 (10.5% - 2008 and 22.1% - 2009, IDC). A new surge in activity of CPM system implementations should be expected in 2010-2011.

See also

• CPM (Global Market)

Notes

• CIO.RU: and everything so it turns