Regulatory Reference Information Management Systems Russian Market Leading Players and Top Trends

In the transition to the digital economy, companies have finally made sure that data is an asset that is important to store, process, analyze correctly, using it to make decisions and build forecasts. The effectiveness of these processes provides a single repository into which verified quality data must be loaded. The task of consolidating them from different sources involves matching and synchronizing reference books in different IT systems. It is for this that businesses need regulatory reference information management systems (NSIs).

2023: Demand for master data management solutions increased by at least 20%

Analysts Navicon have estimated Russian the market for solutions for building a data-centric landscape. For to data the company, the demand for solutions for master data management and NSI in 2023 increased by 20%. Among the main trends are the use of MDM as the central link of the data-centric - IT landschaft in companies, the transition to low и no-code platforms that can be configured without complex, as well programming as integration with external data sources.

In 2023, the market for solutions for managing master data and NSI in Russia began to grow rapidly. Companies need to quickly make informed decisions based on current business, customer, supplier, partner, and market data. To do this, they build a data-centric IT landscape. The basis for it is MDM systems, which allow you to consolidate information from all sources available to the business, clean up and unify it. Errors and duplication are excluded, the speed and accuracy of data analysis is growing - and therefore the quality of decisions made.

A few years ago, such systems were in demand only among the largest companies that worked with huge arrays of heterogeneous data: retail, FMCG-segment, pharmaceutical enterprises. The situation began to change in 2020, when the level of automation of Russian business sharply increased. Many business customers faced large flows of "dirty" data - with duplicates, errors, different spelling of the same names and dates. This chaos did not allow for a high level of transparency in business. Therefore, companies of completely different levels became interested in tools for normalizing and unifying data, "said Maria Averina, partner in management of Navicon's business analytics department.

In 2022, the business just began to get used to working in the current conditions - many managers were on standby and were in no hurry to start new IT projects. But in 2023, the market situation began to gradually stabilize, and the leaders realized: in order to save data in any conditions and continue to benefit from them, it is necessary to build a data-centric architecture in the company. Therefore, we switched from planning MDM initiatives to their implementation. As of October 2023, MDM systems are one of the central links of the data-driven architecture, along with the ESB bus and corporate data storage.

With the departure of foreign IT players from Russia, import-independent MDM platforms, in particular, implemented according to the low and no-code principle, began to be in high demand. Deploying such business applications does not require complex programming. They can be quickly implemented and adapted to the changing market. Among the most notable import-independent solutions that develop according to such a roadmap are the Harmony MDM, Unidata, Omnidata.MDM platforms, as well as products from 1C and SDI Solution.

In 2023, customer requirements for the functionality of MDM systems also changed. The market has turned towards self-service solutions that allow employees with any level of technical skills to start and configure business processes. This approach makes it easy to migrate to a new system, and also allows you to remove a number of tasks from already overloaded IT departments.

Another trend is the availability in MDM of advanced integration capabilities with various external sources and going beyond the corporate environment. Thus, ready-made connectors to popular external directories have become popular, for example, Unified State Register of Legal Entities, Federal Information Address System, NSD, EFRSB, etc.

Finally, in 2023, developers of MDM solutions began to shift their focus from introducing on premium products to the SaaS model with the possibility of a monthly subscription. According to analysts, this approach to software implementation meets the needs of businesses in conditions of economic instability. The planning horizon has narrowed significantly, so it is more profitable for companies to transfer fixed payments for the service every month. At the same time, support, maintenance of systems and ensuring their safety remain on the supplier's side - business does not need to additionally load its own staff of specialists.

More and more companies, especially the enterprise segment, are moving to making management decisions based on data-driven. This is a long and complex process, but it can bring tangible economic effect to business. The main benefits that a business can receive are the reduction of direct costs for launching and supporting software, as well as the ability to make decisions based on reliable data. We expect that in 2023 the demand for MDM products will grow by at least 20%, and in 2024 the dynamics will continue, "Maria Averina continued.

2019: ASI data

2017: TAdviser data

According to the data, TAdviser the volume of the control systems market NSI is about 1.5 billion at the rubles end of 2017. The demand for these solutions is growing by 20-25% per year - directly proportional to the growth of business digitalization. The acceleration of dynamics is facilitated by the growth of the penetration of cloud services in the domestic market (at the level of about 20% per year), as well as the launch of initiatives on informatization states and society as part of the implementation of the digital economy program.

The common path to digitalization dictates the need for a unified knowledge base about customers, products, etc. For digital initiatives to succeed, you need to effectively manage the data that first needs to be put together - to form a reliable and correct provision of a "unified version of the truth" for all structural units. Accordingly, there is a growing demand for data matching and consolidation tools that provide rapid access to information, regardless of its source, analysis of patterns and deviations, and safe distribution of data.

In focus

Business representatives are becoming more and more demanding on the quality of NSI and its management processes. Also, questions about the quality of NSI arise on the ground, among specialists. The more dramatically the volume of data accumulated by organizations increases, the higher the requirements for the performance of information systems. The volume of reference books is constantly growing. Modern solutions in the field of NSI management are expected to be able to support work from more than 1 billion records.

If 10 years ago, at the end of the 2000s, the tasks of the NSI were more often understood as the process of migrating directories as part of the introduction of accounting information systems, then in 2018 the business approaches the tasks of managing the NSI more consciously and structurally, with the involvement of functional units directly using this information in business processes. The tasks related not only to equipment and materials, but also to counterparties and other reference data are being clarified.

The current situation requires a higher level of automation and formalization: everything that can be "sewn" into a clear automated algorithm must be formalized, because without strict rules, working with NSI turns into chaos. Also, the involvement of various business units in NSI projects increases their duration. As a solution, modern tools for automating data quality using training mechanisms come to the fore% 28Machine Learning% 29 machine learning, - comments Bair Danilov, Head of NSI at IBS

As of 2018, up to 75% of this market is in consulting and about 25% is in licenses. This situation is due to the fact that in addition to directly creating a directory, companies need its integration with other information systems, and for customer directories - with personal data protection systems, the CROC notes.

New trends

Among the "hot" global technological trends that change the NSI market, IBS experts note the expansion of the scope of directory management, i.e. the management of not only basic data - counterparties and materials, but also a single chart of accounts, production assets and other necessary reference books for key business processes of the enterprise. Also in focus is the automation of the NSI verification process, including using machine learning technologies, the development of uniform standards for maintaining counterparties and materials, as well as the creation of digital ecosystems in which manufacturers and buyers can freely exchange transparent information about goods and transactions.

Data Quality remains the defining trend. Machine learning technologies enable better deduplication in automated mode. In general, the development of artificial intelligence noticeably changes the previously established approaches to working with NSI - the efficiency of data recognition and correction increases, the ability to use multimedia information, make data clearer, etc. is added.

Today, interest in the quality of NSI is demonstrated not only by the giants of the economy, but also by medium-sized businesses. The IBS notes an increase in the number of requests for NSI projects from pharmaceuticals, the food industry, mechanical engineering and agriculture. Including this interest is spurred by import-substituting initiatives - just the introduction of NSI allows you to solve the problem of phased and rational import substitution of foreign solutions.

Top 8 players in the Russian NSI control systems market

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See also

• NSI Solutions and Projects Catalog

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• Data Science
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