Dassault Systemes business in Russia

2015: Import substitution prevented Dassault Systemes to come out in the Russian public sector and oil industry

The developed economic situation prevented to implement Dassault Systemes earlier drawn up plans to master new verticals of the market in Russia – the oil industry and a public sector, the director of the company on Russia and the CIS Laurent Valroff in December, 2015 told TAdviser. One of the main obstacles to it he calls import substitution policy in Russia and the sanction of the West.

"With a course towards import substitution now many state organizations, in particular a MIC to purchase foreign software, should have justification of its need that was not required earlier. Since the end of 2014 we see it also in competitive situations, and in the investment policy of the enterprises", - he says.

In turn, sanctions of the USA and Europe against Russia prohibit to deliver to the company software in a number of the Russian enterprises according to the set lists.

One more factor of frustration of plans Valroff calls a tendency to control of new investment projects from the enterprises against the background of crisis: at this conjuncture it became much more difficult to them to prove return of investments from implementation of new solutions, Valroff notes. According to him, it concerns both the state, and non-state structures.

Dassault Systemes notes that despite a difficult economic and political situation, her partner in an oil sector – the Neolant company – could implement a number of projects in the field of implementation of applications for data analysis, including – for the analysis of fields, however it is not those rates of development which expected in the company before crisis. Names of the first clients in an oil sector in the company do not open. Laurent Valroff added that at the same time his company achieved certain success in business development in civil nuclear sector and in the field of hydropower.

The director of Dassault Systemes in Russia and the CIS claims that against the background of an adverse economic situation his company completes 2015 in this market with growth of revenue both in rubles and with profit. Growth rates of local turnover in the company do not open.

Growth of business in Russia, according to Valroff, became possible thanks to the fact that his company, seeing the events at the end of 2014, was prepared for development of the situation in 2015. She offered customers more flexible pricing, taking an individual situation of the client into consideration. Also some organizational changes were eaten, the director of Dassault Systemes in Russia and the CIS notes.

2013

Rate on the new industries

The French developer of solutions in the 3D area - design, prototypings and product lifecycle managements (PLM) of Dassault Systemes began to develop actively in Russia business in a number of the industries, new to himself, told in local representative office in December, 2013. Among them - retail and the industry of a fashion and also the oil and gas industry.

For the industry of a fashion and retail in Russia the company offers as solutions for product lifecycle management, purchase management, traditional for itself, supply chains and the range, and the new solutions in the field of virtual merchandising.

As for the last, in 2013 Dassault Systemes purchased the SquareClock company specializing in technologies for 3D - design. Now they are offered also for use in the field of retail: for example, for creation of the virtual shop allowing the buyer to select and consider without his physical visit goods, and then to come to shop behind specific things which he decided to purchase.

The director of Dassault Systemes of Russia and the CIS Laurent Valroff told TAdviser that the retail network of clothes under a brand of INCITY became one of the first clients of his company in the fashion industry in Russia. There the project on implementation of the Enovia PLM system over which industry solutions are built on approaches end. Implementation of the Dassault Systems PLM system is conducted also in O'Stin retail network.

Laurent Valroff explained TAdviser that the relevance of use of PLM systems in large producers of clothes results from the fact that they have very short development cycle of collections – only 3-4 months, the huge range of goods and need to quickly transfer information to that country where the clothes are made. All this needs to be managed effectively, he says.

Rather 3D - technologies for virtual merchandising the director of business development of Dassault Systemes in Russia Paweê Brook noted in a conversation with TAdviser that the Russian retailers show interest in them, but case did not reach projects yet. The problem is that for implementation of such technologies it is necessary to have rather high level of automation, and it can still be observed not at many local retailers, he explained.

In an oil and gas sector Dassault Systemes proposes the solutions for construction management of objects, their operation and decommissioning, design of processes of production and transportation, modeling of the environment and geological exploration, the development director of Dassault Systemes in Russia Paweê Brook explained. He added that practically all product line of the company is involved in a case with this sector.

The Russian clients in the oil and gas industry in Dassault Systemes were preferred not to be revealed yet. According to Paweê Brook, implementation of the CATIA systems for design of objects and Enovia for management of lifecycle is conducted there.

It should be noted what in the designated Dassault Systemes segments works hard at the world market years. Among her clients from the fashion industry - clothing stores H&M, GUESS, Gucci. The company notes that its solution for modeling of Simulia is used practically by all large oil-extracting companies.

"First, we can do not everything at the same time. Earlier we were very busy in other industries, and now we feel ready to pay special attention to an oil and gas sector, - Laurent Valroff why the company began to be engaged strenuously in an oil and gas sector only in 2013 – Secondly explains, we grow, and we accumulate understanding of the companies of the industry which still worked with certain technologies for accomplishment of classical tasks for them. We try to expand their understanding in what the innovation, but for them not classical, technologies can be applied at them".

He adds that in 2014 the company is going to expand number of the industries in which will propose more actively the solutions.

Development of cooperation with industry partners

In 2013 Dassault Systemes in Russia agreed about cooperation with five new partners, told TAdviser in the Russian representative office in December.The "Sarov Engineering Center" delivering solutions for engineering modeling in different industries became one of them.

The name of other new partners in the company were preferred not to be opened before completion of formalization of the relations, having noted that among them – one of the Russian integrators specializing in projects in the energy sector.

In addition to the energy sector, further it is possible to expect appearance in Dassault Systemes in Russia of partners in retail and the industry of a fashion (for these industries in the country it began to propose solutions in 2013) and also in the field of industrial equipment, speak in the company.

The director of business development of partners of Dassault Systemes in Russia Valery Pragin explained TAdviser that with expansion of a range of standard industry solutions at Dassault Systemes, the company selects also partners, mainly, by the industrial principle.

Cooperation with integrators of a vista shot also can be of interest to Dassault Systemes if they are interested in development of the direction of business of PLM and do not propose the competing solutions, Pragin adds.

One of such partners of Dassault Systemes was IBS earlier, however in 2013 this partnership stopped. The company did not explain what it is connected with, having noted only that it was mutual about the IBS solution.

"We have partners of a vista shot in PLM who perform sales in the different industries. Within the last two years they are certified on industry solutions, for example, in the aviation industry, shipbuilding and others", - the director of business development of partners of Dassault Systemes in Russia says.

Together with "the Sarov Engineering Center" on the website Dassault Systemes as of the end of 2013 10 Russian partners are registered. According to Valery Pragin, on revenue about a half of sales of the company in Russia is performed through partners, and as much - directly. Dassault Systemes performs direct deliveries in a case with big customers.

2011: Significant increase in demand for PLM

Considerably demand from the Russian customers grew by services for implementation and training in solutions for product lifecycle management (Product Lifecycle Management, PLM). For specialists of the Moscow office DS amount of works in the field of consulting was tripled in comparison with the 2010th that demanded expansion of the staff of consultants. The same is observed and partners have companies.

Among the industries of the most dynamic in terms of purchase of licenses for DS in 2011 there was the Russian automotive industry where on the first place on importance for the company there is, of course, AvtoVAZ, the strategic partner of Renault concern which in turn is the largest customer of DS in the world. Valroff explains with influence of Renault, in particular, noticeable activation of the Russian car maker in the field of rearmament of engineering processes, investments into modern technologies. So, in a year in scientific and technological center of AvtoVAZ 300 new specialists were employed. All this inspires in DS optimism concerning perspectives of the cooperation with the enterprise. Well business of the company and in such industries of the Russian industry as power and mechanical engineering develops.

DS segments the global business on 12 regions. Russia is included into Eurogrowth region including also the country of Eastern Europe and the Middle East. According to Guillaume de Canc, the director of the DS sales channel in Eurogrowth, about 30% of indirect sales in the region are the share of Russia. In Eurogrowth clients of the company are about one thousand enterprises with which DS works through 40 partners, from them 11 — Russian. De Canc considered 2011 successful for the region, having noted that business growth in the third quarter in comparison with the same period of 2010 in Eurogrowth was 10%, and the contribution of Russia provided more than a half of increase in sales volume. Expansion of a partner network in the region and, in particular, in Russia and also deepening of their industry competences is planned for 2012, according to de Canc.

In sales pattern of the products DS in the world the lion share, about 80%, is still the share of a CAD of CATIA, but de Canc notes that in Russia considerable activation of promotion of such brands as Enovia, a core of the DS PLM platform, and Simulia, a solution package for realistic modeling is noticeable. Promoting of new technologies which appeared in its portfolio lately, in particular the powerful search system of the Exalead company purchased in 2010 is also important for DS.

The Elar company became the first Russian partner of DS in the Exalead brand. According to the director Elar on Pavel Plotnikov's marketing, in the company the main directions of application of a product in Russia consider corporate search, search in specialized documentation and search with a binding to geopositions. The company keeps the large project now in the Russian state library where the Exalead platform will allow to organize effective search in theses which about 170 thousand are stored in RGB.

2010: Partnership with software developers in Russia

In 2010 it became known that in development of new algorithms for Dassault Systemes, first of all for modeling, will be engaged including the Russian partners (R&D partners) of the company, the vice president of the company for strategy and marketing Pascal Daloz told CNews.

"We already have subcontractors in Russia when writing the code, but now we will sign partnership agreements with the Russian organizations, negotiations are already conducted, - he says. – The main difference is that if earlier after the end of development the intellectual rights to the code were assigned by Dassault, then partners will reserve the rights and will draw interest from implementation".

Daloz calculates that by 2012-2013 such Russian partners in development the company will have about 10. He did not begin to call with what organizations negotiations are conducted. For 2010 at software development Dassault cooperates with the Novosibirsk university.

"Products of the Russian developers will have applied character and to be developed using API of our products, - Daloz continues. – Their code will get not to local Russian, and to the general Dassault distribution kits implemented around the world. First of all we need examination of Russians in mathematics and science about materials so it not there is a speech about search of programmers with lower compensation here".

For 2010 as speak in the Russian representative office of Dassault, about 20 people work for the company in Russia. The vendor has 10 local partners among whom:

• IBS,
• Tekhprom,
• IGA Technologies,
• VE-Group,
• Digital Empire,
• GetNet Consulting,
• "Bee Pitron",
• "CIT Möbius", etc.

An important Russian customer of Dassault is AvtoVAZ. Also the All-Russian Research Institute entering into structure of Rosatom on operation of nuclear power stations (VNIIAES) cooperates with this vendor.

2004: The beginning of work in Russia

The Dassault Systemes company began the activity in Russia in 2004. Till this time the company was provided here by the strategic partner -IBM company which sold, advanced and was engaged in support of solutions of Dassault Systemes company in the Russian market and in the CIS countries.