Infor Russia

2016: Infor revenue grows in Russia despite import substitution

Infor revenue in Russia in the last two years grew by 17% in dollars, told TAdviser in the company in October, 2016. Growth in rubles on orders was higher, added to Infor.

In Russia the company focuses on sales of ERP, but points to the leading positions in some other segments. For example, in a segment of the WMS systems Infor calls itself the largest foreign supplier on number of projects, saying that it implemented more than 150 projects. In TAdviser base for the end of 2016 63 implementation projects of WMS solutions of Infor are registered in total#dop_selector: Infor SCM WM v.9.x and Infor SCM WM v.3.x.

One more segment where the company has the leading positions, in Infor call CRM in the financial sector: its solution InforCRM is used by banks from top-20 in Russia. In total in TAdviser base 50 implementation projects of the products Infor having functionality of CRM are provided#dop_selector.

One of the factors promoting growth of business in the local market in the last two years the area manager on partners of Infor in Russia and the CIS Dmitry Martynov calls narrow industry orientation of the solutions: "Unlike competitors, we do not try to close everything one solution, we have special sets of products for the different industries, taking into account their specifics", - he says.

Dmitry Martynov

Infor focus shift from sales in the commercial sector for sales to state companies became one more factor stimulating business growth. Dmitry Martynov explains that with approach of crisis in the commercial sector decline while in a public sector and the companies with state participation the situation is much better is observed.

Infor concentrated special efforts on the space industry and the enterprises which are turning out products for defense sector. According to Martynov, in addition to appearance of new customers in these verticals, the company laid the foundation for long-term cooperation here.

The state directs considerable investments into the space and defense industries against the background of the developed political situation, and from clients in these industries we see desire to improve and upgrade IT infrastructure. To us is that to offer them – Infor has specialized products for clients of such specifics, - Dmitry Martynov says.

Among the biggest customers of Infor from the industries stated above – United Engine Corporation (UEC), one of structures of Rostec. Solutions of Infor are implemented, in particular, in the "Ufa Engine Industrial Association" and "the 218th aircraft repair plant" which are a part of UEC.

Infor told TAdviser about the outlined agreement with UEC assuming that the solution Infor LN will become key ERP for the enterprises of corporation. Based on "Ufa Engine Industrial Association" as the main platform and the repair plant as service platform it is going to develop specialized solutions for the UEC enterprises, explained in the company.

Example of the client from the enterprises of military industrial complex – "Plant of V.A. Degtyarev". ERP Infor also use, for example, the enterprises "MiG",Irkut" and also entering in "United Shipbuilding Corporation" "Baltic Shipyard".

The state policy of import substitution extending and on state company, has a business impact to Infor, however in these conditions it is possible to develop, are sure of the company. The order of the Government of the Russian Federation about establishment of prohibition on the admission of import software for ensuring the state and municipal needs allows use of import products if there is no Russian equivalent or it concedes on characteristics to the import solution, Dmitry Martynov notes. He considers that those who want to use import products use this exception.

According to Martynov, in certain cases Infor helps the customer to develop justification why it needs to use the solution of their company, but not Russian.

Against the background of the state rate on import substitution of state corporation develop the domestic policy providing phased transition on domestic IT solutions. Like that exists, for example, in Rostec. Dmitry Martynov says that Infor looks for opportunities that clients in structure of Rostec continued to use components of its solutions. According to him, complete import substitution in Rostec numbering more than 600 enterprises can hardly happen in a short and medium perspective.

On the one hand, this import substitution, and with another – additional costs on implementation and adaptation of new solutions. Often it is unjustified as in the course of implementation core business can suffer. I believe that so at the enterprises of Rostec in this or that type will continue to use import solutions, - Martynov notes.

Martynov cites "Ufa Engine Industrial Association" as an example. The president set for him the task to market engines which are made in Ukraine at the Motor Sich enterprise. The customer expected that for its accomplishment it is more reasonable to improve already available Infor system, than to implement a new, domestic system, and to it there were no questions, the representative of Infor tells.

Dmitry Martynov added that the Russian clients very much are interested in opportunities for work of the products Infor with the system software with the open code. Expansion of support of the open source system software – operating systems and DBMS – is a part of product strategy of Infor, he says. Initially it became to reduce total cost of ownership the solution based on Infor.

Martynov notes that as of October not all popular products fully support the open system software, however in their last versions, including one of flagship products – the ERP system of LN – the opportunity for work with it should appear. In the next plans – support DBMS PostgreSQL in Infor LN.

The Russian market is one of priority for Infor: the companies show interest not only to ERP- to systems, but also to EAM, BI, WMS and to other products Infor which, unlike solutions of competitors, are initially customized taking into account the interests of the different industries  — the official representative says Infor in Russia and the CIS Dmitry Martynov. — For 2016 financial year the number of clients among the companies and the enterprises exceeded 600. Among interesting projects it should be noted implementing solution on interaction with distributor network Infor eCommerce in Alkotorg LLC, the sales company of the producer of vodka products, largest in Russia Tatspirtprom. It is worth mentioning the interesting draft decision Network Designer in one of the largest oil companies of Russia which is applied to strategic planning of a distribution and logistic network in 15 new warehouses in Russia and the CIS using the solution Infor SCE (WMS).

2013: Business of Infor grows in Russia for 30% a year

The last two-three years, including 2013, Infor revenue in Russia grows at rates about 30% a year, the regional representative of Infor told TAdviser Sergey Kolobov . According to him, more than a half of turnover of the company in Russia in 2013 was the share on ERP- solutions - first of all, of systems LN, SyteLine and M3, about 30% - on solutions SCM (warehouse management systems), and 15-20% of turnover - on BI- systems.

As of the beginning of 2014 Infor in Russia has more than 500 clients. Among the largest of them –Irkut corporation, KNAAZ of Gagarin,"The Tikhvin car-building plant". At the end of 2013 Infor also signed the strategic agreement with Rostec at which enterprises it is going to expand the presence.

High rates Sergey Kolobov explains growth of revenue in Russia with two pacing factors: an output to the market of new products and also expansion of a partner network at the expense of what also the number of transactions increases.

Unlike a number of the countries where Infor works and directly, and through partners, in Russia the company performs sales only through partners. As of the beginning of 2014 at the company is in the country of 26 partners working on all categories of the products Infor.

The largest of them, according to Sergey Kolobov, are IBS working according to the solutions EAM for management of capital assets (the contract on partnership with it was signed in 2013), and GMCS company - according to the solutions ERP Infor LN. Other partners it is much less, but have wide experience in promotion of the products Infor, Sergey Kolobov notes, adding what for the aid to partners the Russian representative office of his company is going to gather in staff of technical advisers in the near future.

According to Sergey Kolobov, there is not enough current number of partners of the company, and Infor looks for new in Russia. Generally for promotion of the new products. The company carries to like those, including, and one of the flagman ERP systems - M3 provided in the country 1.5-2 years on which there are some implementations so far. Besides, Infor is interested in partners for sale of the solutions in a public sector which in Russia are not presented yet, Kolobov says.

The company told about plans to expand a partner network in 2010, expecting to increase their number approximately to 45 companies for 2-3 years. Saying about why these plans did not come true, Sergey Kolobov noted that the main task of the company – "find not just partners, and qualitative partners", and Infor will increase their quantity, but not to the detriment of quality.

Among new products in Russia in 2014 in the company call Infor 10X (a technology platform which integrates the majority of other products of the company) and Infor Ming.Le (her Kolobov calls "Facebook for business systems"). Due to the requests of partners, Infor considers also the possibility of localization of HCM solutions which so far here are not submitted.

In plans of Infor - expansion of business in Russia, Kolobov tells. According to him, the company considers the possibility of opening in the country of the local center of support and, perhaps, even development center of products.

He adds that the development strategy of the company assumes development of sales not in all industries: for example, Infor does not try to develop business in an oil and gas sector or metallurgy, "where positions of SAP are strong", and places emphasis on mechanical engineering, retail and distribution, food and chemical industry.

2012: Infor is going to treble number of partners in Russia

For May, 2012 the company signed partnership agreements with 5 integrators. As of June, 2012 their total number – 10. "Until the end of 2012 we are going to increase the number of partners by 20 companies", - Martynov added.

"Opening of office in Moscow will serve as a powerful push for development of Infor in Russia", - told TAdviser in Frontstep, one of the Russian partners of vendor.

Together with this Infor changed the affiliate program and the marketing scheme of work. "We passed to-level model of separation of partners: gold, silver and bronze. A number of requirements as that will be imposed to potential distributors: providing business plan of development, both company, and our products; qualified specialists; certification of specialists in our products".

Changes in the marketing scheme of work concerned redistribution in management of distribution network. "In general, the office in Moscow will be responsible not only for business in Russia, but also in Kazakhstan and Tajikistan. We have projects in Ukraine, however this country is not included into our area of responsibility yet", - the head of Infor in Russia and the CIS says.

Partners of the company are sure that the ability to integrate with applications of other companies is that unique factor allowing Infor to be one of leaders in the IT market in the world. In Moscow time consulting group company to which the products Infor provide 99% of sales, told TAdviser that the vendor is present at the Russian market since the beginning of 2000 and during this time well proved in a number of the industries.

"An opportunity to purchase a product at once in Russian, but not to change the solution according to domestic specifics is also one of decisive factors when choosing the producer of business systems", - say in Moscow time consulting group.

The representative of Frontstep system integrator (more than 50% of sales are the products Infor) also points that Infor sfokusirovannost on the separate industries of business and localization are factors of success of the company: "Accurate and thoughtful studying of the industry helps to provide to the client a product which can thoroughly foresee all requirements and solve them. This Infor wins against the same 1C where it is necessary to finish modules independently".

2010: Growth of turnover - 20%

On April 27, 2010 the Russian office Infor reported that 2010 financial year will come to the end in May with the 20 percent growth of turnover and in the next two-three years the partner network will be tripled. Most of all in the Russian market the company gained for the software for asset management.

According to the area manager of Infor in Russia and the CIS Dmitry Martynov, about 60% of sales were the share of these products, another 20% brought tools for supply chain management and the remained 20% are management systems for finance and schedule systems of resources of the enterprise.

Martynov noted that year for ERP was issued unsuccessful, and growth of turnover is explained, first of all, by large implementations of management tools assets and expanded solutions over the existing ERP systems. For last year Infor had in Russia 21 new clients, and their total number exceeded 500.

The manager on development of the channel in EMEA region Jean Pommel reported that the partner network of Infor in Russia contains about 15 companies, but in the next two-three years should be tripled. Also investments into training of partners and marketing will increase. Besides, Infor has in Russia about ten clients whom the company services directly.

Martynov told that from now on Infor will look for, first of all, partners in ERP systems and in the software for performance management (Performance Management, PM). As he noted, in 2009 in Russia "there was a boom of PM" to which the partner network of Infor was not ready.

As for ERP systems, the companies using them from the sphere of discrete production, according to Martynov, in many respects recovered from crisis and even received an additional incentive of development as the demand of domestic goods increased. Therefore in 2010 Infor is going to increase the number of ERP projects. Besides, expansion of product lines for retail, distribution and logistics is expected.

Pommel noted also that Infor is ready to offer different options of implementation — from sale of licenses to the SaaS model and also several types of crediting. But, according to Martynov, in essence in Russia SaaS is used yet by nobody, and during crisis it was necessary to reduce the prices simply.

2007: Opening of the Russian representative office

(Moscow) Infor opened office in Russia in 2007. Dmitry Martynov was appointed his head. Before opening of the Moscow office the products Infor were presented at the Russian market for a long time, however clients of the company were forced to sign contracts with the European office of vendor.

In Russia the company will propose solutions of classes ERP EAM SCM, BI and PLM. According to Martynov, the minimum project cost of this or that implementation to a product will be from 50 thousand dollars. "It is not profitable to either us, or our partners less, and as an upper level will serve only the complexity and scale of the project", - he told.

Main competitors of the company, according to Martynov, are SAP, Oracle, Microsoft and in the Russian market of 1C. However, products of Infor allow clients to integrate applications of different producers without loss of functionality. "We have examples when some modules at the client cost ours, and some – our competitors. And everything worked", - Martynov continued.