The bubble of growth of the ERP-systems market in Russia.
I finally had time, and I read the October issue of Cnews magazine.
The theme of the issue is “Business Applications Market”. I want to share with the thought that came to me immediately after reading one of the articles of the topic numbers that the market for ERP systems in Russia has been growing at a rapid pace in the past few years, outpacing the average growth rate of the Russian IT market. I quote: “The players of the Russian ERP market are hampered in an accurate assessment of its volumes for the period 2006–2007, but most agree on the dynamics. This is an annual 30-35% growth. Some of the most optimistic experts, however, speak of a 40% increase. ”
Growth of 30-35% - I must say not weak. However, if you think about it, and remember that any implementation of an ERP system is not just the sale of software, but it is also the actual implementation itself, which requires a certain number of competent and trained specialists for its successful completion, it will become obvious that this figure is 35% doubtful. And that's why.
Due to which, in principle, the market can grow by 35%:
* If the average cost of software licenses increases (this is unlikely to happen)
* If the cost of work increases (as far as I know, the rise in prices for work, although it was, but far from 35%)
* If there will be 35% more projects.
But to accomplish 35% more projects, we need to either reduce the average project time by 35% or have 35% more employees. The average time of the ERP implementation project as it was about a year, so it probably remains about a year. And whether the number of specialists involved in implementation could have increased by 35% over the year - I think that no, it could not (and the acute shortage of personnel and the increase in salaries is a confirmation of this).
')
It is possible that any combination of all growth factors of the market allowed it to grow by 35%, but I think that the main result of this growth was that companies that started their implementation in the past year or two received in exchange for their investments in ERP systems are on average the worst result, for the simple reason that about 35% of newcomers participated in each project more than in previous years. As it is not sad, but the rapid growth of the market is not always good.
gihar.blogspot.com/2007/11/erp.html
The theme of the issue is “Business Applications Market”. I want to share with the thought that came to me immediately after reading one of the articles of the topic numbers that the market for ERP systems in Russia has been growing at a rapid pace in the past few years, outpacing the average growth rate of the Russian IT market. I quote: “The players of the Russian ERP market are hampered in an accurate assessment of its volumes for the period 2006–2007, but most agree on the dynamics. This is an annual 30-35% growth. Some of the most optimistic experts, however, speak of a 40% increase. ”
Growth of 30-35% - I must say not weak. However, if you think about it, and remember that any implementation of an ERP system is not just the sale of software, but it is also the actual implementation itself, which requires a certain number of competent and trained specialists for its successful completion, it will become obvious that this figure is 35% doubtful. And that's why.
Due to which, in principle, the market can grow by 35%:
* If the average cost of software licenses increases (this is unlikely to happen)
* If the cost of work increases (as far as I know, the rise in prices for work, although it was, but far from 35%)
* If there will be 35% more projects.
But to accomplish 35% more projects, we need to either reduce the average project time by 35% or have 35% more employees. The average time of the ERP implementation project as it was about a year, so it probably remains about a year. And whether the number of specialists involved in implementation could have increased by 35% over the year - I think that no, it could not (and the acute shortage of personnel and the increase in salaries is a confirmation of this).
')
It is possible that any combination of all growth factors of the market allowed it to grow by 35%, but I think that the main result of this growth was that companies that started their implementation in the past year or two received in exchange for their investments in ERP systems are on average the worst result, for the simple reason that about 35% of newcomers participated in each project more than in previous years. As it is not sad, but the rapid growth of the market is not always good.
gihar.blogspot.com/2007/11/erp.html
Source: https://habr.com/ru/post/15903/
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