Why the ERP market is growing: statistics and trends
The research organization IDC Russia has published the results of its annual research of the Russian market of ERP-systems. The company notes that in 2017 its value increased by 30% and reached the bar at $ 819 million.
Products leading were solutions 1C and SAP. Under the cut, let's talk about the reasons for the growth of the domestic market and the situation on the global ERP arena.
/ Flickr / pfau_910 / CC
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According to IDC research, the most popular ERP solution in Russia is considered “1C”. As the director of the company "1C" Boris Nuraliev in an interview with Cnews , over the previous two years, nearly two hundred organizations, choosing for themselves the ERP-system of several specific options, eventually settled on domestic development (evaluation was carried out according to the reports of the company's partners).
Despite the popularity of 1C, the German SAP solution is still the leader in terms of revenues on the Russian market. At the end of 2017, the growth rate of revenue from the sale of SAP products was 33% (in dollars) and 16% (in rubles). However, the lag of “1C” can be called insignificant: the growth of the company's sales volumes was 30% and 13%, respectively.
Industry experts identify several reasons for this growth of the ERP-market.
Digitalization The needs and priorities of companies in recent years have shifted towards the digitalization of business processes.
For a long time, many organizations worked with documents in Microsoft Office and even kept paper files. For example, Kovrov Electromechanical Plant 4 years ago led part of the accounting operations of materials, semi-finished products and finished products on paper.
Today organizations are seeking to use data more effectively to better understand their strengths and weaknesses and provide new services to customers. All the same "Kovrov Electromechanical Plant" introduced a management system of a manufacturing enterprise to automate warehouse accounting. This reduced the time required for the preparation of regulated reporting by 50%.
Staff hunger. This is another factor that stimulates the development of the ERP market . Shortage of personnel contributes to deepening automation and attempts to replace a person where standardized operations are required.
However, there is another side - the introduction of technology makes it possible to exclude situations where qualified professionals have to do routine work. ERP-systems relieve part of their workload and give employees the opportunity to focus on solving more critical business problems.
/ Flickr / groman123 / cc
Now let's see how things are on the foreign market of ERP-systems and what systems are popular in foreign companies. This year, the consulting company Panorama published its study of the ERP market (to receive a report, you must fill out a form on the website). The company surveyed 237 organizations around the world and found that the two most popular ERP tools are Oracle solution (used by 16% of respondents) and SAP (15%).
Panorama notes that the most popular reason for introducing ERP systems abroad is to increase the efficiency of business processes (64%). Also, due to enterprise management systems, companies seek to expand the client stack (57%) and improve the quality of their service (54%).
For example, due to the implementation of Oracle's ERP telecom company Mobilitie LLC managed to coordinate the work of several departments, to make the business more “transparent” for customers. Another company, Skullcandy, which manufactures audio gadgets, a product from SAP helped with scaling up the business and organizing electronic document management with customers.
In Russia, the reasons for implementing ERP are slightly different. According to the analytical center TAdviser for 2017, the main driver of the domestic ERP market is import substitution . According to analysts, companies choose Russian ERP-systems for the implementation of new projects and the transition from the already implemented software solutions.
The second factor in TAdviser is the desire to reduce transaction costs. Therefore, today many companies are switching to cloud-based ERP-systems that help them save money (for example, by paying for a subscription) and provide access to the system from almost any place.
The trend with the transition of companies to the cloud is noted by experts both in Russia and abroad. According to the Panorama report, in 2018, companies prefer to deploy ERP-systems in the cloud: 15% of respondents use the on-premise option, 85% of cloud-based ERP products (this figure includes both SaaS-products by subscription and solutions that companies themselves are placed on the equipment of the cloud provider). For comparison, in 2017, on-premise was preferred by 67% of respondents, cloud-based ERP - 33%.
According to Sergey Belkin, head of 1cloud development, the growing popularity of cloud ERP products is largely due to the convenience of their implementation:
Given the current trends, we can expect that the number of cloud ERP-system implementations in the coming years will only increase.
Products leading were solutions 1C and SAP. Under the cut, let's talk about the reasons for the growth of the domestic market and the situation on the global ERP arena.
/ Flickr / pfau_910 / CC
')
Causes of growth
According to IDC research, the most popular ERP solution in Russia is considered “1C”. As the director of the company "1C" Boris Nuraliev in an interview with Cnews , over the previous two years, nearly two hundred organizations, choosing for themselves the ERP-system of several specific options, eventually settled on domestic development (evaluation was carried out according to the reports of the company's partners).
Despite the popularity of 1C, the German SAP solution is still the leader in terms of revenues on the Russian market. At the end of 2017, the growth rate of revenue from the sale of SAP products was 33% (in dollars) and 16% (in rubles). However, the lag of “1C” can be called insignificant: the growth of the company's sales volumes was 30% and 13%, respectively.
Industry experts identify several reasons for this growth of the ERP-market.
Digitalization The needs and priorities of companies in recent years have shifted towards the digitalization of business processes.
For a long time, many organizations worked with documents in Microsoft Office and even kept paper files. For example, Kovrov Electromechanical Plant 4 years ago led part of the accounting operations of materials, semi-finished products and finished products on paper.
Today organizations are seeking to use data more effectively to better understand their strengths and weaknesses and provide new services to customers. All the same "Kovrov Electromechanical Plant" introduced a management system of a manufacturing enterprise to automate warehouse accounting. This reduced the time required for the preparation of regulated reporting by 50%.
Staff hunger. This is another factor that stimulates the development of the ERP market . Shortage of personnel contributes to deepening automation and attempts to replace a person where standardized operations are required.
However, there is another side - the introduction of technology makes it possible to exclude situations where qualified professionals have to do routine work. ERP-systems relieve part of their workload and give employees the opportunity to focus on solving more critical business problems.
/ Flickr / groman123 / cc
How are things with the global ERP market
Now let's see how things are on the foreign market of ERP-systems and what systems are popular in foreign companies. This year, the consulting company Panorama published its study of the ERP market (to receive a report, you must fill out a form on the website). The company surveyed 237 organizations around the world and found that the two most popular ERP tools are Oracle solution (used by 16% of respondents) and SAP (15%).
Panorama notes that the most popular reason for introducing ERP systems abroad is to increase the efficiency of business processes (64%). Also, due to enterprise management systems, companies seek to expand the client stack (57%) and improve the quality of their service (54%).
For example, due to the implementation of Oracle's ERP telecom company Mobilitie LLC managed to coordinate the work of several departments, to make the business more “transparent” for customers. Another company, Skullcandy, which manufactures audio gadgets, a product from SAP helped with scaling up the business and organizing electronic document management with customers.
In Russia, the reasons for implementing ERP are slightly different. According to the analytical center TAdviser for 2017, the main driver of the domestic ERP market is import substitution . According to analysts, companies choose Russian ERP-systems for the implementation of new projects and the transition from the already implemented software solutions.
The second factor in TAdviser is the desire to reduce transaction costs. Therefore, today many companies are switching to cloud-based ERP-systems that help them save money (for example, by paying for a subscription) and provide access to the system from almost any place.
ERP "leaves" in the cloud
The trend with the transition of companies to the cloud is noted by experts both in Russia and abroad. According to the Panorama report, in 2018, companies prefer to deploy ERP-systems in the cloud: 15% of respondents use the on-premise option, 85% of cloud-based ERP products (this figure includes both SaaS-products by subscription and solutions that companies themselves are placed on the equipment of the cloud provider). For comparison, in 2017, on-premise was preferred by 67% of respondents, cloud-based ERP - 33%.
According to Sergey Belkin, head of 1cloud development, the growing popularity of cloud ERP products is largely due to the convenience of their implementation:
“Such systems can be tested in combat conditions, without laying out large sums for the introduction.
If you go on the path of on-premise, then you need to configure everything yourself: buy licenses for the server operating system, for the SQL server, for the ERP server itself. Plus, it may happen that you have to upgrade equipment. All these expenses are not justified if you only need to evaluate the performance of the ERP system.
Another thing is a virtual server. The cost of the operating system is often included in its rental price. SQL-server can also be rented (like many other licenses), and then, when it becomes unnecessary, refuse. With purchased licenses, this is not the way to do it, so they often fall dead when there is no need for them.
The flexibility of virtual servers allows companies to evaluate the ERP system without the cost of equipment and choose the one that is best suited to run the enterprise on an ongoing basis. "
Given the current trends, we can expect that the number of cloud ERP-system implementations in the coming years will only increase.
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Source: https://habr.com/ru/post/418673/
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