World market for ERP systems. World market leaders for ERP systems. Invest in digital strategy talent. ERP market participants assess the prospects for its development differently, but the general mood is positive

Leaders of the Russian market of ERP systems

· SAP AG

What is SAP? SAP AG is represented on the Russian market by the R / 3 system and, starting from 1992 year ., regularly conducts a whole range of activities aimed at promoting its product, training consultants during thematic seminars and gaining experience in various sectors of the economy.

Over the years of operation in Russia, the company has achieved the greatest success in the oil and gas industry, as well as in mechanical engineering, power generation and transportation, as evidenced by the steady growth of revenues from ERP projects. What is SAP today? SAP ERP AG is currently striving to cover the retail, telecommunications and finance sectors.

The cost of delivery of the R / 3 system for 50 workplaces is $ 350,000. The cost of implementation is several times higher than the cost of a license.

· Oracle

Oracle Corporation operates in Russia through its Russian representative office Oracle CIS and its business partners. Today the Oracle Applications system is presented in the markets of the CIS countries by 29 ERP-projects, covering a total of 70 users.

· Microsoft Business Solutions

Microsoft, one of the world's leading suppliers of ERP systems, has been officially represented in Russia since November 1992 year ., and since July 2004 year ... the Russian representative office of Microsoft became known as Microsoft Rus LLC.

The line of products offered by Microsoft for complex automation is focused primarily on small and medium-sized businesses and includes such systems as Axapta, Great Plains, Navision, Solomon, Microsoft CRM. On the base Microsoft Axapta a number of industry-specific ERP systems were created, in particular the industry solution Axapta Retail, adapted to the peculiarities of Russian retail chains. A localized version of Axapta 2.1 was developed especially for medium-sized enterprises by the Danish company Navision a / s, which appeared on the market in 2000 g ... (since December 2001 year ... - Navision Axapta 2.5).

The cost of delivery and implementation of the Axapta system for 1 workplace is € 1600-2500. Package for 20 users - € 36,000-50,000.

· Galaxy Corporation

Operating in the market with 1986 year ., corporation "Galaktika" has made significant progress: in just one 2005 year ... its revenues increased by 16% year-on-year, amounting to $ 24.7 million, making the company 10th in the list of leading Russian consulting groups according to the Expert RA rating in the first half of the year. In the same 2005 year ... the clients' attention was offered a fully functional complex of business solutions Galaktika Business Suite built on the Galaktika ERP core.

Branches, offices and representative offices of Galaktika corporation are located in many cities of Russia and the CIS countries: St. Petersburg, Samara, Yekaterinburg, Tyumen, Novokuznetsk, Khabarovsk, Vladivostok, as well as in Kiev, Minsk and Almaty.

· Epicor Scala

By launching the Scala system in 1991 year ., Scala CIS, which later became part of Epicor Corporation, became known as the first company in the CIS and Eastern Europe to provide software and services in the field of production, finance and business management. Joining Epicor, a leader in ERP (Enterprise Resource Planning), CRM (Customer Relationship Management) and SCM (Supply Chain Management), gave additional impetus to the development of Scala, resulting in 70% of total product users Epicor and Scala for 12 years (600 customers) have chosen Scala systems.

The corporation's revenues in the CIS countries are divided between such activities as support of old clients (47%), consulting (28%) and licensing (25%), although the absolute financial performance of Epicor-Scala in this region is a trade secret.

· 1C CJSC

Since its foundation in 1991 year ... 1C has developed a number of business solutions that have become widespread in the computer market thanks to mutually beneficial cooperation with the most extensive partner network in the CIS. Company income in 2003 year ... amounted to $ 65 million, and already in the first half of the year 2004 year ... reached the $ 40 million mark. At the same time, sales of one of the most successful products of the company "1C: Enterprise 8.0" increased by 2004 year ... by 143%, and next year, only in the period from January to September - by 282% compared to the same period 2004 year ... Despite the fact that 1C products are not officially positioned as ERP class systems, they fully comply with the standards developed for them, as evidenced by the fact that 2005 year ... analytical firm IDC included 1C in its research.

In addition to promoting its own products, the company is an official distributor of well-known foreign manufacturers, such as Microsoft, Novell, Symantec, Intel and others.

· BAAN Eurasia

BANN systems have been known in the Russian market since 1997 year ... thanks to the company "BAAN-Eurasia".

The cost of delivery and implementation of the BANN system for 100-150 users is $ 600,000-800,000. According to other sources, the cost of delivery for 1 workplace is $ 3,000, the cost of a competitive license (if simultaneous access to the database is limited) is $ 6,000. The cost of implementation is several times higher than the cost of delivery.

The analytical center of TAdviser made a rating of ERP systems in 2017. The alignment of forces in the Russian market of enterprise management systems has not changed over the year. In terms of the number of implemented projects, 1C: ERP holds the undisputed leadership in the market (and even increases its gap from competitors), in terms of the amount of attracted funds, SAP still occupies the first place. Import substitution remains the main market trend, and the trend towards clouds is gaining momentum. And now about everything in order.

Rating of ERP systems 2017 by the number of implementations

According to most experts, the number of implementations is the most objective criterion for assessing the demand for ERP. According to this indicator, the domestic system of enterprise activity automation from the 1C company remains out of competition. Last year registered 167 new projects implementation of this software product. The market share of ERP systems based on the 1C: Enterprise platform reaches 31% ... In second place is "Galaxy ERP" with a share 7,5% and 3 new projects per year. Bronze from SAP. The world's most popular ERP system keeps 6% Russian market. Growth per year - 7 projects... Oracle went out of the way. But Microsoft solutions are strengthening their position. MS Dynamics AX takes 5,8% market with growth 13 projects per year, MS Dynamics NAV - 5,2% market with 3 new projects... Collectively, Microsoft ERP solutions account for 11% of the market.

Rating of ERP vendors by financial indicators

In terms of revenue, 1C still loses to foreign SAP, although it demonstrates the best growth dynamics of financial indicators. Why is the company with 137 new projects for the year is inferior to the vendor with an annual increase in 7 projects? Perhaps by objective indicators. SAP has traditionally been chosen by large companies with a large number of automated workstations. In this case, the foreign vendor could benefit from the number of licenses sold. But, judging by the 1C firm sells more licenses and automates more jobs. So, probably, high financial indicators of SAP are provided due to the high cost of the software product itself, client licenses, implementation and maintenance services.

For the period from 2005 to 2017, the largest number of ERP system implementations was noted in the field of trade ( 15,9% of the total number of projects). Also, integrated control systems are in high demand in the segments of mechanical engineering, construction, food, chemical industry, health care and financial services.

Regional distribution of ERP systems 2017

As for the geographical distribution of ERP projects in Russia, the most "automated" today are Central ( 42,3% ) and Northwest ( 17% ) county. At the same time, the most industrial region - the Urals - with 9,5% takes only 5th place.

The main trends in the market of enterprise management systems

The main trend of the domestic ERP market in 2016 - 2017 is import substitution... For political and economic reasons, the number of 1C: ERP implementations in large state and commercial companies has significantly increased. Holdings are actively migrating to 1C: ERP from already implemented software products, and are also choosing a domestic solution for the implementation of new projects.

Key players in the global ERP systems market

According to industry analysts, there are currently several hundred ERP systems on the world market that have gained some popularity. The undisputed market leaders are SAP AG, Oracle, PeopleSoft, J.D. Edwards and Geac Computer. According to Advanced Manufacturing Research, in 2012 they accounted for 67% of the total ERP market. The leading position is still occupied by SAP AG, whose share is 34%. At the same time, European firms account for up to 45% of the world market. At the same time, despite such a significant gap from the leaders, other companies that produce ERP systems (especially newcomers) believe that they have a significant advantage over the top five companies due to the flexibility of their response to customer needs and the prompt implementation of modern technologies (in particular, Web technologies). The following companies also occupy a prominent place in the global ERP-systems market: Baan (as a division of Invensys); Epicor Software; Exact Software; IFS; Kewill Systems plc; Navision a / s; QAD; Ross Systems; Sage Group; Scala; SCT; Symix Systems; Systems Union and a number of others. Let's take a closer look at some of the most famous players in the world market.

The price of the system can range from $ 1,500 to $ 5,000 per seat. At the same time, the most expensive systems, for example, SAP R / 3, have a clear excess of the required level of functionality, that is, you have to pay for functionality that is most likely useful, but will not be in demand by many companies in the medium market. Systems, the average cost of which is $ 2,000 per seat, for example, Microsoft Navision Axapta, often have an optimal set of functionality and useful functionality increases from version to version, while the price of the product remains practically the same.

SAP AG is the fourth largest software company in the world, founded in 1972. It currently employs about 21,700 people in more than 50 countries. SAP AG has more than 900 partners, more than 13,000 client companies and about 10 million licensed users in 100 countries.

The main product of the company- ERP system SAP R / 3, which has implemented more than 1000 business processes. At present, more than 50 versions of this system have been developed in 28 languages. According to the Gartner Group, the SAP R / 3 system is intended for large companies with an annual turnover of $ 200 million or more. R / 3 has been implemented in various industries: aerospace and defense; automotive industry; banking; chemical industry; consumer goods manufacturing; design and construction; healthcare; insurance; MASS MEDIA; pharmaceuticals; retail and others. It has been installed over 30,000 times and is used by companies of all sizes, including half of the world's top 500.

SAP R / 3 implementation period: 1-5 years or more

Cost of ownership: A license for 50 workplaces costs about $ 350,000. The cost of implementation can be several times higher than the cost of the solution.

Oracleis the world's second largest software developer. Founded in 1977, it currently employs 43,000 people (of which 21,000 are in the United States).

The main ERP product of Oracle is software Oracle Applications, which is a package of 55 integrated modules. Currently, more than 6,700 businesses and organizations in 76 countries use Oracle Applications software. When installing its software, Oracle uses its own Application Implementation Method (AIM).

Scope of application: Heavy industry (mainly metallurgy), telecommunications companies, financial sector, chemical industry.

Implementation period: 1-5 years or more

Cost of Ownership: The cost of the solution per one workplace is about $ 5 thousand. The total cost depends significantly on the required functionality and the complexity of implementation.

Developer IFS - Swedish company, developer of software for enterprise resource management - ERP-systems I FS Applications... Scope of application: Enterprises of the machine-building complex, energy, food industry, pharmaceuticals, cable industry.

Implementation period: 8 months -3 years or more

Cost of Ownership: The total cost of implementation can be up to $ 250,000 or more. Also significantly depends on the required functionality.

The implementation of IFS Applications allows you to provide:

· Availability of all the information necessary for decision-making and, as a consequence, increasing the manageability, transparency of the business for management, and investment attractiveness;
· Reduction of costs, stocks, rejects, volumes of work in progress;
· Reduction of equipment downtime;
· Improving product quality;
· Increasing customer satisfaction;
Market compliance - support:
· Transition to custom production.

Russian market of ERP systems and products

Today the Russian market for ERP systems is actively developing and growing. This happens for several reasons: ERP systems really work, the heads of large corporations want to see their business "transparent", there is an increase in business activity in Russia.

Looking at the sectoral structure of ERP demand, we will see that 15% are construction companies, followed by trade - 12%, mechanical engineering - 10%, production - 10%, food industry - 9%.

The ERP market maturity index was 55%, with the lowest score being 20% \u200b\u200band the highest being 95%. Only 38% of companies showed the level of penetration and efficiency indices above average. 62% of businesses should take steps to optimize business applications.

Modern ERP solutions for the Russian market

The table below shows the main ERP systems and their products on the domestic market of Russian and Western systems.

Table 2. Russian and Western ERP systems on the domestic market.

Product name	Manufacturing firm	Short description
	SAP AGwww.sap.com	SAP is the undisputed leader in terms of sales of this class of software in Russia. The company holds about 40% of the entire Russian market for ERP systems. The R / 3 system belongs to the class of large integrated systems and includes modules that significantly expand the scope of a traditional ERP system. The cost of a solution for 50 workplaces is approximately $ 350 thousand. The cost of implementation is at least equal to the cost of licenses, and most often several times higher. The implementation time depends on the required functionality. We can say that for Russian enterprises it is on average a year or two. One of the most comprehensive projects for the implementation of the R / 3 system was carried out at the Omsk Oil Refinery.
Oracle Applications	Oraclewww.oracle.ru	The positions of Oracle in Russia are significantly weaker than those of its main competitor. However, Oracle Applications outperformed R / 3 in terms of financial performance and took first place in the Manufacturing Systems 2000 rating in the world. The lag in Russia can be partly explained by the fact that this decision entered the domestic market much later. The cost of the solution based on Oracle Applications is slightly lower than on the basis of R / 3 (no specific figures were given in the open press). Oracle Applications and R / 3 have roughly the same lead time1. Of the most well-known Oracle Applications implementation projects, one can note the one implemented at the Magnitogorsk Iron and Steel Works.
		Another of the western ERP systems present on the Russian market. The class of the system is the same as in the previous two. The cost of a named license (for one specific user) is $ 3000, the cost of a concurrent license (regardless of the number of employees indicates only restrictions on concurrent connection to the database) - $ 6000. Implementation in Russia is 1--3 times more expensive than the cost of licenses. An example of implementation is Nizhpharm. Unfortunately, an outdated version of the system is being actively promoted in Russia, despite the fact that the iBaanERP version has appeared long ago.
	ROSS Systemswww.rossinc.com	ERP-class system for enterprises with process (continuous) type of production. It is fully localized, has been successfully implemented in Russia since 1998. There are 3500 completed implementations in the world, there are implementations in Russia (Mary Kay, Alcoa CSI Vostok, etc.). Low cost and implementation time. *
	SYMIXwww.frontstep.ru	This system belongs to the class of medium-sized integrated systems. Has quite a few implementations at food industry enterprises in Russia. Among them is the Voronezh Confectionery Factory.
	Damgaard Data www.damgaard.ru	An ERP class system designed for the automation of medium and large industrial and commercial enterprises. This is the first ERP-system, completely oriented to work on the Internet. An example of the system implementation is RUSSO (Russian Shirts) holding. The total number of jobs installed is 30. The cost of implementation can be estimated at several hundred thousand dollars.
		ERP system for large and medium-sized enterprises with a discrete type of production. 5200 completed implementations in the world, 8 - in Russia. Fully localized. According to various experts, the system is one of the strongest solutions for discrete industries (mechanical engineering, light industry, automotive, electronics, etc.). *
	Parus Corporation www.parus.ru	Belongs to the class of financial and management systems. From the point of view of production, it has the capabilities of accounting and simple planning. Traditionally, the position of the corporation in budgetary organizations is very strong.
"Galaxy"	Corporation "Galaxy" www.galaktika.ru	This system is the leader among Russian enterprise management systems. According to some estimates, its share is about 40% of all Russian suppliers. In terms of sales, the system is second only to R / 3. The implementation period strongly depends on the selected functionality and the scale of the enterprise. For example, the introduction of 100 jobs at Russian Product OJSC took about one and a half years.
"BOSS-Corporation"	IT Co. www.it.ru	The integration of accounting functions with the production system will allow this product to accelerate the transition to the class of medium-sized integrated systems. Among the most successful projects is the project to create a financial management system at the Krasnoyarsk aluminum plant.
"1C: Production"	Company 1Сwww.1c.ru	Although the products of the 1C company belong to the class of local systems, this player cannot be ignored. In its class, 1C occupies a leading position, far ahead of competitors. As part of 1C products, there is also the "1C: Production" system, which allows solving the problems of production accounting and planning to some extent.

Despite the economic crisis, the demand for ERP (software solutions for the complex automation of production facilities) in Russia remains stable. It is only in connection with the course towards import substitution in the field of information technology, the alignment of forces in the market of integrated enterprise management systems (ISMS) has noticeably changed.

Rating of ERP-systems 2016 by the number of implementations

According to the research center TAdviser, ERP based on 1C is the most popular in Russia. The share of the domestic software product accounts for 31% of the total number of solutions implemented from 2005 to September 2016 (8427). The second place in the ranking is occupied by "Galaxy ERP" ( 7,8% ), the third is SAP ERP ( 6,2% ). Outside the top three, there are 2 solutions from Microsoft: MS Dynamics AX ( 6% ) and MS Dynamics NAV ( 5,5% ).

Until 2014, Russian entrepreneurs preferred domestic software (software), since it was initially adapted to the specifics of accounting in our country, and also cheaper in support and maintenance. However, the tendency to switch to domestic automation systems became widespread after the official introduction of a ban on the use of foreign technologies.

Rating of the largest suppliers of ERP solutions 2016

The undisputed leader among vendors whose enterprise resource planning systems are most popular in Russia is 1C. As of September 2016, on the basis of the solutions developed by her, 3038 projects out of 6803 have been implemented or are in the process of implementation. The share of 1C in the ERP market reaches 45% ... The second place in the ranking is occupied by Microsoft with a share 14,5% (983 ERP projects). Galaktika Corporation closes the top three with market share 12% (794 ERP projects).

It should be noted that the methodology for forming a rating by the number of implemented software solutions is not generally accepted. Most of these charts are based on financial indicators. And according to this criterion, even the total share of domestic developers does not exceed 40% ... Why is that? Because Western software costs several times more than domestic software. Being the undisputed favorite of the Russian market in terms of the number of licenses sold ( 80% ) and the number of automated workstations ( 83% ), 1C still loses to foreign SAP in terms of revenue. According to IDC statistics, the share of the domestic vendor in financial terms is 33% ... At the same time, most experts agree that it is illegal to rank vendors by revenue.

Distribution of ERP projects by industry

According to the TAdviser report, ERP systems are in the greatest demand in the trade segment. This industry accounts for about 16,4% of the total number of implementations. The automation systems of enterprises are also in wide demand in the fields of mechanical engineering, construction and the food industry.

Click on the table to open its full version

According to IDC, the main consumers of ERP systems, along with retail outlets, also include process and discrete manufacturing enterprises, transportation companies and energy complexes.

It should also be noted that since 2014, the ERP market has seen an increase in activity on the part of state corporations, military-industrial enterprises and companies that have fallen under state funding programs. For all these organizations, it is important to improve the efficiency of planning and accounting systems, as well as reduce risks in the field of information security.

The main trends in the market of integrated enterprise management systems

Having summarized the data of analytical studies of IDC, Gartner and TAdviser, we can single out the following trends in the market of enterprise automation systems:

to save business... If in 2014 entrepreneurs named improving control over operating profit, increasing capitalization and observing transparency requirements in preparation for an IPO among the main reasons for automating a manufacturing enterprise, today ERP is being implemented mainly to increase business profitability.
The wave of transition to domestic softwaredue to the adoption of the import substitution program.
Cloud ERP solutions as one of the key growth points of the market... At the moment, enterprise management systems of this type are most popular with representatives of small and medium-sized businesses. Now cloud ERP is used to automate the simplest accounting functions. However, according to Gartner forecasts, within 10 years this trend will dominate, since cloud systems are cheaper and more convenient than stationary ones. In addition, this solution allows you to delegate some of the responsibilities for maintaining the accounting activities of the enterprise to a third-party franchisee company.
Growing demand for highly specialized solutions... Typical automation systems are being replaced by industry-specific and individual ones. The flexibility of software products is becoming increasingly important for enterprises, creating the necessary conditions for their adaptation to the specifics of business processes and subsequent scaling. In addition, in order to save money, many order vertically oriented solutions and individual highly specialized functional components such as EAM, HRM and CRM.
Keeping Demand for Mobile ERP Versions... The representatives of the enterprises appreciated the convenience of monitoring and controlling production and business processes from available devices (phones, tablets).
Demand for boxed ERP solutions on the part of new projects from retail and manufacturing.
Use of ERP functionality by 30-50%... The complete set of modern automation systems for enterprises, as a rule, includes at least 10 units. However, to automate key business processes of most enterprises, 3-5 modules are sufficient.

Forecasts for the market of enterprise management systems from 2016

According to TAdviser, in 2016-2017, the demand for ERP (licenses, implementation and maintenance services, cloud solutions) will remain stable. The required level of growth will be ensured by the massive implementation of the import substitution program. The positions of Russian vendors against the background of new legislative initiatives will continue to strengthen.

A noticeable increase in interest in enterprise management systems from large businesses, holdings and corporations is expected. As for the industry specifics, most experts predict an increase in ERP penetration in the agricultural environment, process production, housing and communal services, trade and transport, as well as in educational institutions, healthcare and the municipal sector. In other sectors, the prevalence of projects for the completion and migration of previously implemented solutions is expected.

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