19.02.2024 08:15
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rauTraditionally, annual results are a reflection of all our work and experiences in the past year. In the context of present-day Ukraine, they also mirror the extraordinary efforts required to not only keep the business afloat but to ensure its confident growth. The forecasts for the coming year represent our unwavering confidence that, regardless of the challenges life throws at us, all will turn out well.
The LITIKO in 2023 is quite illustrative in this regard. It has demonstrated that if an IT company has a solid foundation and its work is essential and valuable for society, it will continue to develop even in times of war and economic turbulence. Furthermore, it will actively participate in the reform of the entire Ukrainian business software market.
But let’s talk about things in order. LITIKO was established as an independent company in 2017. It is a well-known Ukrainian IT company specializing in document workflow automation. Sergey Litvinenko, the director and owner of LITIKO, is recognized in Ukraine as one of the most successful leaders in the IT industry. This recognition is well deserved, as he has personally led and participated in the implementation of over 150 projects, including those for VodaFone, AutoKrAZ, UNIQA, Wimm-Bill-Dann, VTB Bank, VBR Bank, Tascombank, the commercial and industrial group “Arsenal Center”. the Luhansk Regional “Pharmacia”, Kyiv Cardboard and Paper Mill, and the agricultural holding Agricom Group.
Today, we can offer our readers particularly valuable insights, as Sergey Litvinenko is actively engaged in developing his business and possesses a profound understanding of all the trends in the Ukrainian and global automation markets.
“The IT industry is highly diverse, and I will specifically address the business applications market, where I have been working for many years. Among business applications are ERP systems, CRM systems, electronic document management systems (ECM systems), and BPM systems,” stated the head of LITIKO. “Undoubtedly, there have been significant changes in this market, mainly due to the full-scale war. The most noticeable trend is the replacement of Russian software. This is crucial. Each company chooses how and when to replace software, but it is already clear that they will not purchase software that has been imitated or somehow renamed but has Russian roots.“
According to Sergey Litvinenko, another ongoing trend that emerged in 2020 with the spread of Covid and quarantine remains relevant – the organization of remote workspaces. In other words, any IT system should provide both security and the ability to work remotely.
In terms of specific industries, the most active sectors in the market for business process automation, document flow and management, and content management in 2023 were retail and distribution. Among the customers, representatives from the logistics, food and telecommunications industries were noteworthy. Before the outbreak of the full-scale war, LITIKO’s services were in high demand from manufacturing companies and banks, but now this demand has decreased significantly.
In any case, the fact that Russian IT systems are essentially removed from Ukraine frees up a significant market niche for Ukrainian manufacturers. In our country, there are companies that have long been involved in business automation, such as InBase, InfoPlus, and Almexoft. There are also international players offering comprehensive platforms capable of solving any task, such as Microsoft, M-Files, and OpenText.
The market is therefore made up of local developers, regional developers operating in several countries, and a few international vendors offering ready-made solutions.
These market changes have directly impacted LITIKO. With the onset of a full-scale invasion, the company had to undergo a major restructuring: replacing software and finding alternatives to Russian software. Today, the company’s portfolio includes four products from four vendors: two of them are local, one is Ukrainian but on an international scale (Terrasoft company, Creatio product), and one is a globally recognized vendor with a product of the same name – M-Files company. In other words, LITIKO’s product portfolio has changed significantly, with three of the four products currently in use being new to the company.
But let’s go back to the 2023 market overview and consider what the market for IT business automation solutions will look like in 2024. It’s important to understand that a significant portion of LITIKO’s customers today are companies with more than 500 stores or their own distribution networks.
“The most widely used systems in the business sector are undoubtedly ERP systems – an indispensable tool for any enterprise, covering management, accounting and tax aspects. In one form or another, such a system is present in every business. Unfortunately, around 90% (these figures are not verified, so it could be 90%, it could be 80%) of Ukrainiancompanies work with 1C or BAS class systems (systems with Russian roots),” explained Sergey Litvinenko. “The question is how actively customers will replace these systems. This trend is gaining momentum, but not every company currently has the resources to replace ERP systems. As a result, the number of ERP implementation projects is increasing, but they are not so numerous.”
The second category encompasses CRM systems designed primarily for sales and customer service. Certainly, sales are the engine of the business, without which a business would cease to exist.
Moving on to ECM systems – these can can be likened to the oil in an engine. This system interconnects all other systems, streamlining business processes, enhancing collaboration between individuals, and optimizing the valuable time of key and expensive employees. This system is essential for any enterprise with 50+ computers.
The term “Electronic Document Flow System” is outdated. The modern term for this class of systems is “Business Management Systems,” representing not just a system but a comprehensive platform. It comprises a set of tools designed to facilitate tasks related to content, document, and process management, ensuring adherence to company regulations, bolstering security measures, and proficiently managing data.
“So, this is a platform where various solutions can be created based on specific needs. These solutions can range from traditional ones, such as contract management, vacation planning, and incoming correspondence, to non-traditional solutions, like tracking activities and collecting reports for a network of chicken egg production factories,” explains Sergey Litvinenko. “Or solutions tailored for a logistics company, such as a ‘Unified Window’ where an operator works, overseeing data on orders, order calculations, fuel inventory, and even tracking the location of vehicles, navigation data, and information from fuel suppliers. Essentially, it is a versatile tool for developing practical solutions across a broad spectrum.”
Other important trends in 2023 and the coming 2024 include cloud solutions,mobile device integration, SaaS, collaborative document working, extensive capabilities for integration with other systems, and the incorporation of artificial intelligence into operations. Indeed, neural networks have emerged as a significant factor, and systems operating globally – including LITIKO’s Creatio and M-Files – use built-in artificial intelligence tools in their functionality.
Clearly, everything detailed, all the accomplishments of 2023 and preceding years, have been made possible through a well-established culture within the LITIKO company. This is a result of the principles that were ingrained in its foundation long ago, dating back to its initial stages of creation.
“At first, I saw us simply as a company that implemented automation systems. This included not only ECM systems, but also ERP and CRM systems. We saw the company as working in Ukraine for Ukrainian companies, especially in the commercial sector,” explains Sergey Litvinenko. “The company’s core values include responsibility for each project, transparent and respectful relations with partners, employees and clients, a commitment to fulfilling commitments and seeing each project through to completion. In the process, we have realised our new identity based on experience – that of an IT consultant. A company capable of assisting clients in developing IT strategy in business management, implementing or developing various systems, and overseeing the technical aspects of IT projects. We smoothly entered the post-USSR markets – Moldova, Kazakhstan, Uzbekistan – not only as a support consultant, but also as an IT consultant. Currently, my vision for the company is an international IT integrator working with renowned global systems both in Ukraine and beyond its borders. Our focus is on LITIKO Global – expanding the business beyond Ukraine.”
For LITIKO, corporate culture is how every employee in the company approaches their work, defining what is acceptable and what is not. Failure to meet commitments is unacceptable. Deceiving a customer is unacceptable. Telling the client the bitter truth and providing a fair project budget is what defines LITIKO. Completing the projects the company takes on and seeing them through to completion – that is LITIKO.
At the same time, a crucial aspect of our work is continuous development and and a fearless approach to the unknown. On the contrary, there is a desire to explore more, to take on tasks that have never been done before and to do them with excellence. At LITIKO, there is room for creativity at every workplace. Sales professionals showcase creativity in choosing the perfect product, support consultants strategize on effective implementations, and technical support engineers find inventive solutions to navigate complex situations and prevent errors. For the company owner and director, creativity is woven into every aspect, from shaping the business structure to defining responsibilities, negotiating and beyond.
But let’s shift our focus to the coming year, – for LITIKO, it marks a year of growth. In Ukraine, the company will develop its solutions on existing platforms. At the moment there are two solutions – Contract Management and HR Process and Document Management. Over the next year, the company plans to launch several additional solutions.
When discussing development, LITIKO is actively acquiring competencies and knowledge, prepared to assist clients in digitizing and managing electronic documents using the internationally renowned M-Files – a leader in content management systems. The goal is to offer our solutions in both Europe and the post-Soviet space, with a particular emphasis on solutions based on M-Files.
Overall, the outlook for LITIKO is very promising. Digitization and the conversion of documents to electronic form are currently high on the agenda, supported by the government and reflecting a global trend. More and more companies are making the move to digital documents. “Even in the midst of the full-scale war this year, we have already returned to the performance levels of 2021,” says Sergey Litvinenko. “And 2021 was a good year by by all metrics. I believe that there will be further growth in Ukraine, and we will actively focus on expanding our sales beyond Ukraine, as we excel at delivering high-quality solutions at an affordable price.”
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