The effect of digital transformation of business on IT distribution

18 october 2017

One of the experts who shares his opinion for this digest issued by PC week is Dmitry Spiridonov, Director for Corporate Systems Procurement, MERLION.

PC week

Dmitry Spiridonov

Today, world’s leading companies adjust their policies to set a course for digital transformation of business and building of the digital economy. Our country wants to take the lead in innovations. To prove the approach, Russia adopted the state program “Digital Economy” this summer. It is evident that digital economy shifts the scope of application of IT technologies towards digital platforms, which will be responsible for providing automated processes of businesses consolidated around a certain digital platform. Many issues arise in connection with such innovations, particularly in relation to restructuring of the IT market that shall meet a new paradigm.

In this digest, we will discuss all these problems with representatives of leading distributor companies operating on Russia's IT market.

Transformation of IT market structure

No doubt that the digital economy’s IT environment based on digital platforms will change the existing structure of the IT market that implies certain roles and responsibilities among developers/vendors, distributors, system integrators, service providers, and other associated market players. Which direction will be selected for these changes?

Dmitry Spiridonov, Director For Corporate Systems Procurement, MERLION assumed: "Certain businesses will more precisely define and limit their roles and responsibilities, focusing on related priorities. The platform for business cooperation and rendering of customer services will become more flexible and digital. As for services, they will become digital to a considerable extent because the service delivery rate and quality (even if we are talking not about digital objects, but about physical ones) directly depend on transmission of identification data, financial information and other important information”.

According to Mr. Spiridonov, the distributor is becoming a key link in the chain for rendering of services and implementation of projects, because it is the distributor who shall provide a reliable communication among manufacturers, system integrators and customers - corporate and private consumers. “A narrow area of expertise of market players in response to growing requirements for improving the efficiency of business implies that we shall have a link that would be able to provide communication and teamwork of all parties involved in a project. So, this is a VAD distributor. However, requirements for a VAD distributor are also changing, because such a distributor as well as all other participants in a certain project will become a part of the global “cloud of multiple products and services”. That is why a distributor shall operate based on cloud platforms, which unite suppliers and consumers”, Dmitry Spiridonov explained.

Transformation of distributors’ portfolio

The question is what comes first: the demand or the supply – is as controversial as the dilemma whether the chicken or the egg came first. Nonetheless, it is evident that the demand for new digital products makes distributors revise their portfolios of goods to be offered. Which way is the transformation going?

Dmitry Spiridonov: “Distributors’ portfolios will be expanded to a considerable extent due to cloud products. This is what a growing number of corporate and private consumers will need. That is why we shall create a platform convenient for suppliers and consumers. That's what we do, integrating leading task-oriented Russian developers into our structure. Vendors will become more concerned about easy access to their cloud solutions for target customers. Target customers shall get access to time-proved and suitable cloud products that meet their expectations” <…>

Transformation of mutual relations among vendors, distributors and resellers

According to Dmitry Spiridonov, cloud services rendered by distributors for their partners may include electronic document workflow and platforms that allow manufacturers and cloud solution suppliers to demonstrate these solutions to consumers; the latter, in their turn, may choose the most suitable solutions. Of course, everyone agrees that clouds are good and promising technologies <…>

Transformation of distributors

It is evident that the influence of digital revolution and the economy becoming more digitized change not only distributors’ offer portfolios and technologies of communication with partners and customers. Digital transformation is also applied to the business of distributor companies. Which technologies shall they invest in? Which new business models shall they master?

Dmitry Spiridinov said: “Today, it is essential to invest in cloud technologies. But, we shall understand that clouds are well-known time-tested tools, which really improve the business performance. This is not just marketing phrases. It is important to invest in those technologies, which are suitable for a specific business and a segment. It is vital that each IT product and each and every IT solution works for business purposes, not just follows the newest trends. Clouds are the tools that allow businesses to unite resources and competencies in the era of digital transformation and Internet of things while consumers can get a product or a service they need in due time”.

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