«Information Road leads into the Information City»

    Interview with Michael Grotz, General Sponsor of the International Pharmacy and Pharmacy, Medicine and Healthcare Awards

    The President of Infodrome Media Center Mikhail Leonardovich talks about the creation of information systems for pharmacies, distributors and manufacturers, business and the secrets of its efficiency, the need to work in a single information space. Grotz.

     "You are the ancestor of the Cross-Market program for pharmacies, with the aim of streamlining and systemizing the supply market data. How did you come to this?

    "Perhaps fate has brought me. I'm an ordinary Soviet engineer. The last thing I did in this regard was to participate in the testing of the Buran space shuttle at the Tushin plant. Now in those hulls where we simulated Buran's orbital movement, there is a company "SIA INTERNATIONAL Ltd." I remember i had 24 computers in my control back then. It was a completely well-established production: while I was going to the last employee, handing out tasks, the first one was already showing the result.

    "It turns out that you are an effective leader and a great strategist…

    "You know, I'm a man of scientific mindset, I'm interested in research. It has always been important for me to be interested in the first place. I was deeply interested in programming theory, programming languages. And in this I was more interested in the aspect of psychological interaction between a person and the computer. Sometimes you take the task, you start to design, there are a lot of questions, branches, then suddenly comes the command of this task to throw, start another, and after a while you need to go back to the previous, and you have forgotten everything. There is a fear that you can ruin everything. And then I came to the conclusion that there should be a programming language that allows you to write down on one sheet of paper a task of any complexity. I called this approach Page System a single-page system, and the language, respectively, – PSL (Page System Language). Our company has four leading programmers, they all work in this language. The efficiency of these 4 people is equal to the efficiency of 40 people. They take on complex and long-term challenges and solve them with success. I have so far been able to set the right strategic goals, the employees effectively solve them, and we are introducing a new product to the market.

    At one time after the "restructuring" I worked as an employee in one of the first joint ventures. It was the Franco-Italian-Russian company Interquadro, and I had the task of being the head of the project for automation of the Omsk synthetic rubber plant.

    In 1998, the government of Moscow came up with the idea to equip the state pharmacy network with the information service "Minitel" (the forerunner of Internet services, at this time was very popular in France). Working for the Interquadro joint venture, I was responsible for the implementation of the Minitel information system. Naturally, I was tasked with developing a service for pharmacies based on "Minitel", but soon enough the project closed, funding stopped. Then the former head of THE CAAs-2 (2nd Central Pharmacy Warehouse) Natalia Gazimovna Seinutdinova, who was impressed with the capabilities of the prototype of the information system, offered me as a developer: "Can't personal computers to make the same system?"

    And after a few months we demonstrated the result: on one side – CAAs-2, and on the other – an arbitrary number of pharmacies, where the system is installed. Pharmacies accept the goods remains of the warehouse, form an application, the application is immediately transferred to the warehouse. Thus was born an individual system of operational communication of THE CASE-2 with the design name "MEX." The system was already serving 600 pharmacies a year later and was working reliably on the disgusting lines of communication at the time.

    The individual system of THE CASE-2 was brought to the market at the same time as the individual system of the Treadek CV, and later another 20-30 distributors joined the creation of their own individual systems.

    It became obvious that for pharmacies to optimize the procurement process and reduce time costs it was necessary to build an integral system, from communication with pharmacies it became clear that the market formed a need for an integrated system. At that time we were working within the structure of the Cross NTC, my partner was engineer Vladimir Lebedev, a modem specialist, and his professional knowledge helped us to build the system. Thus, the idea and the name of the Cross-Market system were actually formed, and Infodrom Media was organized for the project. I turned to the leadership of CAAS-2 and honestly said that I would like to do this task. The integrated system is a direct competitor to the individual system. I was ready for what Natalia Gazimovna would say, they say, how so, we pay you for so many years, and you … But she said, "Michael Leonardovich, you are a talented man, go and do." This woman helped me a lot. I'd really like her to be involved in the life of the corporation, but I can't find her.

    "And you started making the system?"

    — Yes. I'm a man of engineering strategic thinking. When I do something new, I evaluate the future, because the business you do has to feed you and give you income for development and expansion.

    Building a system is impossible without formulating contractual relations, the distributors sector is ready for it. With pharmacy establishments, we initially began to sign contracts for maintenance. The program became an instrument of their business. And when we talked about the price, I proposed such a scheme: we set the program and the cost for its maintenance per month. It is important that the client makes applications. If there are applications for amounts more than a certain limit, then no fee arises.

    Usually the market understands everything in the percentage of turnover, it is so arranged. And we have introduced a different concept: each distributor company has a price list, and the payment should depend on the size of this price list, not on the turnover. The market is a seasonal phenomenon, today the pharmacy ordered 5, and tomorrow it orders 25. When we planned the system, we knew that it was necessary to do it for the whole market, and in the market the most important thing was the Consent of the Participants. There are sometimes different competing companies at our conference table, but when they're here, they have the first question, and you pay a lot to Cross Market. Everyone has a standard contract, but the resulting interest rate is different.

    The "Cross-Market" system was developing, new services appeared – we together with distributors managed to formalize and implement electronic invoices (EPD), analytical service, integrated pharmacy automation, bonus promotion service Drugs. And soon we signed 300 contracts, we were the first to offer an integral system in the market. Then competitors began to appear. But I am calm about any competitor, because I know that I am still ahead. It is a pity that competitors have destroyed contractual relations with pharmacy institutions, declaring the lack of contractual relations a "competitive" advantage.

    What was your goal?

    To improve the efficiency of all parts of the Russian pharmaceutical market through the comprehensive implementation of the concept of the Single Information Space (EIP). I think that if you have developed and implemented an idea or program that has allowed people to save money, then you can safely claim 20% of the amount of savings. These funds can and should be invested in the implementation of the EIP concept. If we plan something, and for life we plan and do a lot of things, then we need to leave the school for ourselves, so that people can learn from it and go forward. In business, relationships between people are important.

    – Are the participants of this program pharmacies, manufacturers and distributors?

    "The integrated system started with distributors and pharmacies. Today, this tree begins to grow, there are pharmacy chains, many other integral sites, the system becomes interesting to manufacturers. In addition to formulating the concept, the EIP should create a Machine for the implementation of the EIP project. Such a machine can only be the Public Equity Society (PAO).

    In 2012, Infodrom PLC was established to implement the EIP project. Now we invite all interested market participants to be shareholders of this platform. The first investors of this corporation are the creators of the Cross-Market system. We are ready to invest in this project significant financial resources, knowledge, experience and technological developments of our company.

    The shareholding business is a slightly different business. Let me give you an example. I have a good program that pharmacies need, but pharmacies need to find out about it, that is, either I send messengers, or report on this automation as a general partner of the international award "GOLD STUPKA". The Corporation has the necessary funds for the competition. The main task of the Corporation is to convey to people the idea of the EIP and to present those who already support this idea. We need to unite to solve global issues. Together, any business can be done more efficiently, quickly and efficiently.

    I think it is desirable for all potential stakeholders to participate in this process. In the process of the Corporation's purposeful activity, the intangible assets of the participants (experience, knowledge, communications, technological developments, unresolved problems, ambitions) could manifest and materialize. We need to unite and we need to act.

    I think the legal participants of PAO will be 5-6 distribution companies, 8-10 manufacturers, information companies, pharmacy chains. Pharmaceutical market management (individuals) are also ready to participate in the corporation – more than 50 agreements have been signed to purchase options for the purchase of Shares of Infodrom PLC. Inside the corporation, we should dock the multifaceted interests of different business areas of the market: pharmacy institutions should be told what rules should be on the stock exchange – there should be no refusals, if refused, compensate. Distributor is interested in payments, so we need to create a special platform.

    – Why does the distributor take over the financing of deferral payments of pharmacies?  Maybe the banking structure should be involved in this?

    "If the banking structure took over this process, there would be more reasonable conditions. Banks and insurance companies can participate in this project. Every participant in this relationship has problems in the market. And the corporation could formulate them systemically and, uniting the interests of all, to offer competent solutions.

    – Are distributors interested in lending to banks instead of them?

    "Now it turns out that the distributor is a logisticist, a custodian of goods in a warehouse, a marketer, a financier, and a whole information campaign. He tries to deal with all aspects of the activity. And there should be a main direction, effective, and the accompanying tasks can be given to quality outsourcing.

    Any distributor is interested in expanding its customer base in the regions, he is ready to finance it. The corporation is also interested in expanding its customer base, so that everyone has a good program, not necessarily the development of our company. Automation is a complex process that requires a lot of human effort. And pharmacies that are automated, in some ways should be standard, at least in services and interfaces necessarily.

    Are you going to take the company to an IPO?

    "In the long run, it is possible. The need for an IPO (Initial Public Offer) may arise when the range of tasks solved by the PAO is expanded. Ipo results include companies that have proven themselves in the market, usually 4-5 years after the start of the activity.

    Why did you choose the Republic of Cyprus as your place of registration?

    "It's a forced step somewhere. The big task of creating the EIP requires a large share capital, according to the project estimate, 50 million. Euro. In the legislation of the Russian Federation, if you declare a serious amount when creating a society, then in six months you should have half of this amount, and in a year – all this capital, otherwise the parameters of society should be revised.

    Cyprus is a zone of English law and a public company registered in Cyprus differs from a PAO registered in Russia. There are other rules of the game in English law. You declare the share capital, so you have to pay tax, to collect the necessary number of shareholders of the founders (8 people), then you have to register the charter.

    These procedures were carried out, the statutory capital of 10 million was registered. euro, taxes were paid (0.6%) and now the implementation of 100 million. shares with an initial price of 0.5 euros theoretically provide an opportunity to raise funds for the implementation of the EIP project. Undistributed shares belong to the society, and are not in the hands of "buyers", the contract for the acquisition of shares is signed with the society.

    It is not necessary to understand that in order to implement the EIP project it is necessary to put 50 million in a stack in one place. euro – these funds, perhaps in greater quantities, are concentrated in the intangible assets of potential project participants. Participation in shares of PAO is just an opportunity to "materialize" these assets. The potential participant should simply "close" his eyes and say to himself "I'm worth so much…" after that to conclude a contract with pao to purchase shares in the long-term option mode. Yes, 1% will have to pay at the signing of the share purchase and sale agreement, in 18 months it is necessary to buy back 10% of the shares, then given 4 years to buy back the main body of shares. An option is an opportunity, not a share buyback obligation. The task of PAO is to launch such business processes in which the intangible assets of the participant will be in demand and, accordingly, paid for by the society or exchanged for shares, such as pharmacy automation software or database buyers of the Far East region, etc.

    You can't sit there and wait for things to change. For example, we have no roads. You can sit and wait for the state to build for us, and you can assemble a group of 10-15 people who drive good cars, jump off and build a road, then charge a small fee for the use of this road. And then on this road you can build a lot of cafes, parking lots. As a result, the machines do not break, and the money is earned.

    "Why did you decide to call the company Infodrom?"

    "16 years ago, when we started the Cross-Market system, Infodrom was founded. I saw the name of this company in a dream, and it was written in Greek letters. I associated this name with something big and technical: Cosmodrome, Aerodrome, Tankodrom, etc., but I didn't bother to look into the dictionary to clarify what Drom is.

    When I flew to Cyprus and went to the bus stop, saw the name "dromeology" on the bus schedule, I realized that "Drom" is the road on which I have been going for 16 years. Infodrome is an information road or a path. Now it is a registered trademark. I pass this logo to Infodrom.

    – Why did you decide to become the general sponsor of the International Pharmacy And Pharmacy, Medicine and Healthcare Awards?

    "The International GOLD StUPKA Award is certainly of great interest. It has an excellent reputation in the market, it is not affiliated. "GOLD STUPKA" collects around itself only diamonds of the pharmaceutical market. Moreover, here they choose winners, laureates from completely different fields, different specialists of the industry. The award brings together representatives of pharmacy chains, the medical community and public figures. Such initiatives are important to support and develop. I hope that Infodrom has made the right decision to become the General Partner of this competition to present the concept of the EIP project. And the slogan of the "Pharmacists of all countries unite!" is close to our goals and objectives.

    Source: http://provita-fv.ru/

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