3 MYSTIC LETTERS forming the acronym of ENTERPRISE RESOURCE PLANNING
or more specifically a software with the help of which we can manage enterprises – ranging from small companies to large corporations in their entirety.

THE REALITY, however, shows that the modern ERP software is COMPLICATED to use, FRAGMENTED, EXPENSIVE, and quite often perceived as an UNJUSTIFIABLE INVESTMENT for the companies due to the lack of clear evidence showing that the implementation of this type of a system directly reflects into better business results.

EXAMPLES of unjustifiable investments

Lidl gives up implementing SAP after investing 500 million

LeasePlan suffers from a technical collapse after unsuccessful SAP implementation

% successfully completed projects related to ERP system implementation

% of ERP implementation projects registering return of investment

According to GARTNER (a leading American consulting company that first defined the concept of the ERP system), between 55% and 75% of the ERP implementation projects fail.

According to leading consultants, the main reason for this type of high percentage of failure appears to be
„The lack of organizational culture in the companies and the willingness for change of the management team“.

THE PROBLEM

ALTHOUGH THIS INDEED APPEARS AS A PROBLEM, IT IS FAR FROM BEING THE MAIN PROBLEM!

THE MAIN PROBLEM is obvious,
but it somehow stays overseen and undefined.

And it is that the working constructs of today’s ERP systems are flawed due to the lack of a clear holistic model for the principal setup and functioning of the industrial enterprise embedded in the ERP constructs. As a result of this deficiency, neither the developers, nor the consultants, not even the consumers can clearly define how this software can resolve the multitude of various business challenges.

This causes the development of various modules and applications from which fragmentary solutions are being offered on an individual basis for each client. This, however, has low instrumental effectiveness for the positive development of the enterprise.

If we draw an analogy with the medieval medicine – in the absence of an anatomical and physiological model of the human body (holistic model of the industrial enterprise), the doctors (ERP developers and implementation consultants) were not able to carry out empirically founded treatment (holistic ERP solution) to the diseases (business cases) of patients (consumers).

Christian Klein – CEO of the market leader in the field of ERP software “SAP” confesses about the company’s knowledge deficit as regards the creation of holistic solutions during an interview in May 2020 with the remark “We complicate things with no reason…”

SAP CEO christian klein САП мениджър

And here comes the FIRST IN THE WORLD HOLISTIC SOLUTION!

Institute for Systemic Economic Engineering

As of 2021, ”ISEE” – Institute for Systemic Economic Engineering – is a joint-stock company with 23-years of history.

The majority shareholder (holding more than 80% of the shares) of “ISEE” JSC is a Bulgarian foundation,
established under the name “EngKUB” – “Engineering Culture for Management of the Future”.

“ISEE has one clear and concrete goal – to add to the list of innovations with global influence
by creating A NEW KIND OF KNOWLEDGE FOR MANAGEMENT OF THE INDUSTRIAL ECONOMY – knowledge
in the shape of a holistic ERP system,
bearer of engineering model of the economy of the enterprise.
Doing so ISEE’s Bulgarian engineers and mathematicians
will add to the rich history of great innovations
stemming from our country.

The volition and work applied for almost two decades have led to a truly unique invention –
a practice proven prototype of a new generation ERP system.
ERP system based on the knowledge for engineering model of the
principal setup and way of functioning of the industrial enterprise.

As of 2021, ”ISEE” – Institute for Systemic Economic Engineering – is a joint-stock company with 23-years of history.

The majority shareholder (holding more than 80% of the shares) of “ISEE” JSC is a Bulgarian foundation, established under the name “EngKUB” – “Engineering Culture for Management of the Future”.

“ISEE: has one clear and concrete goal – to add to the list of innovations with global influence by creating a new kind of knowledge for management of the industrial economy – knowledge in the shape of a holistic ERP system, bearer of engineering model of the economy of the enterprise. Doing so ISEE’s Bulgarian engineers and mathematicians will add to the rich history of great innovations stemming from our country.

The volition and work applied for almost two decades have led to a truly unique invention – a practice proven prototype of a new generation ERP system. ERP system based on the knowledge for engineering model of the principal setup and way of functioning of the industrial enterprise.

2inERP

In the next 20 years, ISEE JSC developed and successfully experimented with a holistic “di-innovative” ERP system – 2inERP based on a NEW-QUALITY KNOWLEDGE FOR MANAGEMENT MODELING of the economy of industrial enterprises. Knowledge, seeing the enterprise as a set of objects and subjects working in unity.

The system manages the cognition accumulated in the enterprise as well as the environment in which it is implemented by allowing modeling of the enterprise processes at a level, unattained by others to this day.

This system manages enterprise processes IN ENTIRETY with no complications due to obstructed and slow communication among the different modules, which characterize the fragmented ERP systems of today.

This is possible as the “di-innovative” ERP system — 2inERP — has been based on a knowledge of a universal model of the principal setup and functioning of the industrial enterprise, a unique discovery made by ISEE JSC.

COMPARISON AMONG THE CONTEMPORARY ERP SYSTEMS AND 2inERP SYSTEMS AS AN INSTRUMENT FOR EFFECTIVE MANAGEMENT OF THE INDUSTRIAL ENTERPRISE

Effective management of the Innovation potential

It refers to the ability of the enterprise to engineer and launch into production a new or not yet implemented product (goods or service), or to implement new technological processes.

The 2inERP system enables the engineering of new enterprises by modelling their technological environment (a symbiosis between the technical and organizational environment). This enables an already existing enterprise to engineer and launch into production a new or not yet implemented product (good or service), or to implement new technological processes.

Effective management of the Reengineering

Radical restructuring of the enterprise (considered as technological environment) for the attainment of a significant improvement of the business result.

The 2inERP system enables to carry out a radical restructuring of the technological environment of the enterprise (a symbiosis of the technological and organizational environment) in order to achieve a significant improvement of the business result and a substantial increase in the efficiency.

Effective management of the Human Capital

Management and development of the human resources by modeling the responsibilities for the functioning of the enterprise and the connected to them skills of the personnel.

The 2inERP system allows for defining of the collective responsibility of the enterprise, through which defining the individual responsibility becomes possible, and from here — the development of effective job description, based on which, human capital management and development becomes possible for effective realization of the enterprise ambitions.

Effective Knowledge management

Management and development of the technical and organizational know-how of the enterprise.

The2inERP system allows for a systematic and objective process of formation, storage, distribution and utilization of intellectual capital indispensable for the functioning of any given enterprise, hierarchically subdivided into (1) Cognition for industrial results, (2) Implementational cognition, (3) Principal cognition, (4) Functional cognition, (5) Fundamental cognition.

Effective Reporting of the past

The ability to effectively make reports of the past.

The 2inERP system gives systematic, effective, and complete reports of past conditions of the enterprise, including past periods, immediately before the present moment. This comprehensive coverage enables for precise tracing of activities that took place at each, and every single part of the enterprise and this information is available at any given time.

Effective management of the Operational activity

The interconnected management of the business processes related to Sales, Production, Supply and Financing..

The 2inERP system allows for the effective and interconnected management of the business processes related to Sales, Production, Supply and Financing (Working capital flow). The management efficiency by the 2inERP system is consistently high, irrespective of the complexity of the technological environment, size of nomenclature of the managed objects, and volume of the production batch. Working capital flow data and variables are always relevant and accessible in real-time.

Effective management of the Future

The ability to effectively manage the future of the enterprise (targets and ambitions).

The 2inERP system provides all the necessary data on the condition and state of the enterprise, both from past periods and from the present moment, as well as for the future projected periods. Based on these facts the system allows to create and execute highly effective projects for future economic development of the enterprise according to the stakeholders’ ambitions.

CONDUCTED RESEARCHES SHOWING THE 2inERP ADVANTAGES

 

During the 20 years of ISEE JSC existence, a series of research and experiments have been conducted proving the practical superiority of the 2inERP technology over the global alternatives. Some of the research and experiments include:

Implementation site: Hydraulic Elements and Systems PLC, Yambol, Bulgaria.

In the period between 2009 and 2010, in the short span of 18 months, two engineers without any prior experience in plant design or knowledge of the so-called Lean Manufacturing theory, but highly proficient in the ISEE IT solution and its cognitive platforms, developed and rolled out a system for SMED (Single-Minute Exchange of Dies — Quick setup) and lean manufacturing in two sections comprising a total of approximately 40 workplaces with computer numerical controlled (CNC) machines.

Conclusions:

Following SMED the productivity of the workplaces in question increased between 5 and 10 times. Minimal costs were incurred. A personnel training programme was also developed.

By way of comparison, the development and roll out of such a system on a similar scale, within a plant owned by a large Western company, took approximately 6 years, meaning that significantly greater human and financial resources were needed.

Implementation site: Hydraulic Elements and Systems PLC, Yambol, Bulgaria

The experiment took place immediately after the global economic crisis set in 2009. During the campaign, which ran from the spring of 2010 until the summer of 2011, more than 70 % of all workplaces were restructured and relocated.

Conclusions:

The experiment was conducted in a highly expeditious manner, without any delay or suspension of industrial processes. On the contrary, over the course of the reengineering process, production marked an increase in terms of both volume and nomenclature. This increase was more than twofold. The research team failed to find a precedent where industrial reengineering had ever been conducted, by any party, that was comparable in terms of investment indicators to the performance achieved in this experiment, which would not have been possible without the ERP system designed and developed by ISEE JSC.

Implementation site: Battery plant Tungstone, Ryazan, Russia

After studying the functional constructs of 2inERP, a young Russian management team achieved the following results in a battery plant in Russia over a time-span of 3 years:

At the end of 2009, the plant has a headcount of 176 employees, who manufactured up to 7 000 car batteries a month worth EUR  190 000 or approximately EUR 2.3 million per year.

At the end of 2012, the plant had a headcount of 196 employees, who manufactured up to 34 000 car batteries a month worth EUR 980 000 or approximately EUR 12 million per year. This means that labor productivity increased more than four times and sales increased almost five and a half times. It is important to note that all investments made over the three-year period came up to less than EUR 1 (one) million.

The results of the comparative evaluations conducted by three independent working groups (representatives of business universities, technical universities and practicing engineers) conclusively demonstrated that the 2inERP system is vastly superior to all other solutions, including those most renowned (SAP, Oracle, Microsoft, Infor).

“Developed under the influence of the currently dominant management models, the evaluated IT products manifested the same weakness. As regards the reporting, financial and accounting practice, creation of information flows, investment and state administration needs, resource and expenditure planning they may be assessed as “good”. Yet, they do not demonstrate an overall insight into the management of the business unit, whereas the management of the technological potential goes beyond discussion. The lack of clearly formulated notion, the lack of a single and empirically tested concept system as well as the lack of understanding of the fundamental essence of the Business Unit makes them a secondary “Accounting Software”. This opinion results from the fact that the teams make a continuous referral to accounting records, documents and principles when they demonstrate their so-called business unit management software.

In conclusion, after a series of observations, research and analysis of the achievements of the contemporary management theory and practice, we can state that the proposed System Knowledge Management Model is based on the concept of “creation” and search for manageability of the technological potential development, as proposed by the contractor under the framework contract with “HES” PLC, as well as the IT product developed and implemented thereof, are conceptually completed, terminologically clear, empirically relevant, and subject to the obvious structural components and processes in the Business Unit functioning. We believe that from the point of view of the management theory and practice, they demonstrate significant and innovative conceptually clear paradigms, which bring them on a higher level as compared to the familiar and commonly implemented solutions at present.”

Implementation site: Hydraulic Elements and Systems PLC, Yambol, Bulgaria and M+S Hydraulic PLC, Kazanlak, Bulgaria

Five young mechanical engineers without any prior experience in plant design but thoroughly versed in the ISEE JSC’s ERP system, managed to build and back up the operation of an expanded technological environment at both plants in order to introduce highly innovative (for Bulgaria) production of axial piston hydraulic pumps and motors. They did so for the same amount of time and money that foreign consulting companies required to simply update product documentation.

Conclusions:

Under their leadership, four workers without any specialist experience took 9 months to learn a range of high-tech processes, which usually require 25 to 30 highly skilled specialists trained at global market leader companies.

The products manufactured were sent to a renowned specialist laboratory in Germany. Experts there were amazed that products with such appearance and quality could have been designed and manufactured in Bulgaria.

The conclusion of a team from Information Technologies and the Future of the Economic Science (ITFES) Foundation, based on a number of presentations of leading ERP software developers, showed that the systems they are creating continued to be fragmented, module-based and none of them is a bearer of a universal model of the industrial enterprise

RESULTS FOLLOWING THE IMPLEMENTATION OF 2INERP IN MECHANICAL ENGINEERING ENTERPRISESE

All research has demonstrated that ISEE JSC has attained WORLD LEADING results in the field of knowledge for management modelling of the economy of the industrial enterprise— knowledge of a universal model in the form of theory, terminology and prototype technology.

The direct juxtaposition between the 2inERP system, developed by ISEE JSC, and the leading ERP system brands show that the DEVELOPED HOLISTIC TECHNOLOGY, unlike all other fragmented ERP systems, ALLOWS FOR STRATEGIC MANAGEMENT OF THE ENTERPRISE in a form of effective development management, as well as effective operational management.

ISEE JSC possesses a disruptive technology in the field of knowledge for management modelling of the economy of enterprises as well as a team who can further develop it.

A disruptive technology as this one can lead to redistribution of the global market of the knowledge for management modelling of the industrial economy: products in the form of business software, business consulting, business auditing, as well as industrial engineering and reengineering – markets that strike above 2.5 trillion EUR annually as of 2021.

Due to the inability of large ERP developers to internally overcome their own deficit of knowledge in order to create a holistic solution, they regularly seek resolutions OUTSIDE  by purchasing innovative companies in the area of ERP software.

SAP

Acquisition date: Jan 2021
€840 M
  • Acquired company:
    Signavio
  • Specialty:
    Collaborative Business Process Design, Management and Analysis
  • Country:
    Germany

SAP

Acquisition date: Nov 2018
€6,7 B
  • Acquired company:
    Qualtrics
  • Specialty:
    Collect, Manage, act on Experience data


  • Country:
    USA

SAP

Acquisition date: Nov 2018
€3,4 B
  • Acquired company:
    Contextor
  • Specialty:
    Robotic Process Automation


  • Country:
    France

SAP

Acquisition date: Jan 2018
€2 B
  • Acquired company:
    CallidusCloud
  • Specialty:
    Sales Performance Management Tool


  • Country:
    USA

SAP

Acquisition date: Sept 2014
€7 B
  • Acquired company:
    ConcurTechnologies
  • Specialty:
    Travel and Expense Management


  • Country:
    USA

Oracle

Acquisition date: Dec 2017
€1 B
  • Acquired company:
    Aconex
  • Specialty:
    SaaS-based construction project management


  • Country:
    Australia

Oracle

Acquisition date: Jul 2016
€7,8 B
  • Acquired company:
    NetSuite
  • Specialty:
    Cloud/SaaS-based Enterprise Resource Planning (ERP) software

  • Country:
    USA

Oracle

Acquisition date: Apr 2016
€556 M
  • Acquired company:
    Textura
  • Specialty:
    Construction management and engineering SaaS software

  • Country:
    USA

Oracle

Acquisition date: Dec 2012
€680 M
  • Acquired company:
    Eloqua
  • Specialty:
    Marketing Automation platform for managing sales and marketing leads across an enterprise
  • Country:
    USA

Oracle

Acquisition date: Feb 2012
€1,6 B
  • Acquired company:
    Taleo
  • Specialty:
    Talent Management Software



  • Country:
    USA

Despite the huge investments made by SAP and ORACLE, they still CANNOT go beyond the modular principle of their ERP systems to propose a new, radically different and holistic offering to their customers, as they continue investing for the purpose

The purchase of the company „Signavio“— a developer of a module for improving the business processes — at the amount of €1 billion in January 2021, together with the pompous release of RISE with SAP, yet another attempt for “a single ERP system to replace all”, proves this fact.

HOW MUCH WOULD THE BIG ERP DEVELOPERS INVEST IN A COMPANY, WHICH HAS ENGINEERED AN ERP SOFTWARE AT A NEW AND PROVEN, SIGNIFICANTLY HIGHER LEVEL, COMPARED TO ALL EXISTING ERPs TO PRESENT?

SOFTWARE, BY WHICH THE ENTERPRISE CAN BE MANAGED IN ITS ENTIRETY, A PROMPT REENGINEERING OF LARGE ENTERPRISES CAN BE CARRIED OUT, AND WHICH ENABLES THE ENGINEERING OF NEW ENTERPRISES?

 

ISEE INVESTMETNTS

ISEE JSC PLANS TO SELL A MAJORITY SHARE (67% TO 70%) TO A STRATEGIC INVESTOR (SUCH AS GOOGLE, MICROSOFT, SAP, ORACLE, ETC.) FOR AROUND 2 BILLION EUR IN 2024

TO COMPARE, THE LATEST ACQUISITIONS OF TECHNOLOGICAL COMPANIES MADE BY SAP AND ORACLE HAVE AMOUNTED TO 3 BILLION EUR ON AVERAGE, AS THE COMPANIES ACQUIRED OFFER FRAGMENTS AND PIECES IN THE FORM OF SOFTWARE SYSTEMS RATHER THAN AN COMPLETE HOLISTIC 2inERP SYSTEM.

THE LAST ACQUISITION OF A COMPLETE ERP SYSTEM („NETSUITE“), ALBEIT CONVENTIONAL, WAS CARRIED OUT IN 2016 FOR 8 BILLION EUR BY ORACLE.

FIRST ROUND
2017-2021

Stemming from the first round of financing, the achieved market valuation of the company is 40 MILLION EUR.

SECOND ROUND
NECESSITY FOR ADDITIONAL INVESTMENTS
2021-2024

To enable the development of “ISEE” to the required level for such a sale, a second-round for supplementary funding is currently underway. 10% of the company’s shares are for sale, and the required investment is worth
10 MILLION EUR.

THIRD ROUND
SALE TO A STRATEGIC INVESTOR
2025

The achievements of ISEE JSC, in the form of intellectual property and the team behind it, will be offered to a world leading corporation for at least 2 BILLION EUR.

Stemming from the first round of financing, the achieved market valuation of the company is 40 MILLION EUR.

To enable the development of ISEE to the required level for such a sale, a second-round for supplementary funding is currently underway.
Тhe required investment is 10 MILLION EUR.

The achievements of ISEE JSC, in the form of intellectual property and the team behind it, will be offered to a world leading corporation for at least 2 BILLION EUR.

The accumulated investments during the second funding round will be used for: 

Budget: €10 000 000 for 2022, 2023, 2024, 2025

ОN THE EVENT OF SELLING THE MAJORITY STAKE IN 2024 AT AROUND
2 BILLION EUR

THE EXPECTED RETURN OF INVESTMENT WOULD BE APPROXIMATELY 20 TIMES.

ОN THE EVENT OF SELLING THE MAJORITY STAKE IN 2024 AT AROUND2 BILLION EUR, THE EXPECTED RETURN OF INVESTMENT WOULD BE APPROXIMATELY 20 TIMES.

THE TEAM

Anna Videva

Founder - Discoverer of the Universal Model of the industrial enterprise and co-author of the theory and terminology describing it; Technological architect of 2inERP software;

Petar Bachvarov

Founder - Discoverer of the Universal Model of the industrial enterprise and co-author of the theory and terminology describing it; Technological architect of 2inERP software;

Trifon
Stefanov

Management team - CEO

Momchil
Denev

Management team
Member of the Board of Directors

Ventsislav
Karaivanov

Leading Software Architect

Lyubomir
Tonchev

Leading Software Architect

Martin
Petrov

Engineer