TOTVS' strategy to thrive in a market growing faster than Brazil's GDP

TOTVS has experienced accelerated maturation successful the past fewer years successful a marketplace that is already expanding faster than Brazil's economy.

“The bundle absorption marketplace grows, successful galore moments, astatine rates of 1,5 to 2 times the nominal GDP”, affirms Dennis Herszkowicz, TOTVS’ CEO, during the podcast “De frente com o CEO”.

According to him, the operation of strategy and execution explains wherefore the institution keeps a bushed “above the GDP”, with yearly gross surpassing R$ 6 billion, an EBITDA borderline astatine astir 25% (around R$ 1.5 billion) and a 4th of Brazilian GDP circling regular successful its systems.

Founded successful 1983, TOTVS is simply a 100% Brazilian institution and person successful the improvement of entrepreneurial absorption systems (ERP), which is thing much than a bundle that connects areas specified arsenic finance, accounting, fiscal, purchases, stock, logistics, production, sales, and quality resources, making definite each of them enactment with the aforesaid accusation successful existent time. TOTVS besides offers solutions successful front-office, fiscal services, and information intelligence.

Present passim the nationalist territory, the institution serves businesses of each sizes and sectors, employing astir 13 1000 nonstop workers and maintaining an extended web of franchises and partners that reenforce its section presence. With an estimated marketplace worth of R$25 billion, TOTVS appears among the 35 astir invaluable companies successful the state and is considered 1 of the starring exponents of nationalist technology.

An ecosystem that embraces the lawsuit from A to Z

The cogs of TOTVS’ billionaire maturation is successful merchandise diversity, arsenic good arsenic successful the channels done which it services its clients, which has besides go a competitory advantage.

The institution operates with its ain teams and a web of exclusive franchises that covers the country, which, successful practice, means carnal beingness successful each metropolis with implicit 200,000 inhabitants. Herszkowicz compares the exemplary to McDonald’s prime pattern.

“The lawsuit doesn’t privation to cognize whether the McDonald’s store is the archetypal oregon a franchise; they privation the aforesaid experience, astatine the aforesaid velocity and the aforesaid result, beryllium it successful Chuí oregon successful São Paulo”, affirms the CEO.

This proximity accelerates projects and shortens implementation clip – a leverage that TOTVS has systematically utilized.

“Implementations that utilized to instrumentality thousands of hours, today, mostly hap successful a fewer hundred”, says the executive. “The effect is nonstop successful full spot outgo and concern returns.”

The migration to SaaS and the unreality is different cardinal constituent of this exertion company's efficiency.

"It's not conscionable a concern change; it's engineering. To tally good successful the cloud, it's similar 'slimming down the software,' refactoring code, optimizing assets consumption, and ensuring show astatine an due cost. It’s besides the indispensable measurement to signifier information and alteration the adoption of artificial quality successful an economically productive way."