Historical outline
 

1987	Formation of the first organizations, allowed young professionals to work and earn money besides main employment, so-called center of youth activities (CYA), belonging to Young Communist Union.
1988	Creation of the first accounting program for PC in Ekaterinburg. Hardware: Russian PC "Iskra", non IBM-compatible.
1988	Formation of SKB Kontur as subdivision of the Ekaterinburg’s CYA.
1988	Shipments of the first lots of PC's to Ekaterinburg (one of the CYA activities).
1989	Creation of the first software for accounting of the labor and wages (payroll) for PC.
1990	Creation of accounting software realizing other parts of financial accounting   General Ledger; Cash and Monetary Assets;  Inventories;  Fixed Assets;  Accounts Payable and Accounts Receivable
1990	Transformation of SKB Kontur to the firm leased property from the Youth Union.
1991	Transformation of SKB Kontur to the privately held corporation. Interesting to point out on 80/20 shareholders/capital ratio.
1992	Creation of new set of accounting software programs.
1992	Beginning of economical reforms in Russia: transition from governmental regulation of prices to the free market regulation of prices with few exceptions
1992	First hardware components in Kontur’s offer;
1993	Mandatory medical insurance for all Russian employees.( Government created opportunities).
1993	Creation of departments in SKB Kontur according to functional activities;  Development/production;  Advertising;  Marketing;  Technical;
1993	Beginning of regular operations with hardware (merchandising).
1993	Software Products of Kontur: Complete Accounting for medium and big enterprises  Typographically printed documentation;  Customer support (hot lines);  Licensing;  Upgrades.
1993	Distribution: First dealership contract for SKB Kontur
1994	Diversification: Inclusion of the Network installations to the Kontur's offer.
1994	First integrated multi-user software product for network for DOS (SKAT): complete accounting for small enterprises;
1994	First software product for non-profit and governmental organizations: complete accounting
1994	Creation of Training Center of SKB Kontur
1995	Creation of the Regional Development Department
1995	Market of accounting software in Ekaterinburg:   Few different brands of accounting products (competition); Advertising in the federal and local mass-media; Dealers of SKB Kontur and other developers.
1996	New accounting regulations for non-profit organizations.
1996	First accounting software products for Windows3.xx and Windows95 (in Moscow);
1996	Kontur's integrated multi-user accounting software product, based on new legal environment for non-profit organizations ( BUDGET ) for DOS.
1996	New integrated multi-user accounting software for small and medium enterprises for DOS (KASKAD).

 
Factors,  accelerated  market formation

•  Rapid growth of private sector of economy;
• Subdivision of the big industrial enterprises;
• Penetration of PC to all spheres of business activities of firms;
• Reformation of the governmental property and formation of the new structural divisions of the local power (regional and city level);
• Reformation of the medicine and transition from the governmentally financed medicine to the financing through mandatory medical insurance;
• Complex procedures of taxation for the firms and individuals.

•  Hyperinflation during 1992-1993 years: currency exchange rate (RUB) per (US$) has changed:

• 1991 1 US$ =        1.51 RUB
• 1995 1 US$ = 4,500.00 RUB
• 1997 1 US$ = 5,800.00 RUB
During 1992 rate of inflation sometimes had reached 20-25% per MONTH

Factors lead to success of the project

The customer possessed an unique set of characteristics with respect to others:

• financial position: it was able to finance the project.
• equipment:  installed computers and network, plus software packages being used;
• human resources: capable to maintain software after short training;
• users: were trained in computers;
• the project was not unique for the customer, they were interested in cooperation;
• its activities were diversified as much as possible, they were able to participate in development of  the model as accurate as it was needed.

• An experience of developing the same modules for private firms;
• An instrumental basis: system of common blocks to use the all parts;
• Human professional resources: young graduates interesting in future career;
• Absence of competitors because of unique position of a customer;
• Existence of the standard regulation for the accounting procedures in all similar organizations.

Internal

• Absence of intrafirm financial investments;
• Difficulties to estimate contribution of each programmer;
• Absence of adequate measure of labor;
• Wrong estimation of labor cost.

• Partial resistance of finite users to work with the software;
• An unique customer to work with