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How to organize an efficient cross border SAP implementation project in Russia. September 29, 2010 Braas – DSK 1. MONIER – FACTS AND FIGURES. 133 production sites in 33 countries Business activities in 40 countries Global headcount 8894 Net sales 2010 – 1 280 500 000 euros. MONIER OFFERS.

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How to organize an efficient cross border sap implementation project in russia

How to organize an efficient cross border SAP implementation project in Russia

September 29, 2010

Braas – DSK 1


Monier facts and figures
MONIER – FACTS AND FIGURES project in Russia

  • 133 production sites in 33 countries

  • Business activities in 40 countries

  • Global headcount 8894

  • Net sales 2010 – 1 280 500 000 euros

MONIER OFFERS

  • Roofing tiles

  • Roofing components

  • Roofing systems

  • Insulation

  • Solar thermal and photovoltaic systems

  • Chimney systems

  • Ventilation systems


Braas dsk 1 facts and figures
BRAAS – DSK 1 FACTS AND FIGURES project in Russia

  • Sales Volume 1 000 000 sq. m

  • Net Sales 15 mio. EUR

  • Number of plants 2

  • Number of branches 3

  • Production Capacity 2 - 2,5 mio. sq.m.

  • Market Share in Concrete Tiles > 70%

  • Number of employees 150

  • Share of Monier 67%

  • Share of DSK-1 33%


ERP System Evolution at DSK-1 project in Russia

  • 1996 – 1999 COS/Westernacher (AS400) + BEST (MS DOS)

    • Implemented Functional Modules : Logistics/Local Accounting/

      • Wages

  • Number of users: : 6

  • Number of locations : 1

  • 1999 – 2003 Concorde XAL

    • Implemented Functional Modules : General Ledger/Debitors

      • Creditors/Fixed Assets/Wages

  • Number of users : 10

  • Number of locations : 1

  • 2004 – 2010 Axapta 3.0

    • Implemented Functional Modules : General Ledger/Debitors

      • Creditors/Fixed Assets

      • Personell & Wages

  • Number of users : 26

  • Number of locations : 4

    • Systems hosted internall

    • Application support organized via an external partner


    Why sap
    Why SAP ? project in Russia

    SAP is the standard ERP solution for MONIER

    as a basis for further process harmonization and shared solutions

    • Not using SAP has to be released by Group IS/IT

    • Migration towards SAP when replacing existing solution always have to be considered

    • Local ERP solutions are only allowed when SAP is not applicable

    • MONIER IS/IT STANDARDS


    Monier erp landscape
    MONIER ERP Landscape project in Russia

    WESTERN

    EUROPE

    EASTERN

    EUROPE

    ASIA

    PACIFIC

    SAP

    SAP

    SAP

    Local Solution

    Local Solution

    Germany

    France

    UK

    Italy

    Benelux

    Scandinavia

    Baltic

    Central Europe

    Thailand

    Japan China

    Indonesia

    Malasya

    India

    Philippines

    Poland

    Russia

    Ukraine

    Turkey

    SOUTH

    AFRICA

    Local Solution


    Monier customer center of expertise
    MONIER Customer Center of Expertise project in Russia

    The Monier SAP CCoE is certified with 91 points out of 100.

    This is an excellent result compared to other certified SAPcustomers.

    It is settled in the upper third of the meanwhile morethan 1000 worldwide certified CcoEs” (SAP)


    Situation before the project eastern europe
    Situation before the Project project in Russia Eastern Europe

    Poland:

    • 10 years of stable SAP operation

    • In-house hosting and system administration

    • Long term successful external partner relationship for system support and development

      Russia:

    • 6 years of Axapta (MS Business Solution) deployment

    • A system upgrade decision is pending

    • Dissatisfaction with an overall system performance, capabilities and running costs

    • Dissatisfaction with the partner responsible for system support and development

      Ukraine:

    • No ERP system in place


    Drivers for the Project project in Russia

    • Braas DSK-1 internal drivers

    • Axapta has been running since more than 6 years without any upgrade

    • Growing dissatisfaction with an overall system performance

    • Axapta upgrade is very expensive due to many system modifications

    • Group drivers

    • Group Initiative for ERP Platforms

    • Available Polish SAP Platform and v. good experiences from Poland and Multi-client approach of ONE SAP in West Europe


    Sap architecture one client multi company approach
    SAP Architecture project in Russia- ONE client -- Multi company approach -

    Poland

    Russia

    Ukraine

    Application

    Infra Structure

    Standardized

    localprocesses

    Local Application Support and Development

    viaLocal Partners

    One

    SAP System

    on

    One

    Server

    with

    In House

    Hosting (Poland)

    Applications(Cross-client Customizing and Solutions)

    One

    CommonIT

    Language

    Data Structure(Cross-client Repository)

    Database

    Operating System

    Hardware -- Server


    Sap architecture multi client
    SAP Architecture project in Russia- Multi client -

    Application

    Infra Structure

    Poland

    Russia

    Ukraine

    Multi localProcesses

    Local Application Support and Development

    viaLocal Partners

    One

    SAP System

    on

    One

    Server

    with

    In House

    Hosting (Poland)

    Applications(Cross-client Customizing and Solutions)

    One

    CommonIT

    Language

    Data Structure(Cross-client Repository)

    Database

    Operating System

    Hardware -- Server


    Sap architecture evaluation conclusions
    SAP Architecture evaluation project in Russia- Conclusions -

    Multi client approach

    Multi company code approach

    Pros

    • Ensuring high flexibility, stability

    • Operational cost optimized solution

    • Reduced to minimum coordination costs

    • Good practice sharing possible not requiring sharing of business process

    • System operational stability and reflecting the Monier’s business need confirmed by west European successful approach

    • Authorization concept enables complete business data segregation (supports Joint Venture situation)

      Cons

    • Cross client business data aggregation possible only through third tools

    Pros

    • Optimal platform for cross country shared services

    • Platform for one business process – immediate practice sharing

    • Deep process standardization ensured via system architecture

      Cons

    • High costs of coordination and governance

    • Lower flexibility to react on local needs

    • Difficult to achieve local commitment for initial data harmonization and future governance

    • Cultural and language issues in highly integrated system

    SAP Multi client approach is strongly recommend


    Fast track implementation methodology
    Fast Track Implementation project in Russia- Methodology -

    • SAP Release ERP 6.0 as the basis for further roll out

    • Implementation of the ERP common IT language in the shared SAP environment

    • Copy of the Polish client

      • Business process coverage is a prerequisite for an efficient client copy

      • Good practices in all relevant fields of reporting and logistic will be taken over

      • Implementation of legal adjustment of Russian

      • Adaptation of business process at SAP level only if definitely needed

      • Data migration

    • Local Infrastructure implementation (WAN Upgrade, SAP Client rollout, etc)


    Fast Track Implementation project in Russia- General Approach -

    SAP Multi Client

    “Client Copy Poland"

    SAP Training of

    Russian Key users

    Start: X

    SAP Implementation and Customization

    for Russia

    Migration

    Training End User

    Go-live

    End: X

    Both phases to run

    simultaneously

    with continuous

    iteration

    Business Process

    Design Russia


    Project phases
    Project Phases project in Russia

    • Project preparation and prototype documentation

    • Knowledge transfer and Delta blueprint

    • Customizing

    • Key user training

    • Integration test 1

    • Enhancement realization

    • Integration test 2

    • Final preparation

    • Go live and initial support


    Project general information
    Project General Information project in Russia


    Erp project success statistics
    ERP Project Success Statistics project in Russia

    Standish Group


    Project Organization project in Russia

    • MONIER GROUP

    • Steering Committee

    • Escalation

    • Process definitions

    • SAP Multi-client know-how counterpart

    MONIER RUSSIA

    MONIER POLAND

    System change coordination

    based on agreed

    “project” operational processes

    • BRAAS – DSK 1

    • Project lead: D. Kriukov

    • Key-User concept

    • MONIER SP. Z O.O.

    • Hosting partner

    • Solution and know-how counterpart

    Project coordination

    Standard support

    ALPE

    (fixed prise project)

    System Know-How

    Transfer

    Secured via implem. contract

    PLAUT

    (Strategic partner for Monier Poland)


    Project team
    Project Team project in Russia

    Project Manager

    Module Managers

    FI

    CO

    MM/SD

    10

    Key Users


    Project budget
    Project Budget project in Russia

    • Implementation

    • Infrastructure

    • Licenses


    Project status controll
    Project Status Controll project in Russia

    • Weekly Status Meetings

    • Fixing all Project delays and problems

    • Fast reaction

    • Steering Committee

    • CEO involvement


    Master data migration
    Master Data Migration project in Russia

    • Key users responsible for preparation

    • Labour intensive work

    • Thorough data verification


    Key user training
    Key User Training project in Russia

    • Just before Integration test 1


    Integration tests 1 and 2
    Integration tests 1 and 2 project in Russia

    • Real data

    • Personal responsibility


    Data migration
    Data Migration project in Russia

    • Several days if possible


    Go live and initial support
    Go Live and Initial Support project in Russia

    • 1 – 2 month obligatory


    Project results
    Project results project in Russia

    • MONIER Group ERP Standarts conformity

    • Reliable and comparable information for Group Management

    • Fast period closing (RAS and IFRS)


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