Dneprooblenergo (SAP CRM)

According to the CEO of Dneprooblenergo company Alexander Fomenko in November, 2011, implementing solution of SAP allowed to achieve considerable results on increase in efficiency of activity of the company already today: "This project is implemented within the strategy of increase in effective management of business of the company. The new information system allowed to increase internal control of activity of Dneprooblenergo, to reduce quantity of errors and to accelerate work with information. And what is very important – implementing solutions will allow us to increase transparency of mechanisms of tariff setting and drawing of accounts for our consumers. As a rule, the forecast of payback makes 5-6 years. But already today in the company a number of positive changes is mentioned: cost reduction due to exact control of payments of all types of consumers of the electric power for 8%, acceleration of document registration and business operations due to uniform data entry for 13-18%, reduction of time for approval of agreements, finance documents, internal and external documentation for 34%, on preparation of the reporting and data analysis – for 29%, decrease in stocks in warehouses – na12%".

The company management notes also such results as increase in controllability, transparency of activity of the enterprise, efficiency of control and monitoring of all economic processes.

The presentation of the project took place in December, 2011 in a conference room of Dneprooblenergo with participation of the parties – the CEO of PJSC Dneprooblenergo Alexander Fomenko, the head of implementation of the project from the company, the finance and economy director of PJSC Dneprooblenergo Elena Frankiv, the director of legal issues of PJSC Dneprooblenergo Olga Iyevleva, the area director of SAP Ukraine in Ukraine, Georgia, Moldova Maxim Matyash and the CEO ICDP (International Center of Development of Power) of Vladislav Antipin.

Until the beginning of SAP implementation in 2009 before Dneprooblenergo there was an urgent need to pass from "scrappy automation" of business processes to a common information space. In the company separate information systems in this connection, there were such problems as double entry of data, mismatch of data in the different systems, long terms of reconciliation of data for reporting, lack of a single system of NSI (normative reference information), insufficient knowledge of company management of current situation for decision making, the routine and strategic planning were used.

The company needed such ERP system which could provide:

• business process automation, covered by a former information system, but with new quality and expansion of opportunities;
• further scaling of a system;
• implementation of perspective tasks within the information strategy of the enterprise, including any changes of business, structural and organizational changes, changes of strategy of planning and other;
• high integration scale of a system, possibility of its combination with already used applications;
• flexibility of information environment, possibility of its completion under standards of the enterprise.

Decisive factors when choosing a system integrator for benefit of SAP solutions became:

• world practice of implementations;
• existence of the industry solution developed by SAP company for the enterprises of power and the sector of housing and public utilities of SAP for Utilities;
• existence of positive experience of implementing solutions of SAP at the energy industry and housing and Public Utilities enterprises in Ukraine.

Besides, the fact that the Dnipropetrovsk region is one of leaders on implementation of ERP solutions of the world leader among suppliers of business applications today – SAP companies served as an important argument. Among the companies using a SAP software: Northern and Central GOKI, ArcelorMittal Kryvyi Rih, Vesta Dnepr and others. Implementation of modern digital technologies in business process management is one of key components of the Complex strategy of development for the region initiated by the governor of the Dnipropetrovsk region Alexander Vilkul. With assistance of Alexander Vilkul the enterprises actively implement the advanced information technologies, thereby providing the development and strengthening of the advanced positions of the region.

"One of priorities of SAP company in Ukraine is strengthening of cooperation with the largest industrial enterprises. SAP constantly works on improvement and addition of a line of solutions for such companies, thereby helping their active growth and business optimization. The evidence of success of such strategy is the permanent growth of number of our customers using industrial solutions, such as SAP for Mining, SAP for Utilities. The Dnipropetrovsk region became one of leaders in implementation of industry solutions of SAP for the industry that provides it serious competitive advantages", - the area director of SAP Ukraine in Ukraine, Georgia, Moldova Matyash Maxim comments.

The basis for the corporate integrated management system of Dneprooblenergo selected industry solution of SAP for Utilities. Functional project scope at the first stage of implementation included the functionality of the SAP ERP system providing management processes and enterprise resource planning in its financial and economic, management activity, allowing a message structure of networks and to solve technical problems of the enterprise and also the SAP solution CRM providing business process automation of the company regarding customer interaction.

As a result of implementation PJSC Dneprooblenergo passed to the modern Business Process Management Suite providing them centralization and directed to increase in efficiency of a financial and economic, management activity of the company and its customer focus.

"We needed a strategic system which can be expanded and integrated easily with different subsystems. A system based on SAP solutions appeared such", - the CEO of PJSC Dneprooblenergo Alexander Fomenko noted.

From the very beginning the principle of its step-by-step implementation was the basis for an implementation project. In this regard the System project of automation until 2013 was developed.

Implementation is conducted at the same time in all 25 structural units of the company.

Today in the company are implemented and within a year such functional solution modules of SAP ERP as are successfully used:

• financial accounting;
• management accounting;
• budget management;
• fixed asset accounting;
• management of material flows;
• sales management;
• management of maintenance and repairs of the equipment;
• management of a contracted work.

The SAP solution CRM which is integrated with the automation system of tasks of power sale used at the enterprise is implemented.

During 2011 the second stage of the system project of automation of KISU based on which in 2012 such functional directions will be put into operation as was implemented:

• investment management and projects;
• accounting of shutdowns;
• accounting of a condition of equipment;
• requirements planning;
• forecast of liquidity of cash flows;
• claim and claim work;
• electronic document management.

Implementing solutions of SAP initiated a number of actions, additional and necessary for successful project implementation, in the company:

• reengineering of organizational structure of the company was carried out and a number of business processes is optimized;
• the reference book of model network equipment of the company is created;
• certification of the electrotechnical equipment is carried out;
• the service of the centralized maintaining NSI (normative reference information) is organized;
• the Portal of technical support of users is organized and put into operation.

In the company the department of SAP implementation which is performing primary technical support of users and actively taking part in project implementation was specially organized.

"Success of implementing solution of SAP in Dneprooblenergo company can be estimated by several parameters at once. In the field of management of customer relations the company received uniform base of clients with an opportunity to trace the history of interaction on each of them, with ample analytical opportunities. Solving a problem of business process optimization, the company reached the new level of transparency and efficiency. And what is important, work of Dneprooblenergo is supported by the most modern technologies of SAP which confirmed the efficiency with successful world practice of implementations today", - the area director of SAP in Ukraine, Georgia, Moldova Maxim Matyash notes.

Now, in a corporate information system of Dneprooblenergo on the basis of SAP solutions more than 1500 users – nearly 20% of all personnel of the company work.

In 2012 development of an implementation project will continue. Design of a number of specific business processes, the difficult corporate reporting in which automation the company is interested is planned.