Severstal completed the project of creation of a personnel management system in holding

Customer

JSC Severstal — one of the world's largest vertically integrated steel-making and mining companies with assets in Russia and the USA and also in Ukraine, Latvia, Poland, Italy, Liberia and Brazil. Stocks of the company are quoted on the Russian marketplaces RTS and MICEX, global depositary receipts are submitted on the London Stock Exchange. In 2011 revenue of JSC Severstal made $15.812 million, EBITDA reached $3.584 million, 15.3 million tons of steel were produced. The company concentrates production not only on products of high value added, but also on unique niche products. By data for the current year in JSC Severstal 70 thousand people work.

Tasks

Before a project team the following zadachipo was delivered to personnel management in Severstal Group:

• implement the single integrated information system covering the different HRI areas all enterprises determined by project geography;
• automate and optimize personnel management processes based on the most modern world technologies.

Solution

This project started in January, 2010, since January 1, 2011 the solution was brought into productive operation.

For business process automation in the field of HR the management of Severstal Group stopped the choice on the information system SAP ERP HumanCapitalManagement. As contractors IBM, BearingPoint and I-Teco company, the leading Russian system integrator, the supplier of IT solutions and consulting services, the certified partner of SAP since 2003 were attracted.

Within the project I-Teco worked on business process automation using the module "Personnel management". At a system design on the basis of SAP ERP HumanCapitalManagement a series of analytical consultations in the form of seminars at which the single solution satisfying to requirements of all divisions of Severstal Group for automation and optimization of HR processes is developed was carried out. Using the best world practices, based on consultations recommendations about upgrade of the business personnel management processes implemented by means of standard SAP solutions were developed, operational models are optimized (the organization of the general service centers, competence centers and so forth).

Using SAP ERP HumanCapitalManagement processes of organizational management, the operational reporting, corporate training, employee administration, management of temporary data, payroll, services for the staff (ESS) and heads (MSS), processes of the center of interaction of employees (EIC) were automated. The transparency and efficiency of use of labor resources is provided at the expense of the made unification of processes and standards.

Piloting of the created solution was performed at the enterprises of the mining industry. Till June, 2012 a system was replicated on other divisions and organizatsiigruppa of Severstal companies.

Result

The solution implemented within the project gave to the customer an opportunity to change politicians of personnel management of the company using the best world practices, to provide the transparency of processes which allowed to make optimal management decisions in the conditions of more complete information. In addition to optimization and automation of HR processes, it was also succeeded to create effective management model risks and to provide premises for significant savings of costs.

Use of ready-made solutions for simplification of the scheme of functioning of contact center allowed to increase efficiency of technical support specialists, to reduce the recovery time of access to communication services and to provide to the staff of the serviced departments access to voice mail and other services.

"We expected unification of processes, implementation of their uniform structure in all company regarding HR. Uspeshnozavershiv the project, we are happy with the received result for 80%. The company has new requirements, they are modified and developed in the course of use solutions, we will leave poetomudrugy 20% for perspective of development of a system. Now we consider the possibility of implementation of additional components of the HR module of a dlyarealization of new features. The question is at a stage of discussion and awareness of requirements from tselyyuy formalizations in the potential detailed design", – Maria Krayenskaya, the senior manager of general directorate of Severstal company comments.

The project final - the solution of management

Project completion of development of the system of personnel management based on a SAP software to HCM was announced on April 18, 2013 by the company integrator.

The solution developed by a team of specialists of I-Teco and Severstal holding resolved questions of automation and unification of business processes of management, personnel management, temporary data, payroll, operational formation of the analytical reporting, processes of the center of interaction with personnel (EIC), services of self-service for the staff (ESS) and heads (MSS).

Yury Shekhovtsov, the CIO of Severstal company, noted: "Beginning the project, we expected unification of processes, implementation of their uniform structure on all company regarding HR. In general we were satisfied with the received result, at the same time our company has new requirements which are modified and develop using already implemented solution".

"Unrolling ETsO, we paid special attention to practical efficiency of registration of requests from the staff of Severstal and to search of answers to them in the uniform base designed to facilitate daily work of call center specialists. Now they do not have need to look for the additional information: it is only necessary to open the necessary answer in base and to study it" — Sergey Dunayev, the head of SAP Delivery Center of Severstal company told.

Result

The main business units of holding are a part of the uniform centralized control system of personnel. Specialists of I-Teco carried out works on setup and SAP implementation of HCM, trained key and end users of a system, organized a solution support and maintenance for the first three months of productive operation of a system in each of divisions of Severstal.

"If earlier the pilot solution based on SAP products was tested at one enterprise further – already "rolled" – replicated on all other organizations, then the method of "Big Bang" which was applied in the project to Severstal company is even more often used now. At once the complex option which in the shortest possible time adapted to features of each production was developed for all. It gave the chance to execute the project in only two years, and the system now implemented daily processes data more than 40 thousand employees of Severstal. There is a separate wish to note readiness of the customer for application of the innovation methods and technologies of implementation that very much helped us when implementing such parts of the solution, unique for Russia, as the EIC model", – Andrey Li, the director of the department of personnel management systems of department of I-Teco Business Consulting comments on results of SAP implementation of HCM.

Overview of the Personnel management system of HRMS

The TAdviser center conducted an annual research of the market of personnel management systems in Russia. Unique statistical data about implementation of HRM systems are provided in this overview in free access, the functionality of modern solutions is described, recommendations about the choice of systems are provided. Chief information officers and suppliers impart experience creations of effective information systems.

• Classification and functionality of personnel management systems
• To whom and when it is necessary to implement a HRM system?
• Russian market of HRM systems: volume and trends of 2011
• Industry specifics of implementations of HRM in Russia
• Yana Kudryavtseva IBS: Manage a human capital under laws of Wall Street
• Severstal: "Business start" on personnel management process automation
• The perspective HRM tools for the Russian companies
• Talent management (talent management)
• Cloud HRM systems
• Social HRM tools
• Systems of corporate training
• Recruitment automation
• Biometric systems of accounting of working time
• Igor Gubanov IBS: We provide requirement of the market on a step forward
• Andrey Li of I-Teco: Even more often SAP HCM is implemented by method of "Big Bang"
• Methods, approaches and problems of implementation of HRM systems
• Legislative changes in HRM
• Main errors HRM of projects
• TCO: How many will" the information system "cost"?
• As it is correct to select a HRM system: methodical recommendations
• Volume, dynamics, structure of the world market of the automation equipment of HR services
• Top trends of development of the world market of HRM
• Suppliers of HRM systems: leaders in different segments
• SAP implementation of HCM with I-Teco
• The industrial solution Recruiting based on SAP HCM