The Eksmo publishing house was disappointed in SAP and passed to 1C

Prerequisites of the Project

The Eksmo company as of 2012 occupies 20% of the Russian book market and locates the author's portfolio, largest in Russia, from 8000 names. The publishing house has the developed distribution network including eight regional centers.

Till 2004 Eksmo several self-written information systems which are not connected among themselves were used.

Since 2004 Eksmo was engaged in implementation and development of CIS based on SAP solutions. In particular, it is known that the project began with SAP implementation of R/3. Then, within the project on creation of IT infrastructure made deliveries of the Sun server hardware for this system,Borlas. In 2005, within the second stage of the ERP project, in publishing house the modules SAP R/3 CRM, BW, HR which required additional computing resources were implemented.^[1]

It is known also that in Eksmo own structure for maintaining the SAP project was created, and further the publishing house used also the solution mySAP Business Suite. And as of 2007 in a corporate information system based on SAP all critical business processes on release about 800 names of books monthly were conducted, 350 active users without those who only take information from a system round the clock worked.^[2]

After nearly 8 years of operation of Eksmo after all recognized shortcomings of SAP and replaced it with domestic 1C

Reasons for refusal of SAP

Earlier representatives of Eksmo publishing house sounded positive results of use of the systems of SAP. In particular, earlier was declared that problem solving with operational planning of finance and management accounting became result of implementation. Besides, it was succeeded to achieve decrease in material stocks, and deviations of real digits from planned materials in schedule system decreased from 20 to 5%.^[1]

However further in process of operation of a system on SAP Eksmo had serious difficulties. In particular, the distribution division of Eksmo already passed to 1C, and use of the different systems considerably complicated work of a warehouse and constantly required additional settings. "The western ERP system which was earlier used in "EKSMO" did not suit publishing house: updating and development of a system taking into account changes in the company and in an external business environment required big costs both time, and finance. Very slowly there was an execution of necessary documentation at distribution of books for the regional centers and end customers. The warehouse personnel had to work in four changes, and issue of orders was quite often delayed at several o'clock", -Marina Yemelyanova, the chief financial officer of Eksmo [[Yemelyanova Marina|]] said.

Besides, in Eksmo call also other shortcomings of SAP. In particular, data exchange was complicated that led to disagreements between divisions and negatively affected business performance.

Choice of the new platform

The new information system, according to the director of business administration of Eksmo Ilya Kashparov, was selected by the following criteria: the low cost of ownership, extensive opportunities for integration of processes and data streams between divisions and also capability to support the high speed of changes.

A system it was going to use in close integration with the web portal on the platform 1C-Bitrix for the organization of document flow in the company and other processes. The software platform "1C: Enterprise 8.2" was as a result selected. The 1C-Rarus company became the contractor on project implementation.

Project Progress

The 1C: Manufacturing Enterprise Management 8 and 1C: Consolidation 2.0 configurations and also program and methodical complex "1C-Rarus were applied to implementation of basic functionality of new CIS of Eksmo: Process management".

Specialists 1C-Rarus were developed and implemented a management subsystem by data of the editorial and production block, a management subsystem the publishing block. Based on "1C: Manufacturing Enterprise Management" the subsystem of operational planning of production is developed.

In a new ERP system the following divisions work: the literary editorial offices, department on production and supply, trading house, art directorate, department of prepress, department of work with electronic copyright, department of the international copyright, economical department, financial department, accounting, legal department.

In an information system more than 1000 users, the number of simultaneous connections over 400 are registered. Project duration was 7 months.

Results of migration

• Because of complexity and the high cost of updating of calculation formulas of planned cost of books in a former system the publishing house had to use the simplified formulas set 3 years ago. With an old information system the error when calculating made about 10-15%. With the help "1C:Enterprise 8" work of technologists at determination of process parameters of production of editions was optimized. Today the error decreased to the level of 3-5%. Further, due to automation of cutting of sheets on a printing equipment, it is going to lower an error to 0-1%.

• Staff of department of supply had to calculate manually how many material left on issue of any edition, to correlate expenses to supply rates. As a result of a reavtomatization of these processes on the new platform "1C: Enterprise 8.2" and reductions of manual work the speed of work of specialists in supply is increased.

• Settlement with owners is automated. With the help "1C:Enterprise 8" is organized contract management and subjects of copyright, there is a calculation and accounting of remunerations. The publishing house had an opportunity to calculate awards by different techniques: both from production volume, and from sales volumes.

• Due to high-speed performance of a system execution of documentation at distribution of books accelerated. The personnel trading work in three changes at home now, issue of orders happens quickly, waiting time of representatives of the distribution centers and clients is reduced.

• As a result of implementation "1C:Enterprise 8" the EKSMO publishing house can quicker react to changes in a business environment and the legislation. And if earlier the response time on need of change of a system took over 30 days, then today adaptation taking into account new requirements happens in 1-2 days.

• Due to automation logistics and a warehouse the publishing house received the greatest economy of means which is estimated Eksmo at millions of rubles. Work night – the highest paid – change of warehouse workers was reduced and payments for processing decreased.

• Thanks to implemented with the help "1C: Manufacturing Enterprise Management 8" of a subsystem Treasury Top managers of the company regularly receive the authentic and transparent reporting on a status of finance in the company.

Contractors

The project is executed together with Softservice company.

Notes