SAP ERP for 1.5 billion rubles in RusHydro: project Progress

About the Project

In November, 2013 RusHydro determined the winner of competition on execution of works by implementation of a single automated system based on SAP ERP for support of financial and economic management of the company.The Technoserv company which suggested to perform works for the amount of 1.547 billion rubles became it. The maximum price of the contract was a little more - 1.562 billion rubles. The agreement on execution of works of the company was signed in December.

In addition to Technoserv BDO and Ernst & Young also participated in tender.NVision Group companies,the Lanit,IBS,BearingPoint and IT which also submitted applications were not allowed to participation in biddings.

As it appears from the published project documentation, a new system should provide support of such processes as conducting accounting and tax accounting and also financial and economic planning and control, including control of contractual commitments and treasurer execution, the liquidity management and financial risks, conducting management accounting, reporting, etc.

Besides, a system should automate purchase management of RusHydro, including - approval of technical requirements for holding procurement procedures, formation, approval, a statement and control of execution of the annual comprehensive program of purchases, carrying out expert evaluation of requests of participants, reporting and the analyst and some other processes.

Objects of system implementation are the executive office of RusHydro and 19 branches of the company, said in the project documentation.

SAP on replacement of 1C

At the time of purchase in RusHydro the automated system of corporate accounting and the reporting and financial and economic management based on "1C:Enterprise 8" was used. Project completion on deployment of this system in all branches "RusHydro"it was announced in 2010. This system, as well as the planned SAP ERP, covers processes of budgeting, budget performance monitoring, managerial, accounting and tax accounting.

"In case of SAP implementation the ERP system of 1C will be replaced, - told TAdviser in the press service of RusHydro.

Concerning the reasons of replacement of 1C by SAP regarding functions of financial and economic management in the company noted that this solution is selected "as one of the most modern of the platforms presented at the market capable to satisfy business needs of large enterprise, such as RusHydro. At the same time the architecture of the selected platform allows further expansion for the purpose of a scope of other functional areas, added to the companies.

Project Progress

In February, 2014 Technoserv reported on end of the first stage of SAP implementation of ERP in RusHydro. Within it consultants Technoserv conducted an interview with key users of the implemented system based on which they defined a range of requirements to its credentials and specified the list of functional tasks, tell in the company.

In addition, the analysis of the integrated information systems entering a project circuit was carried out. Also in divisions of financial and economic management of RusHydro relevant business processes, organizational and administrative documentation, regulations of work, a current status of the normative reference information were analyzed.

Based on the carried-out analytics forces of the joint working group with specialists of the financial and economic block of RusHydro created the register of the existing business processes to the 3rd level inclusive and vision of future integrated system is developed.

Development of the concept of process automation of financial and economic management, including formation of control performance indicators of implementation became a final stage of this stage.

In Technoserv did not specify TAdviser whether the company of subcontractors on the project attracts, having noted only that she is its main contractor regarding SAP implementation of ERP.

Technical requirements to the project assume execution of works in total in three stages: the large-scale design stage and development of the system of financial and economic management should follow formation of the concept of automation, and then - directly implementations.

For the purpose of acceleration of introduction of a system to operation parallel development of functional modules, said in technical requirements is supposed. The general project duration, according to plans of RusHydro, should not exceed 52 months.