Severstal "switched to next-generation ERP - SAP S/4HANA

2021: Complete the transition to SAP S/4HANA

On December 28, 2021, Severstal announced the completion of the transition to the SAP S/4HANA platform, which replaced the previous SAP ECC 6.0 system. The productive start of the system took place on November 1, 2021.

SAP S/4HANA is a digital core to which Severstal's 26 enterprises are connected in 35 geographical locations and which takes into account the company's production operations, resources, financial results and assets. Up to 20 thousand people work in the system every day. The transition to another platform was required for two reasons. Firstly, support for the used version of SAP will be completely discontinued at the end of 2027, and an earlier transition allowed to comfortably debug and stabilize processes. New SAP solutions are already building on SAP S/4HANA. Secondly, Severstal aims to accelerate the introduction of new IT solutions in the company, and improvements to the previous version of the ERP system could greatly slow it down.

Источник-nversia.ru

The change in the technology platform allowed to increase the system performance, increase the speed of processes and the speed of further development to improve its operation. In addition, it became possible to record financial results not by individual business units, but by streams (upstream and downstream), which reflects the existing organization of the company. The platform also allows you to compile end-to-end reports for the entire group of companies.

Severstal specialists managed to reduce the number of non-standard developments in the system by almost 3 times. The project team standardized many business processes and as a result abandoned 1,601 of 3,090 development packages and 1,805 of 3,294 unique reports. By standardizing processes and reducing the amount of code, system performance is improved, and changes are already being implemented 2x faster. In the future, on the basis of the system, it is possible to develop machine learning and integrate software robots that will optimize and accelerate business processes.

"Such starts are complex: our project is aimed not at technical conversion, but at introducing updated business processes, that is, a lot -" from scratch. " The team and I analyzed the existing processes, got rid of the unnecessary and irrelevant, changed the logic of adapting the standard functions of the system to target business requests - these are hundreds of organizational and technological changes. The project was implemented in a pandemic, and the entire project team switched to remote operation. No one has done this scale of implementation remotely before us. The switch to another system was made without negatively affecting the daily business of the company. 64 adjacent systems and 501 integration scenarios were successfully switched to SAP S/4HANA without significant failures in the adjacent processes. Starting from the fourth day, CherMK - Severstal's main enterprise - began working according to the production plan formed in the system based on SAP S/4HANA. On the eighth day, most users began to carry out the usual business operations in SAP S/4HANA, and by the end of the second decade we went online for most transactions. This is the great merit of both IT specialists and business teams: building business logic of processes, testing solutions throughout the production chain and launching the system were carried out jointly through a hybrid methodology that combines classical project management tools and flexible development methods. The tasks facing Severstal can only be solved with new functionality, and SAP S/4HANA provides this opportunity, " commented by Sergey Dunaev, CEO of Severstal Infocom

"The successful start of SAP S/4HANA in Severstal is an important event for the entire SAP ecosystem. This is an example that many limitations can be overcome with clear purpose, sensitive control and the ability to assemble a strong team. The implementation of SAP S/4HANA for a vertically integrated company according to the Agile methodology is possible only if the same team of business and IT works together. Then the simultaneous start at a dozen production sites is able to. I am sure that the start of operation of SAP S/4HANA is only the starting point for Severstal's new IT initiatives. The level of penetration of SAP solutions into the company's processes has set a high level for the project team. First of all, it was necessary to preserve the quality of the system for the business user and return to the standard functionality as much as possible. In 2022, you can switch to developing the new capabilities laid down in SAP S/4HANA, " noted Alexey Leontovich, Deputy General Director of SAP CIS

2020: Replacing SAP ERP with SAP S/4HANA

On April 27, 2020, SAP CIS announced that Severstal began the process of developing the transition to the latest generation SAP S/4HANA platform in the first quarter of 2020, which will replace SAP ERP. It is expected that the full implementation of the platform will be completed in October 2021.

The platform will become the "digital heart" of Severstal, with which are integrated dozens of systems. IT Both the business team is involved in the implementation of the project, which allows you to take into account and meet the needs of the business already at the development stage. business processes All functions whose employees are direct users will be involved in the upgrade. SAP ERP The implementation of SAP S/4HANA in Severstal, unlike most other companies, will occur without stopping the development of key processes, which will allow all departments to continue working as planned.

The peculiarity of the project is the use of standardized processes and the rejection of a significant part of its own program code. With faster interoperability, better business processes and end-to-end performance tracking, SAP S/4HANA will add value to Severstal.

This project is special for us in terms of external conditions and approaches to the organization of work. As we move towards transformation in line with ambitious goals, we will change during the implementation of the SAP S/4HANA platform. This is a big challenge for the company, involving not only a change in the digital platform, but also a critical revision of everyday practices, process organization and cross-functional interaction, noted Alexander Shevelev, CEO of Severstal

Investing in innovative instruments is more justified and justified than ever. Companies that have achieved a certain digital maturity change faster, adjust processes to external changes, and more easily find points of growth and development. Severstal is an example of a company that systematically and structurally implements digital projects. And SAP S/4HANA is really the tool that will become the basis and support of all the company's further initiatives in this direction, commented by Alexey Leontovich, Deputy General Director of SAP CIS

2015: Migration from Oracle to SAP S/4HANA

On October 21, 2015, Severstal announced the company's internal project - the combination of systems automating the production and production processes of^[1].

Project Task

The company abandoned the use of the Oracle platform and is replacing it with the SAP S/4HANA system.

Severstal aircraft (2013)

Project Progress

During the transition to SAP S/4HANA, the company replaced traditional servers with equipment on the in-memory platform.

Yuri Shekhovtsov, the Chief information officer, Severstal answering a question from Cnews about changes in licensing fees rubles in foreign vendors, noted: "All foreign companies present in Russia can be conditionally divided into three categories. The first consider business in Russia promising, despite geopolitical problems, primarily this. Microsoft With SAP us, we Microsoft concluded a three-year agreement in rubles even before the rate jumped in 2014 dollar and now we live in its framework. Since October 1, 2014 SAP , he converted the cost of European contracts into rubles at a rate of 58.7 per euro, rubles which is lower than on the day of conversion. The second group of suppliers is still thinking about how to go this way. And the third group belongs to the category "and we don't care," this, for example,. I Oracle hope that the realization will come to them that the Russian market and in general any local market is not a subject of global corporate policy. On the other hand, everything probably depends on how promising this or that corporation sees the local market. "

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