The Tekhnodinamika holding refused to implement the SAP products purchased for 134 million rubles

2017: Failure from implementation

In 1 quarter 2017 of Tekhnodinamik it refused the project on SAP implementation which as the company expected, had to the project on implementation of the ERP system, largest in Eastern Europe, in aircraft Based on Air equipment holding become started^[1]. In March told TAdviser about it two sources close to Tekhnodinamika and IT, knowledgeable about a status, in the company. According to one of sources, the investment committee already made the decision on the termination of the project of SAP.

In Tekhnodinamika (at that time carried the name "Air equipment") the company announced plans for implementation of the ERP system of SAP in 2014. Then she signed the three-year agreement on delivery of a SAP software of 174 million rubles with SAP and RT-Inform. RT-Inform told TAdviser later that their company delivered to Tekhnodinamika of the license SAP software for the amount of 134.4 million rubles.

Before the decision on failure from the project was made, in 2016 Tekhnodinamik looked for the contractor on implementation, but these attempts ended with failure (see history below).

Tekhnodinamika refused the project on SAP implementation which started in 2014

The source close to Tekhnodinamika says that earlier purchased licenses softwares, most likely, will be used in other enterprises of Rostec: in some of them SAP implementation is planned. The agreement between Rostec and SAP allows to make it, he says. On what conditions and to what "subsidiaries" of Rostec licenses will get, the source preferred not to specify.

Other interlocutor of TAdviser, on the contrary, considers that at all desire it is not implemented: "most likely, will write off for losses or will put software on a regiment till the best times". According to it, the agreement does not allow to use licenses at other enterprises, the rights to software are activated on Tekhnodinamika.

One of interlocutors of TAdviser notes that tightening of terms at the first stage of the project was not. In 2014-2015 in addition to delivery of software the contractor - RT-Inform - also performed a number of works, including preparation, design of systems, testing.

The second interlocutor, on the contrary, believes that the project dragged on. Among the reasons he calls an economic situation at the beginning of 2015 and the changed currency rates, duration of procedures and some organizational moments.

The decision to refuse SAP implementation was made with change of strategy of management of Tekhnodinamikaya which happened after appointment in December, 2016 of the new CEO Igor Nasenkov.

New strategy assumes new approach to business processes, in particular, their decentralization, and large-scale reduction of staff, including the IT state, was told by one of sources of TAdviser. Earlier TAdviser wrote that the company was left by the Chief information officer Alexander Krasnov and more than 50 IT specialists.

Costs for IT were minimized and a number of large IT projects "is frozen", and tasks of the current division of IT were limited to support of architecture, tells a source.

In addition to the ERP system of SAP in Tekhnodinamika, according to TAdviser, for example, also some other projects among which - implementation of uniform EDMS in the company was also stopped. The company was going to implement solutions of DFS Office Solution for standard processes of document flow and DFS Contract Solution for review of agreements on the SAP platform. According to one of sources of TAdviser, the project was stopped, despite a successful completion of the first stage in December, 2016.

Earlier some business processes were already centralized based on 1C: for example, the processes connected with finance, purchases, sales, production planning. After change of strategy of the company these processes were partially decentralized, tells the source of TAdviser well familiar with a status of IT in the company. At the same time, complete decentralization of processes is not planned, added a source: just they will be conducted in other format and with more considerable participation of Tekhnodinamiki affiliated enterprises.

Official representatives of Tekhnodinamika at the time of the publication could not answer questions of TAdviser.

2016: Attempts to select the contractor on implementation

Attempt No. 2 is failure again

RT-Inform recognized cancelled a competitive procedure for the choice of the contractor for execution of works,ERP connected with SAP implementation for the benefit of the aerospace holding "Tekhnodinamika" entering into Rostec Group. The relevant protocol was published on August 10, 2016 on the portal of state procurements in documentation to tender^[2].

According to the solution of a tender committee, the only application submitted by National Center of Informatization (NCI) company was rejected on an absence reason in its structure of a number of obligatory documents. In particular, there was no technical proposal and the certificate of personnel resources.

Tender on implementation of ERP with the starting price of 216.3 million rubles^[3] in July, 2016 was announced. The request price from NCI was 206.6 million rubles that honor for 10 million rubles below the initial cost of the contract.

As wrote before TAdviser, SAP expertize in NCI appeared after transition of a command from Central Research Institute EISU which was engaged in SAP implementation in the Ministry of Defence.

Within the SAP ERP project it had to be implemented at four enterprises "Tekhnodinamiki". Pilot implementation with the contractor and the subsequent replication of a template of a system a team of the customer was supposed. On execution of works on the project 48 weeks were allotted to the contractor.

This procurement was conducted for the second time. The first time biddings with the similar price and the technical project were carried out^[4]in February, 2016 and came to the end to trials with FAS and the subsequent failure^[5] from purchase in April.

Failure from carrying out that purchase in Tekhnodinamika explained TAdviser with need to review the tender documentation according to uniform regulations on purchase of Rostec which society joined on April 1, 2016. In July tender the order of purchase execution and the requirement to participants of procurement procedures were changed, told TAdviser in the company. In particular, the new requirement for tender security was added. Besides, edition and structure of documentation were brought into accord with requirements of uniform regulations on purchase.

Attempt No. 1 is failure

The organizer of biddings for the first time Tekhnodinamika acted not as RT-Inform, as in July tender, and. RT-Inform then was one of participants of tender and it was his winner. At biddings it was competed by ASAP Consulting company. In addition to them the application for participation was submitted also "By IT of an enerdzha service", however it was rejected as the company did not provide the documents confirming possession of the rights to rendering implementation services of SAP including a number of certificates.

In March, 2016, lost ASAP Consulting filed a complaint to the Federal Antimonopoly Service (FAS) to actions of the customer. According to the company, it got lower point at biddings, than deserves because the customer considered incomplete a packet of the documents provided by it confirming qualification for execution of works.

Requirements to qualification included need of presence at the participant not less than three specialists who can be involved to examination, having experience of implementation international (not the CIS) projects on functionality of production planning. It was necessary to confirm qualification certified by the employer the summary, with indication of projects, with documents, confirmatory that the employee at project implementation was on the staff of the participant of the competitive procedure.

FAS recognized Tekhnodinamika the broken law on protection of the competition

At the same time, noted FULL FACE, the tender documentation allowed participation in biddings of the collective participant (provided by consolidation of legal persons of individuals, the relations between whom are issued in accordance with the terms documentation on purchase). Such request was also directed by ASAP Consulting, said in the FAS decision. The legal persons included in the request - "Ernst & Young of IT" and "Ernst & Young - assessment and consulting services". ASAP Consulting provided all necessary documents, except for confirmation of finding of the employee at accomplishment of the international projects in staff of the participant of tender, as caused a shortage it points.

FULL FACE studied circumstances of tendering and came to a conclusion that inclusion of Tekhnodinamikaya in the tender documentation of the requirement about finding of the employee at accomplishment of the international projects in staff of the participant of tender led to restriction of the competition at biddings as ASAP Consulting had required specialists, at the same time, owing to features of the international practice, the stated specialists do not enter into staff of the Russian companies, and are involved under agreements. Thus, FAS recognized the complaint of ASAP Consulting reasonable, Tekhnodinamika - the broken law on protection of the competition and directed it to eliminate the revealed violations.

After that Tekhnodinamik reported^[6] on canceling of earlier approved protocols on a result of tender and intentions to hold the auction again. No later than May 4, 2016 the company undertook to place the corrected tender documentation in which there will be no requirement about presence of specialists "in the state".

Tekhnodinamika then told TAdviser that requirements competitive documentation when holding procurement procedures on rendering implementation services of SAP ERP are prepared for involvement of the participants having experience, necessary for such complexity of the project, and capable practically to confirm it, namely - skills of implementation taking into account existence of certificates of SAP, the international experience and examination. The criterion of presence of experts with the international experience allows is guaranteed to receive the reference solution of settings of SAP taking into account the specified international experience and best practices of implementation of the industry with discrete production, such as at the enterprises of Tekhnodinamika holding, speak in the company.

The Tekhnodinamika holding, certainly, fulfills the requirements of the legislation and inspection bodies. All instructions of the Moscow OFAS are executed. The tender documentation is corrected and published on the page gozzakupok, the new term of summing up is respectively appointed to May 11, 2016, - noted in Tekhnodinamika.

At the same time, at the end of April, 2016, the company published failure from purchase execution.

2015: Russian did not suit software

In May, 2015 Rostec concluded the memorandum of cooperation with 1C ^[7], the providing implementation of software tools of process automation of management and production at the enterprises of corporation. In the same month Rostec concluded the memorandum of cooperation and with Galaktika ^[8]. The purpose of cooperation specified creation for the enterprises of Rostec of import-independent modern management systems.

Tekhnodinamika told TAdviser that in selection process of the software for ERP their company considered domestic software which "unfortunately does not correspond requirements of holding".

The matter is that the solution which is selected by us is used by leaders of the aviation market for integration of production processes, financial management and management to assets. ERP is an important component for development of holding as the transparent company clear for investors and reliable for the international partners, increasing the cost of the company to 40% and doing its purchasing system, management and resource management clear, fast and the most effective for holding and its enterprises", - told in Tekhnodinamika.

Before Tekhnodinamik announced the plans to enter international market. In October in the company declared determination for it and passing of certification of a quality management system on the international standard AS/EN 9100 - a necessary condition for cooperation with foreign customers.

"According to strategic problems of development of holding - entry into competitive market on an equal basis with global manufacturers of the aviation systems, optimization of internal business processes and increase in efficiency - the decision of further development of information systems based on SAP of the ERP system which is earlier approved with owners on behalf of Rostec Group is made, - noted in the company.

Tekhnodinamika added that, in view of a problem of compliance to the raised security level and data protection, SAP conducts full-time work on gain of the security level and level of data protection on standards of certifying authorities. As the example, integration of SAP HANA with Astra Linux, will allow to complement the solution of the Russian developers with the innovative technologies of SAP allowing to analyze any volumes of unstructured information in real time and at the same time to observe and strengthen the royal requirements for ensuring information security and confidentiality, certified on compliances to security requirements of information from the Ministry of Defence,FSTEC,FSB.

Requirements to IT – architecture of industrial enterprises

• readiness of company management to delegate IT  a role of the driver of development, optimization and  changes: implementation of the IC -  first of all, business transformation and  organizational conversions;
• compliance of the current information environment and  IT systems, to the purposes and  problems of development of the company (strategic objectives of the company), and  respectively decomposition of business objectives on  architecture and  the IC platform;
• ensuring smooth and  steady operation of systems for the enterprise;

availability of services and  services to users of systems: the transparency and  dialog with  business is important (management of expectations, active participation of experts from  business in  the joint solution of an assigned task, etc.);

• management efficiency of IT   based on best practices and  standards (ASAP, COBIT, ITIL, SLA, etc.);
• efficiency of solutions on  development and  implementation of IT systems for internal investors and  business customers (return from  investments into  IT, a payback period, measurable for business of benefit, optimization of total cost of ownership, etc.)

The report "Modern requirements of industrial holding to ESM – to systems" 3/28/2017 the Conference of TAdviser

Current IT landscape (as-is)

Target IT landscape (to-be)

Reasons of initiation of the project

• Lack of uniform methodology of records management, record keeping order in UK, integration of processes of office-work with DZO.
• Service structures are not aimed at provision of services in accurately specified time frames.
• Lack of a single system of document flow in holding.
• Absence of uniform electronic archive.
• Low high-speed performance of the existing workflow system (at the standard of an indicator 1, actually no more than 0.4 apdex).
• Accomplishment of standard transactions of document flow is not ergonomic, not intuitively (in connection with specifics of the interface of the operating system).
• Lack of integration into the workflow system of Rostec Group.
• The large volume of exchange of documents with DZO by means of paper carriers and e-mail.

Project Objectives

• Creation of methodology of records management.
• Standardization of rules of work with documents.
• Increase in transparency of processes of office-work and control of discipline.
• Creation of electronic archive of documents.
• Organization of creation and storage of electronic documents, management of lifecycle of documents.
• Creation and implementation of tools of control of instructions (measurability of processes of document flow and their execution at the scheduled time).
• Ensuring registration of correspondence and ORD of DZO in ESED.
• Formation of a common information space with DZO within problems of document flow and control of execution.
• Ensuring interrelation of the paper document with the digital copy in the workflow system.
• The organization and creation of legally significant document flow with key partners and all DZO.
• Integration into the workflow system of Rostec Group.
• Sending mail correspondence on electronic communication channels.

Organizational framework of the project

The organizational scope of the project covers the enterprises included in a guidance loop of JSC Tekhnodinamika ( more than 3,500 users) and includes: 

Functional borders

• organizational and administrative documents (OAD);
• incoming documents (correspondence);
• outgoing documents (correspondence);
• internal documents (orders, orders, SZ, protocols);
• instructions, powers of attorney;
• agreements and supplementary agreements;
• tender documentation and process of approval (to requirements 223-FZ);
• electronic archive of primary documents;
• identification of legally significant documents;
• requests of buyers and connected document flow (delivery note, protocol of the prices and other);
• observance of requirements 275-FZ (GOZ);
• processing of the entering primary documents (the shipping documentation, accounts, invoices);
• stream input and identification of documents for information systems – consumers;
• integration into accounting ICs and workflow system of Rostec Group;
• integration with a subsystem of the normative reference information (NRI).

ECM: processes and subprocesses

2014: Purchase of software licenses of SAP

In September, 2014 Tekhnodinamik (then still, before renaming, carrying the name "Air equipment") purchased at RT-Inform of the license SAP software. The contract with the maximum capacity of 174 million rubles is expected three years. In December, 2014 the company reported that it concluded with RT-Inform and the Russian representative office of SAP "unique agreement on scale on implementation of the systems of SAP". In the message about it the holding called it the project on implementation of the ERP system, largest in Eastern Europe, in aircraft.

It is planned that the information SAP ERP platform will be completely implemented by 2017. Economic effect of system implementation for Air equipment, is calculated by the amount about 400 million rubles and will be reached due to acceleration of turnover and release of working capital, increase in efficiency of personnel, increase in loading of the equipment and decrease in production costs. In addition, according to the experts, implementation of the project can increase capitalization of the company to 10%.

Among the planned Tekhnodinamiki projects - production of component parts for the Sukhoi Superjet 100 airplane

The system of SAP will cover all basic processes of activity of holding, such as production management and sales, tax accounting, accounting and management of financial flows, purchases and inventory management, personnel management and payroll, management accounting and controlling.

Problems of the ERP system include cardinal increase in accuracy and detail of planning that leads to cost reduction due to increase in loading of the equipment, to stock reduction of materials in warehouses, reduction of a cycle of production and also to reduction of risk of accomplishment of orders due to predictability of production time taking into account loading and delivery dates of materials. Also a system will allow to increase quality and speed of acceptance of management decisions that will affect increase in efficiency of use of all resources of the company. And the transparency of a system will allow to reduce risks and to increase attractiveness for investors and banks.

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Implementation project "1C: Enterprise" at one of the Tekhnodinamiki enterprises - in Air equipment holding.

Notes