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2016/10/31 16:30:05

Interview of TAdviser with the CEO of IT Smart Sistemy company Alexander Fedin

Alexander Fedin, the deputy CEO for business development of IT, the CEO of "IT Smart Sistemy", in an interview of TAdviser told about about relevant products and projects.

Alexander
Fedin
the Main emphasis – on own products and solutions

What directions of business of IT company develop in a priority order today?

Alexander Fedin: IT is actively rebuilt and strengthens work with own products, solutions and services, first of all – program. IT always differed from many other integrators in existence of own products, now it played a positive role, and we intend to increase this advantage.

Let's pass to specific solutions. What features of business of gas stations in Russia and how they are considered in the automation system of kompanii «ayti-Oil gas Station?

Alexander Fedin: More than 20 years the IT company is engaged in implementations in the field of oil products supply, more precisely – control automation by trade in networks of gas station, including oil depots as a wholesale link. Unlike normal management systems for trade there are a lot of features here. The first feature: oil products – very specific goods as from a position of accounting and control of its movement, and in terms of physical properties which, for example, seriously change depending on temperature. It is much more difficult to consider oil products, than normal goods. Regarding sale there are also serious features: oil products cannot be sold normally without the specialized equipment – fuel-dispensing columns, and in the Russian conditions at customers such equipment is very different, besides there are level meters and many other things is also in work with them one of our great advantages. And in certain cases the equipment nonintellectual, legacy from Soviet period, and it is necessary to automate work with it therefore we retrofit. Standards for work for gas station with the equipment, of course, exist, but in Russia they cover no more than 20% (in the world – about 50%). Standardize the equipment everywhere would be too expensive, but also it is necessary to consider additional difficulties – regional specifics and a human factor.

The human factor negatively affects quality of oil products?

Alexander Fedin: Now the situation improved a little, but in former times, especially in the 90th years and at the beginning of this century, the quality of oil products, the service level were very low, first of all on it. But also today the human factor, naturally, continues to work therefore one of problems of automation of network of gas station – minimization of its business impact.

What history of formation of an end-to-end system "IT-Oil"?

Alexander Fedin: Began IT with creation of a system of non-cash payments for Lukoil company – "Lukoil-Imperial-Kard" (LIKARD), in 1995. In 1998 we thought of complex automation of fuel retail. Having studied the market, understood that complex approach can give immeasurably more benefits to clients, than only automation of non-cash payments. For example, the oil companies have a central office, subsidiary companies in regions, oil depots and network of gas station – here structure of business. To us only management at the level of gas station was automated actually and that pieces – the check was punched at the checkout, then from the separate panel set a fuel dose on Broadcasting Company and as far as one corresponds to another how many really got to a tank to the client and what quality – practically was a riddle which car owners solved then as a lottery. Any centralized operation corresponding to a management structure of the Tax Code it was also not close.

Respectively what occurred at gas station, in central office learned about it when to solve a problem was already late, and it was not necessary to speak about operational management of business at all. We decided to approach building and control automation systemically, and first of all to fight for efficiency with the losses and the low level of service resulting from action of a human factor and other problems. It was clear to us that, first, the staff of gas station as owing to specific interests it will be often used not for the benefit of the company cannot grant the wide rights for process management. Secondly, the specialists capable it is competent to organize and control trade, by determination it is a little and now, and then in general there were units. They need to be collected in central office, having provided the special IT tool allowing to manage remotely business and to control it.

Thus, we initially began to develop a centralized system, and it was revolutionary approach for the market at that time. Such approach to automation of this business of trade in oil products at that time was not neither in Russia, nor in the world. As a result, we made an end-to-end system of control automation which covers all main levels of this business: Gas station, oil depots and the central office if is, then and regional offices. At the same time at the level of gas station any types of gas stations can be automated: normal gas stations, in a self-service format – Automatic (bezoperatorny) gas stations – across their Russia already more than 200, multifunction filling complexes. I will note that "IT-Oil" is the most full-function end-to-end system of management of gas station of networks for today, and not only in Russia, but also in the world.

What is meant centralized operation of gas station – collecting of reports?

Alexander Fedin: Not only and not just. We mean by centralized operation when reference books are on a centralized basis kept, the range of goods, the prices is set, users of a system are added, the rights are appointed it. In such cases the efficiency of projects turns out very high. Among other we created in 1999 the new version of a system of non-cash payments working with use of proximity cards. Also there is an opportunity to implement complex systems of loyalty with rewards programs for work with private clients.

What platform of a centralized system "IT-Oil"?

Alexander Fedin: All business functionality and all logic – completely development of IT, in principle, as DBMS can be any SQL DBMS since a system not really is considerably tied to it, the main DBMS now – Oracle, the operating system – Windows. But we study and, with real demand in this part from customers, rather quickly we will be able to pass to other platforms, including on Russian and Open Source.

What projects on automation of gas station were implemented based on "IT-Oil" in the context of import substitution?

Alexander Fedin: We, in fact, also began with import substitution when came to this market. One of the first complex projects was implemented by us in 2002, in kompanii «ASPEK (Udmurtia) gas Station network where the solution of the western company, one of world leaders of DrasserWayne worked. In terms of flexibility of a system in respect of solving of tasks and connection of the various equipment the customer stopped as a result on our system, having refused import. The pilot project on three gas stations was originally implemented, then the solution was replicated on all network of the company up to 44 MAZK. And there is a lot of such projects.

It is possible to assume that the last 2-3 years there was activation of replacement of the western software for management of gas station on domestic in connection with import substitution policy. Or still everything is dictated by the interests of business? What new projects managed to be implemented?

Alexander Fedin: Certainly, the interests of business remain on the first place. As trade in oil products - a commercial segment of the Russian economy, more here influences a question of efficiency, and already only then and in the company with state participation import substitution as political factor can be used. So 2010-2012 we implemented implementation based on "IT-Oil" in Novatek company where before more than a year the Israeli Retalix StorePoint system worked. But the customer estimated costs for it, having carried out a pilot project, compared to efficiency of our system, and as a result we automated more than 80 gas stations, MAZK and AGZS (gas stations which at Novatek the majority). Now to Gazprom Gas Motor Fuel companies there is a big project implemented on network of automobile gas compressor stations (CNG filling station) on which methane as motor fuel, too with the specifics is on sale. Before our arrival the solution of MasterSoft company (Latvia) which is now replaced with "IT-Oil" worked there.

What total quantity of system implementations "IT-Oil"?

Alexander Fedin: Now we have more than 80 customers, all more than 1800 objects in the territory from Kaliningrad to Kamchatka, from Dudinka to Shymkent in Kazakhstan are automated.

What it is possible to tell about cost efficiency?

Alexander Fedin: The efficiency of complex automation by our system very high is also visible often directly and quickly. We in a portfolio have projects where as a result of complex automation based on "IT-Oil" growth of turnovers in the system of gas station for the first month was about 30-40%, and it is confirmed officially by the customer.

In what innovation and competitive advantage of a production and logistics system from IT based on the platform of 1C in comparison with the western solutions?

Alexander Fedin: The western systems of this class used in Russia can be subdivided into two views: complex ERP systems, the including WMS subsystems, and specialized warehouse solutions. "Leader" WMS, of course, are very developed and functional, but the solutions proposed by us already are practically not inferior to them, and by cost/efficiency and accounting of the Russian specifics have serious advantages. And here WMS as a part of ERP provided in Russia we consider that we already exceed both on functionality and on some technologies.

Earlier we used in the WMS projects on five platforms, but now concentrated on the solution, TopLog implemented by our partner on the platform of 1C as it flexible, open and more available to the Russian customers. On its basis we create own, rather unique solutions. Besides clients can develop solutions based on 1C not only in cooperation with us, but also independently.

As for technology aspects, process automation level based on this our solution is so high that any more not the person manages a system, and a system the person. Thereby the negative impact of a human factor both in warehouses, and in production decreases. At the same time a system controls accomplishment of orders – shipment terms, quantity, quality, etc. Such approach as a part of western ERP systems is unattainable for most WMS as the ERP system has accounting character that is present also at warehouse system module. Besides, our solution is seriously finished, difficulties, characteristic of 1C, about which users often speak are overcome, – problems with performance and in work with the equipment.

Projects on implementation of the WMS system in Russia and the CIS?

Alexander Fedin: Now we execute the project in Faberlic company where long time in respect of automation of logistics Axapta worked. The decision on replacement of the western system with our solution was made at a stage of expansion of business of the customer. Last year the main distributor center was automated. The task of increase in number of shipments at reduction of staff was set for us, as it was successfully solved. Then production warehouses were automated, now there is a project of automation of distribution warehouses in regions. Within this project in Moscow the warehouse with very high intensity – processing more than 10 thousand orders a day was automated, and recently per day more than one million transactions in a system were executed there. The project on end-to-end industrial automation and a warehouse based on our system was implemented also at Factory of a meat gastronomy "Ariant". There we competed with two western systems – the Dutch NAWI and the German CSB-Systems. During the project we reformatted the logistic project of the customer, optimized shipping process that allowed to save considerably on the used equipment, to reduce influence of a human factor and at the same time considerably to increase efficiency. The customer already replicated the solution on some distributor warehouses, now there is a project on automation of operational accounting and management in production, and further and planning. As a result the full range covering planning, the entering flows, production, shipment and distribution and all on one platform developed by IT company will be created.

Tell about the solution "IT — Automatic Identification" - in what its innovation? Why appropriate to speak about "importooperezheniye"?

Alexander Fedin: RFID technologies develop also in the world relatively recently if to compare to the same automation of warehouses or trade. Respectively, and historical lag from the West on this segment of the Russian IT market is not so big even by experience of projects implementation. The IT company close approached RFID technology in 1999 when we began to be engaged in contactless smart cards and to create different solutions on their basis. And the technology based on smart cards in the technology relation is much more difficult, more intellectual, than RFID tags. It provides also e-wallets, enciphering of transactions, data, traffic and many other things. We got initial experience of necessary technologies already then, and it helped us when the first wishes of customers on use of RFID – we rather easily went and quickly could satisfy them. At the same time we understood at once that it is necessary to develop the universal, platform solution which will allow to implement the projects capable to work not only in trade or at warehouses, but also in other spheres. Such universal platform was created in 2008. Within this solution the centralized software having among other cloud implementation was created. It allows to solve major, geographically distributed problems with the mobile devices ensuring business functionality and functioning with RFID and barcodes far off including is far in regions, supports different RFID tags and an opportunity to finish, configure applied business functions of a system. We study world experience and regarding RFID we do not see at colleagues anything unique and technology unattainable for us any more, and in Russia there is no wide experience and the number of projects with RFID using import software at all. Therefore, in the Russian market it is also possible to speak in this part about "importooperezheniye".

What projects based on "The IT is automatic identification" are already implemented?

Alexander Fedin: More than 40 projects are at the moment implemented, among customers there are largest companies and the state organizations, among them there are a Central Bank of the Russian Federation, Gazprom Neft, SUEK, Svyaztrasneft, MICEX, VKontakte, Promsvyazbank, FTS, etc. Of course, the western economies are more powerful also demand one RFID higher. 10 cents for a tag for the western clients – one case, and the same 10 cents for Russian – absolutely another. Owing to high cost of projects based on RFID in the field of trade and warehouse transactions in Russia are still poorly demanded. The most part of the projects implemented by us based on RFID today – on implementation of systems of accounting and control behind movement of property. Such systems showed good efficiency – before their implementation inventory in the large organizations took months, after – days. But there are also other projects – at the same factory of Ariant holding which we mentioned earlier where RFID is used in production and some other. For example, in clinic of Gazprom on the basis of "IT-AI" a system on maintenance and repair of the medical equipment – a MRO was created.

And the company has foreign clients of a system of identification?

Alexander Fedin: It is a little of them, but they are. The first client is LUKOIL Overseas whose headquarters is in Dubai. There, in central office, we implemented a system of accounting of property based on RFID technology. Within this project all equipment was marked with RFID tags that allows to carry out quickly and effectively inventory, to build accounting and control of movement of property. On the instructions of LUKOIL Overseas we finished a system, and the customer's specialists independently implemented it in Iraq, on objects for oil production. The second customer, also systems of accounting of property based on our solution, – bank in Tajikistan where the solution was implemented by our local partner.

How can priorities of business development of the company in the next two-three years change? What will remain in a priority for certain?

Alexander Fedin: Proceeding from that strategy which is approved for IT as the system integrator it will be focused still on own developments, products, solutions and the systems of the Russian partners. I think, it will not change neither in the next two-three years, nor in the foreseeable future. We always differed from most system integrators in existence of own products. In the conditions of relevance of import substitution and a current economic environment it gives additional opportunities and advantages in the market, and we intend to use them as much as possible.

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