Dmitry Donchenko: A tough regulation of all processes – a key factor of success of implementation of the ERP system

TAdviser: Whether other ERP solution, or some information systems similar to destination were used at your enterprise to system implementation of Microsoft Dynamics AX?

Dmitry Donchenko: Yes, of course. Before implementation of Microsoft Dynamics AX in our company a specialized system for trade – FIT Gestori which worked together with the solution based on a product of 1C was used.

TAdviser: Than you did not accept this sheaf? What motives of transition to Microsoft Dynamics AX were?

Dmitry Donchenko: We wanted to receive the complete system integrating commodity and financial accounting in a common information space. Existence of the separate systems resulted in need of permanent transfer and synchronization of data that caused frequent errors and excessive time expenditure of personnel, for example, of the same accountant.

TAdviser: In addition to achievement of a common information space – whether other purposes before an implementation project of Microsoft Dynamics AX were set? For example, whether the functionality in comparison with the old solution was expanded?

Dmitry Donchenko: No, I would not tell that we significantly expanded functionality. Consolidation of data on activity of the company in the unified information system was a main objective of the project. Nevertheless, within project implementation, certainly, became more accurate and regulated some business processes of the enterprise. It, by the way, led to a certain conflict of interest of personnel – different departments did not want to interact by new, stricter rules as it often happens at ERP system implementation, or in general establishing order and business optimization.

TAdviser: How did you manage to solve this problem?

Dmitry Donchenko: Despotically, if it is possible to be expressed so (laughs – a comment of TAdviser). Just because other exit was not – or all play by new rules, or the project will fail. We could not allow the last in any way. Therefore the tough ultimatum was put: or understanding of a situation and work on new rules, or the sanction, up to dismissal of the employee sabotaging the project. The precise plan in which it was stated who, as to what term had to implement was made. The main blow here, of course, fell on commercial department. Of course, we did not throw them, and explained need of implementation, increased motivation, provided user training. Nevertheless, everything was rather tough – it was required by terms and need of start of new shop that could be implemented only based on a new system. The last circumstance excluded an opportunity "idle".

TAdviser: Whether other ERP systems at a stage of the preproject analysis were considered? Whether some list, the so-called short-sheet of the systems meeting your requirements was made?

Dmitry Donchenko: Yes, we considered other solutions, however at the exit the list was very short. Actually we selected between products of two famous developers – Microsoft Dynamics and SAP. The proposal of the last was significantly more expensive, and we stopped on the solution Microsoft Dynamics.

TAdviser: What causes so short list?

Dmitry Donchenko: Offer. To be exact its narrowness. At the end of 2003 – the beginning of 2004 the offer in the market of ERP systems meeting our requirements was rather limited. Besides, we did not consider the domestic systems in general.

TAdviser: Why?

Dmitry Donchenko: By determination.

TAdviser: What did not suit you in the Russian products?

Dmitry Donchenko: Let's try to draw a small historical parallel. There was a set of the Russian software 10-15 years ago. For example, same well-known Lexicon text editor. Where it now and what his former consumers use? Correctly, most likely, it was replaced by Microsoft Word.

Examples of substitution Russian even if at first good software products, foreign it is possible to give a set. Having laid aside a talk on support of domestic manufacturer, and having taken a detached view of this problem of business – whose party of signs the last? – Obviously to the one who is more reliable. Especially in such infrastructure part of business as high technologies. There are enough difficulties on key activities of the company still to have them in accompanying. Guarantees of reliability, financial stability, a possibility of long-term planning of use of this software product predetermined selection only among large foreign developers. We needed accurate guarantees of support.

TAdviser: 1C was insufficiently reliable solution provider for your business?

Dmitry Donchenko: In a sense not. At least by two criteria. First, this platform did not suit us on performance – the volume of transactions in our company already then was considerable, and the solution of 1C rather slowly processed it. The insufficient functionality on a number of questions, important for us, was the second reason for refusal of a product of 1C. For example, a number of reports in the offered platform just could not be created. Implementation of a management system for access rights raised also doubts – in any case then it was very unsuccessful, in my opinion.

TAdviser: Did you involve consultants to the choice of the ERP system or were based on own experience?

Dmitry Donchenko: At first we independently were defined by sprogrammny providing based on which we were going to construct a corporate information system, and how we selected Microsoft Dynamics AX, we began to select consultants who directly had to implement an implementation project of the ERP system.

TAdviser: What consultants got to your viewing field and by what criteria you selected them?

Dmitry Donchenko: Among others I can remember IBS, Corus Consulting and Columbus IT Russia. One of the main selection terms were the completeness and completeness of the partner solution for retail based on Microsoft Dynamics AX. Like those at the time of the choice had, in our opinion, only Corus Consulting and Columbus IT Russia. Other integrators were also ready to participate in the project, but it would be the experiment on us. So we did not want to risk. As a result implementation of a trade part of a system at us was conducted by Corus Consulting. We studied their experience and functionality of industry solution of this system integrator, considered these indicators satisfactory and decided to deviate not strongly a product and a technique of work of Corus Consulting. We understood that any deviations, need of completions and attempt to create something exclusive, inevitably led to value addition and project deadlines. In this case the project would stretch at least for a year, and due to our approach we implemented a system in 4 months.

TAdviser: Really the industry solution of Corus Consulting so suited your company?

Dmitry Donchenko: Not absolutely. But at first we implemented adequately the basic unit suitable us, and then already independently implemented rather insignificant completions necessary for us. For example, input of the range in the standard solution of Corus Consulting was not regulated. We implemented this part independently. Also we finished approval of agreements for legal department. Moreover, together with Corus Consulting we started only the first shop, all other replication of the implemented system we made independently. And the second shop was started in only two weeks after start of the first. I consider it rather high rate. For example, after recent acquisition of the Yaroslavl retail network, we all in a month transferred to Microsoft Dynamics AX 21 shops at once. The accumulated experience allows us in 1-2 days today to connect new shop. 2-3 more days on an object remain the starting crew which trains new users and performs necessary primary support. Besides, in our company full-fledged Help Desk which also helps with work works.

TAdviser: You work including on franchasing model. Whether franchisees are ready to pass everything to work with Microsoft Dynamics AX?

Dmitry Donchenko: No, of course not. And it can be understood. Implementation of Microsoft Dynamics AX anyway rather expensive pleasure therefore I consider that it is possible to speak about work in this system in case the potential franchisee has not less than 10 shops in network. Some of our franchisees already move in this direction. We try to meet halfway – for example, we perform setup of a system of the franchisee. I think, finally all will pass.

TAdviser: Whether there is your franchisees a problem of the choice of the system integrator?

Dmitry Donchenko: No. Certainly, they will work with Corus Consulting.

TAdviser: According to your recommendation?

Dmitry Donchenko: Of course. Just like that more simply. CORUS Consulting rather well knows all our processes, and we have positive experience with this integrator. I see any reasons to experiment in this area.

TAdviser: Do you completely accept cooperation with Corus Consulting?

Dmitry Donchenko: Completely, of course, never happens, but it seems to me, it is normal. We work in actual practice, but not in a certain ideal model. And it is frequent, to us all, as stated, "it is necessary yesterday". Certainly, the integrator not always manages to react to such requests quickly. Nevertheless, as a result everything is solved, and I consider our cooperation rather successful. In the nearest future at us the new project with this system integrator within which they will make functional modeling of our company starts.

TAdviser: For what do you need one more pack of documents?

Dmitry Donchenko: In order that information which is contained in it was not stored in the heads employees. Moreover, the company large and constantly developing. Also business processes evolve. Personally I think that today I only somewhere for 70% represent, how exactly in parts our enterprise functions. Therefore it is important to record all processes. Besides, as you already noted, we actively work on franchasing model, and our partners need the normal description of processes. Otherwise they will understand two years all events and when, at last, understand, the reality will appear already other. Nobody needs it.

TAdviser: What functionality of Microsoft Dynamics AX was implemented as a result of project implementation?

Dmitry Donchenko: As of today's moment at us are started all trade – from marketing before detailed accounting, finance, personnel management, payroll, fixed assets. Most likely, we will not implement any regular functionality of this ERP system any more. The current level quite suits us.

TAdviser: How about a business intelligence? It is implemented based on the external BI solution?

Dmitry Donchenko: No, all OLAP analysis forms at us regular means of Microsoft Dynamics AX, and this information quite suits us.

TAdviser: Whether there was a period in which both the old, and new systems functioned?

Dmitry Donchenko: Yes, it lasted about a year. The reporting anyway should be handed over – and at first it became in 1C. Somewhere a year later after implementation of a new ERP system we closed the reporting in Microsoft Dynamics AX. It was necessary to debug a system, to train accountants, to develop really effective and universal codes of analytics. Today we keep the reporting under two standards - under RAS and according to IFRS. In total we apply 4 universal codes of analytics which penetrate all reporting. It allows to prepare the reporting with any detailing and at the same time to reduce quantity involved in this process of personnel.

TAdviser: What can you advise the companies which are going to implement the ERP system? What it is necessary to make that the project was successful, in your opinion?

Dmitry Donchenko: I consider that a tough regulation of all processes and stages of implementation the ERP system – the main condition of successful project implementation. It is impossible to automate something in a mess and chaos. However after a failure many are all the same inclined to blame to the business logician of a system, to hope for uniqueness of the business processes, etc. It is not always right. It is necessary to execute accurately a certain sequence of actions, and then everything will be normal.

Besides, it is necessary that top management realized importance of implementation of the ERP system. Without support from this party the project, most likely, is doomed to failure. In our case I directed the project personally. In our company I am responsible for finance department and IT department. Besides, other company management also actively controlled process of implementation of the ERP system on key indicators.

TAdviser: Thanks.