Dmitry Romanchenko: New requirements of the legislation on personal data – not a problem, but chance to upgrade HR-and other business systems of the organization

Whether requirements of the legislation on personal data emerging market of HR systems in Russia is affected?

Dmitry Romanchenko: Very often at communication with customers the legislation on personal data is understood as only federal law No. 152-FZ "About personal data", the "three-headed" order on classification of personal data systems and a packet of regulating documents of FSTEC of Russia on protection of such systems. Considerably this understanding is caused by hyperactivity in the market of those organizations which always specialized only in delivery of products on IT security.

Nevertheless, the legislation on personal data first of all is aimed at a regulation of processing of personal data in the organizations and individuals. As work with personnel in any company or organization is impossible without means of automation now, change of requirements for personal data processing will inevitably have significant effect on structure of the Russian market of HR systems.

For anybody not a secret that the market of HR systems in Russia is significantly segmented. Whether you assume change of proportions of the market in connection with the aforesaid?

Dmitry Romanchenko: By consideration of market situation it is necessary to analyze a set of the factors characterizing HR systems. I want to note the following: "conditional" separation of the market into the HR systems of the corporate level and HR systems for the small and average organizations; HR systems which are logging in an ERP class and independent solutions; the full-function solutions and solutions implementing only accounting functions (the personnel, the sheet, salary). The forming legislation about personal data leads to the fact that some classes of solutions get strategic advantages. The market of the HR systems of the corporate level is the most dynamically changing. Anyway, practice of use of the legislation on personal data will lead to a bigger market segmentation in general.

Why the problems connected with HR systems in FZ-152 light "About personal data" cannot be considered "is localized" in a separation from other information systems of the organization? At first sight the idea to create the "ideal" HR system protected according to requirements of the legislation and regulators seems attractive.

Dmitry Romanchenko: According to us, such approach is deadlock. Its limitation is characteristic of those consulting companies which analyze the target organization in terms of "systems", jobs and databases. Modern approach to which we adhere, assumes that the organization should be considered as set of business objectives, business functions and business processes. Business systems and software products should be considered as derivative of aforesaid. At such approach becomes obvious that separation of personnel processes from other "production" processes in principle is impossible, and it to make attempts will do to the organization irreparable harm.

Your answer assumes that for satisfaction will be forced to change requirements of the legislation on personal data of the organization architecture of the implemented systems?

Dmitry Romanchenko: Before changing architecture, it is necessary to carry out inventory of business functions, processes, systems and means. Our experience prompts that in the large organization often many business functions "are sprayed" on divisions and if there is no uniform CIS, they are often duplicated. Inventory of systems and means of the organization in itself gives positive effect. So new requirements of the legislation on personal data should be considered not only as a problem, but also as chance for the organization to increase efficiency and to reduce costs.

If to consider the organization as set of business objectives, business functions and business of processes, then the output that the organization during change of a landscape of the business systems should select the best in the class for each business function arises. Do you agree?

Dmitry Romanchenko: Such output is obvious only at first sight. Considering a factor of coherence of all business processes and as a result of coherence of business systems, between different information systems there are "integration seams" which become a bottleneck in development of the organizations over time. Considering such diverse landscape in the light of requirements for security of personal data, becomes obvious that the complexity of a problem of creation of an adequate system of protection increases many times over. As the majority of the autonomous "production" systems in this or that type use personal data, such landscape should be considered as set of the interacting HR systems. Requirements for security of personal data will extend to each of them, and not just to the departments which are directly dealing with issues of personnel, accounting of work and salary. From this point of view the prize from use of corporate systems of an ERP class becomes obvious.

In what do you see an opportunity to reduce costs of the organization in the course of reduction of systems in compliance with the legislation on personal data?

Dmitry Romanchenko: Carrying out the complex analysis of business objectives, business functions, business processes, business systems and the used products and technical solutions, the organizations need to estimate expediency of reengineering of business systems with transition to modern CIS of an ERP class. At noticeable initial investments the effect of economy is reached for the account:

• the unified technology stack of a system;
• the centralized model of storage and data processing, including personal;
• lack of duplication of personal data in different applications;
• lack of data processing in workplaces of end users;
• single solutions on information security;
• uniform support, including possibility of complete outsourcing of support of a system (business functionality, equipment rooms and software tools, security infrastructure).

IBS Borlas specializes in products and solutions of Oracle. What advantages can use of the specified solutions for creation of HR systems give to the organizations?

Dmitry Romanchenko: Unfortunately, sometimes customers still perceive Oracle as supplier of DBMS. Really, Oracle DBMS de facto is the standard of data storage in the corporate sector. However, Oracle is also the largest supplier of business systems (OEBS, Hyperion, People Soft, Oracle CRM and other) and also technologies of an interface layer. Technologies of an interface layer as one of essential components contain integration solutions. Actually, Oracle offers an integration bus for "smooth" integration of different applications and systems. In most cases integration is just performed concerning the data connected with management of personnel. The personnel management system of Oracle (HRMS) which is a part of Oracle E-Business Suite is considered as a reference system supplying (and obtaining) personal data in all systems of the organization. Really, becomes the corporate standard when in the course of acceptance of the employee in the organization and his design in a HR system, it automatically is registered further in all other systems of the organization, and it concerns not only business systems, but such basic systems as e-mail, an electronic document management system and other. Sales opportunity of such automatic procedure becomes possible on the basis of use of "functional profile" of the employee. For the solution of this task products of Oracle for management of identification in total with Oracle HRMS are successfully used.

The organizations often ask a question how "western" solution conforms to requirements of the Russian legislation regarding personal data.

Dmitry Romanchenko: Really, the situation when the western solutions for personnel management, but for a part of tasks are implemented (for example, formation of the regulated reporting) sometimes takes place the Russian products are used. By Oracle HRMS it is deprived of the specified shortcomings. Official Russian localization of Oracle HRMS which developer is IBS Borlas completely conforms to requirements of the Russian legislation. It means that all regulated processes of an accounting circuit (the personnel, the sheet, salary) are implemented in full, including formation of all necessary reporting in a paper and electronic form. Besides, Oracle HRMS is the full-function HR system implementing all tasks arising during the work with personnel: personnel recruitment, assessment, training, management of a compensation packet, work with a talent pool and other. For big customers it is reasonable to use in total with the ERP system the system of a business intelligence Oracle BI. Here not only instruments of OLAP processing and the analysis, but also the preconfigured analytical reports (Oracle BI Apps) are offered. This solution is "seamlessly" integrated with Oracle HRMS within a uniform technology stack. For protection of the considered systems the packet of products, solutions, techniques and documents which IBS Borlas regularly implements in implementation projects of HR systems is used uniform.

Creation of such difficult complete solution assumes presence at the customer of the developed support service. Whether assists IBS Borlas to customers in creation of such service?

Dmitry Romanchenko: Really, existence of support is a necessary condition of functioning and development of CIS of the organization. IBS Borlas is the center of support Oracle of the first line both for business applications, and for basic products of Oracle. Support extends including to a HR system. It means that IBS Borlas guarantees maintenance of compliance of a HR system to requirements of the changing legislation, and all changes with guarantee come out before entry into force of new requirements. Such level of support is provided with permanent monitoring of the legislation and implementation of all new requirements within the released updates, patches and instructions.

IBS Borlas also implements a number of projects of complex support according to the scheme of complete outsourcing. It assumes that the customer charges to IBS Borlas to perform support not only business functionality of the implemented systems, but also server and network equipment of DPC, operating systems, software of security, network infrastructure. When using of the described scheme the customer gets notable advantages in the form of the uniform center of responsibility for functioning of a business system, an exception of the conflicts and contradictions with different vendors, the high speed of reaction to the arising problems within the uniform agreement. Such scheme also allows to implement complex requirements of the legislation and regulators to work with personal data in the organization.

Summarizing told whether you can answer briefly, whether it is necessary to consider change of requirements of the legislation on personal data only as a vital issue for the organizations or how additional chance?

Dmitry Romanchenko: We suggest customers to consider these changes as new chance to upgrade a HR system in the organizations and also other business systems, having refused "zoo" of information systems and technologies. Experience of a set of complete IBS Borlas of projects shows that for the average and large organizations such approach when using products and solutions of Oracle more than is justified. This approach reduces costs and also minimizes risks of the organization including in the light of possible sanctions for violation of requirements of the legislation on personal data.

The TAdviser center conducted an annual research of the market of personnel management systems in Russia. Unique statistical data about implementation of HRM systems are provided in this overview in free access, the functionality of modern solutions is described, recommendations about the choice of systems are provided. Chief information officers and suppliers impart experience creations of effective information systems.

• Classification and functionality of personnel management systems
• To whom and when it is necessary to implement a personnel management system?
• Volume, dynamics, and structure of the world market of the automation equipment of HR departments
• Top trends and forecasts of development of the world market of HRM
• Suppliers of HRM systems: leaders in different segments
• Russian market of HRM systems: volume and trends of 2010
• HRM systems: completeness of functionality and experience of implementations in Russia 2010
• Methods, approaches and problems of implementation of HRM systems
• TCO: How many will" the information system "cost"?
• As it is correct to select a HRM system: methodical recommendations
• NORDIS/2: Personnel management. One of subsystems of the corporate information system (CIS) of NORDIS/2 of the Novosibirsk developer "Alekta"
• Molga HCM Fast startpredvaritelno the customized (packaged) personnel management system based on the SAP solution ERP HCM (SAP HR).
• Implementation project of a personnel management system based on HCM SAP ERP for retail chain stores of Eldorado Molga Consulting company

• Elena Babaylova: The high level of qualification of personnel – a basis of our work. "Federal Grid Company of the unified power system" (JSC FGC UES) brought into commercial operation a personnel management system based on HCM SAP ERP. For what this system is necessary the companies and what project deliverables, in an interview of TAdviser Babaylova Elena, the deputy chief of Department of information technologies of JSC FGC UES, the Project manager of SAP implementation of ERP HCM told.

• Oleg Baydin: The flexibility of iScala HRM allows to follow requirements of the Russian legislation which is not differing in constancy. For several years of JSC Chelyabinsk Zinc Plant completely transferred the main business processes of the enterprise to the iScala platform. Automation of accounting of personnel and payroll for 3000 employees of the company became one of essential stages of this large-scale ERP project. What nuances the plant faced during this stage and also Oleg told CIO of Baydin company about the impression of the module iScala HRM TAdviser.

• Maria Vozhegova: We achieved transparency and controllability of processes of personnel records. Consolidation of group at the interregional level, and then, already in use became Impulse to implementation of a new personnel management system in Rosgosstrakh, the BOSS-PERSONNEL OFFICER system successfully endured one more consolidation of the company, already in federal scale. At the same time in 5 years of operation a HRM system on the BOSS platform uninterruptedly processes data of more than 100 thousand staff of the company. How it was succeeded to achieve brilliant results at such scale of the project, TAdviser was told by the vice president for IT and transactions of Rosgosstrakh company Maria Vozhegova.

• Mikhail Panchenko: Implementation of a HRM system is least risky as the result is clear and obvious. Fixed capital of any company are her employees. Those heads who fully realize it think of implementation and development of personnel potential of the subordinates, talent management sooner or later. At the same time it is important to understand that the strategy of personnel management is inseparably linked with the main business strategy. Such companies come to need of implementation of management systems for human resources (HRM) sooner or later. TAdviser talked about specifics of the market of HRM to two company executives of MOLGA Consulting – the leading system integrator specializing in products of SAP company in the field of HR – CEO (Managing partner) Mikhail Panchenko and the Senior partner Evgeny Vasilyev.

• Dmitry Romanchenko: New requirements of the legislation on personal data – not a problem, but chance to upgrade HR-and other business systems of the organization. Dmitry Romanchenko, the manager of projects of Department of business applications and technologies of Oracle of IBS company tells about perspectives of market development of personnel management systems in FZ-152 light "About personal data".

• Natalya Sidorova: Crisis introduced positive amendments in approaches to the choice of HRM systems. The Epicor company in 15 years of work sold more than 150 large projects in the field of control automation by personnel in the Russian market. The area director of Epicor in Russia and the CIS countries Natalya Sidorova in an interview of TAdviser disproves a stereotype that the western system not fully corresponds to rules of the game in local market of work and also it is told how to estimate efficiency of implementation of a HRM system and to gain from it maximum benefit.

• Dmitry Takser: The market is waited by a new paradigm. To replace HRM there is EHRP or planning of human resources. For the last crisis year the BOSS system. The personnel officer remained not only among the dominating solutions for personnel management in the Russian market, but also considerably promoted among leaders in number of projects and completeness of functionality. How it was succeeded to perform it and also the head of marketing department of BOSS. Personnel systems company told about the innovation approaches in control automation by personnel of TAdviser

• Andrey Shabanov: Krom of a HRM system on model SaaS, our company also provides to clients a full range of outsourcing services.UСMS Group – the company with the western roots and the rich history of presence in the Russian market – on an extent of several years works on development of the advanced software product - HRM- systems Quinyx on model SaaS (Software as a Service). About that, clients are how ready to perception of SaaS technology, market prospects and partner plans of the company it is told in an interview.

• Sergey Shishov: Modern human capital management - a key to success of any company. The EVOLA company has strong industry expertize in the field of the implementing solution SAP ERP HCM in the companies of a power complex, retail and the banking sector. The CEO of EVOLA Sergey Shishov told in an interview of TAdviser about the most successful projects of the company in 2009 and also an output to the market of the new direction of a business intelligence and reform of Service center of operation of HRM solutions.

• Igor Jacobson: In cherishing, caring and growing up the personnel, there is a sure economic benefit. The Kompas company is engaged in control automation by personnel and payroll already nearly two decades. Having begun with small DOS programs, it came to creation of the full-function personnel solution "Kompas: Personnel management". At the moment this system firmly sustains the competition of the western HRM solutions and to success is applied in hundreds of Russian companies, including the largest machine-building holdings of the country. How a system evolved, its main advantages and practical experience of implementation the chief expert of the company Igor Jacobson told TAdviser.