MTS (Oracle Siebel CRM)

MTS (CRM system implementation project) - as of 2008, the largest system implementation of Oracle Siebel CRM in Russia.

Solution and Contractor Selection

The implementation project CRM system in MTS, comes to an end. In December, 2006 based on the tender contractors of the project selected consortium from the companies Oracle and "Kvazar-micro" (enters into concern "Sitronics" which controlling stake, as well as control in MTS, belongs to AFK "Sistema"), offered a system Oracle Siebel CRM. Participated in the tender also under control of Sitronics Czech Strom Telecom (FORIS BSS/OSS MTS works at its billing system) and Israeli Amdocs whose billing and the CRM system are used by competitors of MTS — "VimpelCom" and "Megafon".

"When we selected the CRM solution, three options were considered - or to develop the billing system of Strom FORIS OSS/BSS which is already set in MTS either to implement Amdocs, or to implement Oracle Siebel CRM, - the president of Sitronics Sergey Aslanyan holding at that time a position of the vice president of MTS for IT remembers. - We considered that it is better to establish what already works, than to finish software specially under ourselves. Therefore we selected Siebel".

At that time Sputnik Labs was the only known integrator having experience of implementation of Siebel, according to Aslanyan. On the other hand, CRM needed to be integrated with five other systems which are already working in MTS – billing of FORIS, call center of Alcatel, Enterprise resource planning of Oracle, a system a fraud management and reporting system. "Specialists Kvazar-micro implemented the project on implementation of the ERP system and call center in MTS and also took active part in the project on implementation of a billing system, - he says. - With respect thereto they had detailed knowledge of architecture of the applications working in MTS".

Project Progress

Expected to set the CRM system in MTS in one and a half-two years. However, implementation began in 2008 that, according to Sergey Aslanyan, was connected with expansion of a scope of work and change of necessary documentation. As it was reported earlier, software on 6 thousand jobs in the MTS Russia division was going to set MTS, to Ukrainian "subsidiary" of UMC and at offices of the partner companies. Project cost in the company was not disclosed. According to a number of sources, its budget had to make about $15 million. For an example, VimpelCom and Moscow "subsidiary" of MegaFon spent for implementation of CRM $10 million and $2 million respectively. Sergey Aslanyan is sure that the functionality and the scale of projects - is incomparable therefore also budgets differ.

In Kvazar-micro say that project works come to an end and even go with "advancing of the diagram". The marketing director of the company Vitaly Pilko reported that by January 1, 2009 the integrator is going to put in operation the first part of contact center at the Russian office MTS. Till April step-by-step connection of users will be performed. The press secretary of MTS Irina Osadchaya also confirmed that the project will be complete earlier, than it was supposed.

Difficulties of the project

Nevertheless, experts consider that the project of installation of a system of customer interaction in MTS obviously dragged on. "Experience shows that it is possible to implement implementation of the CRM system at the telecom operator in a year. The successful projects executed by us for MegaFon and VimpelCom demonstrate to it", - Isaak Mostov, the former head of office Amdocs in Russia and the CIS says (directed office during the tender of MTS). - Therefore the question of whether the right choice was made by MTS, remains open. All avoid the direct answer to it".

Besides, implementation of CRM in a business unit in Ukraine, according to Leonid Sobolev, the head of directorate of business consulting Kvazar-micro, was delayed. He explains it with "unstable economic country situation". "In Ukraine implementation of a billing system of FORIS is well under way, - Sergey Aslanyan adds. - We decided that for a start it is necessary to complete its implementation and to install CRM in Russia then to replicate this solution on other offices".

The lack of competences of Kvazar in implementation of CRM systems became a problem of the project. "The integrator was even forced to work through subcontractors: at first the Sputnik Labs company, then AT Consulting was attracted", - says a source. However, in Sputnik Labs reported that did not take part the project. AT Consulting said that no official works in MTS were conducted therefore cannot comment on the project.

Nevertheless, the source in one of the companies mentioned above reported that Kvazar involved specialists of his company without contracts on the basis of oral arrangements. Aslanyan says that it is a lie. The negotiating fact with subcontractors is not excluded by Parmukhin Artem, the project manager of implementation of CRM in MTS from Kvazar-micro working on the project recently. But, according to him, as a result these companies to the project were not attracted and as a result implementation was performed by efforts of own specialists. Nevertheless, "as it is the largest implementation project of Siebel in Russia, Kvazar did a great job on training of project team. We were helped by specialists from America, India and Israel, many of which have long-term experience of implementation", - Parmukhin says.

"A condition which we laid down before the contractor, - presence of the specialists having wide experience of large implementations, - Sergey Aslanyan says. - For this purpose Kvazar involved five foreign specialists from Patni Computer Systems company with experience of implementation of the CRM system of Siebel".

Compliance to terms and plan of the budget

As a result, the cost of the CRM project in MTS considerably exceeded the planned budget, tells a source. In Sitronics claim that it is initial on purchase and implementation of the CRM system of MTS approved the budget in $15 million, and its exceeding was not. This amount, according to representatives of integrator, includes both Russian, and Ukrainian projects.

Effect from Implementation

Outflow of subscribers was reduced.