Failure of SAP implementation of ERP in Russia: the customer files a lawsuit against IDS Scheer

The Stroydoreksport company remained is disappointed with SAP ERP system implementation project deliverables. As the CEO Stroydoreksport Sergey Aparin, an essence of claims of the company to integrator of the project, IDS Scheer told TAdviser, consists that the contractor did not satisfy the term of the contract and broke project terms.

"At all stages of the project there were subquality work which specialists of IDS undertook to finish in the following phases, but did not fulfill the obligations", - Sergey Aparin said. For example, the module PS (project management), according to him, was not configured at all though forms a basis for all activity of the company specializing in construction and repair of roads.

Sergey Aparin, Stroydoreksport: Having paid one million euros, the company did not receive efficient ERP

Besides, Aparin claims that the project team almost completely was replaced, and in some directions - repeatedly, as led to failure to meet time constraints and also to problems in functionality. "Despite our requirements, the detailed work plan was not submitted. Integration with 1C, several enterprises (balance sheet units) and business of processes were not configured, according to terms of the contract,", - the head added.

The Kemerovo road construction company "Stroydoreksport" is present at the market about 20 years, is the main contractor of the city administration on repair of roads and streets. At the moment several large production assets, the motor transportation enterprise and others are a part of the company. In 2006 the number of staff of the company was 1650 people, total revenue – 2 billion rubles. A final problem of implementation of ERP in the company – short circuit together all production cycle on construction, repair and the maintenance of roads.

Stroydoreksport announced the tender for implementation of the ERP system in October, 2007, and by its results, having considered solutions based on platforms Microsoft Dynamics AX IFS Applications, "1C: Enterprise" and SAR ERP, selected the last, having charged IDS Scheer project works. According to the plans announced then, implementation had to be performed at the same time in all key organization units of holding, and the project startup was planned for September, 2009.

As a result, at the moment implementation is not complete, reported in Stroydoreksport, and in a system there were numerous subquality work. Project cost, according to customer representatives, was about 1 million euros, and this money arrived to integrator in advance.

Now select the new contractor who will be able "qualitatively to perform the remained works from Stroydoreksport and to start a system" and also prepare claim requirements in arbitration court for IDS Scheer.

The system integrator, however, has the version of the event. "Under the agreement on SAP implementation of ERP in Stroydoreksport five phases are provided, - Anatoly Ryabukha, the director the SAP experts of Software AG & IDS Scheer company in Russia and the CIS countries explains TAdviser. We executed the first 4 phases – there are signed acts. The customer had to perform works on the 5th phase "Commissioning and Support" on the agreement, but did not make it. Therefore also we could not close the last phase".

IDS Scheer considers that made everything from them depending (suggested to enter a phase of trial operation, developed the proper plan), but could not agree with the customer about terms, volume and the budget of changes in the project in any way.

"Similar adjustments happen in each implementation project, speaks Ryabukh. - Usually the parties agree. In our case it did not turn out – the CEO of SDE suddenly decided what should be remade all over again. But who frankly will work to himself at a loss? And then we received the notification on agreement cancelation – and to talk about something there was no opportunity any more. Now business in lawyers".

TAdviser will follow the developments.