Mosvodokanal switches from Oracle ERP system to 1C

Mosvodokanal, the largest water company in Russia providing services in the field of water supply and sanitation, plans to carry out a complete digital IT transformation with the transition to Russian software. TAdviser was told about this in the company in July 2022. And one of the key areas of import substitution is the transition of the corporate information management system (KISU) to the 1C platform within two years, until 2024.

Initially, the -system ERP Oracle e-Business Suite (OeBS) was used as the core of KISU, which has been introduced in Mosvodokanal since 2008. When the project first began, its participants noted that it should become one of Oracle's first and largest ERP projects in the field of water supply and sanitation (more). here

The creation and putting into commercial operation of the ISU was a significant step of the enterprise towards improving its management system, as well as increasing investment attractiveness, which was an important aspect in the conditions of tariff regulation. The introduction of a management system of this class made it possible to determine the positions of Mosvodokanal JSC at the level of the world's leading water companies that actively use and develop these digital technologies, explained TAdviser in Mosvodokanal.

Mosvodokanal provides drinking water and a drainage system for more than 15 million residents of Moscow and the Moscow region, about 10% of the country's total population "(photo - Mosmetod.ru)"

The company clarified that on the basis of Oracle e-Business Suite, such functional areas of KISU were automated as financial management, treasury, contractual and claim-claim activities, maintaining a range of inventory, as well as organizing procurement and formation of company stocks. Now a single base unites 22 production units of Mosvodokanal.

At the same time, 1C products are already used in the company. The operation of the ISU is closely related to the implemented domestic software products at the enterprise, including 1C applications: Capital Construction Management, Electronic Archive, Salary and Personnel Management, Road Transport Management, as well as EDMS based on the IRM NTC software.

ISU also provides interaction with external resources - the Roseltorg electronic trading platform, the unified automated trading information system of Moscow (EAIST) and the ASUR (automated management system for directories, classifiers and registers).

The Oracle e-Business Suite system continued to evolve until recently. Thus, from the latest annual report of Mosvodokanal it follows that in 2020-2021. it introduced the income tax accounting subsystem according to one of the accounting provisions of^[1].

As for the transition to 1C, the peculiarity of the development of a new target enterprise resource planning architecture is associated with certain difficulties, TAdviser told Mosvodokanale: during the transition, all existing business processes should function without failures, while the organizational structure of the accounting and tax accounting system should be fully operational, internal and external information flows - all elements of the current ISU.

The uninterrupted operation of the enterprise is extremely important, because Mosvodokanal provides services in the field of water supply and sanitation to about 15 million residents of Moscow and the Moscow region.

Digital transformation involves the following steps:

• Survey of Mosvodokanal infrastructure with collection and receipt of initial data (preparatory unit);
• Development of the technical assignment for the general architecture of the system during the transfer of all modules of MMD to 1C;
• Upgrade and replacement of equipment, supply of software according to the selected architecture;
• Stage-by-stage conversion of MMD modules to 1C while maintaining the applied accounting methodology using integration solutions - preparation of individual technical assignments (ITA) for translated modules;
• Loading and reconciliation of input data, including from previously implemented accounting systems;
• Configuration, modification and refinement of the functionality of the translated modules according to the approved architecture and ITA, taking into account the optimization of business processes;
• Initial user training (by modules to be translated);
• Testing and preparation for pilot operation (according to the modules to be transferred);
• Pilot operation;
• Transition to commercial operation.

Mosvodokanal says that their company has been actively working in the field of import substitution over the past years. This is expressed "not only in the search for equipment and materials of Russian production, but also in the introduction of advanced methods for automating technological processes and digitalizing the IT structure to ensure the reliable operation of all divisions of Mosvodokanal. By the beginning of the digital transformation with the transition to Russian software, Mosvodokanal is already using a large number of domestic software tools.

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