Interview with the Chief information officer of Cherkizovo Group Vladislav Belyaev

TAdviser: Vladislav Mikhaylovich, tell, please, about the key directions of IT strategy of the Cherkizovo group.

Vladislav Belyaev: Our IT strategy was accepted 2.5 years ago, and it covers the period for the next three years. Strategy consists of three blocks. The first concerns creation of the uniform centralized IT infrastructure. It, first of all, creation of the single integrated multiservice network which covers all our 150 platforms through the whole country. A task – using this network to provide to all platforms standard services –VPN, Internet access, telephony and the main corporate services, such as intranet, mail, network printing, etc.

Creation of corporate DPC in Moscow and reference server premises on our platforms in Penza, Lipetsk and Bryansk belongs to the same block. We build hierarchical computing infrastructure where there is a core – DPC, and there are local points which bear a part of loading on traffic distribution and execute a role of reserve nodes of our network. All main applied software will be at the same time in the main DPC.

The second block of strategy is connected with applications. Here the main objective – to centralize our separate databases and systems. Now we widely use 1C, however it is necessary to transfer all systems to the unified configuration. At the same time, the second direction is to move to transition to the new platform – SAP. The set of different subprojects also belongs to the second block, basic of which it is possible to call creation of corporate EDMS, creation of a corporate system of budgeting and consolidation of the reporting based on Hyperion.

The third block of IT strategy is connected with organizational changes: with implementation of standards of the equipment and IT solutions, building of procedures of purchases, creation of internal procedures of work of IT on the basis of ITIL. Among large projects of this block – creation of uniform corporate service Help Desk, a uniform corporate portal and also leaving from the IT organization for segment sign.

Concerning the last I will explain that in our group three main directions of business – meat processing, poultry farming and pig-breeding. Each of them was serviced by separate IT departments. We rebuilt IT service by the cluster principle: now IT at us are not engaged in separate segments, and is engaged in technical support of all users in the territory which is assigned to them.

One more important direction within IT strategy is transfer of a part of processes on outsourcing. We already implemented several projects in this part and we are going to expand them further.

TAdviser: You mentioned plans of Cherkizovo to pass to a single platform of SAP. Whether you are going to avoid use of 1C completely over time?

Vladislav Belyaev: In a target picture to which we expect to pass approximately in five years, 1C, perhaps will remain on some minor and specific tasks. For example, we have such industry process as accounting of a livestock. It is possible to leave it on 1C. The centralized ERP system covering key processes, such as finance, purchases, production, logistics, planning, sales will be based on SAP.

TAdviser: What transition from the platform of 1C to SAP is connected with?

Vladislav Belyaev: In Cherkizovo about 22 thousand employees work, and in different applications about 5 thousand people work. In the company about 50 bases for data of 1C of different configurations, apart from archive and auxiliary are used. It is big and difficult "ball" of systems, and in the platform of 1C we see restrictions, at our scales of business. We will not be able to implement in 1C all our requirements, including restrictions on speed, reliability, etc. Considering the specifics of work of Cherkizovo connected with shipments of products, with a continual loop of production, geographical distribution of business, speed, reliability and "data transparency" are extremely important for us.

One of important pluses for benefit of SAP is existence of successful implementations of this platform in our industry. There are, for example, several large enterprises on meat processing which already work in SAP. Having studied this experience, both Russian, and foreign, we made a choice for benefit of SAP.

TAdviser: How at present your IT infrastructure is arranged? What systems are used in the company for automation of the primary and operating activities?

Vladislav Belyaev: Today, as I mentioned earlier, the main for us is the platform of 1C using the specialized MES systems. For example, in meat processing we actively use the CSB system. Budgeting and planning which I also already mentioned also belongs to the key systems. Concerning the auxiliary systems: at us, for example, two systems electronic document flow are used. One of them is created based on Alfresco, and the second – based on OpenText.

After creation of the uniform ERP platform we plan implementation and some other systems. For example,CRM. Also we plan implementation of BI with creation of the uniform corporate data warehouse.

TAdviser: In what stage creation of your uniform DPC is now?

Vladislav Belyaev: The DPC is already constructed. It is located in the territory of Cherkizovsky Meat Processing Plant. Now it is in trial operation: there our capital equipment from old server in regions is already transferred. This year we are going to transfer uniform DPC to commercial operation.

TAdviser: What else most important IT projects, in addition to completion of creation of DPC, are planned in Cherkizovo for 2015?

Vladislav Belyaev: The second most important after DPC this year for us is the beginning of start of the SAP platform in the company. It it is going to make on one of large sections of business - in trading house of a segment Poultry farming which manages movement and implementation of finished goods from all factories "Cherkizovo". The project assumes automation of a full stroke, covering logistics, sales, financial processes, purchases. It will not cover so far, perhaps, only HR, but this process also is not critical.

Further deployment of EDMS will become one more largest project. There was a last, most most and difficult part of implementation connected with a contracted work. It is possible to refer to the most important projects of this year also building of relationship of IT service with business based on internal SLA and KPI.

TAdviser: How the IT department of Cherkizovo is arranged? How many people in it work now?

Vladislav Belyaev: In IT department about 200 people work now. It is organized very simply. There are several main directions. The first - technical support in which about 90 people work and are engaged in user support directly on places. The second block is connected with the centralized applications: here those who support 1C, SAP, electronic document management systems and also are engaged in development of these systems work.

The third direction is connected with IT infrastructure: these are employees who are engaged in servers, communication channels, creation of backups, etc. And the fourth direction is a project office IT which coordinates activity of other directions and communicates with business. Perhaps, in the fifth direction it is possible to select our Itshny back office which deals with the issues connected with finance, with a contracted work, work with accounts, IT reports.

It is important to note also the fact that in Moscow we have not enough IT personnel, no more than 40 people. So, the Competence Center of 1C at us is distributed in Lipetsk and Penza, Help Desk is in Penza. In Moscow at us, generally employees who have key examination and who directly communicate with business, located at the central office of our company.

Such distribution is connected with the fact that, first, it is better for IT service to be closer to business which is in regions, and secondly, placement it in regions is economically more profitable, than in Moscow. In Penza we can find employees not of smaller qualification, than in Moscow, but for smaller money. It is possible to carry to the key moments also that in regions the routine of the personnel is less, people are less inclined to change work there.

I will note also that we try to use actively outsourcing, giving to the contractor accomplishment of some routine processes and retaining only a core competency. Speaking about examination, I mean such employees as analysts, architects, key administrators, etc. So these are people who can correctly understand requirements of business and to offer some solutions and also to shift it in clear to "IT of a task" for the outsourcer as in terms of support, and development.

TAdviser: What processes you give to outsourcing and how you estimate the effectiveness of such services?

Vladislav Belyaev: To outsourcing we already transfer, for example, technical support of 1C practically on all our companies. The same way will be also with SAP: key examination will be in the company, and development and support – on outsourcing. One more project – technical support and support of jobs on small platforms. Like that about 70, and in 10 of them we conduct several months a pilot project. It includes several average and small platforms, and according to the results of the pilot we are going to use this model more and more. Recently we also began to transfer completely to outsourcing everything that is connected with printing.