TAdviser Interview: New CIO of Freight One about the main IT priorities
Vadim Uryas appointed in January, 2017 the Deputy CEO for IT of Freight One (FO) in an interview of TAdviser told about plans for development of IT strategy, approaches to management of IT and parts of the large-scale project on transition to the SAP platform.
Vadim Aleksandrovich, whether there is at the time of your appointment in PGK an IT strategy in the company? If whether yes, that you in it plan something to change?
Vadim Uryas As there is no processed document of strategy in PGK yet, but we are going to complete the work this year. In 2016 we considered different options and made strategic decision, having selected the target platform to which we are going to pass – based on SAP.
What will be transferred to SAP?
Vadim Uryas There is the known system – "ETRAN". On its base within six years a system which is called PGK ACS was created. It automates the primary productive activity of PGK – traffic control of cars.
This system was initially developed only for PGK that has the pluses and minuses. Among minuses – a large number of restrictions. The platform rather old and it it is necessary to remake, otherwise through some time it can begin to act as a brake in our business. Technologies which are used in PGK ACS were modern at the beginning of the 2000th years. For example, Oracle Database 10g is used there, this DBMS any more is not supported by the developer. Passing to SAP, we expect "jump" through generation of technologies and meet a technology lack.
In addition to PGK ACS we are going to transfer to SAP also accounting. Now for it a system based on software Galaktika not less than seven-year prescription is used.
Transition to SAP is going to be completed to the middle of 2018. A competition was already held, selected the main partner for implementation – SAP CIS will be engaged in it.
For budgeting and the reporting in PGK IBM Cognos TM1 is used. It is rather modern system, we are not going to change it now.
What SAP solutions you are going to implement?
Vadim Uryas We are going to use SAP S/4HANA for automation of conventional processes using SAP HANA instead of Oracle. Also we agreed about significant completion of the SAP solution Transportation Management under operator business. In an initial type this solution not completely is suitable for our tasks. Operator business as it is in Russia, does not exist neither in Europe, nor in the USA. It is unique, and some processes, respectively, too are unique.
What else remarkable projects are conducted or planned in your company?
Vadim Uryas Transition to SAP is our main project now. From interesting projects it is possible to give an example of use of mobile devices in production management. Last year the staff of the PGK Krasnoyarsk branch developed the interesting system on management of the flushing and steaming stations (FSS) implemented on iPad. Some cars require washing after the previous load, and it becomes on PPS. The management system for washing is implemented on mobile devices. On them the employee sees information on approaches of cars arriving from the systems of the Russian Railway what work needs to be performed, reports on the done work.
A system is designed to optimize the labor costs connected taking into account information on productive activity. It allows to cut down operating costs and terms of drawing of primary documents, to control processing of cars and indicators of work of PPS, to exclude repeated input of the same data. This year we are going to replicate it on all PPS.
How interaction of IT and business is organized in the company? What role in decision making about implementation of these or those systems is accepted the CEO, financial, HR and other directors?
Vadim Uryas Interaction of IT and business happens in the company at the level of specially created managing committee on all projects connected with business transformation. The committee on the structure and powers is equal to board of PGK. Its tasks include consideration and the statement of different initiatives, not only on automation. There are, for example, projects connected with business process reengineering. Now the committee considers all projects, irrespective of their scale, and in it there is a certain logic. There are projects which need to be considered not individually, and in total – to exclude creation of "gadgets" which nobody will use.
We are going to pass to business partnership model at which the IT is a partner of the functional business directions. In principle, such model already works, but we are going to make it more built that business accurately understood with whom it communicates on all the ideas.
In parallel there is a process of building of a system of the correct project management. Recently we started a special system for these purposes, now it needs to be "rolled". Within a year, I think, we will pass to normal project management including on IT tasks.
Who most often acts as initiators of IT projects?
Vadim Uryas So far not really there is a lot of large IT projects in the company as large-scale projects in the course of careful study require integration with the Russian Railway and also upgrades of a system of work not only PGK and Russian Railway, but also clients. At the same time there is a number of small tasks which are required to be executed concerning already existing IT systems. It is connected with the fact that the environment changes, realities from the Russian Railway change, customer requirements, there are new ideas how to rebuild business. And all these requirements pour out in packets of the projects including actions from each of the functional directions. It is possible to tell, thus, that initiatives proceed from them, and the IT realizes these ideas.
What do the specifics of informatization in the field of freight rail transportation consist in?
Vadim Uryas The specifics are that regarding information we almost completely depend on the Russian Railway – from them we obtain practically all data: from data on location and a status of cars to requests of consignors as where they carry. It is possible to tell that ¾ all data PGK receives from the Russian Railway.
We obtain information from GVTs Russian Railway online. For this purpose ours with them systems are very closely integrated. In return, we send to the Russian Railway information too – requests for movement of cars, transportation of goods, information on accounting of cars and so on. They are autocompleted in an ACS of PGK and go.
In NLMK where you worked earlier, the IT direction connected with use of Big Data for improvement of technologies on production developed. What application can such technologies and in PGK find?
Vadim Uryas Such technologies can find application and in PGK. So far it is difficult to tell definitely, where exactly we would begin to apply them. For example, it is impossible to tell that data which we obtain from the Russian Railway for 100% reliable, in them are "noise" – the data from different sources on the same object contradicting each other. There are special algorithms which allow process and "clean" data from these "noise". Using data mining technology it is possible to build the expert algorithms allowing to enrich and add initial data which we obtain. On the basis of experience we can define, reliable, what of the received indications. Big Data can be used also for receiving predictive analytics.
What do you think of IT outsourcing and in what degree intend to use it in PGK?
Vadim Uryas IT outsourcing is already widely applied in the company: PGK ACS, Galaktika and IBM Cognos are serviced by an external resource. Certain things become hands of own specialists, but we in the company have no business connected with programming.
In a case with SAP as one of options we consider placement of applications on model of a private cloud on the third-party platform. Earlier such service of due quality was difficult to be received and it was better to do it in Europe, and now the level of service in Russia allows to do it and here.
SAP has own DPC in Russia on the platform of Rostelecom. Do you consider placement in it?
Vadim Uryas IU SAP wrong price "calculator" – the prices are too overstated, in comparison with other providers. In the software of SAP there is a know-how, there is an exclusive which is sometimes difficult for comparing to solutions of competitors. In a case with providing a private cloud under SAP there is no know-how, all sell approximately same. It is natural how the customer I will prefer the same, but at lower price.
Where now key business applications of PGK are unrolled?
Vadim Uryas In own DPC at the central office PGK in Moscow. These applications even after transition to SAP will continue to work as early as years five as the archive systems, it does not make sense to transfer them to the party.
As far as in PGK internal IT competences are developed? Whether it is going to develop them?
Vadim Uryas We will need to develop competences under SAP. I think, with transition to the new platform we will a little reduce outsourcing volume. Outsourcing has both pluses, and minuses. One of minuses – sometimes the outsourcer carries out tasks more slowly, than own specialist who can call and tell urgently to carry out a task with term "yesterday". Situations when there is such need, periodically arise.
Taking into account development of own competences under SAP you are going to expand IT staff in the company?
Vadim Uryas Now taking into account branches in PGK about 150 specialists in total work. The developed metrics for SAP – 1 specialist on 100-120 people. Let's try to requalify as much as possible existing personnel under the new platform.