All branches of Rosenergoatom on SAP ERP and SAP BI

At Russian nuclear power plants in 2017, the project of replication of the SAP ERP system was completed. Sergei Migalin, deputy general director - director for economics and finance of the Rosenergoatom concern, operator of Russian nuclear power plants, spoke about this at the SAP Forum in April.

On the basis of the unified SAP ERP system in the central office of Rosenergoatom, branches and at nuclear power plants, the main processes are managed, including investments and projects, purchases, stocks, logistics, contracts, financial and cost management, accounting and tax accounting.

As of the beginning of 2017, in total, the concern has more than 4,500 SAP ERP users.

The unified ERP at nuclear power plants was introduced as part of the transformation of Rosenergoatom into a "digital company" - from separate automated processes to a single information field and integrated landscape.

Sergey Migalin in April 2017 announced the completion of the replication of SAP ERP at all Russian nuclear power plants

Sergey Migalin noted that the replication of the SAP ERP template was carried out in a very short time - in a year and a half, a fully functional ERP solution was launched at all 10 nuclear power plants in the country. BDO took part in the implementation.

A pilot project to refine the standard SAP ERP solution was launched at the end of 2015, within its framework a system template based on SAP ERP was implemented in the Central Office and 5 branches of the Concern (Balakovskaya, Leningrad, Rostov, Novovoronezh NPP and Capital Project Implementation Branch). In 2016, Rosenergoatom Concern, together with BDO Unicon Business Solutions, began transferring 10 more branches to a single unified resource management system - Beloyarsk, Kalinin, Kola, Kursk, Smolensk, Baltic, Bilibinsky, Kostroma NPP, Voronezh AST and Experimental Demonstration Engineering Center. From January 1, 2017, the launch began at all other nuclear power plants and branches. Test operation on them was completed in April. Almost in parallel with the launch of a single ERP, the systems historically used at nuclear power plants were turned off.

The system includes modules for purchasing, inventory, contract (MM), investment and project management (PS), finance (FM), costs (CO), accounting (FI), IPA accounting, RBP, PPE (FI-AA), tax accounting (FI-SL), and sales and distribution management (SD). The solution allows you to keep records and analyze costs in different sections and over time for individual branches, departments and for the whole Concern.

In parallel, the specialists of BDO Unicon implement the Group's consolidated reporting system on the SAP BI platform. The basis for reporting will be SAP ERP primary accounting data. Also among the project prospects are the management of the schedule and cost of construction of new nuclear power plants, the extension of the operating life of existing nuclear power plants, integration with repair and operation management systems.

Sergey Migalin explained the need for accelerated SAP implementation by two factors. One of them is the difficulties against the background of the general economic crisis faced by Rosenergoat in 2015.

The crisis also affected industrial production: by the end of the year, it became clear that electricity consumption in the country was not growing and tariffs for it would not grow, Migalin said. If there is inflation of at least 5-7% per year, if nothing is changed, a certain percentage of turnover is lost every year, and for the company there is a risk of being beyond the line in which nuclear power plants can be profitable, said a representative of Rosenergoatom.

Given this, the company realized that the path of automation with a map of implementation and replication for a period of 3-5 years, as is often the case, does not suit it.

This path does not suit us, because during this time, if we do not go bankrupt, we will cease to have the investment funds that we need for development. This is the first and key moment that in 2015 became clear in absolutely black and white format, - said Sergey Migalin, speaking at the SAP Forum.

The crisis affected the activities of Rosenergoatom, so they decided to introduce SAP in the concern in an accelerated mode

The second factor is the concern's desire to work in foreign markets. It is impossible to come to foreign markets with technologies that historically existed in Rosatom, the representative of Rosenergoatom explained. Abroad there is its own system for regulating nuclear energy, its own system for managing nuclear power plant facilities, state supervision and control over the implementation of such projects. Without total digitalization, without transferring all the processes of the company and all its objects to digital management, it will not be possible to operate there.

Speaking about the risks of using imported software against the background of the current geopolitical situation, Sergei Migalin noted that he did not think that it would come to the "iron curtains" and that SAP was going somewhere. But even in the worst case scenario, ERP projects are projects of business transformation, organizational transformations, and after restoring order in the company, it doesn't matter what SAP writes new. It is important that business processes are put in order and configured, says Migalin.

Since the end of 2016, Rosenergoatom has been implementing the SAP BI solution in parallel. According to Sergey Migalin, to the traditional ERP in 2017-2018. it is necessary to add a solution in the field of capital construction for managing the cost and schedule of construction, expanded analytical reporting, management of operational experience. In 2018, the transition to the SAP HANA platform is planned, the transition to centralized portal solutions.

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