The largest power company of Ukraine instead of 38 IT systems implements one - SAP

The Ukrainian energy saving company PJSC Dneprooblenergo completed implementation of the next stage of an implementation project of a uniform ERP system of the enterprise on the SAP platform. The project started in March, 2010, and by this moment 20% of users – about 1.5 thousand are transferred to a new system human. Implementation at the same time is conducted on all 25 divisions of the company.

As the Chief information officer of Dneprooblenergo Vladimir Ozhenko told TAdviser, earlier information environment of Dneprooblenergo was "scrappy": in total the company used 38 information systems from 18 developers from whom nearly 20 systems were self-written.

According to Vladimir Ozhenko, the cost of integration of these systems was comparable with the total cost of the complete solution. At the same time a large number of software products complicated their effective use, and the company incurred additional costs on duplication of functions and service of labor-consuming procedures of data exchange.

As a result the management of Dneprooblenergo made the decision on creation of the uniform corporate information system (CIS). To final consideration of platforms left two - Oracle E-Business Suite and SAP ERP.

SAP was won thanks to existence of industry solution (SAP for Utilities) for power by the company and the built-in tools of setup and development. "We needed a strategic system which can be expanded and integrated easily with different subsystems. A system based on SAP solutions appeared such", - the CEO of Dneprooblenergo Alexander Fomenko said.

At the first stage of the project the functionality of SAP ERP and also the solution for automation of customer interaction of SAP CRM was completely implemented. Having started in March, 2010, implementation will last up to 2013. Design of a number of specific business processes and the difficult corporate reporting is planned for 2012.

However in spite of the fact that the project is not finished, in Dneprooblenergo are ready to sum up some of its results already now. According to Alexander Fomenko, a system allowed to increase internal control of activity, to reduce quantity of errors and to accelerate work with information.

One more plus of implementation to which he pointed – creation of transparent mechanisms of formation of rates and drawing of accounts for consumers. At the expense of the strengthened control of payments from consumers of costs of the company decreased by 8%, due to uniform data entry for 13-18% document registration process accelerated, time of approval of agreements and documents was reduced by 34%. Besides, on a third the set-up time of the reporting decreased and stocks in warehouses decreased by 12%.

The project budget the parties does not reveal. However, in Dneprooblenergo of TAdviser specified that all 352 licenses SAP ERP were purchased.