SAP Digital Leadership Center Starts Segezha SAPience Project
On August 30, the Center of Digital Leadership of SAP Company (located in Moscow at 52-7 Kosmodamianskaya Nab.) hosted the introductory meeting dedicated to the start of the implementation of Segezha SAPiens, the digital transformation project for Segezha Group of Forest Companies (part of Sistema JSFC).
The companies SAP, Segezha Group, MTS and BearingPoint announced the start of joint control management program based on SAP S/4HANA. The main elements of the project and the sequence of events were announced at the meeting.
Addressing the audience, Rovshan Aliev, Vice President of Segezha Group for Finance and Investments, noted that the Segezha Group was on the verge of extensive digital transformation of business and production processes.
“After some serious analysis of global experience and case-studies of digitization, we selected the most ideal and optimal variant of standard solutions, based on SAP as its main nucleus. This foundation will help us bring together all our processes, from production to C2C and B2B,” Rovshan Aliev said. “I am confident, that working together with our partners from BearingPoint, SAP and MTS we will be able to implement into practice the ambitious goal set by the President of the company.” Segezha Group has always set ambitious goals, and successfully implemented them, Mr. Aliev said.
Konstantin Popov, Managing Partner of BearingPoint Consulting Company, congratulated project participants on the start of their work, and said that project teams have already been working hard.
“We have already detected some resistance, which is good, because we will always have issues to discuss, to argue about, find solutions for, and move ahead,” the representative of the general contractor of Segezha SAPiens project said. “SAP is first and foremost an integrated system. The distinguishing feature of the upcoming transformation of Segezha Group lies in that we introduce not separate business processes, but sequences of business processes with cross-functional ties. Our constructive interaction will yield benefits and help bring Segezha Group’s business management practices to a qualitatively new level of maturity, interaction and speed of decision-making.”
Konstantin Popov told his audience that the second part of the introductory meeting would take place in the teambuilding format.
“The projects that have to do with introduction of ERP systems and business transformation usually involve the human factor, it affects people, it changes practices. The secret of success is close coordination of joint actions of all functional groups,” the representative of BearingPoint said. “Twenty-five teams will work together drawing the picture; each group will present its separate block, but when we are done with the exercise, we will see the total picture, filled with bright colors. For the project to be successful, we will require coordination and precision in every participant’s actions.”
Valery Shorzhin, MTS Vice President for Digital and Cloud Solutions, said that the digital transformation project for the forest industry holding is directly related to improving operational efficiency, profits, transparency, speed of business and other processes, which considerably affects the value of the business.
“In industries where traditional business can be radically transformed, as is the case with the forest industry, transformations usually result in considerable benefits, because today all processes and assets can be organically incorporated into IT landscapes (CRM, ERP systems, etc.). Introduction of SAP in Segezha Group can be seen as the foundation for creating a solid digital foundation, first and foremost, for analytics and corporate data. Undoubtedly, MTS can help implement this project by offering its current cloud-based digital solutions,” Valery Shorzhin said.
The next to speak was Andrey Filatov, Chief Executive Officer of SAP CIS. SAP cannot be considered as only the maker of solutions for business processes automation, he said.
“What we create now is a digital nucleus, which is then used to extract verifiable high-quality data from the business processes. The focus has shifted from automation and improving efficiency of human activities to receiving high-quality data. We need these data to apply all the cutting-edge technologies to them, including artificial intellect, the Internet of Things, etc., so that we could make business more effective,” Andrey Filatov told the participants of the meeting. “The fact that you have selected this path, that you start from introducing the digital nucleus, opens grand prospects for implementing a variety of digital tasks. For SAP participating in the project of Segezha Group is quite significant, so we will be providing support to the project at every stage of the process.”
Pavel Vakhnin, Vice President of Segezha Group for Information Technologies and Automation Processes, said that the top management of the company has fully approved the Segezha SAPiens project.
“In every division we are entering this project with the largest of enterprises, we are doing so concurrently and therefore achieve the maximum effect as soon as in the first wave of the project. Then we will need to replicate the project, which will probably be not too hard at less complex enterprises. Our main competitors are already using SAP, the solutions have been well defined, so standard processes can be used. According to the schedule, we have one year of the operation and maintenance phase, which will be followed by the stage of system stabilization,” Pavel Vakhnin said. The system provides the best processes, he says. The SAP platform will replace more than 100 production and management systems and create a new digital core of the company that will support growth and high standards for cost management.
“The project is unique in terms of its process and functional scope: the created system will support all business functions of five different types of production activities. Every aspect will be brought in full accordance with the same standards, the same unified and transparent system, in the sphere of unification and standardization of processes where the business needs it. The same will apply to centralization of such processes as finances, supplies and sales. The effects of the project will be comprehensive and will result in creating the foundation for better competitiveness of the Segezha Group and allow the company to enter new markets,” Pavel Vakhnin said.
The first wave of the Segezha SAPiens project will include JSC Segezha PPM and Segezha Packing LLC (Karelia and Rostov Region) in the “Paper and Packing” division; Vyatka Plywood Factory LLC (Kirov Region) in the “Plywood and Panels” division; JSC Lesosibirsky LDK No. 1 (Krasnoyarsk Krai) in the “Wood Processing” division; logging branch of Segezha PPM (Karelia) in the “Forest Resources” division, and the management bodies of the company in Moscow and Kirov.
Segezha Group is one of the Russia’s largest vertically integrated forest holdings, with a full cycle of logging and advanced wood processing. The Group comprises forest, wood processing and pulp & paper enterprises in Russia and Europe. The Group has representative offices in 11 countries. Segezha's products are available in more than 100 countries of the world. SG enterprises employ 13 thousand people. Segezha Group is the largest forest user in the European part of Russia. The total area of its leased forests now equals 7.42 mln ha, 85.7% (6.36 mln ha) of which have been certified according to international standards. Segezha Group is No.1 manufacturer of paper bags in Russia and No.2 in Europe, No.1 manufacturer of brown paper bags in Russia and No.3 in the world, No.5 in the world for large-size birch plywood manufacturing, No.1 in Russia for sawn timber manufacturing and for prefabricated glulam materials for home construction. http://segezha-group.com/
SAP is the global market leader in the sphere of various corporate applications. SAP solutions and services are used by more than 413,000 customers in 180 countries around the world. In 1992, the SAP SE office was opened in Moscow; at present SAP CIS employs some 1,300 people, the company is represented in all the countries of the CIS. In 2012, a SAP Labs research and development center was opened in Moscow; it also has a branch in St. Petersburg. SAP is the only international developer with a data center in Russia; the company has been working continuously on expanding its capacity. For more than 27 years, SAP has been providing assistance to Russian companies seeking to transform and optimize their businesses with the help of innovative solutions. In July 2018, the SAP Digital Leadership Center - an innovative hub for events, demonstrations of new technological solutions and joint development projects with customers and partners - opened in Moscow. The company has been actively investing in training, helping staff gain new competences and develop ecosystem-based expertise. More than 60 universities in Russia enjoy free access to SAP software for educational purposes. Since 2017 a total of 12 SAP Next-Gen Labs, centers of innovation for students and young IT professionals, have been opened worldwide. www.sap.com and www.sap.ru.
#CloudМТS is a cloud provider that is a member of the MTS Group of Companies that provides services via a network of its own geographically distributed data centers. The cloud business of the MTS Group also includes IT-Grad, one of the largest Russian IaaS providers, and 1cloud online platform, which is oriented toward small and mid-sized businesses. #CloudMTS services include: Elastic Cloud, for backup and processing of big data in the cloud, storage and exchange of corporate information, with a dedicated segment for working with personal data, and cloud-based information security services (an antivirus program for the public cloud, protection against DDos attacks and other risks). In the first quarter of 2019, #CloudMTS quadrupled its cloud service revenue as compared to the first quarter a year ago, the volume of stored and processed data increased by 7.5 times. The provider’s clients include ABBYY, British American Tobacco Russia, Ericsson, Hunkemoller Russia, Medsi network of clinics and other Russian and international companies.
BearingPoint is an independent business consulting and technology company with European roots and a global reach. The company's business is divided into consulting services, solutions for digital transformation, relations with regulators and advanced analytics, as well as joint ventures/venture investment start-ups, supported or developed by the company. BearingPoint's clients include leading global companies and organizations. More than 10,000 BearingPoint employees, in alliance with their consulting partners, provide services to clients in more than 75 countries of the world, helping them achieve sustainable and significant results. www.bearingpoint.ru