SAP in Russia

Who’s happy to be making a few more rubles in the post-Cold War age of 21st century capitalism? SAP, that’s who. The solutions provider closed its calendar year with a couple of announcements coming out of Mother Russia representing some nice kale for the firm.

Just after Christmas, the Second Generating Company of the Electric Power Wholesale Market announced the completion of its enterprise management system based on mySAP ERP at its Surgutskaya branch. In fact, the company (a.k.a. OGK-2) will now be basing its future IT strategy on the SAP solution. Said strategy will be focused on automation of key business processes.

The implementation was undertaken by OXS. The complete automated management system is planned for full implementation by November 2007. OGK-2 is also building a corporate portal and a data warehouse based on SAP software.

Meanwhile, Russian blue collar is going high-tech with mySAP elsewhere in the big country. IBS, a leading IT and consulting services provider in Russia, and Metalloinvest Management Company announced the launch of the implementation stage in the project to create an integrated control system based on mySAP ERP at the Uralskaya Stal (or “Ural Steel”) iron- and steelworks.

The Ural Steel project is said to be the largest attempted by IBS and for mySAP ERP in the metallurgy sector. The integrated management system project started in April with an open tender. The “Conceptual Design” phase, in which guidelines for building the ICS and automating the enterprise business practices were planned, was recently completed. Total project design solutions numbered 217.

Within the framework of the Ural Steel project, IBS consultants are to build a full-scale ERP automated system for accounting and tax practices; expenditure tracking; procurement and sales control; and equipment maintenance and repairs.

The estimated number of automated workplaces to be available by the end of the first stage of implementation is 400. The first stage is expected to be completed in summer 2007.

Ural Steel is an integrated Russian steel manufacturer and a leading domestic producer of strips, pipe, tubing, and bridge steel. The company’s annual production capacities exceed 4 million tons of steel. Ural Steel has clientele in Russia, Germany, UK, Italy, Spain, Belgium, Norway, Denmark, Turkey, Iran, China, Korea, Vietnam, Taiwan and Thailand.