SAP Roll out in Russia Alexander Schachner IT Consulting & Implementation

your SAP partner your SAP partner ALPE consulting Founded in 2006 Offices in Moscow and Saint Petersburg > 45 employees > 40 successful projects 20 certificates: FI, CO, MM, SD, PP, PS, Basis, ABAP your SAP partner your SAP partner SAP Channel & Service Partner Official partner of Basware – the world leader in “Purchase-to-Pay” solutions A partner of Union of Independent Networks of Russia A member of: Association of European Business (AEB) Russian-German Chamber of Foreign Trade (AHK) Austrian Economic Forum (AEF)

SAP in Russia Since 1992 in Russia, offices in many Russian regions. > 700 employees, with own Development Team responsible for localization issues Fully localized & adapted (meets requirements of Russian legislation) Market leader in Russia with >50% market share

SAP in Russia legal accounting SAP software fully meets Russian legislation requirements legal accounting

Organiza- tional structure Global and intergra- ted processes SAP Roll-Out Adaptation in accordance with Russian legal requirements Standardization of global business processes Optimization of business processes between companies Higher information transparency Documen- tation IMG structures and settings Global customer developments Organiza- tional structure Master data documents Country versions Local develop- ments Global and intergra- ted processes processes requirements Global template

Characteristics of SAP Roll Outs No separate installation for Russia one or more client system hosted by the headquarter own company code for Russia Licenses are purchased centrally (mostly in accordance with SAP Enterprise Agreement) Business processes mainly in logistics are usually identical or very similar Difference between sales and production operations in Russia (see next slide) “Copy – paste” approach is not sufficient enough. Accounting should be fully adapted Statutory Accounting (VAT, creditors, debtors, bank, cash,..) Corporate chart of accounts as the main chart of accounts (Russian chart of accounts as an alternative chart of accounts) Asset Accounting Tax accounting Controlling Relatively low effort for controlling in the case of one controlling area (except for production companies – determination of production costs according to RAS) HR is usually covered from external systems. High complexity in Russia

Project Size (Sales- or Production company) Module Sales company * Production company* FI High consulting complexity FI SL (depends on differences in tax accounting) CO Low consulting complexity High consulting complexity (Production costs calculation, cost of semi-finished products,…) MM Medium consulting complexity SD PP - ABAP Lower programming effort Relatively high effort Assuming that processes are mostly identical in logistics

Project Phases Project preparation Testing Fit-Gap Analyzes Info seminars Customization Go-Live and support Go – Live Kick Off Workshop Clarifiying of responsibilities within project team Installation of Russian System (SAP Basis preparation works) GAP list formation concerning differences to corporate template incl. Russian legal requirements Customer's Master Data evaluation Definition of Reports and Forms which need to be adopted Customization of business-processes Adjustment of the organizational structure Planning of training (can be organized in a flexible way, depending from project volume) Training of the project team (Key user) Preparation of data for the integration test (test scenarios are being prepared by key users) Testing of the system through all modules Correction of the mistakes Data preparation for the upload Data transfer Preparation of productive system (done by SAP Basis consultants – mainly in house) Evaluation of the “System Readiness” before Go-Live Organization of After Go-Live support Transfer to productive system (Go-Live) Open problems solution Closure of the first period Evaluation of work of the productive system System support Project closure Project Start The system is adjusted

Success Factors of a Roll-Out Project Clear commitment of the project sponsor to support the project Involvement of the whole project team (Management, Key-users, IT,…) Fast decision making process Availability of the customers key-users (business process owners) Active cooperation with the corporate SAP competence center!! Open Communication Experts in Russian accounting and tax requirements Use of standard solutions as much as possible and programming only when this is necessary Clear definition of responsibilities within project team Authorization to the project team to access the system Preparation of Master Data

Some of our customers The best demonstration of ALPE consulting competency and experience is the list of our customers

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Evaluation of possible ERP solutions / Example Possible evaluation criteria Evaluation of possible ERP solutions / Example Option I II III IV Option 1 Option 2 Option3 Option 4 SAP ALL SAP + 1C 1 C Other Technical feasiblity/complexity of implementation Manage complexity of integration/interfaces Flexibility / adaptability to new legal requirements Implement/set-up standard Companies processes Transparency on business Labour market condiditions PM support/supervision (incl. organization, access) Transparency about changes (amend vs. cancelation) Technical Support Authority concept IT Infrastructure (server, backup, archive, ...) Bilingual version available (engl/russ) Sum