Severstal has completed the transition to the SAP S / 4HANA platform, which replaces the previous SAP ECC 6.0 system. The productive start of the system took place on November 1, 2021.
SAP S / 4HANA is a digital core that connects 26 Severstal enterprises in 35 geographic locations and takes into account production operations, resources, financial results and company assets. Up to 20 thousand people work in the system every day. The transition to the new platform was required for two reasons. First, support for the used version of SAP will be completely discontinued at the end of 2027, and an earlier transition allowed us to debug and stabilize processes at a comfortable pace. New SAP solutions are already being developed based on SAP S / 4HANA. Secondly, Severstal aims to speed up the introduction of new IT solutions in the company, and improvements to the previous version of the ERP system could slow it down a lot.
The change of the technological platform allowed to increase the performance of the system, increase the speed of processes and the speed of further developments to improve its operation. In addition, it became possible to keep records of financial results not by individual business units, but by streams (upstream and downstream), which reflects the existing organization of the company. Also, the new platform allows for end-to-end reporting for the entire group of companies.
Severstal’s specialists managed to reduce the number of non-standard developments in the system by almost three times. The project team standardized many business processes and, as a result, dropped 1601 out of 3090 development packages and 1805 out of 3294 unique reports. By standardizing processes and reducing the amount of code, system performance is improved, and changes are already being implemented in half the time. In the future, based on the new system, it will be possible to develop machine learning and embed software robots that will optimize and speed up business processes.
“Such starts are difficult: our project is not aimed at technical conversion, but at the introduction of updated business processes, that is, a lot -“ from scratch ”. My team and I analyzed the existing processes, got rid of the unnecessary and irrelevant, changed the logic of adapting the standard functions of the system to the target business requests – these are hundreds of organizational and technological changes. The project was being implemented in a pandemic, and the entire project team switched to remote operation. No one has done remote deployments of this magnitude before us. The transition to the new system was carried out without negatively impacting the day-to-day business of the company. 64 adjacent systems and 501 integration scenarios were successfully switched to SAP S / 4HANA without significant disruptions in related processes. Starting from the fourth day, CherMK – the main enterprise of Severstal – began to work according to the production plan formed in the new system. On the eighth day, most of the users began to carry out their usual business operations in SAP S / 4HANA, and by the end of the second decade, we went online for most transactions. This is a huge merit of both IT specialists and business teams: building the business logic of processes, testing solutions along the entire production chain and launching a new system were carried out jointly using a hybrid methodology that combines classical project management tools and agile development methods. ” , – said Sergey Dunaev, General Director of Severstal-infocom.