R O O F S F O R L I V I N G

How to organize an efficient cross border SAP implementation project in Russia

September 29, 2010

Braas – DSK 1

MONIER – FACTS AND FIGURES

• 133 production sites in 33 countries

• Business activities in 40 countries

• Global headcount 8894

• Net sales 2010 – 1 280 500 000 euros

• Roofing tiles

• Roofing components

• Roofing systems

• Insulation

• Solar thermal and photovoltaic systems

• Chimney systems

• Ventilation systems

MONIER OFFERS

BRAAS – DSK 1 FACTS AND FIGURES

• Sales Volume 1 000 000 sq. m• Net Sales 15 mio. EUR• Number of plants 2• Number of branches 3• Production Capacity 2 - 2,5 mio. sq.m.• Market Share in Concrete Tiles > 70%• Number of employees 150 • Share of Monier 67%• Share of DSK-1 33%

ERP System Evolution at DSK-1

• 1996 – 1999 COS/Westernacher (AS400) + BEST (MS DOS)– Implemented Functional Modules : Logistics/Local Accounting/

Wages– Number of users: : 6– Number of locations : 1

• 1999 – 2003 Concorde XAL– Implemented Functional Modules : General Ledger/Debitors

Creditors/Fixed Assets/Wages

– Number of users : 10– Number of locations : 1

• 2004 – 2010 Axapta 3.0– Implemented Functional Modules : General Ledger/Debitors

Creditors/Fixed Assets Personell & Wages

– Number of users : 26– Number of locations : 4

• Systems hosted internall

• Application support organized via an external partner

Why SAP ?

SAP is the standard ERP solution for MONIER

as a basis for further process harmonization and shared solutions

•Not using SAP has to be released by Group IS/IT

•Migration towards SAP when replacing existing solution always have to be considered

•Local ERP solutions are only allowed when SAP is not applicable

MONIER IS/IT STANDARDS

MONIER ERP Landscape

WESTERN

EUROPE

EASTERN

EUROPE

ASIA

PACIFIC

SOUTH

AFRICA

SAPGermany

France

UK

Italy

Benelux

Scandinavia

Baltic

Central Europe

SAP Local Solution

Ukraine

Turkey

Poland

Russia

SAP Local Solution

Japan China

Indonesia

Malasya

India

Philippines

Thailand

Local Solution

MONIER Customer Center of Expertise

The Monier SAP CCoE is certified with 91 points out of 100.

This is an excellent result compared to other certified SAP customers.

It is settled in the upper third of the meanwhile more than 1000 worldwide certified CcoEs” (SAP)

Situation before the Project Eastern Europe

Poland:

• 10 years of stable SAP operation

• In-house hosting and system administration

• Long term successful external partner relationship for system support and development

Russia:

• 6 years of Axapta (MS Business Solution) deployment

• A system upgrade decision is pending

• Dissatisfaction with an overall system performance, capabilities and running costs

• Dissatisfaction with the partner responsible for system support and development

Ukraine:

• No ERP system in place

Drivers for the Project

Braas DSK-1 internal drivers

• Axapta has been running since more than 6 years without any upgrade

• Growing dissatisfaction with an overall system performance

• Axapta upgrade is very expensive due to many system modifications

Group drivers

• Group Initiative for ERP Platforms

• Available Polish SAP Platform and v. good experiences from Poland and Multi-client approach of ONE SAP in West Europe

SAP Architecture- ONE client -- Multi company approach -

Hardware -- Server

Operating System

Database

Data Structure(Cross-client Repository)

Poland

Russia

Ukraine One SAP System

on

One Server

with

In House Hosting (Poland)

OneCommon

ITLanguage

Standardizedlocal

processes

Applications(Cross-client Customizing and Solutions)

Infra StructureApplication

Local Application Support and Development

via

Local Partners

SAP Architecture- Multi client -

Hardware -- Server

Operating System

Database

Data Structure(Cross-client Repository)

Russia

Pola

nd

Ukra

ineOne

SAP System

on

One Server

with

In House Hosting (Poland)

OneCommon

ITLanguage

Multi localProcesses

Applications(Cross-client Customizing and Solutions)

Infra StructureApplication

Local Application Support and Development

via

Local Partners

Pros

• Ensuring high flexibility, stability

• Operational cost optimized solution

• Reduced to minimum coordination costs

• Good practice sharing possible not requiring sharing of business process

• System operational stability and reflecting the Monier’s business need confirmed by west European successful approach

• Authorization concept enables complete business data segregation (supports Joint Venture situation)

Cons

• Cross client business data aggregation possible only through third tools

Pros

• Optimal platform for cross country shared services

• Platform for one business process – immediate practice sharing

• Deep process standardization ensured via system architecture

Cons

• High costs of coordination and governance

• Lower flexibility to react on local needs

• Difficult to achieve local commitment for initial data harmonization and future governance

• Cultural and language issues in highly integrated system

Multi client approach Multi company code approach

SAP Multi client approach is strongly recommend

SAP Architecture evaluation- Conclusions -

Fast Track Implementation- Methodology -

1. SAP Release ERP 6.0 as the basis for further roll out

2. Implementation of the ERP common IT language in the shared SAP environment

3. Copy of the Polish client Business process coverage is a prerequisite for an efficient client copy

Good practices in all relevant fields of reporting and logistic will be taken over

Implementation of legal adjustment of Russian

Adaptation of business process at SAP level only if definitely needed

Data migration

4. Local Infrastructure implementation (WAN Upgrade, SAP Client rollout, etc)

SAP Implementation and Customization for Russia

SAP Multi Client“Client Copy Poland"

Business ProcessDesign Russia

SAP Training ofRussian Key users

Start: X

MigrationTraining End User

Go-liveEnd: X

Both phases to runsimultaneouslywith continuous

iteration

Fast Track Implementation- General Approach -

Project Phases

• Project preparation and prototype documentation

• Knowledge transfer and Delta blueprint

• Customizing

• Key user training

• Integration test 1

• Enhancement realization

• Integration test 2

• Final preparation

• Go live and initial support

Project General Information

Project scope FI CO SD MM

Duration 7 months

Go Live May 1, 2011

Implementation Metodology ASAP + Fast Track

ERP Project Success Statistics

31

40

28

23

53

33

46

49

16

27

26

28

0% 20% 40% 60% 80% 100%

2000

2003

2006

2009

Failed

Problematic

Successful

Standish Group

System Know-How

TransferSecured via implem.

contract

System change coordination

based on agreed“project” operational

processes

Project Organization

MONIER POLAND

MONIER GROUP• Steering Committee• Escalation• Process definitions• SAP Multi-client know-how counterpart

MONIER RUSSIA

ALPE(fixed prise project)

PLAUT(Strategic partner for Monier Poland)

MONIER SP. Z O.O.• Hosting partner

• Solution and know-how counterpart

BRAAS – DSK 1• Project lead: D. Kriukov

• Key-User concept

Project coordination Standard support

Project Team

Project Manager

Module ManagersFI

COMM/SD

10Key Users

Project Budget

•Implementation

•Infrastructure

•Licenses

Project Status Controll

•Weekly Status Meetings•Fixing all Project delays and problems•Fast reaction

•Steering Committee

•CEO involvement

Master Data Migration

•Key users responsible for preparation

•Labour intensive work

•Thorough data verification

Key User Training

•Just before Integration test 1

Integration tests 1 and 2

•Real data

•Personal responsibility

Data Migration

•Several days if possible

Go Live and Initial Support

•1 – 2 month obligatory

Project results

•MONIER Group ERP Standarts conformity

•Reliable and comparable information for Group Management

•Fast period closing (RAS and IFRS)