Metalloinvest named the leader in digital transformation
5 October 2018
Metalloinvest (“the Company”), a leading global iron ore and HBI producer and supplier, and one of the regional producers of high-quality steel, has won the annual SAP Value Award prize in the category “Leader of digital transformation”.
The SAP Value Award is an annual prize for clients from Russia and the CIS, who are awarded for taking part in proven high-value projects. This SAP prize aims to celebrate companies and people who are prepared to transform and boost the efficiency of the business to be able to compete effectively on the global markets.
Andrey Varichev, CEO of Management Company Metalloinvest, commented: “Metalloinvest is implementing a wide-ranging digital transformation programme, which affects almost all of the Company’s business processes. A key element of the programme is the implementation of an integrated management system based on SAP S/4HANA solutions. We are the first large industrial group in Russia to use S/4HANA on such a major scale. With the help of SAP, we are creating a platform to reach a new level of business management and long-term industrial leadership.”
Natalia Parmenova, Executive Director of SAP CIS, said: “It is always a big responsibility to be the first and the best, setting the standard for the market. The winners of the SAP Value Award are companies who are not afraid to be leaders and are trying to change their business processes by investing in innovation. Together we are creating criteria for measuring successful business transformation for companies in any industry. We invited business experts, representatives of business associations and key media figures to sit on the jury, to ensure the awards were as objective and independent as possible.”
Metalloinvest is implementing a complex programme of digital transformation based on Industry 4.0, with the main objectives being to improve business-process efficiency, increase the accuracy of planning and reduce expenditures.
As part of the first wave of Industry 4.0, an integrated financial and business management system using the SAP S/4HANA business suite was launched on 1 July 2018 at Lebedinsky GOK and Mikhailovsky GOK. The platform, which unifies more than 4,000 users in one information system, has replaced more than 100 production and management systems. It was implemented with the support of the SAP Digital Business Services team, while Accenture was the main contractor in the project.
Metalloinvest began the second wave of Industry 4.0 on 1 October 2018 at OEMK and Ural Steel. The second stage will be completed in mid-2019.
Metalloinvest’s digital transformation aims to change almost all the Company’s business processes, and covers 18 functional areas, such as production management, purchases and reserves, technical services and repairs, sales, personnel management, contracts, volume planning, budgeting and much more.
This will enable the implementation of the unified information platform for all the Company’s enterprises: instead of 100 local systems, all functioning areas will be combined on one unified ERP system. More than 30,000 organisational changes have taken place since the beginning of the implementation period. The transformation has also resulted in changes to Metalloinvest’s organisational structure, processes and regulations.
SAP S/4HANA is an intelligent ERP system, making it possible to obtain full information on all the Company’s business processes in real time. The decision to use it reflects all the trends of Industry 4.0: hyperconnectivity, the opportunity to work with In-memory technology and the ability to see large amounts of data in real time, enabling the implementation of the Real Time Enterprise concept. S/4HANA is one of the fastest and most adaptable enterprise support and development systems, due to its combination of all available technologies.
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