Without SAP ASAP: how to make the transition to domestic ERP solutions easier for businesses

In recent years, the Russian IT market has been undergoing a massive transformation. After the departure of foreign ERP vendors, primarily SAP, companies faced the challenge of switching to domestic solutions without loss of efficiency and manageability. And it's not just about technical data transfer: the ERP system is becoming an element of a strategy that reflects the maturity and sustainability of the business. These processes were discussed at the round table "The role of ERP in the critical infrastructure of enterprises", which was organized by Galaktika Corporation in Moscow. Details can be found in the Izvestia article.

Human capital

The participants in the discussion agreed that human capital has been and remains a key factor in the successful implementation of any technological transition.

The moderator of the round table, Pavel Rostopshin, CEO of Ultimatek Group, outlined three key conditions for a successful transition: people, process and partnership.

"Now, when companies switch from one system to another, there are many difficulties with organization and changes. In 2022, there were a lot of SAP specialists in Russia — about 50 thousand. Half of them worked within companies, the rest as consultants. Many still work in the Russian market, although Western companies have left. These intellectual resources can become a driving force," he said in his opening remarks.

At the same time, it is important not to copy the old system, but to rethink the processes in terms of efficiency, the expert believes. In his opinion, Russian ERP systems should help businesses earn money, not just keep records. To do this, it is necessary to integrate new functions and reduce labor costs. It is based on human capital: qualified specialists within the company and partners who are able to provide support and development of the system.

Andrey Spirkin, Chief Engineer of the St. Petersburg Metro State Unitary Enterprise, drew attention to personnel resistance. "ERP can "grow" into business processes, and it is very difficult to replace it. The business expects a finished product from the vendor without disappointment and a transparent implementation methodology," he said.

Special attention should be paid to working with older generation specialists who are used to old systems, the expert believes. "Old habits can become a serious obstacle," Spirkin pointed out.

Technology that has become a culture

According to Pavel Gontarev, CEO of VK Tech, ERP is not only a technology, but also a culture. Each system has a worldview that unites thousands of specialists. "It's important not to forget about the culture and values around the product. The transition to Russian technologies should not reduce, but increase the attractiveness of this culture for specialists. Without interesting tasks, we risk losing the best staff," he stated.

The transition should be accompanied by the creation of new ideas and opportunities: the introduction of business initiatives that make the system not just an analogue of a bygone solution, but a tool for growth. Interesting tasks and innovations will retain specialists and strengthen faith in the potential of Russian developments, the expert believes.

Olga Latypova, First Deputy Head of the IT Department at Surgutneftegaz, emphasized the importance of the "architectural album", a document recording all key transition parameters: release dates, future integrations, and functional changes. This approach allows you not only to implement ERP, but to manage its development in the logic of the business. "This document records what a business gets and what it refuses, moving from SAP to Galaktika and other Russian information systems," she said.

Latypova paid special attention to the issues of testing and updating. At the active stage of implementation, improvements are constantly occurring, so it is important to quickly and efficiently transfer them to a productive environment. The role of professional communities is equally important, similar to the SAP community, where experts share their experience and form common quality standards.

"We have a lot of work to do in the next two years, but it is important that now we have confidence that we will solve this task," Latypova summed up.

Customer effects and practical benefits

The head of the IT unit at Greenatom, Zayana Achinova, reminded: without clear benefits, implementation loses its meaning. Today, companies need to see specific effects, even if they are spot-on.

"We need to demonstrate concrete benefits, albeit on a limited scale. For example, today there is no standardized migration tool from SAP, and this gap needs to be closed, among others," she said.

Migration, Achinova believes, should start not with technology, but with business logic — determining which processes really require automation and where the maximum effect can be achieved.

Achinova also stressed that a unified transition strategy and a common methodology are the key to success. Without this, companies risk fragmented solutions and loss of manageability.

How to motivate companies to transition

Lyudmila Smirnova, Deputy General Director for Operations at Gazprom-Media Holding, is convinced that the key motivators for companies when deciding to switch to domestic software will be the availability of a detailed blueprint that ensures strategic development and flexible customization to meet the needs of a specific customer. Also, according to the expert, the availability of advanced analytics, modularity support, and access to the advice of the user community and consultants are crucial.

"Only an integrated approach focused on business needs and providing reliable support will make it possible to convince companies of the expediency of switching to Russian ERP systems," concluded Smirnova.

Alexey Gorbunov, Director of IP at Avtovaz, recalled that the main risk is the loss of continuity of business processes, especially in production facilities with a round—the-clock cycle.

"Loss of functionality and painful manual improvements are inevitable, but they can be overcome. There is no purely technical transition.: It's always project work shoulder to shoulder with business," he said.

Gorbunov noted another danger — personnel instability in internal development projects. Without a stable team, even a strong solution can be vulnerable. Therefore, large enterprises are increasingly choosing partnership models with vendors capable of providing long-term support.

Values instead of costs

According to Konstantin Kravchenko, Deputy General Director of PJSC ROSSETI, the success of import substitution is determined not so much by the choice of a platform as by the level of unification of processes.

"ERP import substitution is not just a transition from the company's existing import platform to a domestic solution, but actually a re—automation of the financial and economic activities of the enterprise, and this is a key guideline and challenge for business," he said.

Kravchenko noted that maintaining standards of business processes and transparency in the current environment is becoming vital for maintaining business efficiency. Unification is becoming the "language" in which IT and business begin to understand each other.

Denis Krivonosov, Head of the DIT department at Norilsk Nickel, emphasized that ERP should be evaluated not as an expense item, but as a source of value. According to him, the criticality of such systems varies from industry to industry, but the key principle is the visibility of returns.

"When over-investing, it is necessary to proceed not only from the risks (although they are also quite measurable in money), but also from the value. It is important that CIOs, CEOs, CFOs and manufacturers see not only the costs, but also the real benefits of implementing a new ERP," he concluded.

The market is ready for growth

Alexey Telkov, CEO of Galaktika Corporation, summed up the discussion in his speech. According to him, Russian ERP systems are already able to compete with their Western counterparts.

"Our Russian ERP system is built around customer value, offering a fully import-independent solution. We take the best of SAP's functionality, add the necessary improvements, and offer a system with a high level of quality, but at the same time faster and cheaper to deploy. The user experience in our system is similar to SAP in many ways, which makes the transition easier. Personnel training is an important success factor, and we are actively working to create competence centers for training specialists. A serious problem remains the shortage of qualified consultants, who traditionally play the role of a link between the developer and the client. In the current situation, we are forced to independently provide a full range of services, from sales to support. Solving this issue requires the joint efforts of all market participants to develop consulting expertise in the field of Russian ERP systems," concluded Alexey Telkov.

The participants of the round table came to a unanimous conclusion: import substitution in the field of ERP solutions is a strategic shift. To implement these changes, it is necessary not only to copy Western technological solutions, but also to creatively rethink them. This is the only way to switch to domestic solutions that will not be a costly project, but a source of sustainable competitive advantage.